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Opening an offshore in Madeira 2022

How much does it cost to open an offshore in Madeira

2021-01-06
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Madeira is increasingly attracting the attention of businesspeople. There are many reasons to open an offshore in Madeira 2022. The archipelago is part of Portugal, so it is part of the EU, but since it is outside Europe, it has many benefits. The pluses include the corporate tax rate of 5%, no tax on capital gains, and dividends that are paid to a non-resident of Portugal. The archipelago has signed a double taxation treaty with many countries. There is also an opportunity to save money by choosing the right form of offshore registration.

How much does it cost to open an offshore in Madeira

How much it costs to open an offshore in Madeira 2022 depends on the type of enterprise, with the price starting from €14 000. It is cheaper to register an LLC, e-Business Company, transport company, a little more expensive to open a branch.

The registration price includes:

  • registration agent's services;
  • license fee;
  • registration fee - about €1 000, then annually from €1 800;
  • taxes and registration fees;
  • filing an application for a Tax ID number;
  • opening of a bank account;
  • registration of the registered office.

Limited Liability Company (LLC)

Foreign entrepreneurs can register an LLC in three weeks. The company must be owned by at least 1 director and 2 shareholders of any nationality. It is also possible to create an LLC with one shareholder, but the form will be different - Sociedad Uniperssoal LDA. Corporate directors are not allowed, and the minimum share capital is €1 per shareholder, but it is recommended that it be at least €1 000.

Public limited company (SA)

The amount of share capital for a public company is €50 000. It also requires at least 5 shareholders and one director. The name of the director is entered in a public register, while the details of the shareholders remain confidential.

Branch and representative office

A foreign company can register a branch office in Madeira in order to bill customers, sign local sales contracts, receive income from locals. An alternative option is a representative office to promote the business of the parent company, market research. But in this case, direct sales are not allowed.

Registration starts at €15 000. This includes the fee for opening a branch office (€3 900), application for a TIN in Portugal for the foreign director and the parent company (€1 100).

Holding corporation (SGPS)

SGPS companies can register as SA or LDA. Their sole purpose must be to manage the shares of other entities. The holding company can also grant loans to companies whose shares it owns.

It is imperative that the corporation register an office and hire a local resident. It is important to adhere to the principles of economic presence in order to obtain tax benefits - 6 jobs in the first six months of operation, to invest €75 000 in major corporate assets over two years.

Registration procedure

  • Apply for approval of its name at the National Commercial Registry of Portugal and receive a certificate (valid for 3 months);
  • Apply to the regulatory authority, Sociedade de Desenvolvimento da Madeira (SDM);
  • Apply for a license, stating the legal address, the size of the investment, the intended field of activity, and the number of jobs;
  • Open a corporate bank account;
  • Sign the articles of incorporation and the rules that govern the organization;
  • To apply for registration in the register of companies in the Madeira Free Trade Zone, within 2 months from the date of registration;

How to register an offshore company in Madeira quickly

For fast registration of an offshore company in Madeira 2022, contact IT OFFSHORE specialists.

Apply now

and get a personalized offer