ILN: ESTABLISHING A BUSINESS ENTITY: AN INTERNATIONAL GUIDE

[ESTABLISHING A BUSINESS ENTITY IN PORTUGAL] 399

on own account and underwriting and/or placing with guarantee of financial instruments, or carry out cumulatively activities of trading on own account and management of organised trading systems; • 75,000.00 EUR, if they provide services of reception and transmission of orders on behalf of clients in relation to one or more financial instruments, execution of orders on behalf of clients in relation to one or more financial instruments, management of portfolios of financial instruments, investment advice in financial instruments and unsecured placement of financial instruments, and are not allowed to hold client funds or securities belonging to their clients • 150,000.00 EUR, if they carry out or provide activities or services not referred to in the previous points. The commencement of activity of investment companies in Portugal depends on prior authorization by the “ CMVM ”, which shall define the investment services and activities as well as the ancillary services that the investment company is authorised to provide or perform. Investment companies which have their head office in Portugal may perform in the host Member State the investment services and activities and ancillary services which they are authorised to perform in Portugal, and vice versa . Accordingly, investment companies authorised in other EU Member States or in states belonging to the European Economic Area (as well as those with registered offices in third countries), may establish branches in Portugal. In particular, regarding the activity in Portugal of investment companies headquartered in the EU, it should be noted that the assets of the

• Its top management shall consist of at least two people. Finally, it should be noted that the constitution of a collective investment undertaking in Portugal, as well as of the respective autonomous property compartments, requires prior authorization from and/or communication to the Securities and Exchange Commission (“ CMVM ”). II.9. Investment Companies (“IC”) Investment companies are legal persons which, without being credit institutions, are principally engaged in the provision of investment services or in investment activities on a professional basis. As financial intermediaries, investment companies may also provide ancillary services foreseen in the Securities Code and investment advice on structured deposits, being applicable to them, in general, the provisions of the Securities Code and other national and European Union legislation. The IC regime is foreseen in Decree-Law no. 109-H/2021, of December 10. Investment companies shall adopt the form of PLC or LTD where the investment consultancy activity is exclusively carried out, or of PLC in all other cases, and shall have their head office and effective management in Portugal. Investment companies may be incorporated and subsist with any number of shareholders, under the terms of the respective type adopted and in accordance with the law. With regard to share capital, investment companies shall have a minimum initial share capital, fully subscribed and paid up on the date of its incorporation, constituted in accordance with the EU legislation on prudential requirements for investment companies, which may not be less than: • 750,000.00 EUR, if they carry out activities or provide services of trading

ILN Corporate Group – Establishing a Business Entity Series

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