Company Registration in Madeira

Madeira is highly regarded by leading financial centers globally. Registering a company on this island grants it the status of a Portuguese corporation and access to tax benefits that attract foreign investors.

Features of Madeira

As an autonomous region of Portugal, Madeira offers unique conditions for international business, distinct from general European standards. It is not listed in the blacklists of tax and banking regulators, enhancing its appeal to entrepreneurs from Europe and the Commonwealth of Independent States (CIS).

Companies registered in Madeira enjoy the trust typically associated with Portuguese corporations and receive tax advantages. The corporate income tax rate for international companies is only 5%. Political stability, collaboration with the EU, and double taxation avoidance treaties with over 70 countries make Madeira an excellent location for doing business.

Madeira serves as an outstanding platform for developing diverse business sectors, encompassing a broad range of activities with a 0% tax rate. Offshore registration can be facilitated with the assistance of Law&Trust attorneys. Although the procedure for registering a company in Madeira is quite straightforward, it should be noted that currently, Madeira is no longer considered a pure offshore jurisdiction.

To learn more, contact our experts who will provide a free consultation.

Benefits of Registering a Company in Madeira

1. Tax Advantages: International companies registered in Madeira can benefit from a reduced corporate income tax rate of just 5%, which is significantly lower than the average rates in Europe.

2. Trust and Recognition: Being part of the EU, Madeira offers a high level of trust, essential for collaborating with international partners and clients. Companies registered here are recognized as Portuguese corporations, conferring additional legitimacy.

3. Not Listed in Blacklists: Madeira does not feature in the blacklists compiled by tax and banking authorities, simplifying international financial operations.

4. Political and Economic Stability: Government stability and strong ties with the EU provide a dependable legal foundation for conducting business.

5. Special Economic Zones: The availability of special economic development zones with streamlined registration processes and supplementary tax incentives makes establishing and managing a company more profitable.

6. Access to Global Markets: Double taxation avoidance agreements with over 70 countries help mitigate tax risks involved in international business.

7. Support for Innovation: The growth of the IT sector and support for startups foster a conducive environment for technology-driven ventures.

These factors combine to make registering a company in Madeira an attractive choice for entrepreneurs seeking to optimize taxes, secure legal protection, and expand their businesses globally.

Legal Forms for Business Companies

1. Sociedade por Quotas (Lda.): A limited liability company where participants are liable only within the limits of their contributions. Lda. is the most prevalent type of company in Madeira and is frequently employed by small and medium-sized enterprises.

2. Sociedade Anónima (SA): A joint-stock company where shareholders’ responsibilities are confined to their investments in the company's capital. SA can be utilized for larger enterprises and comes with specific requirements concerning minimum capital and governance structures.

3. Sociedade Unipessoal por Quotas (SUQ): This form of company is similar to a sole proprietorship but with limited liability. SUQ is suitable for small businesses and individual entrepreneurs who wish to operate under the protection of a legal entity.

4. Branch Office: A branch office of a foreign company allows it to operate in Madeira without having to establish a separate legal entity. This format is convenient for companies that want temporary market presence.

5. International Business Centre (IBC): This special regime was created to attract international companies. IBC offers significant tax benefits and a simplified registration process. Companies registered under IBC can operate exclusively outside of Portugal while still enjoying tax preferences.

6. Free Trade Zone Company (FTZ): Companies registered in Madeira's Free Trade Zone can benefit from special customs and tax exemptions. FTZ is focused on export-import operations and logistics.

Each of these forms has its own characteristics and is intended for specific purposes. The choice of a particular form depends on the nature of the business, the scale of operations, and the entrepreneur’s strategic plans.

Main Stages of Company Registration in Madeira

Setting up a company in Madeira involves several key stages, each of which must be carefully prepared and executed.

Stage 1: Name Reservation and Document Collection

First, choose a unique company name. To check its availability, you can approach the registrar service (Conservatória do Registo Comercial). The reservation of the name is valid for three months.

Documents need to be notarized and translated into either English or Portuguese. Our team at Law&Trust will review and assist with collecting all necessary documents.

Stage 2: Filing Documents for Registration

All collected documents must be submitted to the Madeira Commercial Registry (Conservatória do Registo Comercial), either in person or via online services such as "Empresa Online." At the same time, a registration fee must be paid, the amount of which varies depending on the chosen legal form of the company.

Stage 3: Obtaining the Certificate of Incorporation

After reviewing your documents and confirming payment of fees, the registry authority will issue a certificate of commercial registration (Certidão de Registo Comercial), officially confirming the establishment of your company in Madeira.

Stage 4: Opening a Bank Account and Registering a Trademark

Opening a corporate bank account includes several steps, including selecting a bank, preparing documents, submitting an application, and undergoing Know Your Customer (KYC) verification. Afterward, representatives of the company will meet with a bank manager.

Throughout all these stages, Law&Trust's lawyers provide full support to simplify the registration process and submission of documents.

Mandatory Documentation for Registering a Legal Entity in Madeira

To legitimize your company's operations in Madeira, you need to prepare and submit a set of required documents. Here is a list of the main documents needed for company registration in this region:

1. Registration Application: Includes basic information about the company, such as the proposed name, location, line of business, and details about directors and shareholders.

2. Articles of Association (Estatutos da Sociedade): These internal regulations define the company's structure, objectives, location, capital, profit distribution methods, and other critical aspects. This document must be notarized.

3. Name Approval Confirmation: A document verifying the reservation and approval of the company's name by the Madeiran registration authority, ensuring its uniqueness.

4. Proof of Registered Address: Documents confirming the existence of a registered address for the company in Madeira, such as a lease agreement or property ownership certificate.

5. Director Acceptance Declaration (Declaração de Aceitação dos Administradores). A document where appointed directors express their consent to take up the position and fulfill related duties.

6. Personal documents of founders and management. Copies of identification documents of all participants and company directors. For foreigners, additional documents may be required, such as a criminal record certificate.

This list may vary depending on the specific legal form of the company and the requirements of the registration authorities.

Note that the registry may request additional certification/legalization of the provided documents.

Banking and Financial Services for Companies in Madeira

Madeira offers a wide range of banking and financial services for both local and international companies. These include account opening, payment processing, and credit facilities that fully support the needs of any business.

List of Banking Services for Legal Entities in Madeira:

1. Opening and managing business accounts. Companies can open accounts in euros and other currencies, which is convenient for conducting international transactions.

2. Loans. Banks offer credit lines and other financial instruments to support businesses, including short-term and long-term financing.

3. Payment services. These include accepting payment cards, online payments, and international money transfers.

4. Trade finance. Banks assist with letters of credit and provide guarantees for international trade.

5. E-banking. Allows you to manage your finances online, make payments, and track transactions in real-time.

Banks in Madeira offer SEPA services, simplifying euro-based transactions within the European Union. They are also integrated into international payment networks such as SWIFT, ensuring fast and reliable global payment processing.

It is important to carefully choose a bank for your business, considering the offered services and conditions. The right bank will become a reliable partner in managing your company's finances on Madeira.