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How to start a business in Portugal - company formation, residency & visas, accountants & taxes

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A natural hub for trade between Europe and America, Portugal has an open economy and actively seeks to attract foreign investment, with plenty of incentives available. (See our articles about Portuguese Tax Breaks and Why Startups Are Moving to Portugal).

What are the main types of company in Portugal?

There are two main forms of corporate structure for foreign companies:

  • Public company (S.A.)
  • Private limited company (Lda)

Requirements for company formation in Portugal:

  • The minimum share capital for a Lda is now €1.
  • The minimum share capital changes with the amount of shareholders.  One shareholder €1, two shareholders €2. This lower share capital amount is dependent on the business activities of the company and does not require any authorisation. The shareholders will have to make a declaration that the share capital was deposited.
  • Banks may require more than this figure in order to set up an account and provide good financial conditions.  They should be able to show that the company has good collateral and a solid business plan.
  • You will need to sign documents with a notary and sign forms for the bank account within 15 days of the company formation.
  • An electronic post box is required in order to receive the Portuguese tax correspondence. These are issued through the Portuguese Post Service (CTT) with a specific ID code and password. The account must be checked on a regular basis.
  • An accountant should be appointed prior to incorporation as VAT registration or the filing of tax returns without the intervention of a chartered accountant is not permitted. We can provide expert accountants along with a registered address for the company. But if you have your own accountant, confirmation is needed to prove they can provide a registered office address for the company.

What are the main features of a public company?

  • This is the standard format for large businesses
  • Minimum share capital is €50,000
  • Minimum number of shareholders is five
  • Stringent accounting and auditing requirements

Is it complicated to set up a company in Portugal?

Portugal has streamlined its incorporation procedures in recent years, although professional advice remains absolutely essential. Our network of local experts in Portugal will be there to guide you.

Golden Visas and resident permits in Portugal

Portugal has many accommodating options for immigration, particularly the ‘Golden Visa’. The Golden Visa is a citizenship scheme that involves making a substantial investment in exchange for residency. Investments can be in capital, property or targeted employment, although the majority of successful applications are for property. An investment of as little as €350,000 in an area of urban renewal, or €500,000 for property in any location, secures a visa with a guaranteed route to permanent residency. Golden Visa holders only have to reside in Portugal for seven days in their first year, and 14 days thereafter. They also receive the benefit of free travel within the Schengen zone of 22 countries. By investing in Portugal, a business could move or expand to a lucrative, settled country in the EU with a high quality of life. Business owners can still live and work in their home country, and only take the odd trip to Portugal to oversee their enterprise, also potentially gaining a route into the EU, making it easier to trade goods and resources, and to take advantage of EU standards.

How easy is it to recruit staff in Portugal?

Portugal has a strong and highly developed recruitment industry. There is no shortage of well-qualified applicants for jobs, but it is important to make certain that you are dealing with a recruitment agency that you can trust. It’s also worth noting that Portuguese labour laws protect the employee and it’s essential to take advice before entering into a contractual arrangement. We have a panel of recommended recruitment and employment law specialists in Portugal who will be happy to help you on this issue.

What is the regulatory environment like?

For centuries Portugal has relied on international trade and this is reflected today in the liberal nature of its economy. The regulatory environment is easygoing, while maintaining standard EU rules. Foreign companies are free to invest as they wish, although there are limits in certain strategic sectors. There are no obstacles to capital entering the country, nor any restraint on the repatriation of profits or dividends.

Are there financial incentives available?

Portugal offers generous incentives, many of them backed by EU funds, to attract foreign companies wishing to invest. Special incentives are available for large investment projects and for proposals that would impact positively on tourism, science and the environment.

What about banking facilities?

Most major international banks and financial institutions have a base in Portugal and offer a full range of banking facilities to investors. The local financial sector is also more than capable of meeting the needs of the international investment community. You will need a bank account if you want to open a company in Portugal which we can help you with.

For more information about company formation, including registering a business address, VAT services, accountants or bank accounts, please call us on 0033 (0)1 53 57 49 10 or email us from our contact page and we’ll be happy to help.

How to start a business in Poland - company formation, recruitment, accountants & VAT

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There are generally two reasons why business investors set up companies abroad: either to access new markets or to cut costs. Poland scores exceptionally well on both counts. The Polish market is the largest in Central Europe – larger, in fact, than the other nine new EU members put together – employment costs are low, and affluent foreign investors are fuelling Poland's economic growth.

