Many more people today are looking to make a lifestyle change for themselves and their families but are not yet of retirement age and so making a living in their country of choice is important. In today's economic climate getting a job can be difficult in a new country and especially so if you are not fluent in the local language and starting up a business seems an easy option.

Getting Started In Business

Here are some hints and tips on what to look for when taking that leap of faith and starting up a business in Portugal

Location

Type of Business

Financing

• how much you need to start your business - a business plan (outlined below) will help you clarify this.

• sufficient funds to ensure that you and your family have enough money to see you through until the business starts to make enough money to support you (a personal budget should be drawn up to help you estimate this).

Planning

• description of the type of business

• description of who the customers will be and where

• how and where you will attract your customers

• if you are dependent on product supplies how you will secure the best price and regular delivery

• projected expenses and income

Business Structure

1. Self-employment - this has some tax benefits but does not protect you should the business fail. All self-employed persons must register for income tax, social security and IVA (VAT) as well as a NIF number. A good low cost investment option.

2. Private Limited Liability Companies - Sociedade por Quotas, LDA - needs at least two partners / Sociedade Unipessoal por Quotas - has an individual or group entity as single partner. The corporate entity (not the individual) is responsible for any company liabilities. Minimum capital investment of €5000.

3. Public Limited Companies (Sociedade Anónima SA Corporation) - requires at least 5 partners, unless the State is a shareholder then only 2 are needed. The corporate entity (not the individual) is responsible for any company liabilities.

4. Limited co-partnership companies (Sociedade em Comandita, SC) - There are 2 categories of partners - Dormant Partners (Sócios Comanditarias) whose liability is limited to the amount of their shares and Full Partners (Sócios Comanditados) who are liable for any company debts.

5. General partnership companies (Sociedade em Nome Collectivo, SNC) - All partners will bear unlimited liability for any company debts.

WARNINGS

• There is no escaping Bureaucracy and there is plenty of it and while some things are quick and easy to achieve others can create delays.

• Some professionals may need to requalify in Portugal (i.e. law, electricians, HGV drivers).

• Get professional advice as to which business option suits your needs as this can have tax implications.

• Employing people in Portugal is every bit as difficult and expensive as anywhere else and the language can be an added barrier, check out employment laws before you commit to anyone.

• Running a business in Portugal requires every bit as much hard work and dedication in order to get it off the ground and paying your bills.

If you need help with any aspect of getting your business started in Portugal then let us help you avoid the pitfalls and be thoroughly prepared and ready to start earning from Day 1.

© Leaping Ahead - John Norton - feel free to copy and replicate any of this information, we only ask that you attribute it to us.