Company registration in Madeira

Registration fee is from 4000 €

Registration period — 4 weeks

Minimum authorized capital - 1 EUR

Remote opening — yes

Financial statements — yes

Company Registration in Madeira (IBCM): Your Gateway to the European Market with a 5% Tax Rate

Looking for a stable European jurisdiction with a low tax burden that is not on any "blacklists"? Madeira (Portugal) is a unique solution for international business. Thanks to the International Business Centre (IBCM), this region offers some of the most attractive conditions in the EU while remaining fully transparent and reputable.

Why Do Businesses Choose Madeira?

Madeira is not an offshore zone. It is an autonomous region of Portugal operating within European Union law. The special IBCM tax regime is officially approved by the EU and has been extended until the end of 2033, guaranteeing investors stability and predictability.

Key Advantages of the Jurisdiction:

  • The lowest corporate tax rate in the EU: just 5% for companies operating within the IBCM.

  • Company status: Your firm is treated as a fully-fledged Portuguese company with an EU tax number (VAT ID).

  • Market access: An ideal hub for trade within the European Union, as well as for entering markets in Africa and Asia.

  • Reputation: Not listed on any international offshore "blacklists".

  • Ship registry: Favorable conditions for shipping and yacht registration.

Popular Business Forms for Company Registration in Madeira

Investors most often choose one of two company types, which allow shareholder liability to be limited to the amount of their contribution:

  • LDA (Limitada): A private limited liability company. The most popular option for small and medium-sized businesses.

  • SA (Sociedade Anónima): A closed joint-stock company. Suitable for large projects involving significant capital.

Important! Companies in Madeira have access to Portugal's extensive network of double taxation treaties, allowing for further cost optimization when paying dividends and royalties.

Who Is Company Registration in Madeira Suitable For?

The special IBCM regime covers a wide range of activities:

  1. International trade (e-commerce, export/import).

  2. Providing IT services and consulting.

  3. Intellectual property management.

  4. Shipping and logistics.

  5. Holding activities.

Would you like to find out the registration cost and detailed company requirements?

Leave a request for a free initial consultation, and we will help you scale your business through the Madeira jurisdiction.

Madeira advantages

1

5% income tax for IBCM companies

2

Ability to open an account with Portuguese banks

3

A non-resident can be a director and shareholder

4

Madeira is not on the blacklist of offshore zones

General Information

Registration Features

Advantages of registering a company in Madeira in the IBCM zone:

  1. Dividends - 0% when paid to non-residents of Portugal.
  2. Exemption from withholding tax on payments of royalties and interest.
  3. Exemption from capital gains tax on the sale of shares.
  4. 80% reduction in stamp duty and municipal property taxes.

Company Name

The company name must end with a word, phrase, or abbreviation indicating limited liability, for example: "Limitada", "Lda." or "Unipessoal".

Authorized Capital

The minimum share capital is EUR 1. However, to successfully open an account with a Portuguese bank, it is recommended to increase it to EUR 5,000 and pay it in full after the company's registration in Madeira is completed.

Director

At least one individual is required, with no residency requirements.

Shareholders

At least one shareholder is required, who may be an individual or a legal entity, with no residency requirements.

Financial Reporting

All companies registered in Madeira and in the IBCM zone are required to keep and submit annual financial statements. An audit is mandatory if the company exceeds two of the following three thresholds for two consecutive years:

  1. Total asset value: more than EUR 1,500,000.
  2. Total net sales and other income: more than EUR 3,000,000.
  3. Number of employees: more than 50.

Taxation

  • The standard corporate income tax rate for companies registered in Madeira, outside the IBCM zone, is 14.7%.
  • Companies registered in the IBCM zone benefit from a reduced corporate income tax rate of 5% (the regime has been extended until 2033 for companies licensed by the end of 2026).
  • For companies registered in Madeira to qualify for the reduced 5% corporate income tax rate, they must meet one of the following requirements:
  1. Create one job position (including part-time) for a resident of Portugal.
  2. Invest at least EUR 75,000 in the acquisition of fixed assets within 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 state register is open to the public. Information about the company's director, shareholder, beneficial owner, and share capital amount is publicly available.

Stages of company registration

01

Choosing the name and form of the company

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

02

Preparation and collection of documents

Each participant of the company must provide a passport and proof of residential address (a utility bill). The director and the shareholder must each obtain a Portuguese tax number (NIF).

03

Identification of company participants

Registration of a company in Madeira can be carried out remotely or with the director and shareholders personally present in Portugal.

04

Formation of the share capital (if necessary)

After the company is registered in Madeira, an account is opened at a Portuguese bank for the deposit of the share capital (the recommended amount is 5000 EUR).

05

Company registration

The process of registering a company in Madeira generally takes 10 to 14 business days from the date the required set of documents is received. During the registration of the company in Madeira, payment of the mandatory IBCM insurance contribution is made.

06

Receiving of corporate documents

As soon as the company in Madeira is registered, the registry issues the finished corporate documents with the relevant markings.

07

Legalization of documents (if necessary)

If needed, the documents of a company registered in Madeira are submitted for legalization and apostille certification.

08

Delivery of corporate documents

The original corporate documents of a company registered in Madeira are sent by courier service.

Answers to the Most Common Questions:

To register a company in Madeira, you need to choose a unique name, prepare the incorporation documents, appoint at least one director and one shareholder (an individual or legal entity with no residency requirements), obtain a Portuguese tax number (NIF) for the participants, contribute the minimum share capital (from 1 euro), and submit the documents to the relevant government authorities. The process can be carried out remotely with the help of trusted representatives.
The registration period for a company in Madeira is about 4 weeks. The cost of registration starts from 4,000 euros, which includes document preparation, government fees, and support throughout the registration process.
Companies registered in the International Business Centre of Madeira (IBCM) benefit from a reduced corporate income tax rate of 5%, a regime extended until 2033 for companies licensed by the end of 2026. The standard corporate income tax rate for companies outside the IBCM zone is 14.7%. To qualify for the reduced rate, a company must create at least one job for a Portuguese resident or invest at least 75,000 euros in fixed assets within the first two years of operation.
Madeira is not considered an offshore zone and is not included on any international blacklist. Companies registered in Madeira are considered Portuguese and are subject to European Union legislation.
Yes, non-residents can register a company in Madeira. The company's director and shareholder can be an individual or legal entity with no residency requirements. The registration process can be carried out remotely.

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MAIRA LLC

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Jurisdiction: Ukraine

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