The first 90 days after opening a company in Portugal often involve more obligations than many international entrepreneurs expect.
However, registering the company is only the beginning. The first three months of activity often involve a series of accounting, tax and administrative obligations that many founders are not fully aware of before they start operating.
Understanding what happens during the first 90 days can help businesses avoid delays, penalties and unnecessary adjustments later on.
Opening the company is only the first step
Many entrepreneurs assume that once the company is registered, they can simply start invoicing and focus on growing the business.
In practice, several operational and compliance procedures usually need to be completed shortly after incorporation.
These may include:
- Activating the company’s tax status
- Organising accounting records and documentation
- Setting up invoicing systems that comply with Portuguese rules
- Registering employees, where applicable
- Registering the beneficial owner
- Preparing for ongoing reporting obligations
Taking care of these processes early helps establish a solid operational framework from the beginning.
Accounting obligations begin immediately
One of the most common surprises for international founders is that accounting obligations do not depend on whether the company is already generating revenue.
From the start of activity, companies must have a certified accountant, maintain organised accounting records and preserve supporting documentation for all transactions.
This includes:
- Hiring a certified accountant
- Maintaining proper bookkeeping records
- Preparing information required for tax reporting
- Recording invoices and expenses
- Organising supplier and client documentation
- Even during the first months, good accounting practices make future reporting significantly easier.
VAT and tax reporting may apply sooner than expected
Depending on the expected volume of the activity and the company’s tax registration, VAT obligations may arise shortly after operations begin.
Similarly, companies may become subject to recurring reporting requirements even before they generate substantial income.
For founders unfamiliar with the Portuguese system, understanding filing periods and reporting deadlines is an important part of early business planning.
Hiring employees creates additional responsibilities
For businesses planning to recruit staff, the first 90 days often involve additional administrative requirements.
These may include:
- Social Security registration
- Employment contracts
- Payroll setup
- Employees’ insurance
- Fitness-for-work employees’ exam
- Monthly salary processing
- Labour-related reporting monthly obligations
Ensuring these processes are correctly implemented from the outset helps avoid compliance issues later.
Internal organisation matters more than many founders expect
The first months are often when companies establish the internal processes that will support future growth.
Simple organisational practices can make a significant difference, such as:
- Keeping accounting documentation organised
- Maintaining clear records of shareholder decisions
- Separating personal and business expenses
- Monitoring cash flow from the beginning
- Preparing regular financial information for management purposes
A well-organised company is generally better positioned to scale and respond to future compliance requirements.
Early planning helps avoid unnecessary corrections
Many of the issues encountered during the first year of activity are not caused by complex regulations, but by decisions that were not properly planned at the beginning.
Incorrect tax setups, incomplete documentation or delayed administrative procedures often require adjustments that could have been avoided with earlier preparation.
Taking a structured approach during the first 90 days allows founders to build a stronger operational foundation while reducing future administrative risk.
If you are planning to start a company in Portugal, understanding the obligations that arise immediately after incorporation can help make the process smoother and more predictable. For further clarification on company setup, accounting or ongoing compliance obligations, you can reach out through our contact page.
