Article
6 min read
How to Register a Sole Proprietorship (Empresário em Nome Individual – ENI) in Portugal
Contractor management
Author
Joanne Lee
Last Update
September 12, 2025
Table of Contents
What is a sole proprietorship in Portugal?
How does a sole proprietorship (ENI) work in Portugal?
ENI vs other business structures in Portugal
Step-by-step guide: How to register as an ENI in Portugal
Financial and tax obligations for sole proprietors in Portugal
Launch your contracting career and stay compliant with Deel
In Portugal, a sole proprietorship is known as an Empresário em Nome Individual (ENI), which translates to “entreprenuer in individual name”. It’s a popular choice for independent workers like consultants, freelancers, and small retailers. It’s valued for its simplicity since there is no minimum capital, no articles of association, and you can start quickly.
The process is efficient, especially with online tools like Empresa Online or Empresa na Hora via gov.pt. However, you’ll still need to manage tax declarations, social security, and potentially invoicing via "recibos verdes," which requires some structure.
The main challenges are picking the right tax regime and complying with reporting rules. But the benefits (total control, low costs, and digital-first setup) make it an excellent business path.
Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.
What is a sole proprietorship in Portugal?
A sole proprietorship in Portugal is called Empresário em Nome Individual (ENI). This business form is designed for individuals who run a business under their own name. Unlike limited companies, ENI owners are personally responsible for business liabilities. Many ENIs operate with “recibos verdes,” issuing digital receipts for services.
How does a sole proprietorship (ENI) work in Portugal?
| Category | Description |
|---|---|
| Official name | Empresário em Nome Individual (ENI) |
| Registration body | Business registration via Empresa Online or Empresa na Hora through gov.pt |
| Minimum capital | None required |
| Liability | Unlimited (personal assets are at risk) |
| Tax structure | If you earn less than €200,000 annually, you pay income tax at a flat rate under the Regime Simplificado (Simplified Regime). If you earn more than €200,000 annually, you pay taxes through the Regime Organizado (Organized Regime). The income tax rate is calculated every month by a certified accountant. Due to the complexity of this the Regime Organizado, you are required to hire a professional accountant. |
| Naming conventions | Operate under your legal name. You have the option to add a phrase that refers to your business activity. |
| Key advantage | Fast, low-cost setup and autonomy |
| Key disadvantage | All liability falls on you, and tax compliance can be complex without support |
Deel for Contractors
ENI vs other business structures in Portugal
| Feature | ENI (Sole Proprietor) | Sociedade Unipessoal por Quotas (Lda) |
|---|---|---|
| Liability | Unlimited | Limited to business assets |
| Setup cost | Very low | Slightly higher (requires formal company setup) |
| Taxes | Taxed via personal income tax | Corporate tax applies (20%) |
| Setup time | Very fast—often immediately | Slower, requires formal documents |
| Best for | Freelancers and small microbusinesses | Businesses needing liability protection |
Continuous Compliance™
Step-by-step guide: How to register as an ENI in Portugal
Step 1: Check eligibility
You must be at least 18 years old and have a Portuguese tax number (NIF), social security number (NISS), and a valid Portuguese Citizen’s Card.
Foreign nationals in Portugal can also register as an ENI, but they need a valid residency permit and passport in addition to a tax number and social security number.
Step 2: Choose your business name
Your business name must be your full or abbreviated legal name. You have the option to add a phrase that refers to your business activity.
Step 3: Gather required documents
You’ll need your NIF (tax number), NISS (Social Security number), residence documentation (if applicable), and ID or passport.
Step 4: Register the business
You can register as an ENI online via Empresa Online or via Empresa na Hora at one of the service desks in the country.
Step 5: Register for taxes and Social Security
If you are not a Portuguese national with a valid Citizen’s Card, you must apply for a taxpayer identification number (NIF). You must also apply for a Social Security identification number (NISS) to start contributions.
If you make more than €25,000 selling goods or services per year, you must also register to pay Value Added Tax (VAT).