What are the main types of company in Poland?

There are four main kinds of business entity for foreign investors and they are as follows:

  • Limited liability company (sp. z.o.o)
  • Joint stock company (S.A)
  • Partnership
  • Sole proprietor

Requirements for company formation in Poland: Limited liability company (sp. z.o.o)

  • A private limited company is the most popular format for small/medium sized companies.
  • Minimum share capital is 5,000 złotych to be fully paid up
  • Minimum number of directors is one.
  • No restrictions on foreign shareholders.
  • Annual accounts to be prepared and held at company offices.
  • For EU VAT Registration you are required to have a virtual office.
  • An Annual General Meeting has to be held and filed in Poland.
  • Polish companies are required to maintain accounting records from the moment of registration. The provision of a registered office service is possible only where the purchaser of the company can confirm that the company will be maintained in accordance with Polish law, including the maintenance of accounting records by a properly authorized person or organization.

Requirements for a Joint Stock Company in Poland (S.A) :

  • The main characteristics of a joint stock company S.A is the form used by larger companies wanting to raise public capital.
  • The minimum share capital is 500,000 zlotys, of which at least 25% must be paid up
  • There is a two-tier system of administration, with management and supervisory boards.
  • 8% of the annual profits are to be put in the reserve fund (maximum 30% of the share capital).
  • Annual accounts and an independent audit are required.

What are the main forms of partnership in Poland?

There are four main kinds of partnership under Polish corporate law:

  • Registered partnership (all partners have equal and unlimited liability)
  • Limited partnership (some partners have limited liability)
  • Professional partnership (some concessions regarding partner liability)
  • Limited joint-stock partnership (includes partners and shareholders)

What are the main features of a sole proprietor company?

  • The simplest and least-regulated form of business entity
  • A very popular format for small business enterprises
  • A sole trader has unlimited liability for all liabilities and debts
  • Profits are subject to Polish income tax at individual rates

How easy is it to recruit staff in Poland?

While some of the country’s brightest young brains have been tempted to move west to take advantage of EU membership, Poland has a large and well-educated workforce. Please contact us if you would like to speak to one of our recruitment specialists.

What is the regulatory environment like?

Poland now has one of the most liberal economic regimes in Central Europe. Capital and profits can be freely repatriated. However, legal and accounting regulations are complex and local expert assistance is advised. We have excellent lawyers and accountants ready to help smooth the way in the regulatory process should you need them.

Are there financial incentives available?

Poland offers a broad range of financial incentives for foreign investors including the following: grants of up to 25% for companies setting up in Poland, enhanced grants totaling 50% in Special Economic Zones and further incentives are available through EU-funded schemes.

What about banking facilities?

Poland is an important regional centre for the international banking community and most major financial institutions have a presence in Warsaw. Local banks are also capable of competing strongly and effectively to provide facilities for foreign investors. Opening a bank account requires specialist advice which we can help you with.

For more information on how to open a bank account in Poland or for any further issues on company incorporation in Poland, including employment advice, accountants and VAT, please contact us on 0033 (0)1 53 57 49 10 or email us from our contact page and we’ll be happy to help.

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How to start a business in Norway - company formation, tax advantages, accountants & VAT

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Few countries can beat Norway when it comes to quality of life. The world’s third biggest oil exporter after Saudi Arabia and Russia, Norway is a wealthy, stable democracy with an enviable ability to balance free-market capitalism and social welfare. The business climate is healthy and company formation in Norway is straightforward provided you comply with the formalities.

Requirements for company formation in Norway     

  • Minimum share capital 30,000 NOK (€4,000), fully paid up.
  • At least one shareholder & a board of directors required.
  • If the shareholder/director is a non-EU/EEA citizen then 50% of board members must be Norwegian residents. (Nominees can be provided).
  • VAT threshold is NOK 50,000
  • An accountant and auditor must be appointed prior to incorporation.
  • Notarised passports must be received from the Managing Director and Deputy.

What are the main types of company in Norway?

The three most popular forms of corporate structure in Norway are as follows:

  • Private limited company (AS)
  • Public limited company (ASA)
  • Branch office of a foreign company

How do you set up a branch office in Norway?

