How to Create a Business in Portugal

A. Investing in Portugal

https://eportugal.gov.pt/inicio/espaco- … m-portugal

1. Why Portugal / Porquê Portugal

Currently, Portugal has one of the most dynamic entrepreneurial ecosystems in Europe, resulting from the investments made in the last decade in human resources, infrastructure and technology qualification, which provide great opportunities for those wishing to launch or invest in new businesses.

Here is provided information on the most competitive sectors of the Portuguese economy, whether emerging or traditional, as well as information on incentive systems and funding solutions, support for innovation and internationalisation of your business.

If you are looking for business opportunities in Portugal, you should start by exploring here the main indicators on the Portuguese economy at national and regional level:
- Main Economic Indicators of Portugal
- Sectorial Statistics
- Regional Statistics



2. Clusters

Aiming to stimulate and support the emergence and consolidation of collective efficiency strategies, both in emerging sectors and in traditional sectors of the Portuguese economy, competitiveness clusters were identified that cover sectoral lines and promote value chains, namely:

(In the above link, click on the cluster icon you are interested in, for knowing more about it)

2.1.  Aeronautics, Space and Defence / Aeronáutica, Espaço e Defesa | AED Cluster Portugal

2.2.  Architecture, Engineering and Construction / Arquitetura, Engenharia e Construção | AEC

2.3.  Automotive / Automóvel Portugal | MOBINOV

2.4.  Footwear and Fashion / Calçado e Moda

2.5.  Engineering & Tooling

2.6.  Sustainable Habitat / Habitat Sustentável

2.7.  Health Cluster Portugal

2.8.  Forestry Industries / Indústrias da Fileira Florestal

2.9.  Portuguese Sea / Mar Português

2.10.Petrochemical, Industrial Chemistry and Refining / Petroquímica, Química Industrial e Refinação

2.11.Portuguese Railway Platform / Plataforma Ferroviária Portuguesa

2.12.Portuguese Agrofood

2.13.Mineral Resources / Recursos Minerais de Portugal

2.14.Smart Cities Portugal

2.15.Information, Communication and Electronic Technologies / Tecnologias de Informação, Comunicação e Eletrónica | TICE.pt

2.16.Production Technologies / Tecnologias de Produção | Produtech

2.17.Textile: Technology and Fashion / Têxtil: Tecnologia e Moda

2.18.Tourism / Turismo

2.19.Vineyard and Wine / Vinha e Vinho



3. Funding / Financiamento

With the aim of simplifying and improving access and use of the various financing solutions with public support, the Financing Portal has been created, a platform where you can find, aggregated in a single place, information aimed in particular at PMEs (Small and Medium Enterprises), in the various phases of their activity and investment:

https://financiamento.iapmei.pt/inicio/home

You can also find information on financial incentives and investment support on the Competitiveness Portal. Find out about the support for companies and entrepreneurs here:

https://portalcompetitividade.adcoesao.pt/#/en



4. Entrepreneurship and Innovation / Empreendedorismo e Inovação

Under the Estratégia Nacional para o Empreendedorismo (National Strategy for Entrepreneurship), national start-ups have at their disposal specific funding and a set of incentives to support their development, from the phase of conception, through business incubation and development, to acceleration and internationalisation.

The Startup Portugal+ programme gives a new boost to this strategy and addresses emerging challenges through a set of new measures to attract more talent, explore new markets and provide more support through interventions in the ecosystem, in funding and internationalisation support.

https://startupportugal.com/sp-plus/https://www.iapmei.pt/PRODUTOS-E-SERVIC … vacao.aspx



5. Internationalisation /  Internacionalização

In order to support the internationalisation process, companies have at their disposal, among others, the iAPEX, a tool designed to provide personalised information on the export markets and world exports.

https://iapex.gee.gov.pt/#!/



6. Location / Localização

The Portugal Site Selection platform is a search engine for business locations for investment projects in Portugal in the field of industry, logistics and services.

