Company registration in Madeira

Registration fee is from 4500 €

Registration period — 4 weeks

Minimum authorized capital - 1 EUR

Remote opening — yes

Financial statements — yes

Madeira is an autonomous region of Portugal with a special economic zone called the International Business Center of Madeira (IBCM). It was approved by the EU and fully complies with its legislation. The EU has extended the special tax regime of the IBCM until 2027.

Maira Consult recommends registering a company in Madeira for international services, trade in the EU, as well as in the markets of Africa and Asia, including shipping and yacht registration.

Importantly, Madeira is not considered as an offshore zone and is not included in any international blacklist. Accordingly, all companies registered in Madeira are considered as Portuguese, not offshore.

As a rule, companies are registered in the form of a private limited liability company (LDA) or a closed joint stock company (SA) in the IBCM. These types of companies allow to limit the liability of shareholders by their share in the share capital.

Our specialists know how to register a company in Madeira, providing highly qualified service and advising you on all issues. 

Madeira advantages

1

5% income tax for IBCM companies

2

Possibility to open a bank account in Portugal

3

Non-resident can be a director and shareholder

4

Madeira is not on the blacklist of offshore zones

General Information

Registration Features

Advantages of company formation in Madeira in the IBCM zone: 1. Dividends - 0% in case of payment to non-residents of Portugal. 2. Exemption from withholding tax on royalties and interest. 3. Exemption from capital gains tax on the sale of shares. 4. 80% reduction in stamp duty and municipal real estate taxes.

Company Name

The name of the company must end with a word, phrase or abbreviation indicating its limited liability, for example: “Limitada”, ‘Lda.’ or ‘Unipessoal’.

Authorized Capital

The minimum authorized capital is EUR 1. However, to successfully open an account with a Portuguese bank, it is recommended to increase it to 5000 EUR and make a full payment after the company registration in Madeira is completed.

Director

At least one individual is required, without any residency requirements.

Shareholders

At least one participant is required, which can be an individual or a legal entity, with no residency requirements.

Financial Reporting

All companies registered in Madeira and the IBCM zone are required to maintain and submit annual financial statements. An audit is mandatory if the company exceeds two of the three limits for 2 consecutive years: 1.The total value of assets exceeds EUR 1,500,000. 2. The total level of net sales and other income is more than EUR 3,000,000. 3. Number of employees - more than 50.

Taxation

The standard corporate tax rate for companies registered in Madeira outside the IBCM zone is 14.7%. Companies registered in the IBCM are subject to a reduced corporate tax rate of 5% (until 2027). In the case of working with local Portuguese companies, the income tax rate will be 21%. In order for companies registered in Madeira to apply for the 5% corporate tax reduction, they must meet one of the following requirements: 1. Creation of one position (including part-time positions) for a Portuguese resident. 2. Investments of at least EUR 75,000 in fixed assets in the first two years of operation (real estate in Portugal, intellectual property, software, etc.). The VAT rate in the Autonomous Region of Madeira is 22%.

Confidentiality

The public register is open. Information about the director, shareholder, beneficiaries and the size of the company's share capital is available to the public.

Stages of company registration

01

Choosing the name and form of the company

Before registering a company in Madeira, you must submit a request to the National Registry of Legal Entities to check the availability of the name. Once the name is confirmed, the preparation of corporate documents begins.

02

Preparation and collection of documents

Each shareholder of the company must provide a passport and proof of residence (utility bill). A Portuguese tax number (NIF) is required for the director and shareholder.

03

Identification of company participants

Company registration in Madeira can be carried out remotely or with the personal presence of the director and shareholders in Portugal.

04

Formation of the share capital (if necessary)

After company formation in Madeira a bank account is opened in a Portuguese bank to deposit the share capital (the recommended amount is EUR 5000).

05

Company registration

The process of company registration in Madeira generally takes 10-14 business days from the date of receipt of the required set of documents. During company formation in Madeira the mandatory IBCM stamp duty is paid.

06

Receiving of corporate documents

As soon as a company in Madeira is registered, the registry issues ready corporate documents with the appropriate stamps.

07

Legalization of documents (if necessary)

If necessary, the documents of company registered in Madeira are submitted for legalisation and apostille.

08

Delivery of corporate documents

Originals of corporate documents of company registered in Madeira are sent by courier service.

Answers to the Most Common Questions:


Our Contacts

Client Relations Department

+380 73 427-66-30

Address

Kyiv, 01054, Ukraine,

40B Ivan Franko St., office 207

Messengers

Social Networks

Maira Consult logo