Starting a company in Portugal: everything you need to know
Portugal stands out as one of the best countries in Europe for entrepreneurship. Lisbon, Porto and the Startup Portugal ecosystem attract entrepreneurs from around the world. The company creation process is one of the simplest and fastest in the EU. See how.
Step 1: Choose the legal form
Self-employed (ENI)
- Minimum capital: none
- Liability: unlimited
- Taxation: progressive IRS (14.5%–48%)
- Ideal for: freelancers, consultants, professionals
Private Limited Company (Lda)
- Minimum capital: freely defined in the partnership agreement (can be 1 €)
- Liability: limited to capital contribution
- Number of partners: minimum 2 (or 1 for sole proprietorship Lda)
- Ideal for: startups, SMEs, projects with partners
Sole Proprietorship Limited Company (sole proprietorship Lda)
- Same regime as Lda, but with a single partner
- Ideal for individual entrepreneurs wanting limited liability
Joint-Stock Company (SA)
- Minimum capital: 50,000 €
- Minimum 5 shareholders
- Ideal for: large companies, stock exchange listing
Step 2: Company incorporation
Company in an Hour (in-person)
- Go to a Company in an Hour counter (Registry Office)
- Choose pre-approved company name and partnership agreement
- Immediate incorporation (approximately 1 hour)
- Cost: 360 €
- Includes: commercial registration, NIPC card, Social Security
Online Company (digital)
- Access the eportugal.gov.pt portal
- Fill out form and define partnership agreement
- Digital signature from all partners
- Incorporation in 3–5 business days
- Cost: 220 €
For ENI:
- Activity registration with the Tax Authority (Tax Portal or counter)
- Social Security registration (automatic)
- No need for commercial registration
Step 3: Taxation for entrepreneurs
Corporate Income Tax (IRC)
- Normal rate: 21%
- SMEs: 17% on first 50,000 € of profit
- Interior regions: 12.5% on first 50,000 €
- Municipal surcharge: 0–1.5%
Personal Income Tax (IRS) (Self-employed / Independent Worker)
- Simplified regime: 75% of service income taxed under IRS
- Organized accounting: taxation on actual profit
- Withholding tax: 25% (for professional activities)
VAT
- Normal rate: 23%
- Intermediate rate: 13%
- Reduced rate: 6%
- Exemption: up to 14,500 € of annual invoicing (art. 53)
Step 4: Social Security
Self-employed worker
- Contribution rate: 21.4% on 70% of relevant income
- First-year exemption of activity (12 months)
- Payment: quarterly based on previous quarter's income
Company manager (MOE)
- Contribution rate: 11% borne by manager + 23.75% borne by company
- Contribution base: declared remuneration
Step 5: The business plan
A professional business plan is essential to access financing. Create yours with the BoostPro AI business plan generator — complete, detailed and adapted to the requirements of Portuguese banks and investors.
Step 6: Financing and incentives
Portugal offers a robust support system:
- Portugal 2030: co-financing for innovation and training
- StartUP Voucher: 1,095 €/month grant for young entrepreneurs
- SIFIDE II: tax credit for R&D
- IEFP: employment creation support
- IFD: favorable credit lines
Discover available support with the BoostPro AI simulator.
StartUP Portugal Ecosystem
The StartUP Portugal program energizes the ecosystem with:
- StartUP Voucher and Incubation Voucher
- National Incubator Network
- Web Summit in Lisbon — Europe's largest tech event
- Tech Visa — special visa for entrepreneurs and tech talents
Project diagnosis
Before moving forward, validate your project's viability with the BoostPro AI diagnostic questionnaire. In a few minutes, you will receive a complete analysis of the strengths and weaknesses of your idea.
Conclusion
Starting a company in Portugal in 2026 is fast, accessible and supported by an increasingly mature ecosystem. From Company in an Hour to Portugal 2030, entrepreneurs have tools to launch and develop their projects with confidence.