Portugal Business structure
Franchise in Portugal: self-employed or a company?
Your job title alone does not determine the right structure. Consider how you work, ongoing costs and your plans to move before deciding. These are the points to prepare for your business: Franchise.
Let’s discuss your project
A few details to understand your business and the next step.
Bertrand Jayol receives your enquiry for an initial assessment. Referral to the partner is considered with your agreement. Privacy
01 / Your business
How you earn shapes the questions to ask
- Running a local outlet under a franchise brand.
- Selling the products or services specified by the network.
- Local marketing and day-to-day team management.
Choosing a business structure
| Consideration | Self-employed activity | Company |
|---|---|---|
| Organisation | Business carried on in your name; identify the applicable registration steps. | A separate entity; define ownership and management. |
| Administration | Understand the regime applying to your work and the returns required. | Allow for incorporation and organised accounting with a certified accountant. |
| Decision | Consider simplicity and the way your business will operate. | Consider ownership, organisation and recurring costs. |
There is no universal answer based only on your profession or turnover. These points prepare a discussion, not a personalised tax calculation.
Review commitments before signing
Gather the draft agreement, network information and outlet budget. Separate entry fee, fit-out, stock, training, royalties and local spending. Link each payment to a date and condition: signing, premises handover, opening or completed sales.
Have duration, renewal, territory, sourcing and exit terms reviewed by the relevant advisers. Operating procedures still follow the actual activity; the gov.pt guide helps identify them. Compare the network's model with your own footfall and staffing assumptions rather than treating a profitability projection as an achieved result. Include the funding needed if the premises are ready before customer demand reaches the planned level.
02 / Next steps for your project
Questions to prepare your application
- Is the proposed territory defined in the agreement?
- Which purchases, royalties and fit-out commitments are required?
- Will you or the future company sign the agreement?
Portugal
Before you incorporate
Registering as self-employed and incorporating a company are different routes. The choice depends on how your business actually operates. A Portuguese company alone does not determine your tax residence or the treatment of every source of income.
Information to gather
- Your country of residence and where you actually work.
- A description of the services or products you sell.
- Whether your customers are businesses or individuals, and their countries.
- Any shareholders, existing business structure and your planned timing.
Sources and references
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