A minimum capital requirement to incorporate the above mentioned types of companies doesn’t exist anymore. It is for the shareholders to decide on the company’s share capital. Each share must, however, have a nominal value of 1 Euro. The deposit of the share capital can also be postponed and no longer needs to be done just before or within 5 working days after the company’s incorporation. Now the shareholders have until the end of the first financial year to pay it. These changes are based in a general understanding that, the share capital itself is not an assurance of liquidity for the creditors of the company, and follows the example of other legal systems in Europe and USA. The purpose of these legislative amendments is also to promote entrepreneurship, in particular in what young investors are concerned, reduce administrative costs and increase transparency of company accounts.
Portugese Law Changes Promote Entrepreneurship
Porto, 15. March, 2011 – Starting a business in Portugal is now cheaper and simpler. This applies to limited liability companies and single shareholder liability companies and will enter into force on 6.4.2011 (Decree-Law no. 33/2001, dated 7 March)
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