Company Registration in Madeira
Capital: Funchal.
Official languages: Portuguese.
Currency: euro.
Company registration provides the following benefits:
- Low taxes.
- Stability and security.
- Access to European markets.
Madeira is a small volcanic island in the Atlantic Ocean, an autonomous region of Portugal, located on the archipelago of the same name in the North Atlantic Ocean.
Madeira Island has become an increasingly popular place to do business in recent years. This is facilitated by political stability, low taxes, and developed infrastructure. Since 2018, the island has had a special regime for international companies, thanks to which the income tax rate is only 5%.
Taxation and Reporting Features
Corporate Income Tax:
- Standard rate: 14%
- Reduced rate: 5% for certain sectors
- Tax incentives for new companies in the first 3 years
VAT:
- Standard rate: 22%
- Reduced rate: 12% (hospitality, specific goods)
- 5% (books, newspapers)
- 0% on services exported outside the EU
Dividends:
- 0% for Madeira residents
- 0% for non-residents (under certain conditions)
Company registration in Madeira is facilitated through the Regional Directorate of Economic Activities. The chosen company name must be approved and registered with the relevant authorities.
To register a company, an application signed by the director is required, outlining the basic details of the company. This must be accompanied by various documents, including the articles of association, a declaration, copies of identification, and Tax Identification Numbers (TIN) of both shareholders and directors.
Upon successful incorporation, the company's details will be published in the Madeira Official Gazette. Additionally, registration with tax and social insurance agencies is necessary to finalize the process.
At the time of registration, the company must have:
- A Tax Identification Number obtained from the tax office — essential for tax purposes and to open a bank account.
- Articles of Association certified by the regional trade registry or a notary.
- A bank letter confirming that adequate funds are available in the account to establish the company, detailing the company name, its shareholders, and their respective capital contributions.
- A receipt for the payment of 0.4% of the share capital to the Anti-Monopoly Authority.
Company Registration in Madeira
- Limited liability
- Minimum 1 director / 1 shareholder
- Simple business structure
Company Registration in Madeira
Additional information
- Financial reporting: Mandatory annually (local standards)
- Audit: Mandatory for all companies
- Annual Return: Within 42 days after the anniversary of incorporation
- Tax return: Corporate Tax Return required
- Employer's Return: If employees are present
- Registers: Mandatory for shareholders and directors
- Directors' details Publicly accessible in registry
- Shareholders' details Publicly accessible
- Financial reporting Confidential (not disclosed)
Timeline and Stages
- 01
Preparation of documents and name selection
1-3 days - 02
Name availability check in the Madeira Companies Registry
1 day - 03
Submission of documents either online or offline
2-5 days - 04
Acquisition of Company Identification and Business Registration certificates
from 2 weeks - 05
Setting up a corporate bank account
2-4 weeks
The bottom line
The low tax regime and convenient location make Maidera Island attractive to businesses from Europe, Asia and North America. However, when choosing a jurisdiction for a company, it is necessary to take into account not only current legislation, but also its possible changes in the future. We recommend consulting with IT-OFFSHORE lawyers to avoid possible legal consequences and ensure compliance with laws.
Our company offers comprehensive support for the company at all stages - from registration to full support of its activities. We not only help you legally register a company, but also take on many subsequent tasks.
In particular, our scope of services includes maintaining accounting and tax records, providing nominee directors and shareholders, leasing a legal address, obtaining all necessary licenses and permits for the company. We actually ensure the full operation of the business in accordance with the laws of a particular jurisdiction.
Cost calculation
Add the required options for your company:
FAQ
Can you register a company remotely?
Yes, in most cases — you can.
Remote company registration is available in the vast majority of popular jurisdictions today. Modern corporate services, electronic document management and professional registered agents make it possible to complete the entire registration process without being physically present in the country.
The process typically works as follows: you provide the required documents electronically, sign them remotely — via a notary, apostille or electronic signature — and a local registered agent handles all communication with government authorities and document submission on your behalf.
This has been made possible by several factors: most countries allow foreign founders and directors, corporate service providers operate remotely across the globe, and the digitisation of government registries has significantly streamlined and accelerated the procedures.
The one step that may still require in-person presence is opening a corporate bank account — however, even here many banks and fintech platforms now offer remote identity verification.
What documents are needed for registration?
Registering a company in most jurisdictions requires a standard set of documents. For individuals — founders and directors — the typical requirements include: a certified copy of a passport, proof of residential address (utility bill or bank statement no older than 3 months), and in some cases a bank reference letter or CV.
For corporate shareholders, the required documents include: certificate of incorporation, articles of association, register of directors and shareholders, and confirmation of the ownership structure.
Do I need to keep accounting records and submit reports?
Accounting and reporting requirements vary significantly depending on the jurisdiction. In most countries, companies are required to maintain proper bookkeeping, file annual financial statements and submit tax returns.
At the same time, there are a number of jurisdictions where reporting requirements are minimal or effectively non-existent for non-resident companies. These include, for example, the Marshall Islands, the Cook Islands, Panama, Belize, Seychelles and Vanuatu — in these countries, companies that do not conduct business within the territory of the registration state are generally exempt from mandatory financial reporting and audit requirements.
We provide full company administration services, including preparation and submission of annual reports, liaison with local authorities and ensuring full compliance with all corporate requirements of the jurisdiction.
Is it possible to open a bank account for a company?
Yes, opening a corporate bank account is possible for virtually any jurisdiction, however this process deserves careful attention. Today businesses have two main options: traditional banks and fintech platforms.
Traditional banks offer a full range of financial services, but account opening requirements have become increasingly stringent — KYC procedures, source of funds confirmation, business plans and in some cases in-person presence may be required. Fintech platforms — such as Wise, Airwallex, Revolut Business and others — open accounts significantly faster and remotely, making them a popular solution for international companies at an early stage.
Is it possible to use nominee directors?
Yes, the use of nominee directors and shareholders is a common and legitimate practice in international corporate structuring. A nominee director is formally listed in the company registry but acts exclusively in accordance with the instructions of the beneficial owner, providing an additional layer of privacy.
This service is particularly in demand in jurisdictions where information about directors and shareholders is entered into a public register — for example, in Cyprus, the United Kingdom, Malta and a number of other EU countries. In offshore jurisdictions, nominee services are also widely used to simplify corporate governance and protect ownership structures.
We provide nominee director and shareholder services for any jurisdiction we work with.
