Jurisdiction is administered by local authorities: it is an autonomous republic that belongs to Portugal. Madeira stands out among other countries and regions with its well-established and superbly structured infrastructure, which is why it is ideal for investors from different countries as a commercial hub. Company registration in Madeira is an aspect of interest to many entrepreneurs, both those who want to establish a company and expand an existing structure.

Types of company registration in Madeira

With a fairly large selection of forms of enterprises in Madeira, the most effective in practice is the registration of limited liability companies:

• SA;

• LDA.

Such companies are most often opened by foreign investors. Online company registration in Madeira is also permissible.

Legislative basis

The main law that regulates the opening and operation of companies in Madeira is the Portuguese Companies Law.

Requirements for company registration in Madeira

Company registration process in Madeira grounds on next-mentioned points for SA.

1. A minimum of 5 shareholders is required to establish a company. Suitable for both legal entities and individuals, even those who are not residents of Madeira.

2. The authorized capital is not less than 50 thousand euros.

3. At the time of registration, you need to pay at least 30% of the specified amount. For 5 years – the balance, 70%.

4. Registered shares can also be issued to bearer. The latter must be paid in full. Re-registration of shares is permitted subject to compliance with laws. Shares are ordinary and preferred.

5. The company is governed by a board of directors.

6. There should be a reserve fund – 20% of the company’s capital. Until the fund is fully formed, at least 5 percent of the company’s annual income is allocated to it.

7. The Registrar of Companies in Madeira officially approves the Statute and issue of the company. Registration of company name in Madeira is also possible through this authority.

Company registration requirements in Madeira: LDA – key features

1. The founders are at least 2 shareholders, citizenship is not important.

2. The authorized capital has not been established, but a share cannot be worth less than 2 euros.

3. Only nominal shares are produced.

4. Even 1 director can manage it.

Regardless of the form for registration of companies in Madeira that has been chosen, the business owner must take all the standard steps on the way to opening and operating:

• drawing up an application for permission to use the name of the company;

• placement of initial capital in a bank account;

• registration of the enterprise in the tax service (the Financial Department must be notified of the receipt of the tax number);

• company registration with the Social Security Administration;

• if people who are not residents of Madeira are employed, it is necessary to submit an application for registration of contracts to the relevant authorities;

• registration in the Commercial Register of the region where the company is located;

• publication of the charter in the local newspaper;

• accounting registration.

All details of directors and shareholders in this jurisdiction are publicly available. There are no requirements for the storage location of company records.

Taxation in Madeira

Intending to pass registration of company in Madeira, consider local taxes. The tax rate for all companies in this jurisdiction is 27.5%. Among others:

• VAT (19%);

• dividends (25%);

• royalties (15%);

• winnings (from 23% to 35%);

• rental income (15%);

• payment for consultations, management services (15%), etc.

Accounting in Madeira

1. Companies must submit an audit report every year.

2. Accounting is obligatory for every enterprise.

3. It is imperative to appoint a state auditor if your company receives more than 900 thousand euros within two years after registration, has a turnover of more than 2 million euros together with other income, or has at least 50 employees.

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