How to Register Business in Madeira?

Registration of business in MadeiraMadeira is a special economic zone, a distinctive feature of which is its creation under the strict control of the EU. This small island is an autonomous region of Portugal, in which the main global financial and tax advantages of the country are concentrated. The strategic location and simplified procedure for registering companies attract thousands of investors to Madeira from around the world.

Business in Madeira

The regime of reducing the tax burden on foreign companies in Madeira was formalized after long and toilsome discussions with the EU departmental structures. With the signing of bilateral international agreements on double taxation, this step was a kind of impetus for the development of business in this part of Portugal, distant from the mainland.

Status of an international business centre of this island is based on the existence of:

  1. Free trade areas
  2. Special procedures for registering ships,
  3. World service centre,
  4. Unique financial centre.

According to world experts,  business in Madeira is characterized by the following factors:

  1. Transparency of the tax system,
  2. Flexible system of tax benefits,
  3. Lack of currency control,
  4. Stable economy,
  5. Opportunity to get residence permit in the shortest possible time.

According to the forms of economic entities, business in Madeira is developed mainly in the form of:

  1. 1. Individual entrepreneur.
    • The founder is an individual. The owner is liable for obligations with all property. No share capital required.
  2. 2. Open joint-stock company with limited liability.
    • Created by at least 5 founders. They can be both legal entities and individuals. There is a minimum share capital. It is possible to issue registered and bearer shares.
  3. 3. Closed joint-stock company with limited liability.
    • The minimum number of founders is two. The minimum share capital in comparison with other forms of companies. Only registered shares are allowed.

Registration of Business in Madeira

Given the special international status and attractive investment climate, registration of business in Madeira is a rather simple procedure. Each stage does not take a long time. Thus, to establish a new company on the island, you need to take the following steps:

  1. Apply to the local registry. The uniqueness of the name is checked. The name must necessarily contain a word reflecting the direction of the company’s activities,
  2. Notarization of constituent documents,
  3. Depositing funds in a bank in the amount of at least 50% of the share capital,
  4. Become registered in the tax authority,
  5. Get a mark of registration in the social service,
  6. Publish the statute in the official local edition,
  7. Obtain a permit in case of employment of foreign citizens.

On average, registration of business in Madeira takes from 20 to 30 days.

Important information:

  • Madeira is fully integrated into the Portuguese legal system,
  • Tax year coincides with the calendar one,
  • No capital duty and tax on outgoing dividends,
  • No notarial and registration fees,
  • No tax on the transfer of real estate as a result of its acquisition.

Similar to any process, establishing business in Madeira requires qualified approach. Our company is ready to provide the assistance of qualified lawyers, who will help evade financial and time losses.

Please, select organizational and legal form of the company You are interested in:

Madeira-LDA

Madeira-SA

For reference:

  • Public Joint-Stock Company with Limited Liability (Sociedade Anónima - S.A.) 
  • Private Joint-Stock Company with Limited Liability (Sociedade por Quotas - Lda.)