Share the post “How to open a company in Portugal: what you should know”
You’ve been thinking about it for a long time Open a company to realize a dream or a project? Have a good idea and want to put it into practice?
If you have an entrepreneurial spirit and understand that the time has come to create your business, it is important to take certain aspects into account. From systematizing the idea to the best way to manage people and have a motivated team, there is a list of topics that should deserve your attention. Find out which are the most important.
Starting a Business: How to Get Started
Before building a house, it is necessary to draw up a project that begins to give shape to what was idealized. The same goes for starting a company. You will need to have a plan that serves as a guide for what you intend to do.
So, it is important understand where your idea is. Have you thought about aspects such as the target audience or the human and financial resources you will need to carry out your project? Is your product or service completely innovative or do you already have competition?
There are questions and answers that you should take into account and that can be the starting point to start creating your company. You can use them for prepare your pitchthat is, the presentation of the project to potential partners and investors.
in the e-book “Entrepreneurship from idea to business in 6 steps” find some tips to create an appealing and effective pitch.
From idea to paper: systematize
Answering the main questions serves as a blueprint, but it is only the beginning of a systematic effort that is essential to creating a potentially successful company.
It is true that this systematization may not be the most exciting part of turning an idea into a business, but it is essential that you do not skip this step.
The business model and the business plan are two documents that you should pay special attention to, not least because they will be important, for example, to obtain financing to open the company.
O Business model explains how it intends to generate revenue and add value to the customer, answering questions such as: Selling what? As? To whom?
O business plan it is a more elaborate and reasoned document, which already involves some market analysis, as well as projections in terms of costs and expenses. It also points out the commercial strategy it intends to follow, as well as how the financial and accounting management will be carried out.
How to get capital to start a company?
If you do not have equity capital to support the initial expenses related to the creation of a company, it is necessary to find means of financing.
Some entrepreneurs rely on the support of family or friends. If this solution is not within your reach, it is possible to resort to bank financing or support granted by entities whose mission is to encourage entrepreneurship.
O crowdfunding or the recourse to business angels are alternative ways to get the finance you need to start your business. To open your company, you still have the possibility of obtaining financing with venture capital resources (venture capital).
The most important thing is that this financing is adequate not only for your repayment capacity, but also for the company’s objectives.
The practical issues of starting a business
If you already have the idea, the necessary capital and the right partners or partners, it’s time to move on to opening the company.
Types of company
start with choose the legal form what you want. Are you the only person to set up the company or will you have partners? Who will be liable for any debts and with what assets? These are important questions to ask as they will determine the legal form of the company.
sole proprietorships
- Sole proprietor: there is no mandatory minimum share capital, nor separation between the entrepreneur’s personal assets and the assets allocated to the company;
- Single-member private limited company: the liability of the sole partner (individual or legal person) is limited to the amount of the share capital, which must be at least €1;
- Individual Limited Liability Establishment (EIRL): the minimum share capital is €5000 and there is a separation between the entrepreneur’s assets and those of the company.
Collective companies
- Private limited company: may have two or more partners whose liability to creditors is limited to the company’s share capital;
- Anonymous society: it must have at least five partners, known as shareholders, and a minimum share capital of €50,000, divided into shares;
- Company in collective name: there is no mandatory minimum share capital and the partners are solidary towards creditors;
- Limited partnership: it can have two types of partners, limited partners and limited partners;
- Cooperative: non-profit organization that seeks to meet the needs of its members.
set up the company
It is possible to deal with the entire process of creating the company over the internet or in person. In both cases the process is simpler and less bureaucratic than it was a few years ago.
How to open the company online
through the service Online Company may set up limited liability companies, sole proprietorships and limited liability companies, except for European limited liability companies.
The price to open a company through this service is at least 220 euros. If you do not use an already approved social pact model, it rises to 360 euros.
How to open the company in person
At service desks Company on Time It is also possible to set up limited liability companies, sole proprietorships and limited liability companies.
All future partners must be present at the time of incorporation, accompanied by an identification document. The cost of this service is 360 euros.
To set up other types of companies, such as an Individual Limited Liability Establishment or joint ventures, you must go to one of the service desks of the Institute of Registries and Notary.
Pay taxes and contributions
When formalizing the creation of your company, you will also have to notify the Tax Authority and Social Security that you have started your activity, starting to pay taxes and contributions.
IRC and VAT are the two main taxes that companies must pay. It is also necessary to take into account the IRS withholding tax for workers and management. If you have real estate or vehicles, add the IMI and IUC.
A Single Social Rate (TSU), which is levied on workers’ salaries, is another of the companies’ charges. Monthly, in addition to paying Social Security contributions, it is also responsible for delivering the respective discounts for management and workers.
In most cases, the contribution rate applied to the employer is 23.75% and the rate applied to the employee is 11%. There are, however, situations in which the company may benefit from a TSU reduction or exemption when hiring, for example, long-term unemployed people or prisoners.
Another way to save on this charge is to pay the food allowance through meal card. In this way, as long as it does not exceed €8.32/day, you are exempt from TSU. If paid in cash, this fee is only exempt up to €5.20/day.
manage people
As small as it may be, the work team is a key element for the success of any business.
In a context where it is not always easy to attract and retain talent, people management is even more important. And this is something that can only be achieved by offering differentiating conditions that go far beyond a good salary.
Flexible working hours, balance between personal and work life and a good working environment can make the difference. Health insurance, transport subsidy or incentives to practice sport and well-being in the workplace (such as massages or mindfulnessfor example) are some examples of extra-salary benefits highly valued by employees.
Starting a business requires more than an idea. However, not everything is as complicated as you might think, as long as you follow some essential steps.