This tool is a free public service for investor support that allows:
- To select, easily and effectively, the space in Portugal that best adapts to the investor's business, through multi-criteria analysis to the requirements of the investment project;

- To know the available areas by navigating the map and searching by geographic area;

- To identify the solutions that best adapt to the investment project-size; type of space; proximity to relevant infrastructures, among others;


To access the Portugal Site Selection platform click on the following link: (english version available there).

https://www.portugalsiteselection.pt/


By choosing Zoom in, you can select the region of Portugal inland, Azores Islands, Madeira Islands. You can also choose the type of map (streets map/hybrid map).
You will find different icons with different colors: municipalities, universities, schools, parks, buildings,...
In the right menu, you can select what you want to look at in your research:
- Business or technology parks
- Logistic platforms
- Science and technology parks
- Ports or terminals, airports, railway networks
- Sea/renewables energies parks
- Administrative divisions / municipalities / câmaras municipais
- Building's: business incubators, startup centers, university knowledge centers, ...

You can also click on each icon on the map which, according to the type of icon, it is shown:
- if business or technology parks icon: managing entity, url, email, phone, total area, available area
- if municipality/Câmara municipal icon: % highschool graduate rate, average monthly pay, population density
- if sea/renewables energies parks icon: managing entity, url, email, phone, total area, available area
(...)

B. Practical Guide to Start a Business (for EU / non-EU citizens)

https://eportugal.gov.pt/pt/inicio/espa … guia-a-a-z                       

How to:             

1. Start the business / Iniciar o negócio

1.1. Planning the business

1.2. Investment/Financing

1.3. Finding financing and support

1.4. Choosing the legal form of the company
       Individual companies (Entrepreneur, Sole Proprietorship, ...)
       Collective companies

       https://eportugal.gov.pt/en/inicio/espa … ua-empresa


1.5. Registering your business
       Setting up the company online:  The first service with this brand is the
       creation of the online company that allows proceed to setting up a business
       solely on the Internet.
              https://eportugal.gov.pt/espaco-empresa/empresa-online

       Setting up the company on time / empresa na hora
              https://eportugal.gov.pt/servicos/criar … sa-na-horahttps://justica.gov.pt/Servicos/Empresa-na-Hora

       Setting up the company in the traditional way


1.6. Acquiring a franchising business


1.7. Choosing the location to install the company

       Here you will find a starting point for your research:

       AICEP Globalparques
       https://www.globalparques.pt/

       Virtual offices - Chamber of Commerce and Industry
       https://www.ccip.pt/pt/o-que-fazemos/es … s-virtuais

       Business reception areas
       http://aae.ccdr-n.pt/

       Algarve welcomes businesses
       https://www.algarveacolhe.com/

       National Network of Incubators and business accelerators
       https://www.rni.pt/

       Other coworking spaces
       https://www.ideiasimples.pt/rede-de-con … ncubadoras

       (...)


1.8. Business permits / Starting the economic activity


2. Managing the business / Gerir o negócio

2.1.  Compliance with the obligations
        Taxes and fees
        Social contributions / Contribuições sociais

2.2.  Hire staff workers
2.3.  Empowering staff
2.4.  Protecting intellectual property
2.5.  Promoting quality and normalisation
2.6.  Qualification and SME Certification / PMEs
2.7.  Consumer protection 
2.8.  Making changes in the company
2.9.  Monitoring the business
2.10.Expanding the business
2.11.Promoting social responsibility
2.12.Overcoming difficulties
2.13.Business opportunities
2.14.Investment/Financing


3. Closing the business / Encerrar o negócio
3.1. Compliance with the obligations
3.2. Dissolution or liquidation of a company
3.3. Bankruptcy

C. Entrepreneurship - Procedures and Services to be followed in each Business Area

Foreigners investors sometimes complain about the Portuguese bureaucracy when they want to start an activity. This is often happens because the investor does not know the language and/or the required procedures it must be follow. If the rules are defined and perceived in advance, many "problems" and waste of time can be avoided...

