Legal Types of company?

Private Limited (Ltd) Liability Company (“Limitada” or “Lda” where the minimum share capital requirement is € 1. Each “Lda“ must have at least one quota holder. However should the company be a single quota holder company, then the expression “Sociedade Unipessoal Lda” or “Unipessoal Lda” must be reflected with the name of the company).

Stock Corporation (“Sociedade Anonima” or “SA”, where the minimum share capital is € 50,000 divided into shares with minimum value of € 0.01 each and with at least 5 share holders)

Holding Company (“Sociedade Gestora de Participações Sociais” or “SGPS” i.s. This type of company may only carry out the activities of a holding company. It can have either an “Lda“ or an “SA“ share capital structure.

What about the Directors?

The Directors need to be Portuguese residents or the company must appoint a local legal representative, which our office can help providing.

Are there any restrictions to the company’s activity?

SGPSs are strictly Holding Companies and therefore have precise objects clauses relating to the holding of shares and participations.

Other legal types of company have a wide objects clause, as to permit as wide a range of activities as possible (financial activities are excluded).

And what about the necessity of having a Registered Office in Madeira?

A registered office address is required in Madeira.

Which are the Accounting standards applied?

The accounting and statutory records of the company are governed by International Accounting Standards (SNC) and must be maintained in Portuguese. Annual accounts must be submitted to the Tax Authorities, even if there is no liability for taxation.

All companies must appoint a “TOC“ (Certified Accountant), who is responsible for ensuring that all accounting and fiscal obligations are complied with by the company.

Incorporation timings?

The incorporation process generally takes 1 week to complete.

Does the company need to pay an annual license fee?


An application for a license to operate within the IBC of Madeira must be made to the Sociedade de Desenvolvimento da Madeira (SDM – Madeira Development Company) once the company name has been approved, for “Ltd” or “Stock Corporation” the annual license fees charged by SDM is € 1,800.00 per annum. This may be reduced to € 1,300.00 if paid by the required date through a local Management Company.

For SGPS companies the annual license fee in the first year is the same, nevertheless, for subsequent years in addition to the license fee a plus of 0,5% of the profits of the previous year exceeding € 1,000,000.00, limited to a maximum annual license fee of € 30,000.00.

FAQ didn’t solve your problem?

For further information, please do not hesitate to contact Ricardo Freitas at the Moonstone Management headquarters through the email address ricardofreitas@moonstonemanagement.pt