Specificity of Company Incorporation in Madeira

For company incorporation in Madeira, it is recommended to have two directors for a Lda and three for SA who should be individuals of any nationality and not necessarily residents of Madeira. For the Lda company, the minimum number of shareholders is two while that of SA is five. The identity of these shareholders should appear in the public record.

The minimum capital for Lda’s is 5000 Euro, which is authorized and issued while that of SA is 50000 Euro, also being approved and published.

The registration of Lda takes place at the Commercial Registry of Madeira, together with the issuing of the notarized extracts to the members and recording their ownership. SA companies can give either registered or even bearer shares with non-voting or voting rights.

It’s worth noting that bearer shares are only allowed for the SA companies.



Following the laws made before the Portuguese parliament back in 1980 and validated after six years, the Madeira Free Trade zone was initiated, which provides considerable tax concessions to the companies incorporated in the Islands. The Portuguese Companies Code is the chief corporate of legislation. The strength and objectives of Madeira company are contained in its constitution and are specific.

The constitution of the Madeira states that it is not allowed to conduct any unspecific business. There’s no option of engaging in the Banking business, Assurance, Insurance, and Reinsurance, Asset, and Fund management without any prior consent and a license.



All of the Madeira companies have been enjoying the benefit of being exempted from payment of tax on all of its income gained from the activities done outside Portugal, but this lasted up to December 31st in the year 2011. There is nominal taxation, which levies on holding only companies with SGPS. These companies are taxed on EU dividends but at an appropriate rate of 1.7%.

There is a consideration of all-purpose to the companies that are licensed to work within the Madeira Free Trade Zone. This consideration enables them to benefit from a double taxation agreement that is signed by Portuguese with different countries such as Austria, Poland, Hungary, Germany, France, Finland, Norway, the Czech Republic, Mozambique, Belgium, Bulgaria the United Kingdom, Spain, Switzerland, the Republic of Korea, Venezuela and Brazil.


Company Incorporation in Madeira – Useful Information

A legislation passed in 1995 allowed foreign names to be approved, especially for the companies working within the Madeira Free Trade Zone. However, a company should have a unique name:

The names that may seem undesirable and offensive by the registrar should be avoided;

Names indicating illegal activities should not be used;

The names to use should not imply government patronage;

Portuguese signatories and their foreign languages in equivalence include all other names that show an activity associated with insurance and banking industries;

Names of the company must end in a suffix to denote the legal form.

Thanks to good practices, experience gained, qualified theoretical and practical knowledge, the experts employed by the Private Financial Services will quickly and qualitatively help you with company incorporation in Madeira.

Get a personal offer!