In the following link, each Business Area / Economic Activity contains:
- a brief summary of the activity description;
- which services/licences you may need to start, to carry out and to close your business in each activity;
- which information/communications/documentation must be made available to public entities, and which online services are available to do that, in order to avoid unnecessary travelling / bureaucracy.

There is an increasingly concerning to simplify and digitalize processes while avoiding paper, and to adopt digital workflows between government/public entities/agencies (in requests and follow-up processes), in order to simplify life of those who want to invest in Portugal https://eportugal.gov.pt/inicio/espaco- … preendedor

(Click on the activity icon you are interested in, for knowing better all of this)

C1. Agriculture, animal production, hunting, forestry and fishing / Agricultura, produção animal, caça, floresta e pesca

C2. Extractive industries / Indústrias extrativas

C3. Manufacturing industries / Indústrias transformadoras

C4. Electricity, gas, steam, hot and cold water and cold air / Eletricidade, gás, vapor, água quente e fria e ar frio

C5. Water collection, treatment and distribution; sanitation, waste management and de-pollution / Captação, tratamento e distribuição de água; saneamento, gestão de resíduos e despoluição

C6. Construction / Construção

C7. Wholesale and retail trade; repair of motor vehicles and motorbikes / Comércio por grosso e a retalho; reparação de veículos automóveis e motociclos

C8. Transport and storage / Transportes e armazenagem

C9. Accommodation, restaurants and similar / Alojamento, restauração e similares

C10. Information and communication activities / Atividades de informação e de comunicação

C11. Financial and insurance activities / Atividades financeiras e de seguros

C12. Real estate activities / Atividades imobiliárias

C13. Consulting, scientific, technical and similar activities / Atividades de consultoria, científicas, técnicas e similares

C14. Administrative and support service activities / Atividades administrativas e dos serviços de apoio

C15. Education / Educação

C16. Human health activities and social support / Atividades de saúde humana e apoio social

C17. Artistic, show, sports and recreational activities / Atividades artísticas, de espetáculos, desportivas e recreativas

C18. Other service activities / Outras atividades de serviços

D. Professional Qualifications

https://eportugal.gov.pt/en/inicio/espa … fissionais

If you intend to work in Portugal and have acquired professional qualifications in another country (Eg. Lawyer, Architect, Biologist, certified Accountant, Nurse, Engineer, Pharmacist, Journalist, Physician/Doctor, Pilot, Psychologist, ... ), you should check if your profession is regulated by consulting the list of regulated professions:

https://eportugal.gov.pt/inicio/espaco- … lamentadas

E. Types of Visas for Residence, Professional Activities and Investment in Portugal

With these visas, you have access:
- to enter and stay in Portugal (and the other 25 countries that integrate the Schengen area) without the need of a visa;
- to family reunification;
- to a residence permit;
- to reconcile your residence permit with the status of non-habitual resident (NHR/RNH), which has fiscal benefits;
- to the Portuguese nationality (at the end of 5 years).

https://www.schengenvisainfo.com/scheng … ries-list/

Here is a short summary of each type of residence visas. If you are interested in any of them, you should get more information with all the details involved.

All the following links are from the SEF (Foreigners and Borders Services Bureau) Official Website.


____________________

E1. Independent professional activity with residence visa (former D2 Visa)

This visa can be granted to non-EU citizens who wish to work in a self-employed activity in Portugal:
- who have a contract or a written offer to provide services in the liberal professions; or
- who are entitled to exercise the activity in a self-employed way.

This visa can also be granted to entrepreneurial immigrants who wish to invest in Portugal, as long as:
- they have a contract or a written proposal for a contract to provide services within the liberal professions; or
- they have carried out investment operations, creating small and medium enterprises with economic, technological or cultural relevance to the country; or
- they prove to have financial means available in Portugal, and demonstrate, by any means, the intention to undertake an investment operation in Portuguese territory; or
- they develop an entrepreneurial project, including the creation of an innovative-based company.

