Portugal

Operating a business

Different types of companies	Number of partners/shareholders	Maximum and/or minimum capital	Liabilities	Registration fees
The "sociedade por quotas de responsabilidade limitada (Lda)" is a limited liability company.	2 partners minimum, just one in the case of an individual businessman.	5 000 EUR minimum, entirely taken up, with the obligation to release at least 50%.	Liability is limited to the amount of capital contributed.	0.3% of the capital for registration in the register of commerce, 0.6% for notaries' fees.
The "sociedade anonima de responsabilidade limidada (SA)" is a public limited company.	5 partners minimum; they may be foreigners and non-residents.	50 000 EUR minimum, entirely taken up, with the obligation to release at least 30%.	Liability is limited to the amount of capital contributed.	0.3% of the capital for registration in the register of commerce, 0.6% for notaries' fees.
The "sociedade em nome colectivo" is a general partnership.	2 partners minimum	No minimum capital.	Liability is joint and indefinite regarding third parties.	0.3% of the capital for registration in the register of commerce, 0.6% for notaries' fees.
The "sociedade em comandita" is a limited joint-stock partnership.	2 partners minimum, with active partners and silent partners.	No minimum capital.	Liability is indefinite for active partners, and limited to the amount of capital contributed for silent partners.	0.3% of the capital for registration in the register of commerce, 0.6% for notaries' fees.

Business setup procedures: First of all, 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 and for other procedures concerning them. For further information, click here.
The competent organization: Business Formalities Centres (CFE)

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.

Minimum wage: 365.60 EUR
Average wage: 12 425 EUR (annual)
Social contributions: Social security contributions paid by employers: 23.75 %
Social security contributions paid by employees: 11%

Bargaining power: There are 2 major Union confederations. The CGTP (very close to the Communist Party) always very critical of and challenging government measures, and the UGT (close to the Socialist Party and the Social-Democrats) more moderate 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