Types of Companies in Portugal

Article by Innovate360 - Official Business Services Partner to KipperTree.

08 08 2023 

Read the full article here

Portugal is well known for its rich history, stunning landscapes, and vibrant culture. Along with stunning landscapes, of also boast a diverse business landscape. If you are thinking to conduct business in Portugal then you must understand about different types of companies in Portugal. You also must be aware of the different legal structures of business in Portugal. The types of companies that exist in Portugal provide valuable insights to entrepreneurs and investors. A few types of companies in Portugal are discussed in this article.

Companies in Portugal

Public limited company (Sociedade Anónima or SA)

A public limited company is a type of legal entity for the establishment of businesses. It is featured by a capital which is divided into shares. It is being regulated by the Portuguese Securities Market Commission. This type of company allows the shareholders to invest and trade shares on the stock market. The liability of the shareholders is limited. It depends upon the amount that they have invested in the company. At least, five shareholders are required to start a public limited company. These shareholders can be individuals or legal entities. The company needs to be registered in the Portuguese Commercial Registry and obtain NIF as well.

Private limited company (Sociedade por Quotas or Lda)

The private limited company offers a flexible framework for small and medium-sized enterprises. This type of company allows the participation of multiple shareholders. It ensures limited liability protection to the shareholders concerning their contribution to the company’s capital. A minimum of one and a maximum infinite number of shareholders can participate in it. There must be a registered office of the company in Portugal. It offers flexibility in terms of decision-making, management, and shareholding structure. Innovate360 provide you with virtual office services that provide your business with a prestigious address and professional image without the expense of a physical office.

Sole proprietorship (Sociedade Unipessoal por Quotas)

A sole proprietorship is one of the simplest and most common forms of company in Portugal. In this type of business, only one individual manages the business. He is the owner of the company, who has unlimited personal liability for the obligations and debts of the company. He has full control over the business and his assets can be used to cover any liability of the business. It is important to consult with a legal and tax professional to ensure compliance with all applicable laws and requirements.

Sole-proprietorship

Limited partnership (Sociedade em Comandita or SC)

A limited partnership is a unique type of business in Portugal in which two types of partners coexist. One is the general partner and the other is the limited partner. General partners have unlimited liability and limited partners have limited liability. The liability of general partners is unlimited for the company’s debts and obligations while the liability of limited partners is limited to the amount that they have invested in the company.

Limited-partnership

Cooperative (Cooperativa)

Cooperatives are business entities in Portugal. They are formed by a group of people or legal entities. These groups of people come together to meet their cultural, social, and economic aspirations and needs. They aim to provide services or produce goods for the merits of their members. There are different types of cooperatives in Portugal including agricultural cooperatives, consumer cooperatives, worker cooperatives, housing cooperatives, and credit cooperatives etc. Each type has its specific requirements and regulations.