:
registration of legal entity

Cost of registration The cost of the second year Number of Directors Corporate tax rates Payment of Charter Capital Financial statements
1680.00 EUR 1275.00 EUR 1 20.00% 5000.00 Yes

Company registration in Madeira

 

Madeira enjoys a high level of confidence among the world's largest economic centers. Registration of a company in its territory allows obtaining the status of the Portuguese corporation. The foregoing entails a lot of tax benefits, which attracts foreign investors.

Advantages of the company in Madeira

Offshore in Madeira is notable for high level of protection of personal data and loyal tax policy. Corporations, trading companies and holdings of this jurisdiction receive the most favourable taxation conditions, which allows them to invest more in business development.

A company registered within the jurisdiction of Madeira allows its owners to participate in the international free trade area (FTZ) (exempt from taxes on income and capital gains).

The cost of modern telecommunications systems in Madeira, real estate and utilities is optimal for any business.

Madeira, compared to other jurisdictions in Europe, has a much more affordable cost of living.

Company registration

The main corporate law in Madeira is the Code of Portuguese Companies (Codigo das Sociedades Comerciais). Specified powers and objects of the company must be fixed in the Charter. Corporate documentation should be maintained in Portuguese, but translations are acceptable. The procedures for incorporation are simplified as much as possible, so its process can take no more than 3-4 days.

Registration is carried out in several stages:

  • selection and approval of a unique name;
  • opening of a corporate bank account and contribution of minimum authorized capital;
  • provision of the required package of documents for registration;
  • receipt of an extract from the Commercial Register;
  • assignment of tax number;
  • registration  in the regional center of social security and insurance;
  • publication of the Charter in the local press.

Populartypes of companies to be registered

For international investors, the most profitable companies are those of two types:

  1. Sociedade Anónima, S.A. - public joint-stock company. The required number of shareholders is 5, the authorized capital should be 50,000 euros and more. Bearer shares and registered shares are available, and registered office is required;
  2. Sociedade por Quotas, Lda. - responsibility of shareholders is directly proportional to the amount of their contributions. Minimum authorized capital is from 1 euro (for financial and insurance sectors - from 5,000 euros). Registeredshares are allowed, 1 director and 2 shareholders are required, and registered corporate office is necessary.

The director of an offshore company can only be an individual, and residency does not matter.

 

Certain companies are required to employ a public auditor if:

  1. their annual balance exceeds 900,000;
  2. turnover and profit in the aggregate equal to or exceed 2 000 000 euros;
  3. number of employees exceeds 50 people.

 

Trade and economic activities are subject to the following restrictions:

  • it is forbidden to conduct business contrary to the current legislation of Portugal;
  • it is prohibited to work in the banking, insurance or stock exchange spheres without licensing.

Offshore companies are not subject to income tax, and corporate tax ranges from 1% to 3%. The VAT rate is 12%.

Reporting on corporate activities should be provided to the relevant services by May 31 of each year.

 

If you have any additional questions about registering a company in Madeira, please contact the lawyers of Law&Trust International for legal advice.

Set of documents
   
  • Check with managers
Nominee director and shareholder
 EUR  
  • Check with managers

General information
Square770.00
Population247 161.00
CapitalFunchal
Unemployment9.20
State polityrepublic; parliamentary democracy
Telephone code351 291
Place in the world in corruption35
locationAn island in the Atlantic Ocean 1, 000 km from mainland Portugal
ClimateSubtropical climate; avg. maximum temperature (July) +23°; avg. minimum temperature (January) +15°
Literacy rate93.30%
Ethnic groupsHomogeneous Mediterranean stock; citizens of black African descent who immigrated to mainland during decolonization number less than 100,000; since 1990 East Europeans have entered Portugal
National currencyEuro
USD exchange rate0.75
GDP per capita56
Official languagePortuguese
Credit ratingA-
The judiciaryThe Constitutional Court of Portugal, the Supreme Court (Supreme Tribunal of Justice), Appellate courts, comarca, criminal tribunals
Executive authorityMadeira Government. Can not contradict decisions of the Central Government in Lisbon and Portugal override political unity
Legislative authoritiesMadeira Regional Parliament
Corporate information
Opportunity to purchase ready-made companiesНет
Legal systemCivil law
The use of the Cyrillic alphabet in the nameНет
Local registered officeДа
Organizational and Legal FormsLimited Liability Company/Limitada (Lda); Stock Corporations/Sociedades Anónimas (SA); Sociedades Unipessoais (SU) - компании с одним держателем квот (в случае, если опф - Lda company) или одним акционером(SA company); Pure holding company/Sociedade Gestora de Participações Sociais (SGPS)
Indication of BPA in the nameLimitada (Lda)
Local registered agentДа
Shares and share capital
Standard currencyEuro
Information about the beneficiary is disclosed5000
The minimum amount of paid-in capital, nat. currency5000
The minimum amount of the issued capital5000
Bearer sharesНет
Terms of payment of the issued capitalWhen registering
Terms of capital paymentWhen registering
Possibility to issue shares without par valueНет
Taxation
VATНет
Basic corporate tax rate20.00%
Capital gains taxНет
Currency controlНет
Corporate tax rates detailsUnder certain circumstances, companies licensed to operate in Madeira Free Zone may qualify for reduced 5% corporate tax rate (which may be affected by applicable surcharges).
Stamp dutyНет
Director and Secretary
Minimum number of directors1
The requirement for residency directorsНет
Director of legal entities are allowedНет
The data reveals to the local agentДа
Data field to the public registryДа
The requirement for the presence of the SecretaryНет
Requirement to the residense of the SecretaryНет
Requirements to qualification of the SecretaryНет
Legal entity as the SecretaryНет
Shareholder and beneficiary
Minimum number of shareholders1
Data is entered in the public registerДа
Shareholders residency requirementНет
Information about the beneficiary is disclosedНет
Information may be disclosed to the local agentДа
Shareholders-legal entities are acceptableДа
Reporting
The requirement for filing reportsДа
Open access to reportsНет
Statutory auditДа
The requirement for filing Annual ReturnНет
Open access to the Annual ReturnНет
The requirement for reportsДа
Treaty on avoidance of double taxation (States which signed)65
Membership in the OECDНет
Is it offshore according to Russian legislationДа
Trademark Registration
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