Madeira is a piece of the portoghese territory so as sanctioned from the establishment, in force on 1976.

A low aliquot of value added tax Vat (VAT) has made the island of Madeira an extremeliest attractive jurisdiction from the social point of view, in particular for all the companies of services, that sell software to the UE residents means Internet. Later on the introduction of a special European directive, that obligates to subject the Vat of these sales, a remarkable number of companies, included the big European Internet providers, have already placed their offices to Madeira.

The usefulness to transfer the companies branches consists of the fact that in accordance the articles of the cited directive, the company must pay the VAT of the takings achieved from the natural and juridical persons, that are European Union residents according to a current tax in the registrated country. That has automatically lead to the fact, that the companies that operating in the Internet field, have begun to search the disposed territory on the European Union area, with the lowest Vat tax. In Madeira the tax is only 13%.

THE OFF-SHORE COMPANIES FROM MADEIRA

The companies are disciplined from the Portuguese trade right said code of companies on 1986.

The main types of usable companies to the ends of offshore operations are the Sociedade por Quotas - Limitada (Lda) and the Sociedade Anónima (SA), comparable to the Srl and the Spa. In 1993, the Portuguese legislation introduced the possibility for a Lda or a SA to being possessed from a single natural person, fixing the so-called "Sociedade Unipessoal".

This type of company previews also the SGPS that of fact their holdings are possessed of a single person, but with a very specify legal identity (Sociedade Gestora de Participacoes Sociais). However, all the companies of Madeira are tax-free on the outside and the inside profits  that come of the foreign country  and from outside of the Portugal until 1 December 2011. The SPGS only have a minimal taxation on the coming from dividends from the UE that only previews an aliquot of 1,7%.

The law previews the existence of society to totally limitless responsibility, society to partially limitless responsibility and limited liability partnership.The limited liability partnership is more used.

There are two types of limited liability:

• The "sociedade por quota" or also "limitada".

• The "sociedade anonima" or also "S.A."

The foreign societies can moreover operate through one filial.

LIMITADA

The society can be constituted with one or more shareholders (Company or individually). Understood them the social minimum is of 1'995.19 (four hundred thousand of escudos). They can be one or more directors.

Sociedade Anónima S.A.

A limited company of Madeira can be constituted with a single shareholder. In this case the shares must be registered shares. The minimum capital of the company is Euro 2'493.99 (five hundred thousend of escudos).

BRANCHS

The society branchs offices those already exist can be registered in order to operate in the International Business Centre without a minimum capital and it need only the license and a registration.

TAXATION

The societies are free from taxation on the yield produced until 31 December 2011. The shareholders are free from personal taxation or deduction on the dividends and the profits not distributed.

TRUSTS

The Madeira Business Centre has a law on the trust. Decree-law 352-A/88 October.

The trust companies, the trust and the beneficiaries are not subordinated to a taxation in those of Madeira.

DISCRETION AND SECRECY

The Portugal has a law on the bank secrecy that previews penal endorsements in case of violation of the obligation in it contained. In the same way the names of the field of the beneficiaries, they cannot be reveals.

COSTS