Madiera Offshore Company
Madeira offshore companies operate from the country’s free trade zone located in Canical. Madeira is part of an archipelago which is located outside of Portugal and the main language is Portuguese. Madeira’s international business centre has expanded over the years in terms of the number of business companies operating in the trade free zone. The Madeira offshore company can be incorporated by persons of any nationality and foreign companies are also permitted to be registered for operations out of the trade free zone.
The Madeira offshore company operating out of the trade free zone has tax benefits thanks to preferential tax regimes signed in 2000 and 2007 with the European Union (EU). The preferential tax treatment will end in 2020 and this means that companies registered between January 1 of 2007 and December 31 of 2013 will have huge tax benefits. Companies registered between 2007-09 will pay taxes at a rate of 3%, 2010-2012 rates of 4% and 2013-2020 rates of 5%. Although the companies are not totally tax free the preferential treatment allows the company to make significant savings considering that the normal tax rate is 25%.
The Madeira offshore company must set up in the trade free zone to benefit from any tax concessions and the exemptions are given for operations outside of Madeira. A Madeira offshore company in the trade fee zone pays no import duty taxes on goods and raw materials imported for use by the offshore company. Similarly good manufactured goods exported by the trade free zone companies will not pay duty.
The following types of companies can be registered as Offshore companies in Madeira; Stock Corporations, Holding Companies and Private Limited Companies. The process for offshore company registration in Madeira is similar to that of other jurisdictions. A company name is chosen and required information is submitted to the registrar of companies. The companies which will operate as offshore companies must register to operate in the tax free zone.
The process of offshore companies’ registration to operate in the tax free zone includes sending a complete application form. The information which is included is listed below;
- The name and address of the offshore company
- The name and address of the applicant
- The business activity to be carried out the Madeira offshore company
- Source of funds
- The number of jobs positions to be created
- The date by which the company will be dissolved/ number of years operation will be carried out
- Detailed information on waste disposal and treatment, energy and water assuage etc
One the applicant can provide proof of Madeira offshore company incorporation and the license for operations in the free trade zone is approved then the company can commence its operations and benefit from tax concessions in Madeira.