This visa is not for people who want to open a ">=10 full time jobs" company. In this case, the most suitable is the Golden Visa Portugal. With Golden Visa it is possible to gain temporary residence (and subsequently permanent residence and Portuguese citizenship) by opening a company in the country that manages at least 10 full time jobs (or 8 jobs in low density portuguese territories, please see E5).

Request residence:
ARTICLE 89, PARAGRAPH 1 – RESIDENCE PERMIT FOR SELF-EMPLOYED WORKERS WITH A RESIDENCE VISA
https://imigrante.sef.pt/en/solicitar/t … r/art89-1/

Renew residence:
ARTICLE 78, PARAGRAPH 2 – RENEWING A RESIDENCE PERMIT FOR EMPLOYED WORKERS
https://imigrante.sef.pt/en/renovar-res … rt78-2-ap/
(Please consider 'Concerning self-employed workers' option inside this web page)


____________________

E2. Highly qualified activity (former D3 Visa)

An activity is considered to be highly qualified if it requires exceptional technical expertise or an appropriate qualification to perform it.

However, where the highly qualified activity is not carried out for the benefit of a company certified under the Tech Visa programme, the person concerned must have recourse to this visa for the general residence permit scheme for highly qualified workers.


More specifically, the EU Commission considers that the highly qualified activity is that exercised by professionals falling into either of the two lower groups:

- Management positions: as executives, officers and legislators; senior public administration officers, directors; administrative and commercial managers; service and similar managers; company directors;

- Experts in intellectual and scientific activities: such as engineers and scientists, health professionals, teachers, business and management professionals, information and communication technology professionals, cultural professionals and legal experts.


List of Portuguese Value-Added Activities (2020)

I - Professional activities (Portuguese Classification of Professions, PCP Codes):

112 - General director and executive manager of a company;
12 - Directors of administrative and commercial services;
13 - Directors of production and specialized services;
14 - Directors of hotel, restaurant, commercial and other services;

21 - Specialists working in physical sciences, mathematics, engineering and similar technical fields;
221 - Physicians;
2261 - Dentists and stomatologists;
231 - Teachers at universities and higher learning establishments;
25 - Specialists in information and communication technologies (ICT);
264 - Authors, journalists and linguists;
265 - Creative artists and performing artists;

31 - Intermediate level science and engineering technicians and professionals;
35 - Information and communication technologies technicians;

61 - Market oriented farmers and qualified agricultural and livestock workers;
62 - Market oriented qualified forestry, fisheries and hunting workers;

7 - Qualified industrial, construction workers and craftsmen, including qualified workers in the fields of metallurgy, metalworking, food processing, wood manufacturing, clothing production, handicrafts, printing, manufacture of precision instruments, jewellers, artisans, electricity and electronics workers;

8 - Operators of installations and machines and assembly workers, namely fixed installations and machine operators.

The workers included in the aforementioned professional activities shall possess at least a level 4 qualification on the EU Qualifications Framework or a level 35 on the International Standard Classification of Education, or they must have five years of duly proven professional experience.


II - Other professional activities:
Administrators and managers of companies that promote production investment, provided they are allocated to eligible projects and have contracts granting tax benefits signed in accordance with the Investment Tax Code approved under Decree-Law no. 162/2014 of 31 October.


Request residence:
ARTICLE 90 – RESIDENCE PERMIT FOR HIGHLY QUALIFIED ACTIVITY
https://imigrante.sef.pt/en/solicitar/t … /art90-aq/

Renew residence:
ARTICLE 78, PARAGRAPH 2 – RENEWING A RESIDENCE PERMIT FOR HIGHLY QUALIFIED ACTIVITY
https://imigrante.sef.pt/en/renovar-res … rt78-2-aq/


____________________

E3.Startup Visa

StartUp Visa is a program aimed at foreign entrepreneurs who want to open an innovative company in Portugal and thus obtain a residence visa and then a residence permit.

It is applicable to entrepreneurs who want to develop their project in Portugal, even if they do not have a established company and/or entrepreneurs who already have business projects in their own countries but want to transfer their business to Portugal.

