Licensed activities in Portugal
Licensing is a necessary process for those planning to do business in certain industries, and it is important to know how to go about it. In this article we will look at what types of business in Portugal require licences, what you need for this, how to get everything right and avoid mistakes.
What is CAE, and why is it required?
Before looking at licensing, it is important to understand the CAE (Classificação das Atividades Económicas) system, which is the classification of economic activities used to register a business in Portugal. When starting a company, every entrepreneur chooses a CAE code that corresponds to their business activities.
Your choice of CAE determines whether you need to get a licence and what taxes you will pay. For example, if you are to open a café, restaurant or shop, you will need special licences, whereas online clothing sales will probably not require a licence.
What areas of business require licences?
Service sector
If your business is a customer service business, it's likely that you'll need a licence. For example:
- Cafés, restaurants, bars. A licence is required to operate a catering business, confirming compliance with sanitary and fire regulations. The licence is issued by the local municipalities after an inspection of the premises.
- Hotels and hostels. Tourist sites also require a licence that certifies compliance with safety and service quality standards. These licences are issued by Turismo de Portugal.
- Travel agencies. If you plan to organise tours or offer other tourist services, you have to obtain a permit through Turismo de Portugal, where they will check the qualifications of the staff and the services.
Transportation services
The transport industry is highly regulated, especially if you plan to be in the business of transporting passengers or cargos. The licensing authority is Instituto da Mobilidade e dos Transportes (IMT). It should also be taken into account that your vehicles should undergo regular technical inspections.
Industry and production
The production of specific goods, such as alcohol and tobacco products, requires special attention. For these activities, the licences are issued at the national or European Union level. For example:
- For the production of alcohol, the licensing authority is Direção-Geral de Atividades Económicas (DGAE).
- For the sale of alcohol and tobacco: the licences are issued by municipalities.
Medical services
All types of medical activities require a license. This applies to both private clinics and dental offices. Licences are issued by Entidade Reguladora da Saúde (ERS) and they confirm the qualifications of medical staff and compliance with sanitary standards.
Energy and utilities
If your business involves the production of electricity, gas or water, it is mandatory to obtain a licence from the Direção-Geral de Energia e Geologia (DGEG). Safety and environmental requirements are an important aspect of licensing here.
Construction and urban planning
Portugal has recently simplified the rules for obtaining licenses for construction and real estate. Now, if the local authorities do not make a decision on your request within a set period of time (120 to 200 days depending on the size of the project), your application is considered approved automatically. All licences for construction are issued by municipal authorities.
Trade and online commerce
The sale of goods on the internet does not require a licence, except in the case of restricted goods (e.g. alcohol, medicines). For these categories of goods, licences may be issued by local authorities or by the authorities like Infarmed (in case of medicines).
How do I apply for a license?
In Portugal, many administrative processes can be completed online, this is a significant time saver. Here are some useful resources to help you apply for and obtain your licence online:
- Portal da Empresa (portaldaempresa.pt) is your main assistant for business registration and licence applications. Here you will also be able to choose your CAE code, apply and track the status of your applications.
- Portal das Finanças (portaldasfinancas.gov.pt) is a tax portal where you can register your tax number (NIF) and pay taxes.
- Turismo de Portugal (turismodeportugal.pt) is a mandatory to be registered there if your business is related to tourism.
Online registration is a quick and convenient way to avoid bureaucracy and save time, but note that in some cases you will still have to go through an on-site inspection, such as for restaurants or hotels.
Taxation: What is important to know?
Apart from licences, every business faces taxes, here are the main types of taxes in Portugal:
- Value Added Tax (IVA). Depending on your business, you may face different IVA rates. The standard rate is 23%, but for some goods and services it may be lower at 6% or 13%.
- Corporate income tax (IRC). Companies in Portugal pay 21% of income tax.
- Social security contributions and income tax (IRS). If you are an individual entrepreneur, you are required to pay income taxes (IRS), as well as make social contributions.
The tax can be paid through the Portal das Finanças, where you can also access information on tax benefits and other important aspects.
Collecting documents: where to start?
To obtain a licence, you will need different documents depending on the type of activity. Here are the main ones:
- The company's founding documents,
- Tax number (NIF),
- Confirmation of the address (lease agreement or documents on the ownership of premises),
- Floor plans (especially if you are opening a café or hotel),
- Employee certificates if your business requires qualifications (e.g. medical or travel services).
Conclusions
Starting a business in Portugal seems complicated, but with an understanding of the basic steps, you will be able to handle it without too much difficulty. Here's what's important to consider on the road to a successful launch:
- Check whether a licence is required for your type of business. Start by choosing the right CAE code to determine if your business needs a licence and what kind of licence is required.
- Collect all the necessary documents. Make sure you have everything from incorporation documents to certifications if this is necessary for your area of business.
- Apply through online platforms. Use government portals such as Portal da Empresa or Portal das Finanças to register your business and apply for licences.
- Keep track of licence expiry dates. Many licences require regular renewal, and failure to meet deadlines can result in fines or suspension.
- Do not hesitate to ask for help. If administrative processes seem complicated to you, contact professionals: lawyers and consulting companies can help you understand the documents and the procedure.
Portugal offers excellent business opportunities and by following these steps you will be able to set up a successful business, complying with all the necessary laws and requirements.
https://www.camaralusosueca.pt/news/whats-new-in-the-portuguese-real-estate-and-urban-planning-law
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