Step 6: Post-registration obligations
Maintain clear accounting and file annual returns via the Portal das Finanças. If your annual income exceeds €200,000, you must adopt organized accounting rather than the simplified regime to pay your taxes.
Financial and tax obligations for sole proprietors in Portugal
Personal Income Tax (IRS – Category B): ENI income is taxed under Portuguese personal income tax. In 2025, tax brackets range from 13% to 48%, depending on your income bracket. A withholding rate of 23% now applies uniformly to self-employed professionals making Category B income.
Social Security contributions: You must register with Social Security (NISS) and contribute regularly. Rates vary and depend on your income. For sole proprietors, the standard contribution rate is 21.4% of relevant income, which is calculated as 70% of income from services or 20% of income from sales. This income is based on an average over the three preceding months.
VAT (IVA): VAT is levied on sales or services in Portugal. When consumers pay for goods or services, they pay VAT taxes, and the business is responsible for receiving and paying the VAT to the Tax and Customs Authority (AT). For more information, see Article 2 of the VAT code.
Accounting Regime: If your gross income is below €200,000/year, you may use the Simplified Regime to file your taxes. If your gross income exceeds €200,000/year, you are required to adopt the Organized Regime and work with a professional accountant.
Launch your contracting career and stay compliant with Deel
Registering as an Empresário em Nome Individual (ENI) gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:
- Automate invoicing and expense tracking with essential bookkeeping tools
- Create, send, and sign localised work agreements
- Keep accurate records for tax season
- Access expert tax advice and compliance support
- Get paid through multiple payment and withdrawal methods
- Spend your earnings in USD with the Deel Card
- Access funds early with Deel Advance
- Enjoy contractor perks from 150+ partners
Stay independent, without the admin overload. Sign up to Deel for free today.
Deel has completely alleviated the stress of being a global freelancer. The platform's simplicity and reliability mean I can trust payments are on time, allowing me to focus on work instead of paperwork.
—Sabrina Montero,
Colombia
More resources
FAQs
What is the minimum capital required to start as an ENI in Portugal?
No minimal capital is required.
Do ENIs need to register for VAT?
If you make more than €25,000 selling goods or services per year, you must pay VAT. Otherwise, simplified taxation may apply.
How much does it cost to register?
The cost to register is low. It’s often free or runs a minimal government fee when using Empresa na Hora.
How long does registration take?
Often completed in under one hour via Empresa na Hora. The online route is also a quick process.
Can foreigners register as an ENI?
Yes, foreign nationals with a NIF, NISS, passport, and valid residency permit can register.
Do I need a business bank account?
Not mandatory, but recommended for clarity in accounting.
What happens if I stop operating?
You can cease activity by filing the end-of-activity declaration via the Portal das Finanças. You must file this declaration within 30 days of your last business transaction or activity. It is your responsibility to settle all tax and social security obligations.
Are there government incentives for new ENI workers?
Yes, the Portuguese government offers tax benefits, grants, and support programs for ENIs, such as the Portugal 2030 incentives and funds available to businesses, startups, and foreign companies.
Can Deel help me receive payments as an ENI?
Absolutely. Deel supports ENIs in receiving payments in multiple currencies, with low fees and clear currency conversion.
Does Deel generate compliant invoices for ENIs?
Yes. Deel automatically generates invoices compatible with Portuguese tax requirements.
Can Deel help with taxes?
Yes. Deel provides downloadable payment and tax-ready reports to simplify your accounting.
Does Deel offer contracts for freelancers?
Yes. Deel has legally compliant contract templates to help you work safely and professionally.
Can I access benefits through Deel as an ENI?
Yes. Deel offers optional perks like health insurance and retirement savings plans to support your entrepreneurial life.
Joanne Lee is a content marketing professional with 6+ years of experience creating effective social, search, email, and blog content for companies ranging from start-ups to large corporations. She's passionate about finding creative ways to tell a purpose-driven story, staying active at the gym, and diversity and inclusion. At Deel, she specializes in writing about topics related to global payroll.
