No. The International Business Centre of Madeira comprises a set of tax and customs incentives created by the Portuguese government and approved by the European Union, with the aim of economically developing the Madeira Autonomous Region and to serve as a principal vehicle for attracting foreign investment. The International Business Centre of Madeira is integrated into Portuguese and European legislation.
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Yes, the companies established to operate under the jurisdiction of the International Business Centre of Madeira are regulated by Portuguese law, namely by the Portuguese Companies’ Act, and they comply with all statutory requirements applicable to all Portuguese companies in general.
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How long does it take for a company to become operational?
It is very fast. Currently, the "On-the-Spot Firm" initiative allows a company in Portugal to be established in one hour.
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I wish to purchase a company to operate in IBC. Do I need to travel to Madeira?
No. Portuguese legislation on companies has been quite simplified and now it is possible to purchase or establish a company without having to go to Madeira. The process has been simplified and red tape removed. All you have to do is complete all the necessary documentation and send it to newmadeira, so that we can meet all the necessary requirements. All the documentation can be sent in advance by fax and/or e-mail and then the originals sent by mail. The documentation of the company will be sent on reception of all the required documents.
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Up to and including 2011. Nonetheless, negotiations with the European Union are currently underway to extend the validity of Madeira’s tax incentives.
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Can I open a bank account in any bank and in any country?
Yes, you can. Companies operating in the International Business Centre of Madeira can open bank accounts anywhere in the world.
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Am I obliged to have a resident manager?
No. There are no nationality requirements.
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the companies of IBC can be owned by Portuguese residents, without any loss of the tax benefits that the company is eligible for. Only the shareholders will not have access to the tax relief attributed to them, namely in relation to taxation on income received from the company.
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I wish to do business in Portugal. Can I use a IBC company?
Yes. IBC companies can do business in Portugal without restrictions of any kind. Income from business activities with residents in Portugal will be taxed according to the general tax system i.e. it will be subject to the level of tax in force in the Madeira Autonomous Region, which is currently 22.5%.
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Am I obliged to have the registered office of my company in Madeira?
Yes, in order to operate in IBC, companies are obliged to have their registered office on the island of Madeira.
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I wish to be the manager of my company. Do I have to pay Social Security?
In the event that the management is not remunerated and if it proves that the appointed manager already discounts to a compulsory social security system, then it is automatically excluded from paying social security in Madeira. Otherwise it will have to pay 31.25% of the minimum wage in force in the Region each month.
It must be noted that health insurance does not constitute proof of exclusion.
In the event of a remunerated manager, this will automatically have to compulsorily discount 31.25% every month over the salary earned.
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I wish to have a physical presence in Madeira. Can newmadeira help me?
Newmadeira, together with its partners, provides its clients with all the services necessary for the implementation, management and upkeep of any type of investment in Madeira.
Newmadeira also provides assistance to investors and their families in setting up residence in Portugal, aiding in the search for a residential property, domestic services and schools, handling all bureaucracy concerning visas, insurance, social security and the provision of translators and interpreters, when required.
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Do I need to pay taxes over the wages of my employees?
If the employees are residents in Portugal, then social security and income tax are payable. Newmadeira can provide this service, if the client deems fit.
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Do I need to have organised accounting systems?
Yes. IBC companies are, to all intents and purposes, Portuguese companies and they must therefore comply with all legal accounting requirements, such as the periodic submittal of VAT returns and annual submittal of tax form no. 22, always within the statutory deadlines, otherwise they will be subject to fines, just like all other Portuguese companies.
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What is the minimum share capital for a company?
Private limited companies are required to have a minimum capital of EUR: 5,000.00 (five thousand euros). Public limited companies have a statutory minimum capital of EUR 50,000.00 (fifty thousand euros).
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What is the minimum value of a quota in a Private Limited Company?
Quotas have a minimum value of one hundred euros.
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What is the minimum value of a share in a Public Limited Company?
The minimum value of a share is 1 cent.
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Can I have a single member public limited company?
Yes. The law permits the establishment of single member public limited companies, under the jurisdiction of IBC. The shares are compulsorily registered.
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Is it still possible to purchase companies licensed before 1 January 2001?
Yes, it is possible. NewMadeira has available companies already established and ready to operate, holding pre- 1 January 2001 licences.
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What is the information available to the general public on a company?
It comprises all the information recorded in the Company Registry i.e. the business name, registered office, object, legal person number, share capital, the shareholders and respective capital holdings, the managers and deposited accounts, as well as other details.
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What types of company exist in Portugal?
There are various types of companies in Portugal, all of which are regulated by the Companies’ Act. They are: General Partnership Companies, Private Limited Companies, Public Limited Companies and Limited Partnership Companies.
The most common are Private Limited Companies
and Public Limited Companies.
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