Setting up a business in Portugal as an expat offers unique rewards and challenges. While the excitement of company formation and tax compliance is understandable, overlooking critical legal and operational requirements can lead to serious setbacks. Did you know that over 60% of expats report navigating bureaucratic processes as a major obstacle? Elevate Accounting is here to guide you through these intricacies, ensuring your business starts strong and remains compliant.
In compliance with anti-money laundering regulations, companies and legal entities must declare their ultimate beneficial owners. While often done during initial registration, keeping this information up-to-date is mandatory. To ensure accuracy and proper handling of updates, consulting with a professional is advisable.
»» While online registration is possible at https://rcbe.justica.gov.pt, using a notary or advocate is recommended for accurate initial setup and updates.
If you’re setting up a company, especially a sociedade por quotas (LDA) or sociedade anónima (SA), you’ll need a Livro de Atas, or Minutes Book. This book serves as the official record of company decisions, including shareholder resolutions and board meetings. Proper maintenance is essential, as tax authorities or regulatory bodies may request it.
»» Available at certified stationery stores (papelarias) or through online legal service providers.
Most businesses providing goods or services to the public must have a physical or digital Livro de Reclamações (Complaints Book – you can purchase from the official website https://www.livroreclamacoes.pt or at certified stationery stores). This allows customers to formally register complaints, which businesses are legally obligated to address within a specific timeframe.
Depending on your industry, obtaining the correct Business License in Portugal (also known as an Alvará) is essential for legal operation.Restaurants, tourism businesses, real estate agencies, and certain trades all require specific authorizations from local or national authorities.
»» These Licences are issued by the relevant regulatory body, such as the local Câmara Municipal (City Council) or sector-specific authority.
Portuguese tax law requires businesses to use a government-certified invoicing software system to issue invoices and receipts. This ensures compliance with fiscal reporting requirements and helps prevent fraud.
»» Purchase from Tax-Authority-certified software providers. The list of these certified providers is found here: Portal das Finanças – Lista de Programas de Facturação Certificados
Many companies in Portugal still use an official company stamp for contracts, invoices, and legal documents. While not legally required, it’s widely recognized and expected in many business dealings.
»» Obtain from printing shops or specialized online suppliers. Only the owner of the company, together with his ID and the valid “Certidão Permanente” of the company may obtain the stamp.
A few requirements of ACT include (but is not limited to):
Navigating these intricate requirements is critical to avoid costly penalties and ensure the smooth, uninterrupted operation of your business. At Elevate Accounting, we remove the stress and complexity, providing expert guidance tailored for expats in the Portuguese business landscape.
Don’t risk your business’s success. Schedule a free consultation with Elevate Accounting today and let us handle the complexities of Portuguese business regulations, so you can focus on growing your company.