A foreign company may establish a branch in Norway provided that the foreign company is registered in its home country. Companies residing outside the EU area must obtain permission from the Minister of Industry. The branch must be registered in the Register of Business Enterprises.

Are there any restrictions on foreign investment in Norway?

Generally speaking the Norwegian government places foreign investors on an equal footing with domestic investors, but there are exceptions. For example, foreigners may own no more than 40% of a Norwegian fishing fleet. Foreign ownership of a Norwegian air transport company is restricted to 30% but the all-important oil sector is now largely free of restrictions for international investors.

How easy is it to recruit staff in Norway?

There are recruitment agencies throughout the country and we will be happy to refer you to our network of local recruitment specialists. It is worth noting that there are restrictions on bringing in foreign personnel from abroad and issuing work permits, so please contact us for further information and assistance on employment matters.

What is the regulatory environment like?

Norway has eased its regulatory regime significantly in recent years. Foreign exchange controls were largely abolished in the early 1990s and profits and dividends can be freely repatriated subject to Central Bank reporting requirements. All companies have to file accounts with the Register of Business Enterprises and a statutory audit has to be carried out each year.

Are there financial incentives available?

Norway offers general tax incentives for specific regions and industrial sectors:

  • Companies investing in Norway’s far north pay lower employee taxes
  • Tax rates are minimal on the Arctic island of Spitzbergen
  • A state fund provides grants for investment in areas of low employment
  • Tax deductions are allowed for research costs in key sectors such as oil

What about banking facilities?

Norway’s financial sector is highly advanced and well attuned to the needs of international investors, but opening a bank account contains certain administrative processes. Luckily our banking contacts make it easy for us to help with opening a bank account in Norway.

For more information on company incorporation in Norway or any other matters concerning tax advantages, accountants and VAT, please contact us on 0033 (0)1 53 57 49 10 or email us from our contact page and we’ll be happy to help.

How to start a business in the Netherlands - company formation, tax breaks in Holland, accountants & VAT

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The Netherlands has long been a favorite home for foreign investors. It has a stable and successful economy and a trade and investment policy that is one of the most open in the world. Holland has welcomed foreign investment for many years and with the UK's departure from the EU, many import and export companies are choosing the Netherlands to base their EU trade companies. (See our article about Why Holland Is A Smart Place For Your European Business).

What about the Dutch tax breaks and tax advantages?

The Netherlands has a liberal tax regime including generous exemptions – dividends and capital gains are exempt from Dutch corporate income tax. There’s also an extensive network of double-taxation treaties. There are many other aspects of Dutch tax law which comes with advantages, but as always, you will need specialist advice. We can put you in touch with chartered accountants that have expert knowledge in tax advantages.

Requirements for company formation in the Netherlands:

  • One director will be required.
  • A minimum share capital of €1 (a minimum deposit of €5,000 is advisable for a BV company and €45,000 for an NV company).
  • Accounting obligations required.
  • Virtual or physical office required.
  • One utility bill dated within the last 30 days will be required
  • A foreign bank account may be required for non-active companies
  • There will be two small invoices (approx. €100-€150 per company) that are billed to and must be paid by the client. These are issued by the Kamer van Koophandel (Dutch Chamber of Commerce)

What are the main features of a branch?

  • A popular format for foreign companies opening up in the Netherlands
  • The foreign parent company is responsible for all liabilities of a Dutch branch
  • A branch is required to register with the Chamber of Commerce
  • A minimum of one director is required
  • There are no formal accounting requirements
  • One representative will be required.
  • No share capital is required
  • Virtual or physical offices are required.
  • Company incorporation documents need to be translated and certified by a notary 

How easy is it to recruit staff in Holland?

The Dutch are famously multi-lingual and their education and workplace skills are high. Just get in touch if you'd like us to refer you to one of our carefully chosen local recruitment specialists. 

What is the regulatory environment like?

The regulatory environment is reasonably easygoing with regard to foreign investment and taxation, but certainly not when it comes to employment laws. The Dutch labour market is heavily regulated and generally favours the employee. Companies employing more than 35 workers are legally required to establish a works council which must be consulted on a wide range of issues. If you need to dismiss an employee, count on the intervention of a civil court or government body. You should take legal advice before entering into any kind of employment contract – contact us for details of our network of Dutch legal and recruitment specialists.

