Portugal stands as the oldest nation state in Europe and as a member of the European Union and Nato, it still remains important in the global landscape. With a population of just over 10 million people it offers a large consumer market, and it is well positioned for trade with other countries. With low restrictions on doing business and an economy with an upward facing trajectory, Portugal is looking like an increasingly attractive place for those wanting to do business there.
How to Start a Business in Portugal
With many start-ups emerging all around Portugal, it is becoming more prevalent for foreign residents to start or expand businesses into the region. If you are considering starting a business or hiring employees in Portugal it is important to not only understand the business climate, but also what types of entities are available for you to conduct business through.
While there are many types of businesses in Portugal, such as a Sociedade por Quotas (a private limited company) or a Sociedade em Comandita (a limited partnership), finding the right vehicle of entry is dependent on the availability of resources and the needs of your business (find out more about doing business in Portugal). For many small to medium sized businesses, who are looking to hire staff and want to get started immediately, they should consider a PEO solution.
What is a Portugal PEO Solution?
The term PEO is an abbreviation of Professional Employment Organization, which can help your company hire and pay staff in Portugal. This means that there would be no need for your company go through the regular process involved in a company incorporation. Your company would not be required to register, have the required capital contribution, or meet any of the other strenuous requirements of setting up. INS Global’s PEO solution essentially allows you to hire and pay staff in Portugal, with little administrative challenges.
How Does it Work?
A PEO in Portugal works like this:
- You wish to setup a company or hire staff in Portugal and get your operations going.
- Our organization provides an entity through which your business can operate legally in the region. We act as an employer of record (EOR) in Portugal, who hires staff on your behalf for administrative purposes.
- While your staff are hired by our entity, they will carry on the day-to-day operations of your business.
- We ensure that we take care of all administrative needs of your staff and business, while you focus on growing your operation in Portugal.
Who Needs a PEO solution?
There are many different companies and entities that should use a PEO solution. Some examples of who should use a PEO include:
- Businesses or managers new to the region, no matter which industry.
- Companies who want to conduct research in market.
- Small to medium sized enterprises.
- Companies who want a low-risk entry into a market.
- Any enterprise who is unsure of the length of time they intend on staying in a market.
What are the Benefits of Using a PEO solution?
For those companies who have used or currently use a PEO, they can attest to the ongoing benefit it offers as both a pre- and post-employment solution. Some of the benefits of using a PEO include:
- Market entry – this is a fast and convenient way to enter the market. Your business can be operational in the Portugal market in a matter of days from first contact.
- Flexible solution – it allows you to enter fast and offers a quick non-complicated dissolution process in the event you want to unwind or dissolve the company.
- Access to expertise – your business will immediately get access to the benefits of having a large HR department. We have experts who know the requirements, processes, and regulations around various human resource policies.
- Post-employment support – once you have chosen to use a PEO we provide access to HR staff, payroll and tax administration, and assistance with employee contractual matters.
INS Global as your Partner in Portugal
As one of the world’s leading PEO providers, INS Global is an ideal partner for your business expansion. We have helped more than 600 companies’ setup around the globe, removing administrative barriers and making international business simple. We also offer support in recruitment, invoicing, and many more. To find out more about our comprehensive services, get in touch with our consultants today.