CIC provides Company Formations in Madeira's International Business Centre Tax Incentive Zone 5% CIT
Madeira is part of an Atlantic archipelago, and a autonomous region of Portugal. As part of Portugal, Madeira is a full member of the European Union. Many international entrepreneurs considering Madeira company formation opt to set up an entity in the International Business Centre of Madeira (IBC).
Madeira company formation provides a tax-efficient solution for international investment or a holding company. The following information will help you determine whether Madeira company formation is the best corporate solution to meet your international business objectives:
1. As a region of Portugal, Madeira is a stable jurisdiction with a well established legal system (governed by European Union and Portuguese law) and economic infrastructure.
2. Madeira company formation is not perceived as a tax avoidance vehicle. However, with proper structuring, a Madeira company formation is a perfect entity to book international profits with minimal tax liability.
3. A company set up in the International Business Centre of Madeira (IBC) is not required to have a physical office in Madeira. However, under Portuguese company formation law, every Madeira company is required:
a. to have a registered office address in Madeira;
b. to submit annual accounts to the relevant authorities;
c. to lodge an annual tax return;
d. to have correct bookkeeping procedures;
e. to include in their names the activity or specialization of the company;
f. to submit a quarterly or monthly VAT return.
4. International entrepreneurs undertaking Madeira company formation in the IBC are liable to a corporate tax of only 4% until 31 December 2012 and 5% until 31 December 2020.
5. To fulfill Madeira company formation regulations, a minimum of one director is required. The director need not be resident in Madeira and can be of any nationality. Madeira company formation regulations require a minimum of one shareholder.
6. Investors choosing Madeira company formation are not required to disclose beneficial ownership to the Portuguese authorities.
7. Following the Madeira company formation, the company is automatically provided with a company registration and a Portuguese VAT number. Madeira is an ideal location particularly for providing telecommunications and e-commerce/B2C and B2B services to Europe and worldwide, where VAT exemption is applied.
8. As part of Portugal, Madeira has access to all of tax treaties entered into by Portugal. Generally speaking, the treaty benefits are available to all Madeira companies. However, Madeira companies licensed under the IBC Legislation with proper shareholder structure are able to repatriate dividends to non-residents without the imposition of withholding tax, so that treaty benefits in that instance are not needed.
9. A Madeira company is, for legal and tax purposes, a Portuguese company but with special tax benefits*, granted by the Portuguese government, if duly licensed under the Madeira IBC.
10. Opening a corporate bank account to support Madeira company formation is simple and executed as part of the CIC set up process.
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