ILN: ESTABLISHING A BUSINESS ENTITY: AN INTERNATIONAL GUIDE

[ESTABLISHING A BUSINESS ENTITY IN PORTUGAL] 403

internal record with the identification of the direct shareholders and all individuals who, directly or indirectly, own shares/interests and/or have the effective control of the disclosing company. Finally, a brief note concerning licensing procedure: prior to the starting up of any commercial activity in Portugal, the Municipality should be consulted to ascertain whether the planned activity is subject to any special licensing procedure. Thus, in case the commercial establishment needs a specific license to operate, the Municipality is the entity responsible for monitoring this process. In fact, Municipal authorities generally have sole jurisdiction on licensing commercial establishments. There is a special regime for commercial establishments, services and restaurants. These regulations are set out in Decree-Law no. 10/2015, of January 16, as amended, which regulates the legal regime of the Access and Exercise of Commercial Activities, Services and Restaurants. This regime, implemented within the scope of the Simplex Program and aiming to improve the responsiveness of Public Administration in meeting the needs of citizens, with lower costs and promoting safety and speed of business, revolutionized the licensing procedure for certain business premises, by articulating and facilitating the application of the Zero Licensing (“ Licenciamento Zero ”) figure. The “ Licenciamento Zero ” figure was created by Decree-Law no. 48/2011, of April 1, and is intended to reduce administrative costs and eliminate licenses, permits, inspections and a priori constraints for specific activities, replacing them with systematic actions of surveillance and accountability mechanisms a posteriori on the economic agents.

The simplification is reflected in the creation of a simplified procedure for the installation and modification of commercial establishments, services and restaurants. As a result, previous administrative permission is now completely replaced for a mere prior notification served to the “ balcão único electrónico ” (e -administrative spot), also called “ balcão do empreendedor ” (entrepreneur spot) accessible through the website www.portaldaempresa.pt. As mentioned, with “ Licenciamento Zero ”, certain licensing procedures are simplified or eliminated, such as: • The regime of occupation of public space, with the replacement of licensing by a mere advance notice for certain purposes usually associated with restaurants or drinking establishments, commerce of goods, provision of services or storage; • The system for the display and inscription of advertising messages of a commercial nature, with the elimination of licensing of the display and inscription of advertising messages of a commercial nature in certain situations. Furthermore, the “ Licenciamento Zero ” figure eliminates the licensing procedure for certain economic activities, according to which a system of prior control is no longer applicable, such as the sale of tickets for public shows in commercial establishments and the performance of auctions in public places. The exploitation of an establishment included in the list present in article 4th of the Decree- Law no. 10/2015, as amended, is now only subject to a prior notification addressed, as the case may be, to the territorially competent municipality or to the “ DGAE – Direção-Geral das Actividades Económicas ” (Directorate- General for Economic Activities), through the

ILN Corporate Group – Establishing a Business Entity Series

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