The programme may cover up to a maximum of 5 entrepreneurs (per project) to whom residence visas will be granted. The company will only have to be set up during the incubation contract and must be established at the end of it.


Request residence:
ARTICLE 89, PARAGRAPH 4 – RESIDENCE PERMIT FOR ENTREPRENEUR IMMIGRANTS – “STARTUP VISA”
https://imigrante.sef.pt/en/solicitar/residir/art89-4/

Renew residence:
ARTICLE 78, PARAGRAPH 2 – RENEWING A RESIDENCE PERMIT FOR ENTREPRENEUR IMMIGRANTS – “STARTUP VISA”
https://imigrante.sef.pt/en/renovar-res … rt78-2-sv/


____________________

E4.Tech Visa

Tech Visa is a certification programme targeted at companies with their headquarters or  established in Portugal, to simplify the visas granting or residence permits to highly qualified non-EU citizens who wish to develop their activity in this country.


Request residence:
ARTICLE 90 – RESIDENCE PERMIT FOR HIGHLY QUALIFIED ACTIVITY IN CERTIFIED COMPANIES – “TECH VISA”
https://imigrante.sef.pt/en/solicitar/t … -techvisa/

Renew residence:
ARTICLE 78, PARAGRAPH 2 – RENEWING A RESIDENCE PERMIT FOR HIGHLY QUALIFIED ACTIVITY IN CERTIFIED COMPANIES – “TECH VISA”
https://imigrante.sef.pt/en/renovar-res … -techvisa/


____________________

E5. Golden Visa

It is aimed at non-EU citizens who wish to obtain a residence permit in Portugal and who cumulatively fulfil the following requirements:
- to enter in Portugal legally, without the need for an additional visa;
- to make an investment in Portugal, which can be real estate, in companies/job creation or capital transfers;
- to stay for only 7 days in the year which can be followed or interpolated.

Golden Visa holders are entitled for 5 years:
- to enter and stay in Portugal;
- to circulate in the other countries that are part of the Schengen area without the need for a visa;
- to family reunification, allowing the applicant's closest relatives to benefit from the same advantages as the applicant, creating new opportunities in their lives;
- to reconcile the Golden Visa with the Non-Habitual Resident status (NHR/RNH);
- to access to a permanent residence permit in Portugal at the end of the 5 years; and
- to the Portuguese nationality at the end of the 5 years.


Regarding "investment in companies / job creation" Golden Visa option, it is required to create at least 10 jobs (the number can be reduced to 8 jobs in low density portuguese territories). The company may already exist or be established, as long as ig has a stable establishment in Portugal.


Request residence:
ARTICLE 90-A – RESIDENCE PERMIT FOR INVESTMENT PURPOSES (ARI)
https://imigrante.sef.pt/en/solicitar/residir/art90-a/

Renew residence:
ARTICLE 90-A – RENEWING A RESIDENCE PERMIT FOR INVESTMENT PURPOSES (ARI)
https://imigrante.sef.pt/en/renovar-residencia/art90-a/

F. Visa Requests: Apply for Residence/Renewals and e-Visa Online Platform

F1. All Residence Permits available to non-EU citizens:

      APPLYING FOR RESIDENCE IN PORTUGAL
      https://imigrante.sef.pt/en/solicitar/

      RENEWING RESIDENCE IN PORTUGAL
      https://imigrante.sef.pt/en/renovar-residencia/


F2. e-VISA - Online Visa requests platform

https://eportugal.gov.pt/noticias/plata … eletronico


Launch of the e-VISA platform (March 2020)

The e-VISA is the platform of the Portuguese Ministry of Foreign Affairs aimed at simplifying visa application procedures.

Visa applicants receive a personal access code that allows them to follow up the process online, broken down into four stages:
1. "registered application" / "pedido registado"
2. "application under examination" / "pedido em análise"
3. "application granted or refused" / "pedido deferido ou indeferido"
4. "visa issued" / "visto emitido"

This e-Visa Portal is available in the following languages: Portuguese, English, French, Ukrainian and Russian.

https://pedidodevistos.mne.pt/VistosOnline/

COVID-19 alerts:
- Due to restrictions in the context of this pandemic, this system only processes national visa applications at the moment.
- Prior registration is required to make the booking, which is done only once.

