Business Administration in Portugal

Overview by Globlatrade.net:

Setting Up a Company

Legal Business Entities

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability Registration Fees
The "sociedade por quotas de responsabilidade limitada (Lda)" is a limited liability company.
 
 
5 000 EUR minimum, entirely taken up, with the obligation to release at least 50%.
2 partners minimum, just one in the case of an individual businessman.
 
 
Liability is limited to the amount of capital contributed.
Fixed registration fee of EUR 360 + 0,4% of the capital.
The "sociedade anonima de responsabilidade limidada (SA)" is a public limited company.
 
 
50 000 EUR minimum, entirely taken up, with the obligation to release at least 30%.
5 partners minimum; they may be foreigners and non-residents.
 
 
Liability is limited to the amount of capital contributed.
Fixed registration fee of EUR 360 + 0,4% of the capital.
The "sociedade em nome colectivo" is a general partnership.
 
 
No minimum capital.
2 partners minimum
 
 
Liability is joint and indefinite regarding third parties.
Fixed registration fee of EUR 360 + 0,4% of the capital.
The "sociedade em comandita" is a limited joint-stock partnership.
 
 
No minimum capital.
2 partners minimum, with active partners and silent partners.
 
 
Liability is indefinite for active partners, and limited to the amount of capital contributed for silent partners.
Fixed registration fee of EUR 360 + 0,4% of the capital.
 
Business Setup Procedures
Firstly, it is necessary to request authorization from the Registo Nacional de Pessoas Colectivas (national register of commerce) to use the name of the company. The present government has created a fast system for creating companies managing other procedures concerning them. For further information, click here.
The Competent Organization
Business Formalities Centres (CFE)
Search a Company or a Financial Report
Guianet

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Working Conditions

Legal Weekly Duration
39 hours
Retirement Age
65
Working Contracts
The work contract is governed by legal provisions and to a lesser extent by collective agreements and individual negotiation.
The formality of the work contract, and hiring and firing conditions are extremely rigid.

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Cost of Labor

Minimum Wage
365.60 EUR
Average Wage
Average monthly gross earnings in Portugal was 1,088 EUR in 2007.
Social contributions
Social Security Contributions Paid By Employers: 23.75 %
Social Security Contributions Paid By Employees: 11%

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Social Partners

Social Dialogue and Involvement of Social Partners
There are 2 major Union confederations. The CGTP (very close to the Communist Party) which always very critical of and eager to challenge government measures, and the UGT (close to the Socialist Party and the Social-Democrats), a more moderate group, although it criticizes, but often manages to come to a consensus with the government. Negotiations usually take place at the Conselho Económico e Social for social dialogue between Employers' Confederations, the Government and Union Confederations. These discussions take place systematically at the beginning of each year, but also when important dossiers about labor law are discussed, as is the case at the moment.
Unions
CGTP
UGT
Unionization Rate
18.4%
Labor Regulation Bodies
Ministry of Agriculture
Confederation of Portuguese agricultural cooperatives (CONFAGRI)
Portuguese Agricultural Federation
Ministry of Labor

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