MIBC licence in Madeira
Madeira
Companies seeking to operate from Madeira apply for the IBC — International Business Centre Licence, commonly referred to internationally as the MIBC (Madeira International Business Centre) regime. This licence, granted by the Sociedade de Desenvolvimento da Madeira, S.A. (SDM) on…
| Jurisdiction | Madeira |
| License type | MIBC licence |
| Regulator | Sociedade de Desenvolvimento da Madeira, S.A. (SDM) |
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Requirements
The simplest and recommended route into the Madeira IBC is the Sociedade por Quotas (Lda.) — the local equivalent of a limited liability company (LLC). Other legal forms are also available for licensing purposes (see the Basic company reference), including the Sociedade Anónima (S.A.), branches (Sucursal) of foreign companies, and SGPS holding companies, but the Lda. is the default choice for most IBC-licensed service businesses.
Confirmed requirements for the Lda. form: - Minimum of 1 shareholder (individual or corporate, national or foreign). - No board of directors is legally required — only a manager (gerente) must be appointed. - A registered head office must be maintained in Madeira. - Minimum share capital of €1 per shareholder.
Before incorporation, founders must obtain a name approval certificate and a provisional identification card from the National Company Registrar (RNPC) (official URL not provided in sources). The company is then formed by public deed at the Private Deeds Registry Office, executed 'at the date indicated by the notary office'. Company formation via this route benefits from full exemption from registry fees and notary costs. All supporting documents must be translated into Portuguese and legalised.
Banking relationships can be established with Madeira's major banks, including Caixa Geral de Depósitos, Millennium bcp, Novo Banco, Banco Santander Totta and Banco BPI.
Madeira's IBC regime offers companies a 5% corporate tax rate, one of the lowest in the EU, administered by the SDM under authority delegated by the Regional Government of Madeira. Following the latest parliamentary extension (resolution of 20.11.2025, published 26.11.2025), the 5% rate is now guaranteed until 31.12.2033. However, new companies must be registered by 31.12.2026 in order to qualify under the current preferential regime — making early registration a genuine, time-sensitive advantage rather than a routine formality.
Key confirmed requirements for obtaining the IBC licence: - A licence application, in Portuguese, submitted to SDM in two copies, addressed to the Regional Government of Madeira, in the name of an existing company or one to be incorporated. It must state the company name and address, its activity and NACE code, the total investment value, and the number of jobs to be created. - The licence is deemed granted once proof of company formation and registration is furnished to SDM. - Government fees, set under Order n.º 222/99 (28 December): - Service-oriented companies: €1,000 application fee; €1,800 annual fee. - SGPS (holding) companies: €1,000 application fee; €1,800 annual fee in year one, then €1,800 plus 0.5% of the prior year's profit (first €1,000,000 of profit exempt), capped at €30,000 per year.
The IBC licence application must disclose the number of jobs to be created by the company as part of its investment and activity declaration to SDM. Beyond this disclosure requirement, the sources do not specify a minimum headcount or local-employee threshold.
Register Your Madeira Company
Sociedade de Desenvolvimento da Madeira, S.A. (SDM)
Official concessionaire managing the Madeira International Business Centre (IBC) under the Regional Government of Madeira; oversees company registration under the preferential 5% tax regime and related incorporation/job-creation requirements. https://www.ibc-madeira.com/en/
Overview
Companies seeking to operate from Madeira apply for the IBC — International Business Centre Licence, commonly referred to internationally as the MIBC (Madeira International Business Centre) regime. This licence, granted by the Sociedade de Desenvolvimento da Madeira, S.A. (SDM) on behalf of the Regional Government of Madeira, allows qualifying companies to benefit from a preferential 5% corporate tax rate, provided the company registers before the current deadline.
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Madeira Incorporation Process
Step 1
Incorporate the local company (Sociedade por Quotas / Lda.) — obtain the name approval certificate and provisional identification card from the National Company Registrar (RNPC), then execute the public deed of incorporation at the Private Deeds Registry Office, benefiting from full exemption from registry fees and notary costs.
Step 2
Prepare and legalise supporting documents, translated into Portuguese.
Step 3
Submit the IBC licence application (two copies, in Portuguese) to SDM, including company details, NACE code, investment value, and planned job creation.
Step 4
Receive the IBC licence upon SDM's confirmation of company formation and registration.
Step 5
Complete registration before 31.12.2026 to lock in the 5% preferential tax rate, applicable through 31.12.2033.
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Costs
| Package | Price | Description | |---|---|---| | Basic | EUR 9,500 | Entry-level package for company formation in Madeira, suited to straightforward incorporation needs and clients seeking the most cost-efficient route into the Madeira International Business Centre regime. | | Standard | EUR 16,000 | Mid-tier package offering a broader level of support than the Basic tier for clients with somewhat more involved requirements. | | Premium | EUR 19,000 | The most comprehensive package, intended for clients seeking the highest level of support and attention available at this jurisdiction. |
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Frequently Asked Questions
Is the IBC licence the same as the 'MIBC' regime?
Yes. 'IBC licence' is the operational licence granted by SDM, while 'MIBC' (Madeira International Business Centre) is the common international name for the overall regime under which the licence operates.
What tax rate applies under the IBC regime?
Qualifying companies benefit from a 5% corporate tax rate.
Until when is the 5% rate guaranteed?
Following the latest extension (parliamentary resolution of 20.11.2025), the 5% rate is guaranteed until 31.12.2033.
Is there a deadline to register?
Yes — new companies must register by 31.12.2026 to fall under the current preferential regime.
Which legal form is recommended for licensing?
The Sociedade por Quotas (Lda.), Portugal's LLC-equivalent, requiring only 1 shareholder, a manager rather than a board, and €1 minimum capital per shareholder.
Are there registry or notary fees for incorporation?
No — company formation via the Private Deeds Registry Office is fully exempt from registry fees and notary costs.
What government fees apply to the IBC licence itself?
Service-oriented companies pay a €1,000 application fee and €1,800 annual fee; SGPS holding companies pay similarly, with an additional profit-based component capped at €30,000 per year.
Who regulates the IBC licence?
The Sociedade de Desenvolvimento da Madeira, S.A. (SDM), acting as official concessionaire on behalf of the Regional Government of Madeira.