List of Portuguese Value-Added Activities (2020)
(Continued post #6)

These professional activities are described in Law n.º 230/2019 (artigo 2.):

https://dre.pt/web/guest/home/-/dre/123 … /maximized

Workers included in the above-mentioned professional activities must have at least level 4 of qualification of the European Qualifications Framework (EQF) or level 35 of the International Standard Classification of Education (ISCED) or have five years of duly proven professional experience.

Professional activities details (INE - Instituto Nacional de Estatística / Portuguese Institute of Statistics):

https://www.ine.pt/xportal/xmain?xpid=I … COESmodo=2

Open CPP2010.PDF

You can translate PDF into English using a Doctranslator, such as:
https://www.onlinedoctranslator.com

______________

European Qualifications Framework (EQF):

https://europa.eu/europass/en/european- … mework-eqfhttps://europa.eu/europass/en/descripti … eqf-levels


EQF application to the Portuguese education system:
http://internacional.ipvc.pt/sites/defa … QF_PT1.pdf


EQF levels:
EQF 4: After having finished secondary education (in Portugal it takes 12 years of schooling) and without having taken the university admission exam.

EQF 5. After having taken the university admission exam.
EQF 6. Bachelor degree according to the principles of Bologna (3 years)
EQF 7. Master's degree (EQF 6 + 2 years)
EQF 8. Doctorate

UK:
EQF 4 = General Certificate of Education Advanced Level (GCE "A Levels")

https://oxbridgehomelearning.uk/blog/eq … fications/


USA:
EQF 4 = High School Diploma

FORMS OF BUSINESS ENTITIES

https://eportugal.gov.pt/inicio/espaco- … ua-empresa

A. "Empresas Singulares" (Sole Proprietorship)

Sole proprietorship is the simplest form of business type. It is a business owned and controlled exclusively by one person. This person is responsible for the business, including all liability and any profit or loss.

A1. Empresário em Nome Individual (ENI) / Trabalhador independente

https://www.comparaja.pt/blog/empresari … individualhttps://www.e-konomista.pt/empresario-e … ndividual/https://www.vendus.pt/blog/questoes-emp … ndividual/
...

The Sole Proprietorship (Empresário em Nome Individual/ENI) and the Self-Employed Worker (Trabalhador Independente) are both self-employed workers. There are no differences between them concerning AT Portuguese Tax Authority and Social Security.

Both are covered by the self-employed worker regime, however the difference between them is that, whereas self-employed worker only provides services, sole proprietorship may additionally sell goods.

Self-employed workers: IRS Category B & Social Security:
https://www.expat.com/forum/viewtopic.php?id=905979



A2. Sociedade Unipessoal por Quotas
(Company name suffix: Unipessoal Lda)

https://eportugal.gov.pt/empresas/servi … dUnico=780https://www.vendus.pt/blog/sociedade-quotas/
...

A1 versus A2: Pros and cons

https://www.vendus.pt/blog/eni-vs-unipessoal/
...



B. "Empresas Colectivas" (Partnership, LLC, Corporation)

B1. "Sociedade em nome colectivo"
(Company name suffix: Cia/Companhia/Co) (Corporation/Partnership)

It is an association of two or more persons (persons being people, corporations, other partnerships, LLC's, trusts or others) to carry on, as co-owners, a business for profit. These individuals are responsible for the business, including all liability and any profit or loss.


B2. "Sociedade por quotas"
(Company name suffix: Lda/Limited) (Limited Liability Company)
Partners' liability is limited to the equity capital


B3. "Sociedade Anonima"
(Company name suffix: SA) (Business Corporation)
Partners' liability, or shareholders' liability, is limited to the value of the shares subscribed by them

- (...)

Great job Johnny!

How to start a Food Truck business in Portugal