17th November 2010
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This document provides information about starting a business in Portugal. It discusses the initial steps, including evaluating financial sustainability and market potential. Various legal forms of businesses are described, such as sole proprietorships, partnerships, limited companies, and public limited companies. The document also outlines administrative procedures for registering a business, certifying it, and obtaining necessary licenses. Sources of support and funding programs are referenced.
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17th November 2010
- 1. Start-ups Madeinportugal Group3 Bruno Pinho Lucília Ribeiro Sandra Magalhães 17thNovember2010
- 4. Business activities and related rules
- 7. Support
- 8. References2
- 11. Investmentpotantial3 Legal context Companies Act. The Act defines the legal forms of companies and indicates everything that has to appear in partnership contracts. 214 pages
- 12. Legal formsofenterprises 4 Sole proprietorship : The possible legal forms are: Sole proprietor; Single shareholder limited liability company; Individual limited liability stablishment. Partnership : The possible legal forms are: Limited company; Public limited company; Partnership; Limited partnership; Cooperatives.
- 14. Single Shareholder Limited Liability Company (capital ≥ 5000);
- 15. Individual Limited Liability Stablishment(capital ≥ 5000);
- 16. Limited Company (capital ≥ 5000);
- 17. Public Limited Companies (capital ≥ 50000);
- 18. Partnership;
- 21. Paycontributionsdirectly to the Social SecurityService6 You should learn about the payment of taxes and get to know the rights which self-employed people have with regard to the entities to whom they provide services. Citizen's Gateway provides a folder of information
- 23. Investors
- 24. Clients and partnersFinancing More information can be found on how to write a business plan from the website of the Institute of Support to Small and Medium Enterprises and Innovation (IAPMEI).
- 27. Firm on the spot method;
- 29. Social Security;
- 31. Institute of Support to Small and Medium Enterprises and Innovation (IAPMEI);
- 32. Business Development Agency (AICEP);
- 35. National Registry of Companies (RNPC);
- 36. Notary’s office;
- 39. IAPMEI;
- 42. 13 Anyquestions?
Notas do Editor
- Financial sustainability, viability, the market situation and investment potential are just a few of the things to be taken into account before starting a business.The legal context is another element to keep in mind. It is necessary to define the legal status of the company and to investigate all of the possible options to develop the business. Attention should be paid to the various steps to be taken in setting up a business which can be altered depending on the status selected. Setting up a business is regulated by the Companies Act. The Act defines the legal forms of companies and indicates everything that has to appear in partnership contracts.
- Sole proprietorship : a business carried out by an individual. This option affects the proprietor's personal assets in terms of business operations. The sole proprietor is fully responsible for any debts incurred in conducting the business. The possible legal forms are:Sole proprietor;Single shareholder limited liability company;Individual limited liability establishment.Partnership : a business owned by more than one person (partners) where the responsibility is shared by the different owners. The possible legal forms are:Limited company;Public limited company;Partnership;Limited partnership;Cooperatives.
- Sole ProprietorA company with a single proprietor which can carry out its business activity in the commercial, industrial, service or agricultural sectors.There is no separation between the personal assets of the proprietor and those belonging to the company of which he is head. The liability of the head of the enterprise is linked to the liability of his company.The sole proprietor is not required to have a minimum amount of capital in order to commence the activity. Companies legally classed as sole proprietorships also do not need a memorandum of association.Sole Proprietorship Single Shareholder Limited Liability CompanyThe general management and liability is the responsibility of one person, the holder of the entire share capital, which must be a minimum of five thousand Euros.In the case of debt, the creditors will only receive goods equivalent to their invested capital. The trading name of the company must incorporate the expression "single-member company" or the word "single-member" before the word "Limited" or the abbreviation "Ltd".Single Shareholder Limited Liability Company Individual Limited Liability EstablishmentA sole proprietor who intends to carry out a business activity. There is a seperation between personal assets and those belonging to the company.The initial capital cannot be inferior to five thousand Euros, which must be a minimum of 2/3 of the amount in cash (€ 3 333.33) and the remaining amount can be made up of objects which can be seized.Individual Limited Liability Establishment Limited CompanyThe capital is divided into shares and cannot be less than five thousand Euros. In the case of debt only the net assets of the company can be used. The partners are solely responsible for all entries in the memorandum of association and pay a minimum amount of €100 per share.Limited Company Public Limited CompaniesThe capital is divided up by shares, amounting to 50 thousand Euros and the debts are paid by the net assets. The partners have limited liability equal to the value of their own shares, and the minimum number of partners necessary to form a Public Limited Company is five. Public Limited Companies PartnershipIn businesses with the status of Partnership, the partners are liable in an unlimited and subsidiary manner to the company and are jointly liable to the creditors.The minimum number of partners is two, and the trading name must include the name of at least one of the two partners, along with the addition, either abbreviated or complete, of "Company" or any other word which indicates the existence of other partners.Partnership Limited PartnershipEach of the two partners is liable only for their input. The partners are liable for debts in the same way as the partnership. The trading name of the company is formed by the name of at least one of the partner along with the addition of "Limited" or "Limited by Shares".Limited Partnership CooperativesThese are autonomous legal entities, with a free constitution, variable capital and membership, which, through the cooperation and mutual assistance of its members, in accordance with the cooperative principles, aim, as a non-profit organisation, to satisfy the economic, social and cultural needs and aspirations of the members.The entity responsible for the cooperative sector in Portugal is the AntónioSérgio Cooperative Sector Institute, which provides all the necessary information about Cooperatives.
- To begin self-employed activity, it is necessary to register with the Tax Office and pay contributions directly to the Social Security Service. One should learn about the payment of taxes and get to know the rights which self-employed people have with regard to the entities to whom they provide services.The Citizen's Gateway provides a folder of information in order to help people who decide to commence self-employed work, as well as people who are already self-employed and who would like to change profession or terminate their activity.
- The Business Plan is the main tool for structuring a company from which the entrepreneur can conduct a self-analysis of the weak and strong points of his project and in this way anticipate and resolve problems.It also constitutes the manner in which the business presents itself to third parties, notably to investors, and it can also be used to introduce the business to clients and partners, or in the search for financing.More information can be found on how to write a business plan from the website of the Institute of Support to Small and Medium Enterprises and Innovation (IAPMEI).