In order to create more favourable conditions for competitiveness in the international markets by companies operating in the Madeira’s Free Trade Zone, it was declared the possibility of formation of sole proprietorships that have as their object the offshore trust, private limited companies and share companies.
Share companies and private limited companies licensed to operate in the framework of the Madeira’s Free trade Zone may be established with a single shareholder, which can be natural or legal person, of Portuguese nationality or foreign one. They should include in their name the words “sole proprietorship” (“sociedade unipessoal”).
Shares of share companies of sole proprietorship must be registered. If a company is incorporated as a private limited company, there will be only one share owned by the single shareholder. The decisions of the single shareholder must be written in the act book, as well as contracts concluded between the single shareholder and the sole proprietorship; they must also be written in the management reports in the financial year when they are concluded, except those ones resulting from the current operations of the company.
It is not allowed for a sole proprietorship to form other companies with the same single shareholder.