We cover the full range of your needs, from registering a company to obtaining licenses and opening bank accounts.
Low corporate tax rate of 5% in the Madeira International Business Centre (IBC)
Non-Habitual Resident Program – 0% on foreign income
Special incentives for maritime and shipping businesses
Attractive place to live and do business with developed infrastructure
Who are we?
LFT Advisors provides services for international business planning and structuring. Our team of lawyers, accountants, auditors, and tax consultants helps entrepreneurs effectively manage international projects, ensuring a high level of service and expert support at every stage.
What do we offer?
We offer all the necessary services for business in one place. We operate on a one-stop-shop principle, meaning you won’t have to divert your attention to multiple contractors or incur additional costs. We cover the full spectrum of your needs, from company registration to obtaining licenses and opening bank accounts.
Why choose us?
Every step we take and every action we perform is done with respect and care for your money, reputation, and ambitions. We do not offer one-size-fits-all solutions; we create personalized tools tailored to the specific tasks and needs of your business.
Collaboration Process
- Initial Consultation:
At this stage, we discuss your business goals and needs to determine what services are necessary. - Strategy Development:
We analyze your current situation and develop an individual action plan aimed at achieving your set goals. - Implementation:
We handle all aspects of the process — from company registration to opening bank accounts, licensing, and taxation. - Support and Maintenance:
After a successful launch, we continue to work with you, providing ongoing support, updates, and consultations as needed. - Results Assessment:
Regular evaluation of achieved results and strategy adjustments as necessary for maximum efficiency and attainment of your business objectives.
Request a Commercial proposal
Madeira, an autonomous region of Portugal, offers some of the most attractive tax conditions for business in Europe through the Madeira International Business Center (Zona Franca da Madeira, ZFM).
This unique economic zone with preferential taxation attracts entrepreneurs from all over the world due to the opportunity to reduce tax liabilities and access to EU markets. In this article, we will detail the process of registering a company in ZFM, the conditions for obtaining benefits and tax rates, as well as issues related to opening bank accounts and reporting.
Advantages of Registering a Company in Madeira in ZFM
Low Tax Rates:
One of the key advantages of registering a company in ZFM is the reduced corporate tax rate, which is only 5% on profits until 2027. This is significantly lower than the standard corporate tax rate in Portugal, which is 21%.
No Dividend Tax:
Dividends paid to non-residents are not subject to taxation, making this jurisdiction ideal for structures planning to distribute profits among shareholders.
Exemption from Capital Gains Tax:
Madeira does not tax capital gains from asset sales, allowing entrepreneurs to manage their investments effectively.
Access to Double Taxation Agreements:
As part of Portugal, Madeira benefits from all double taxation agreements concluded by Portugal, which reduces tax risks for international business.
European Regulatory Status:
Madeira falls under EU jurisdiction, providing stability and reliability in the regulatory environment for businesses.
Why is it beneficial for businesses to operate here?
Madeira is beneficial for businesses due to its low corporate tax rate of only 5% within the Madeira International Business Centre (IBC). This zone offers additional tax incentives for shipping companies and maritime businesses.
In addition, Madeira has access to the EU single market and offers the opportunity to conduct international business with minimal tax liabilities, while providing comfortable living conditions and developed infrastructure.
Request a commercial proposal
Steps to Register a Company in Madeira
The procedure of registering a company in ZFM is simple and structured. It involves several key steps:
- Selecting the Legal Structure of the Company:
The most common form is a Private Limited Company (Lda) or a Joint Stock Company (SA). The choice depends on the scale of the business and the needs of the owners. - Reserving the Company Name:
The company name must be unique and not infringe upon the rights of other companies. It must be reserved with the Madeira Companies Register. - Preparing Documents:
The Memorandum and Articles of Association must include information about the shareholder structure, directors, and main business activities. These documents are submitted to the Companies Registry along with the registration application. - Obtaining a Tax Number (NIF):
After the company registration and receiving the company registration number, it is necessary to obtain a tax number, which is used for reporting and tax payments. - Opening a Bank Account:
To conduct business, the company must open a bank account in Madeira or another bank that works with companies from ZFM. This is necessary for financial operations and storing the authorized capital.
Industries Eligible for Preferential Conditions in Madeira
Madeira offers support for a variety of business activities eligible for a reduced 5% tax rate. Key industries include:
- Financial and investment services
- Maritime business and shipping
- Information technology and telecommunications
- Tourism and hospitality
- Logistics and transportation
To qualify for preferential taxation, a business must meet the minimum investment and job creation requirements set for specific industries.
Conditions for Obtaining Benefits in ZFM
To take advantage of the tax benefits in ZFM, a company must meet several conditions:
- Companies must invest in business or assets in Madeira. The investment amount depends on the type of company and chosen industry.
- The company must create a minimum of 1-5 jobs depending on the business volume. Failure to meet this condition may result in the cancellation of tax benefits.
- The company must demonstrate a real presence in Madeira, including offices and employees.
Opening Bank Accounts and Financial Reporting
Opening a Bank Account
Opening an account is a necessary step for doing business in Madeira. This can be a bank account at a local or international bank that works with companies from ZFM.
Financial Reporting
Companies in ZFM are required to keep accounting records in accordance with Portuguese standards and submit annual reports that are subject to auditing. This ensures transparency and compliance with regulatory requirements.
Potential Risks and How to Avoid Them
Compliance with Real Presence Rules:
It is important to ensure the actual operation of the company in Madeira to avoid tax issues and loss of benefits.
Constant Changes in Legislation:
Tax rules may change, so it is important to work with reliable tax consultants to adapt to new requirements in a timely manner.
Adhering to the Terms of Double Taxation Agreements:
Misuse of these agreements can result in additional tax obligation.
Registering a company in Madeira under the ZFM framework provides an efficient way to minimize tax burdens and access the European market. With its low tax rates, business-friendly environment, and streamlined registration process, ZFM is an appealing option for entrepreneurs seeking to optimize operations and reduce costs.
Contact LFT Advisors today for professional consultation and support in the process of registering a company in Madeira. We will help you take advantage of all the benefits of this unique tax zone and elevate your business to a new level!
