Company registration and account opening in Portugal 2020

Portugal is a great place for a startup. In 2020, there are still not many big business players on its territory, and there is an undeniable advantage - the competition to enter the world market is lower than in other European countries. You can open a company in Portugal through a simplified scheme or in the traditional way - everything depends on the goals and willingness of all founders to contact the registration authorities.

Types of companies in Portugal:

• Cooperative;
• Partnership;
• Open Joint Stock Company;
• Limited Liability Partnership;
• Limited Liability Company (private or individual);
• Individual entrepreneur.

Some types of companies can be registered remotely, but a founder will still be required to open a corporate account with a national bank. Freelancers do not need to establish a legal entity in a jurisdiction.

Conditions for a successful business start-up

• Absolutely new idea, which has no existing analogues (areas of IT-technologies and cryptology are currently actively developing in Portugal);
• Investments in the country's economy or other contribution to its development (creation of new jobs, meeting the increased consumer demand);
• Carrying out activities that allow generating annual revenues of at least 325,000 euros.

Portugal is not yet considered a popular place for conducting foreign business, but this is temporary. The advantages of the jurisdiction are obvious: excellent climate conditions, access to the sea and markets of the European Union, transparent reputation, reasonable prices for the registration of the company and the ability to carry it out in the shortest possible time, as well as a flexible system of taxation.

The establishment of the company will take from 10 to 30 days. During this period, the entrepreneur needs to generate a sound name for it or select one from the existing list. The next steps will be to develop a business plan and Articles of Association, the main document of the firm (analogue of the Charter). The specialized agency accepts for inspection only the full package of registration documents: questionnaires containing detailed data on the founders, beneficiaries and top managers, copies of documents certifying their identity and address of registration, title and foundation documents of the company, as well as the original Articles of Association.

Why does the company need a local bank account and how to open it?

Large cash transactions are prohibited in the country, so it is vital for any legal entity to have a corporate account. A nice bonus of the Portuguese banking system is the possibility to remotely manage your accounts, and the unified national network of Multibanco ATMs is considered one of the best in the EU.

Due to the adjusted legislation in the field of anti-terrorism financing and money laundering,  it is not so easy for the newly established company in Portugal to get the consent of a local bank to open an account. There is no need for qualified support. The help of IT-OFFSHORE experts will help to understand all the details of the service and to become the owner of the corporate account in the shortest possible time.

The opening of an account in Portugal must take place no later than five days after receiving the business registration certificate. The bank will require the incorporation documents, copies of contracts confirming that the company has local contractors and a rental agreement indicating that the company's office is indeed located in the country.