Madeira is one of the two autonomous regions of Portugal. A Portuguese archipelago that can be found in the Atlantic Ocean. The island is of volcanic origins, but the volcano has been inactive for over 6500 years, and is considered to be an inactive volcano. The terrain of the country may be a bit rough, but the climate has been claimed to be perfect - warm in winters and not too hot in summers. Its also know for its wines and traditional "Madeira cake".
Economy
Most of the countries economy is built on the free trade zone, this may seem illogical at first, since there are no taxes paid so there cannot be any income that may come from that sector, but just the opposite occurs. As the sectors around the trading sector gain more income. Largest part of the country's economy comes from the service sector. Over 20% of the GDP comes from the tourism sector. The biggest contributors to the tourism are the beaches, hotels and restaurants. The island has an artificially built beach, since the original beaches of Madeira are made up from volcanic rocks and ash.Incorporation
The usual time to register a company in Madeira is quite long, ranging from 15 to 45 days. The time may suggest that the incorporation process is quite complicated and fiddly, but its just the opposite. The time company registration times are so long due to the fact that you must first get your company name approved, then you must obtain the license to operate in the Madeira free trade zone and after that the incorporation contract must be signed and registered with the commercial registry of Madeira free trade zone.Name restrictions
The chosen company name may not be closely similar or the same as already existing company, offensive to the company registrar of the government, a name that may suggest an illegal activity. Also there must be a name in your company title that clearly suggest the type of the business your company is involved in. One of the following suffixes to denote limited liability also must be used:- Limitada(or Lda for shorter title or English title),
- Sociedade Anonima(SA for shorter title or English title).
Language
The official language of the country is Portuguese, but English is mostly used for commercial and international trade activities. The company name must be in the English or Portuguese language.Share capital
The share capital of the company depends on the type of the company that gets incorporated. Euro is the standard currency used. For an Lda company the minimum paid up is 1 Euro and the usual authorized is 5000 Euro. For SA company the minimum paid up and the usual authorized share capital is 50 000 Euro.Directors and shareholders
The minimum number of directors for an SA company is one, the director does not need to reside in the Madeira and may have the board meetings anywhere in the world. The minimum amount of shareholders for this type of company is one altho at least five are usually suggested and also used, the records on the directors and the shareholders are publicly available. There is no requirement for a secretary for any type of a company incorporated. For a Lda company there are similar rules in place, with the exception that the usual amount of registered shareholders are two.Maintaining a company
A fee of 1000 Euro must be paid yearly for any type of company registered. The annual returns of the company doesn't have to be filed. Accounts must prepared for all companies, audited only for large and any SA companies. The accounts must be filed for all companies and the accounts are publicly available.Taxation
Companies in Madeira are taxed at a 5% rate as long as it complies with one of the following:- Create one to five jobs in first six months and make an investment of at least 75 thousand euro.
- Create at least six jobs in the first six months of company creation.
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