Many workers believe that setting up a company is a particularly complex and bureaucratic process.

Indeed, depending on the type of company you wish to establish, the procedures involved can be relatively complex.

However, with a little patience and the right information, it is entirely possible to turn your business idea into reality and begin your journey as an entrepreneur.

To help you with this important step, we have put together some essential advice on the main aspects you should consider when setting up a company.

Setting Up a Company: Everything You Need to Consider

In recent years, many Portuguese people have ventured into the business world by setting up their own companies.

However, while many new businesses are being created, others are also ceasing their activities.

In many cases, this is due to a lack of knowledge and experience in business management. This is why it is so important to understand the process involved in setting up and running your own business.

After all, failing to deal with the necessary procedures correctly from the beginning can hinder the company’s development and, in some cases, ultimately lead to its closure.

To help you avoid this, take a look at the advice we share below.

1 – Develop a Business Plan

Before starting the company formation process itself, it is essential to prepare a well-structured business plan.

This document acts as a roadmap for the future entrepreneur. It allows you to assess the viability of your business idea and minimise potential risks.

In addition, if you are considering working with investors, your business plan will be essential for presenting your business proposal and demonstrating its potential.

A well-structured business plan should include the company name, mission, potential markets, the main elements of the business project, objectives, commercial strategy, financial forecasts, human resources requirements and investment needs.

2 – Choose the Type of Company

Do you intend to manage the company on your own or together with other people? This is one of the first decisions you need to make when choosing the type of company you want to establish.

Entrepreneurs who intend to operate on their own can choose from several legal structures, including a sole trader (Empresário em Nome Individual), a single-member private limited company (Sociedade Unipessoal por Quotas) or an individual establishment with limited liability (EIRL).

Companies established with several partners can take different legal forms, including a private limited company (Sociedade por Quotas), a public limited company (Sociedade Anónima), a general partnership, a limited partnership or a cooperative.

Each option has its own advantages and disadvantages. This decision should therefore be carefully considered to ensure that your company adopts the legal structure that best suits its activities, objectives and organisational needs. (retirar este artigo)

3 – The Company Formation Process

Once the previous steps have been addressed, it is time to begin the actual company formation process.

A company can be established online or in person.

If you choose to complete the process in person, you can visit one of the “Empresa na Hora” service counters. This is one of the simplest and most convenient options, as the process can be completed on the spot. In this case, the company can be incorporated in approximately 60 minutes.

If you choose this option, it is important to note that all future shareholders or partners must be present.

If one of them is unable to attend, they may be represented by another person through a power of attorney.

It is also possible to complete the process online, through the “Empresa Online” service available via the Balcão do Empreendedor on Portugal’s public services portal.

The types of companies that can be established online include public limited companies, private limited companies and single-member private limited companies.

To complete the process online, all partners or shareholders must have a Portuguese Citizen Card (Cartão de Cidadão) and an active digital signature.

It is also worth looking for support and additional information from IAPMEI – Instituto de Apoio às Pequenas e Médias Empresas e à Inovação, the Portuguese public institute that supports the development of small and medium-sized businesses through various initiatives and growth strategies.

Looking for specialised support? Contact us. We will guide you throughout the process to ensure that your company is set up correctly, efficiently and with as little hassle as possible.