Company Formation

Madeira Company Formation

Establish your company in Madeira's International Business Centre (MIBC) — the only EU-approved regime offering a 5% corporate tax rate. We handle everything from RNPC registration to MIBC licensing.

Why incorporate in Madeira?

The Madeira International Business Centre (MIBC) offers a 5% corporate tax rate for licensed companies — the lowest EU-approved rate, confirmed by the European Commission through 2027. As an autonomous region of Portugal, Madeira is fully integrated into the EU, providing Single Market access and Portugal's 80+ tax treaties.

The MIBC regime is formally approved as EU-compatible state aid, offering legal certainty that few other low-tax EU options can match. The Madeira International Shipping Register (MAR) provides a 0% tonnage-tax option, and the jurisdiction is popular for e-commerce, IP holding and trading companies. Portuguese commercial law provides strong creditor protections.

5%

MIBC corporate tax

EU

Full EU jurisdiction

80+

Tax treaties (via PT)

2027

Regime approved until

5% corporate tax rate

The Madeira International Business Centre (MIBC) offers a reduced 5% corporate tax rate for licensed companies — the lowest in the EU, approved by the European Commission through 2027.

Full EU jurisdiction

Madeira is an autonomous region of Portugal and a fully integrated part of the EU. Companies benefit from the Single Market, EU passporting and Portugal's 80+ tax treaties.

No ownership restrictions

No limits on foreign shareholding. A single shareholder and director are sufficient for a private limited company (Sociedade Unipessoal).

Portuguese legal framework

Madeira operates under Portuguese commercial law, a well-established civil-law system with strong creditor protections and EU-harmonised regulations.

EU state-aid approved

The MIBC regime is formally approved by the European Commission as EU-compatible state aid, providing legal certainty that few other low-tax EU options can match.

Shipping & e-commerce hub

The Madeira International Shipping Register (MAR) offers a 0% tonnage-tax option. The MIBC is also popular for e-commerce, IP holding and trading companies.

Madeira company formation

Setup costs depend on your structure, MIBC licence requirements and employment obligations. Contact us for a personalised quotation.

Madeira Company Formation

Madeira MIBC costs vary based on the share capital, job-creation requirements and licensing. We'll analyse your situation and provide a detailed cost breakdown.

The incorporation process

A clear, guided path from first consultation to a fully licensed MIBC company.

  1. 1

    Initial consultation

    Day 1

    We assess your objectives, confirm eligibility for the MIBC regime and recommend the optimal corporate structure.

  2. 2

    Name reservation

    1–2 days

    We reserve your preferred company name with the Portuguese Commercial Registry (RNPC).

  3. 3

    Document preparation

    3–5 days

    We draft the articles of association, shareholder agreements and all statutory forms in Portuguese.

  4. 4

    KYC & due diligence

    3–5 days

    We collect certified ID, proof of address, source-of-funds documentation and professional references for all beneficial owners.

  5. 5

    Notarisation & registration

    3–5 days

    The articles are executed before a notary and filed with the Commercial Registry. MIBC licence application is submitted simultaneously.

  6. 6

    MIBC licence & tax registration

    5–10 days

    Upon receiving the MIBC licence you benefit from the 5% rate. We complete tax, VAT and social-security registrations.

What you'll need

Comprehensive documentation — we'll guide you through every step.

Individual shareholders / directors

  • Certified copy of passport
  • Proof of residential address (< 3 months)
  • Portuguese tax number (NIF) — we can obtain this
  • Bank reference letter
  • Source of funds declaration

Corporate shareholders

  • Apostilled Certificate of Incorporation
  • Memorandum & Articles of Association
  • Register of directors, shareholders & UBOs
  • Certificate of Good Standing
  • Board resolution authorising the investment

Company details

  • Proposed company name
  • Detailed description of intended activities
  • Proposed share capital (minimum €5,000 for an Lda)
  • Number of jobs to be created in Madeira (MIBC requirement)

Advantages

  • 5% corporate tax — the lowest EU-approved rate
  • EU state-aid approved regime (through 2027)
  • Full EU membership via Portugal — Single Market access
  • Access to Portugal's 80+ double-taxation treaties
  • No withholding tax on dividends to EU parent companies
  • Participation exemption on qualifying dividends
  • Attractive for shipping, IP holding and e-commerce

Things to consider

  • MIBC licence requires job creation in Madeira (1–6 jobs depending on activity)
  • Minimum share capital of €5,000 for Lda companies
  • Annual audited accounts and tax returns required
  • Portuguese language required for official documents

Frequently asked questions

What is the MIBC regime?
The Madeira International Business Centre is a special economic zone approved by the European Commission. Licensed companies benefit from a 5% corporate tax rate on qualifying income through 2027.
How many jobs must be created?
The MIBC requires companies to create between 1 and 6 full-time jobs in Madeira, depending on the level of tax benefit claimed. We help structure employment to meet this requirement.
How long does incorporation take?
The full process, including MIBC licensing, typically takes 3–4 weeks once all documents are received.
Can I use Madeira for IP holding?
Yes. Combined with Portugal's IP Box regime and the 5% MIBC rate, Madeira can offer very attractive effective tax rates on qualifying intellectual property income.
Is Madeira suitable for e-commerce companies?
Yes. Many e-commerce and digital-services companies use the MIBC structure. As an EU territory, Madeira provides full access to the VAT OSS system for EU-wide sales.
What happens if the MIBC regime expires?
The current MIBC regime is approved through 2027. Historically, Portugal has successfully renewed the regime with the European Commission. Companies licensed before the expiry continue to benefit for the full licensed period.

Register in Madeira

Get a tailored quote for your Madeira company — we'll recommend the best structure for your goals.

+852 5803 1008

Ready to set up in Madeira?

Speak with our team for a free consultation. We'll help you choose the right structure and handle the entire process.

+852 5803 1008