ILN: ESTABLISHING A BUSINESS ENTITY: AN INTERNATIONAL GUIDE

[ESTABLISHING A BUSINESS ENTITY IN PORTUGAL] 404

“ balcão do empreendedor ” (entrepreneur spot). As a general rule, with this prior notice and payment of the fees due, the owner is immediately allowed to open and operate the establishment, exploit the warehouse or begin its activity, as applicable. Nevertheless, access to certain activities is still subject to an authorisation from the municipality with territorial jurisdiction and the installation or significant alteration of certain large commercial surfaces is still subject to a joint authorization from the Director-General for Economic Activities, the Mayor of the respective municipality and the President of the territorially competent Commission for Regional Coordination and Development (CCDR). Despite the freedom of access granted to the activities mentioned in the Decree-Law no. 10/2015, as amended, companies must comply with the requirements established in other regimes, if applicable, such as: (i) The previous controls of urbanization and edification under the terms of the legal regime of urbanization and edification (“ RJUE ”), approved by Decree-Law no. 555/99, of 16 December, as amended; (ii) The controls related to waste management, under the terms of Decree-Law no. 178/2006, of September 5, as amended; (iii) The environmental impact assessment (EIA), under the terms of Decree-Law no. 151-B/2013, of 31 October, as amended; (iv) The prevention and control of emissions of pollutants into the atmosphere, in accordance with Decree-Law no. 38/2018, of June 11, as amended;

(v) The controls of a tax or social security nature. V. FOREIGN INVESTMENT, DEDUCTIBILITY OF FINANCING COSTS, RESIDENCY AND MATERIAL VISA RESTRICTIONS V.1. Foreign Investment Foreign investment in Portugal has strongly increased in recent times, especially since Portugal became a member of the European Union. The necessary adjustments that were made so that Portugal could be included in the founding group of countries of the Euro currency had a strong effect on the Portuguese economy. This economic stability, together with its peaceful social environment and strong tourism potential has been decisive for investment in Portugal. In addition, Portugal’s traditional presence in Africa and Brazil is an advantage in the establishment of commercial contacts and business opportunities across these expanding markets. Amongst others, these four major advantages to invest in Portugal are particularly noteworthy: (i) Strategic access to markets. the combination of Portugal’s economic opening, strong ties with the EU and unique geostrategic location, make it a natural gateway to world markets. Portugal’s ties with the African continent, Brazil and transatlantic link with the USA provides a low-cost and effective internationalization base. (ii) Cost competitive, qualified and flexible workforce. Portuguese employees are known for their versatility and commitment to work, along with a positive attitude towards the adoption of new technologies and practices.

ILN Corporate Group – Establishing a Business Entity Series

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