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Starting a company in Portugal: not too difficult
Plenty of businessmen are willing to open company in Portugal. Why is it so desirable? Here are the top two reasons.
Great conditions for businessmen
According to Forbes, Portugal is one of the twenty most business-friendly countries in the world. The country has an affordable registration procedure. Local lawyers offer assistance in preparing documents for opening a company. You can buy a ready-made company with a full package of documents for a specific type of activity – a restaurant, a sewing workshop, a factory, and so on.
The government is interested in business development to provide jobs.
In Portugal, educational institutions train highly qualified personnel in various fields, including in the highly demanded field of information technology.
The average salary of an employee in Portugal is lower than in other economically developed European countries and is 1158 € before taxes and 851 € after all deductions. For example, in France, the average salary is 1500 € before taxes and 1300 € after.
The unemployment rate in 2020 was 7.1%, two points above the pre-pandemic level. At the same time, 24.4% of young Portuguese who graduated from prestigious universities in Portugal cannot find a job. The reduction in the number of unemployed is one of the reasons for attracting foreign businesses to Portugal. Manufacturing and IT are the most popular areas for investors, but foreigners are also investing in other industries.
Who can open a business in Portugal
Any foreigner over 18 years of age who is officially located in Portugal can register a company and conduct business activities (nowadays, there is also another option – e-residence). There are no restrictions on the choice of the organizational and legal form of ownership of the company. Individuals can register as individual entrepreneurs or self-employed.
Before starting a business, you will need to decide on the way to live in the country legally.
How to get official status in Portugal as an entrepreneur
There are several ways to get official status.
To obtain such a visa, you will need to confirm that the startup project meets the program’s criteria. The following things are important:
- The company’s activities must be associated with the production of innovative goods and services and contribute to the creation of jobs for qualified specialists.
- The company had the potential to reach a turnover of 325,000 € per year in 5 years.
The applicant submits an online application to one of the 70 business incubators, an organization that supports young entrepreneurs. If the application is approved, the person receives a business development grant.
The national D-2 visa, or business visa, is issued by the country of origin’s consulate. When submitting documents, you must attach proof of ownership of a Portuguese company or shares in a company (a business plan if the company is not yet registered or financial statements for an existing company outside of Portugal if the applicant plans to open a branch in the country).
All in all, opening a business in Portugal is not a problem nowadays. If you are a beginner, it’s better to consult professionals who will help you cope with all your tasks.