Are there financial incentives available?

The Dutch government and local authorities offer incentives to foreign investors based on a number of factors, most particularly the region where the new company is to be based. EU funds are also available. Key agencies here are the government-run regional development corporations which can help start up new businesses and act as risk-bearing partners.

What about banking facilities?

Amsterdam is one of the world’s top financial centres and most international banks have offices there. The Netherlands has several specialist agencies that provide business funding. The National Investment Bank focuses on medium and long term lending, equity investment and capital market activities and the Industrial Fund provides risk-bearing capital to the larger high-tech companies. You will need to open a business bank account in the Netherlands and we can arrange this for you.

For more information on company incorporation in the Netherlands and other issues such as Dutch tax breaks, accountants, business banking and VAT, please contact us on 0033 (0)1 53 57 49 10 or email us from our contact page and we’ll be happy to help.

How to start a business in Luxembourg – company formation, business banking & tax

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One of the world’s wealthiest countries despite being one of the smallest in size, Luxembourg provides a unique low-tax environment for international investors. The country is widely used in corporate structuring for cross border transactions and due to its place in Europe’s political environment, it is constantly adapting its tax legislation.

Thanks to its progressive approach and status as a tax haven, Luxembourg is, and will remain, a beneficial country for international business. But expert help is needed by entrepreneurs to capitalize fully on the many advantages of company incorporation in Luxembourg. We can help with everything from company formation, bank accounts and chartered accountants to steer you safely through Luxembourg’s complex tax regulations.

Is Luxembourg a low-tax environment for everyone?

The tax benefits in Luxembourg are carefully structured to ensure minimal disruption with other EU countries. On the face of it, the corporate structure in Luxembourg is similar to that of most other EU states, with most companies adopting the usual joint stock or limited liability formats. However within this standard structure is a strictly-defined class of holding company. Qualify for this, and your corporate income tax can sink to below 1%. For expert advice, we can put you in touch with one of our local specialists in tax planning.

How can I set up a low-tax company in Luxembourg?

There is one main kind of low-tax business entity – the Soparfi which uses a business structure called a SARL (limited liability company) or SA (joint-stock) as a base. In fact, it would be more accurate to define a Soparfi as tax-efficient rather than low-tax. The rules governing low-tax holding companies are strict and it is essential that you comply with them at all times, otherwise your company will lose its low-tax status.

What are the requirements for a standard corporate structure Soparfi?

  • Only one director / shareholder is required, unless the company is an SA (joint-stock) and has more than one shareholder, in which case the minimum is three.
  • Share capital can be used as normal company funds after incorporation - 12500€ for a SARL (limited liability company) and 31000€ for a SA. The SA can be constituted with ¼ paid up share capital, i.e. 7750€. The share capital can also be held in equivalent in another currency.
  • A registered address is sufficient.
  • Use of nominee shareholders is common practice - we can provide this service
  • Provision of managers

How easy is it to recruit staff in Luxembourg?

Businesses have little trouble recruiting staff as the employment pool is bolstered by workers commuting into Luxembourg from neighbouring countries. The workforce is well educated and is particularly attuned to the financial services sector. Contact us for help and advice on recruitment.

What is the regulatory environment like?

Luxembourg is regarded as rather more bureaucratic than some other EU member states. It complies with EU directives on employment, health and safety and indeed on most taxation issues, apart from the particular circumstances of low-tax holding companies. Domestic and foreign investors alike have the right to establish businesses in Luxembourg.

Are there financial incentives available?

In addition to being a tax haven, which is a considerable financial incentive in itself, Luxembourg has a number of schemes designed to promote investment. It has established a framework for investment incentives to counter the country’s historic reliance on the steel sector, and grants are available to encourage investment in other manufacturing and high-tech industries. The government also provides equity funding for certain kinds of investment, particularly in development areas.

What about banking facilities?

Luxembourg is a major centre for financial services, and there are more than 200 banks in a country whose population is below half a million. No surprise then, that Luxembourg offers world-class banking facilities. Most international banks are represented here. You will need to open a bank account in Luxembourg and we can advise you on this as well as issues regarding offshore banking.

For further information on company formation, including business banking and tax advice in Luxembourg please contact us on 0033 (0)1 53 57 49 10 or email us from our contact page and we’ll be happy to help.

 

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