Portugal has become an increasingly attractive destination for expatriates who wish not only to live but also to start a business. One of the first steps for those looking to set up a company is choosing the most suitable legal structure — and in this context, the Limited Liability Company (Sociedade por Quotas – Lda.) stands out as the most practical and secure option.
Th Limited Liability Company is the most common corporate form in Portugal, especially among small and medium-sized enterprises. For expats, this structure offers several advantages:
- Limited liability: Shareholders are not personally liable for the company’s debts beyond the amount of their contributions (quotas).
- Flexible setup: It can be incorporated by a single shareholder (Unipessoal Lda.) or multiple shareholders. The minimum share capital is symbolic — only €1 per quota, which makes it easier to start a business.
- Full freedom for foreigners: There is no requirement to be a Portuguese citizen or tax resident to set up an Lda. What is required is a Portuguese tax identification number (NIF) and, in some cases, a tax representative.
- Basis for the D2 entrepreneur visa: Expats who create an active and viable company may apply for this visa, which can lead to legal residency in Portugal. Note: For D2 visa purposes, the company should have a minimum share capital of €5,000.
Company formation can be done online through the Balcão do Empreendedor (Entrepreneur’s Portal) or in person with the support of a lawyer or legal representative.
Drafting the articles of association and appointing company management are key steps in the process.
For expat seeking to establish economic roots in Portugal, understanding the fundamentals of local corporate law is essential. Thanks to its simplicity, legal protection, and low cost, the Limited Liability Company remains the ideal entry point for those looking to launch a business with confidence.
