Portugal's Limited Liability Company (Lda) provides limited liability protection for small to medium-sized businesses.

The minimum capital requirement is €5,000. The formation process includes drafting the Articles of Incorporation, notarizing them and registering them with the Portuguese Commercial Register. The company must also obtain a taxpayer identification number from the Portuguese Tax and Customs Authority.

An Lda requires at least one director and one shareholder. Company records must be accurately maintained and annual financial statements filed with the relevant authorities.