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January 6, 2021 by bizadviser

Advantage of Setting up a Business in Portugal

Portugal is one of the most peaceful countries in the world with a high quality of life for its residents. It also has one of the youngest workforces in the world and, in terms of business, operating a company in Portugal does not cost you a ton of money. Investing in Portugal can be one of the best business decisions you will make. Its economy is moving upward with an annual growth rate of approximately 0.8 percent. Company formation in Portugal is also easy. Let one of our company formation agents in Portugal help you decide on why you should invest in Portugal. Before you decide to open a company in Portugal, it would be wise to take a look at some of the important factors that can stand at the base of your investments in Portugal.

Investing in real estate sector

Investing in real estate sector

The Golden Visa scheme is perhaps one of the most attractive reasons why you should invest in Portugal. It is a scheme wherein you can acquire residency when you purchase a property in Portugal. This means that company incorporation in Portugal could result in businessmen gaining residency once there is an investment in property, with minimal legal requirements and maximum benefits. With a minimum investment of €250,000.00 on property, you can already reap the benefits of this scheme.

Being part of the European Union

Portugal’s membership with the European Union is another important factor to consider if you want to set up a company in Portugal. Membership of the European Union means common currency and free movement and trade within all member states. Portugal is one of the leading members in the European Union in terms of providing services, biotechnology and information technology.

Foreign investment incentives

Foreign investment incentives

Foreign investments are one of Portugal’s top priorities. The government considers them as one of the most important factors in bringing about economic growth. This is the reason why its government has imposed lesser restrictions on its foreign investments as compared to other countries. It allows foreign investments in all activities under the private sector. If you plan to engage in governmental activities, all you have to do is to secure an approval from the government. This is just another reason why you should invest in Portugal.

Knowledgeable workforce  

In Portugal you will find a workforce that is young, brilliant and energetic. The Portuguese universities have seen the highest enrollment rate in recent years and they are expected to produce qualified graduates in upcoming years. Its universities have also partnered with schools like MIT in order to boost student knowledge in science and technology. Once you open a company in Portugal, you can be assured to have quality employees at your disposal.

Is it hard to open a company in Portugal?

open a company in Portugal

No, the lack of complexities in terms of company formation in Portugal is appealing to international investors of any kind. They can easily set up limited liability companies, joint-stock companies, private and public partnerships or sole proprietorships in Portugal. The private LDA is the private limited liability company, the most common and used business structure in Portugal, and the main choice of foreign investors who are interested in a fast and reliable start on the market. The registration of a Portuguese LDA is not complicated, but it is important to pay attention to the conditions involved, like depositing the minimum share capital of EUR 5,000 in a local bank account or submitting the Articles of Incorporation with information about the owners, their nationality, the business activities, the representatives, the general rules, etc. The support of our company formation agents in Portugal will prove extremely helpful to foreign investors found for the first time with business intentions in Portugal.

Legislation related to foreign investments in Portugal 

The foreign investments made in Portugal are overseen by the Agency for Foreign Investment and Commerce in Portugal, an important institution that activates under the rules of the Investment Law. The legislation related to foreign investments in Portugal clearly states that both local and foreign entrepreneurs have equal rights on the business market, without any restrictions, except the state-owned affairs in the country. If an investment of at least 10% in a Portuguese company is made, this means that the entrepreneur is considered a foreign direct investor who can enjoy the benefits that come with this status. It is important to know that there is no need for a foreign entrepreneur to have a local partner to open a company in Portugal, as he or she can enjoy complete ownership in the firm, with no restrictions imposed. The legislation related to foreign investments in Portugal also mentions the taxation regime applicable in the same way to local and foreign entrepreneurs in matters of corporate tax, VAT, social contributions, etc. The support of the double taxation treaties signed by Portugal acts in a fair manner with the purpose of avoiding any possible financial risks or fiscal evasion. Being part of the European Union, Portugal aligns with the business conditions and directives imposed for all EU countries with no exception. For a better understanding of the legislation related to foreign investments in Portugal and its applicability, we kindly invite you to talk to one of our company formation agents or lawyers in Portugal.

Interesting business fields for foreign investors

Opening an agricultural business or setting up a construction company can be in the attention of entrepreneurs from abroad in Portugal. Also, investors can decide on opening IT companies, financial firms, casinos, trust companies, publishing businesses, restaurants, travel agencies and other types of businesses that can enjoy success in a proper environment and are sustained by the Portuguese government in terms of incentives and encouragements.  

Holding companies might be appealing businesses for international investors looking to enlarge their portfolios and generate extra profits. Such companies benefit from varied tax exemptions that can be extremely attractive to foreigners. If you want to start a company in Portugal and need guidance throughout the entire registration process, you should address your inquiries to our company incorporation agents in Portugal.

Portugal in numbers

Portugal in numbers

According to Trading Economics that gathers all the rating information about countries worldwide, Portugal’s credit rating established by Standard & Poor’s is BBB with a positive outlook. Moody’s set the same rating last year in August, believing that Portugal is on the right path when it comes to economic stability. The following numbers, facts and statistics can give confidence to international investors wanting to start a business in Portugal:

  • • Portugal ranks 34th out of 190 economies in the world, as stated by the 2019 Doing Business report;
  • • Portugal is considered the second-largest power plant in the world;
  • • the total FDI stock recorded in 2018 in Portugal was USD 135,777 million;
  • • non-EU investors can obtain Portuguese citizenship for investments of around EUR 250,000 in companies that need to be strengthened.

