Photo by © Lisbon Tech Guide
At this point, you already know why Portugal is one of the best countries in Europe to have a team, but no one really talks about how to do it.
The first and foremost obvious step is creating a subsidiary in Portugal so you can employ directly your future employees. Sounds obvious, right?
Setting a company in Portugal isn't hard, but it will require to spend time and money with operators to open your company, find an accountant, open a bank account, getting work insurances, find an office and get someone to manage your company and operation (PS: if you want to open a company in Portugal, Lisbon Tech Guide can do all of that for you - we recommend you to read this article).
But if you are testing out the market and planning a soft-launch, how do you do this? The answer is simple - Employer of Record (EoR).
The Employer of Record (EoR) is a model that allows a company to expand a team to a new location without having a local entity. EoR partner will become the legal employer of your staff in the new market and takes care of everything: payrolling, insurance, accounting, prepare and terminate contracts.
Lisbon Tech Guide offers an Employer of Record (EoR) solution, allowing you to start with only 1 person. Our solution also provides office space for the team and organizes all the necessary equipment so your team can perform at its best.
For how long should I keep my staff in this model? In theory, there isn't a fixed end date, but it makes sense to keep this model while your team isn't big enough (< 10 people).
When your Portuguese team starts to ramp up, you might consider incorporating your company in Portugal. This doesn't mean that our collaboration needs to terminate. Our management team can incorporate the company and provide you with all the resources, tools and connections to make sure that your Portuguese entity is compliant and functioning correctly, working as Country Manager and Professional Employer Organization (PEO).
In the end, Lisbon Tech Guide is the Portuguese operational partner during all the stages of the growth of your organization in Portugal. Most of our partnerships always start in the following way:
b) Employer of Record
c) Company Incorporation and Virtual/Physical Office
d) Professional Employer Organization and Management
Shoot us an email and find out more about what we can do for you.