Incorporation Madeira / Portugal

Profile Corporations

* Possibility of an one-man company "Sociedades Unipessoal"

All companies incorporated in Madeira are subject to the same company law as companies incorporated on the mainland. Here are the most common forms:

Private Limited Liability Company ("Limitada").
The Limitada has a minimum capital of € 5,000. This can be split into shares of a minimum of € 100.

Stock Corporation ("SA")
The SA is a share holding company. Its minimum capital amounts to € 50,000. Splitting shares into a minimum value of € 0.01 is permitted. Bearer shares are permitted. The minimum number of shareholders is 5.

Holding Company ("SGPS")
The holding (SGPS) can be incorporated as Limitada or SA. It only holds shares in other companies and carries out its own financial administration.

 
Company Form

Companies can only work within the frame of its described purpose/form.

The following activity can only be carried out with a special licence: banking, health insurance, other insurance and reinsurance, asset management as well as property agency.

 

Accounting/Balancing

Accounting and balance sheets must be compiled in the Portuguese language and according to Portuguese law. The fiscal year normally ends on the 31.12. The shareholders must finalise the accounts/balance sheets by 31.03. of the following year. The tax return must be submitted by 31.05. of the following year.

 
Free Trade Zone

The most important sources of income are tourism, wine, agriculture and fishing. In order to enlarge the economic basis, a Free Trade Zone (International Business Centre - IBC) was introduced. The special status of Madeira is accepted and sanctioned by the EU.

 

The IBC legislation permits the following activities:

Production and storing of goods

Industrial activity in the area of Canical (port with manufacturing business) on Madeira. Furthermore work of an industrial or commercial nature. This applies especially to production, installation, packaging or storing of goods provided that the business does not represent a threat to national security, public health or the environment.

International services

This could include e.g. international trading, management services, consultancy, development services, other services or asset management. This kind of work can be carried out anywhere on the island.

International shipping register

Madeira has an international register for ships and yachts.

No taxation (or at a very low level) as long as the ship is owned by a company licensed by the IBC.

 
Customs duties and VAT

Companies registered in the “IBC” are exempt from duties for many goods and raw materials.

All companies receive a European VAT Identification Tax Number.