Portugal is for sure a great business destination for foreign investors, and those interested in this direction can benefit from complete facilities and tailored services from our team of consultants.

Credit rating for Portugal

Credit rating for Portugal

There are a lot of entities that give sovereign credit ratings that are the credit ratings given to countries and that reflect their political and economic environment. A lot of companies treat these credit ratings as something very significant before deciding to engage in company formation in Portugal. The top three entities that give sovereign credit ratings are: Moody’s, Standard & Poor’s and Fitch. They have given their credit rating for Portugal.

Read More:

Company Formation Process Tunisia in Details Guidelines

How to register a business in Malaysia with SSM: 5 Steps

Filed Under: Blog, Business

January 4, 2021 by bizadviser

FDI Company Registration Procedure in Bangladesh

Bangladesh’s receptiveness to unfamiliar speculation, serious work expenses, and fast financial development are quickly transforming it into perhaps the most encouraging business sectors on the planet.

FDI Company Registration Bangladesh

Information by the Bangladesh Bank (BB) shows that the nation got $961 million in the financial year 2008-09, while FDI inflow expanded to $2.54 billion in FY16-17.

Bangladesh got $2.60 billion worth of unfamiliar ventures from July to May in FY17-18, as per the most recent information of BB.

As per financial experts, partners, and controllers, Bangladesh has had the option to pull in the expanding measure of FDI because of a reliable approach upheld from the public authority. And it is the ultimate guidelines of the company formation in Bangladesh as foreigners.

Emerhub—a full-administration market passage firm that intends to ease brands to enter and grow in SouthEast Asia—made a rule to help unfamiliar financial specialists understand what legitimate substances are accessible in Bangladesh.

Types of legal entities in Bangladesh

Types of legal entities in Bangladesh

Restricted risk organizations: Limited obligation organizations (LLC)— an organization where risk is restricted to investors’ shared capital—make up an enormous number of organizations in Bangladesh. LLCs in Bangladesh can be completely unfamiliar claims.

Any individual who is over the age of 18 is qualified to enlist a LLC .

Also, Bangladeshi law recommends at least two and a limit of 50 investors, alongside two chiefs.

In any case, it is conceivable to frame a joint endeavor with a neighborhood element to share qualities and decrease chances.

Public limited company

Public limited company

A public restricted organization (PLC) can welcome people in general to hold offers to raise assets from them, and is normally listed on a stock trade.

A PLC has at least seven individuals, three chiefs, with no greatest number of investors. Its investors can be any lawful individual or any person who is over the age of 18.

Notwithstanding the Companies Act 1994, it ought to likewise agree to the Securities and Exchange Commission Act 1993.

Step-by-step process of company registration

Step-by-step process of company registration

Name clearance:

The initial step to enlisting an organization in Bangladesh is to get endorsement of the organization’s name from the Registrar of Joint Stock Companies and Firms (RJSC).

Drafting of required documents:Next, the Article of Association (AoA) and Memorandum of Association (MoA) should be drafted. Different structures should likewise be readied while drafting these, according to the prerequisites for consistency to RJSC.

Opening a bank account:

The third step is to open a ledger in the proposed name of the organization and make an internal settlement of at any rate $50,000 if the organization will enlist unfamiliar workers.

Submitting documents to RJSC:

The subsequent stage is to present all the necessary papers to RJSC and pay the enlistment charges. The joining declaration can likewise be mentioned from the RJSC now.

Post-registration compliance:

After getting the declaration of consolidation, AoA, and MoA, the organization should continue to some extra licenses and enlistments including: Trade License, Tax Identification Number (TIN), VAT Registration Certificate, Fire Certificate, and the Environmental Clearance Certificate (if essential).

The normal assessed course of events of finishing all enlistment methodology in Bangladesh is 45-60 days.

Alternatives to setting up a company

Alternatives to setting up a company

Branch:

A branch is an augmentation of its parent organization, instead of an independently consolidated substance, making the parent organization liable for its branch’s liabilities.

A branch can participate in business exercises, given the endorsement of Bangladesh Investment Development Authority(BIDA). In any case, the Exchange Control Guidelines will carefully screen its tasks.

The normal foundation season of a branch in Bangladesh is 45-60 days.

Representative/liaison office:

Like a branch, a contact—additionally called a delegate office—is liable to BIDA’s endorsement.

Its exercises are restricted since it just fills in as a correspondence or coordination instrument of the unfamiliar parent organization’s business assets in Bangladesh.

Moreover, a contact office can’t acquire any nearby pay in Bangladesh. The parent organization bears the entirety of its costs and operational expenses through settlement.

There additionally can’t be outward settlements of any sort from Bangladeshi assets, aside from the sum acquired from abroad. The contact office follows a similar general cycle of business enrollment in Bangladesh.

Franchise operation with local promoters

Franchise operation with local promoters

Unfamiliar possessed organizations can likewise go into establishments in Bangladesh. An establishment can allow nearby advertisers to utilize the franchiser’s image, give them specialized help, and charge expenses or commission on their action.

Read More:

Company Formation Process Tunisia in Details Guidelines

Ultimate Guideline for Company Formation in Malaysia

Filed Under: Blog, Business

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