Cost of a startup in Portugal
A few months ago, me and some friends created our first startup so that we could porsue what we like to do best – create web products that drive social interaction that make you smile. In one of my previous posts – tips for saving money – I explained some of the the challenges and changes I made into my life so that I could manage the money I received better and prepare for the costs of building a startup.
So many people asked (well, 1 at least), how much did it cost to open a startup in Portugal?
We used a service by the government - Empresa na Hora / On the spot firm – that enables you to constitute and open your business in 1 hour (give or take), however, you must choose your company name from a pre-registered names list and there’s a series of other limitations but the advantage is that it saves time and some bureaucracy.
Empresa na Hora/On the spot firm price: 312 Eur
Other legal fees for opening business: 19,20 Eur
Thinkorange.pt domain (1 year): 26,40 Eur
Book Worms brand: 90 Eur
Company initial capital: 5000 Eur *
* which you can reuse later at any case.
So that means you have to acknowledge that you need around 477 euros to spend in bureaucracy and administrative costs, depending whether you have a product or website that you need to acquire a brand, domain, etc.
You (and your partners) will need 5000 euros in the bank for share capital money, unless you choose a different business model, the good news is that you can reuse it in the future.
Of course every case is different, thanks to SAPO we had server and domain taken care for our Book Worms website so that was one less expense to handle.
Hope this article is of value for those planning to build a startup in the near future.
Thanks for the details.
How about fixed monthly/yearly costs? You have to spend a minimum of € per month (or year?) on accounting, right? This, I think, is the main problem for a startup.
yes, that’s right.
one of the important factors will be keeping your monthly fixed costs low.
I didn’t want to go into much detail into fixed costs because those will vary depending on your situation (maybe that’s an article for another time?) but yes you will need to hire an accounting firm or professional.
oh, and if you have a salary, you’ll have to pay social security every month, so that’s a heavy cost too.
Have a read @ http://zak.greant.com/hacking-business-models
Ta Ta.