Company in Madeira
Madeira offers a very attractive package of business benefits:
- Low taxation.
- Modern infrastructure.
- Effective local support services.
- Low running costs.
- Safety and quality of life.
In addition, Madeira is fully integrated into the legal systems of Portugal and the EU, providing businesses with complete reliability, transparency and stability. Madeira companies are also provided with Portugal’s VAT number and full access to international treaties to avoid double taxation ratified by Portugal as well as the European Union.
Madeira’s tax regime is granted until 2027 and is formally approved by the European Commission as a legal state aid regime, supported by Madeira’s official status as the most remote region of the EU and in full compliance with the guidelines established by EU business tax legislation. With a list of activities and companies that can be created and operate within the legal framework of the Madeira International Business Center, established by the Statute on Tax Benefits of Portugal.
Companies in Madeira will be allowed most of the international service activities such as international trade, electronic business and telecommunications, management services, consulting services as well as intellectual property ownership, real estate investment development or equity participation through the inclusion of Sociedade Gestora de Participações Sociais (Holding company in Portugal).
SGPS companies can be S.A. or Lda. The sole purpose of such a company may be to manage the shares of other companies.
It should be noted that general service companies may, however, complement their business activities as well.
In addition, although the registration of companies in Portugal is governed by civil law, the establishment of trusts and administration in Madeira can also be regulated by special legislation adopted for this purpose.
On the other hand, purely financial services such as banking, insurance and brokerage provided to third parties are not eligible for available tax breaks.
Among the various legal structures available under Portuguese law, investors generally choose a joint stock company (S.A.) and a private limited liability company (Lda.). In addition, two other legal structures are available as they are often used to operate in Portugal and therefore within the legal framework of the Madeira IBC.
- Private limited liability companies (Lda.) Can be incorporated with one shareholder and a minimum capital of 1 euro (one euro) per shareholder. Companies of this type do not need to appoint directors; the minimum requirement is to appoint a manager who is legally authorized to run the company.
- Joint stock companies (S.A.) can also be incorporated with one shareholder and a minimum capital of EUR 50,000. The management of these companies must be guaranteed by a board of directors composed of the number of members specified in the company’s articles of association. If the share capital does not exceed EUR 200,000, only one director is required.
On the other hand, branches have no minimum capital requirement.
SGPS companies must be S.A. or Lda. Such a company should have, as its sole purpose, the management of the shares of other companies.
The shareholders of the companies can be natural or legal persons, local or foreign. According to Portuguese law, shareholders can also be managers or directors of a company, or they can appoint an individual as a manager of the company.
Companies must have a main office in Madeira, while branches are required to have legal representation.
The above is for informative purposes only. Further professional advice should be sought for each particular case. Our firm does not accept any responsibility for any loss or damage occurring by acting on the basis of this information.