News: Registration of Company in Portugal SA

SA company in Portugal

Portugal is considered a promising state among other European countries, and it is easier to establish and conduct business activities there.

The country is attractive for non-residents because of the following:

1. The level of taxation there is not considered high.
2. The state is characterized by a favorable climate for business activities.
3. The government encourages investment.

Advantage is given to:

1. LDA (Sciedade Limitada) is an analogue of LLC.
2. SA. Organizational and legal form of Sociedare Anonima / Sociedare Aberta, which is an analogue of OJSC and CJSC or PJSC, is selected by large enterprises.

Features of SA company

Minimum number of participants is 5.

A company is managed by the Board of Directors.

Authorized capital depends on the scope of activity of a company, but it should not be less than 50 thousand euros. Payment of 70% of the capital can be deferred for up to 5 years, but 30% must be paid immediately.

It is allowed to issue registered shares and bearer shares (in case of the issue of the latter, they must be paid in full). Shares can be ordinary and privileged ones. The latter can:

• not provide for the right to vote at general meetings, but give a guarantee of receiving dividends. There can be issued up to 50% of above;
• be subsequently bought out by a company. This applies only to fully paid shares. The owner has the right to receive an amount equivalent to its price at the time of purchase, except for periodic dividends.

The reserve fund of Portuguese PJSC is 20% of the authorized capital. At least 5%-contributions must be transferred to it annually during the formation period.

The Charter of Company and the Issue Prospectus (a document with information on the forthcoming issue of securities) is submitted to the register of companies.

Accounting and taxes

Any Portuguese company is required to file annual audit reports. The staff must include own auditor, if the following two conditions are met within two years after registration:

1. Profit margin has become 3 000 000 euros and more.
2. Amount of net assets is 1 500 000 euros or more.
3. Average number of employees for the year is 50 or more.

Companies in Portugal pay taxes quarterly (in advance payments).

It is necessary to be registered for tax purposes within 15 days from the date of submission of an application for registration.

An auditor signs the documentation together with company representatives.

Free zones of Madeira and the Azores

The main activities in the territory of Madeira and the Azores are as follows:

1. 1.Industrial and commercial (they can only be conducted within the area of ​​Canisal in Madeira County).
2. 2.International service, including holding and management companies.
3. 3.Offshore financial services. They are carried out through offshore branches or with the involvement of autonomous legal entities. They can be credit institutions, financial companies, insurance and reinsurance business, leasing and factoring companies or collective investment funds. A legal form of an offshore trust can also be used.

Companies in the jurisdictions of Madeira or the Azores are controlled by the Bank of Portugal or the Portuguese Institute of Insurance. They do not fall under the currency control applicable to residents or other rules.

Offshore banking and financial institutions are eligible for financial and tax benefits that are granted to industrial and commercial companies operating within free trade zones.