Close a Company in Portugal

If you want to close a company in Portugal, we suggest you read this article to learn about the key aspects of theprocess. You can collaborate with our Portuguese lawyers to better understand the formalities involved in winding up a company in Portugal.

How can a company be closed/liquidated in Portugal?

There are 3 ways:

• Voluntary dissolution – when company shareholders agree on the company’s liquidation,
• Judicial procedures – if disputes or insolvency are involved,
• Administrative procedures – in straightforward cases.

How is a voluntary company liquidation carried out in Portugal?

• the company shareholders agree on closing the business,
• a liquidator is appointed to deal with the company’s assets and debt payments,
• the remaining assets are then distributed to the company shareholders,
• the final accounts are prepared,
• the Portuguese Trade Register issues a notification stating that the company is closed,
• the firm is erased from the Trade Register.

You can also discover the following infographic with details on this subject:

Can a firm in Portugal be liquidated if it has debts?

No. A company is closed after all debts are paid. This is where the liquidator intervenes.

What types of assets can be sold when a company is closed in Portugal?

• company equipment/machinery,
• real estate and/or intellectual property, etc.

When is insolvency confirmed in the company liquidation process in Portugal?

• if the company cannot meet its financial obligations, it can be declared insolvent.

When is the corporate bank account closed?

Once the company in question is liquidated, a decision issued by the Portuguese Trade Register will be used at the bank.

Is there a difference between company dissolution and company liquidation in Portugal?

Yes, while company liquidation involves distributing assets among shareholders, company dissolution is the first step: it starts the process, liquidation then pays the debts and distributes the remaining assets, and the closure is finally registered. The whole process must be announced to the relevant institutions.

What happens if the company still has debts and is declared bankrupt?

Bankruptcy and indebted companies can be closed under certain conditions. For example, debts can be settled after the sale of certain assets, but only if the shareholders agree. Our Portuguese lawyers can provide the necessary assistance in paying the debts of a bankrupt company, including a thorough analysis of the assets to be sold.

How long does it take to close a company in Portugal?

Liquidating a company in Portugal is a relatively long-term process. All formalities are extended by 2-3 months, and the entire process can be extended by 2 years from the date of the respective decision.

Are there any recommendations when closing a company in Portugal?

Once the decision is issued by the Commercial Registry in Portugal, the deregistration must also be done at the Social Security Office.

Is a voluntary company reorganization possible in Portugal instead of liquidation?

Yes, this can be an optimal solution if the company’s shareholders decide not to liquidate the firm but to reorganize it instead.

Whether you are interested in starting a business in Portugal or in a company dissolution procedure that requires additional support and legal advice, you may contact our lawyers in Portugal to submit your inquiries.