John and Anne are originally from Austria, have an innovative business idea and want to invest in Portugal but don’t know where to start. They even want to know whether by creating a business in Portugal they will be able to regularize themselves in Portugal and obtain a residence permit. In this article, find out more about startups and the residence permits you can obtain through the Startup Visa program.
The Startup Program consists of a program aimed at foreign entrepreneurs, without residence in the Schengen area, who wish to develop an innovative and entrepreneurial project in Portugal, with a view to granting a residence permit. Each startup project may cover a maximum of up to 5 elements, meaning that residence visas and respective residence permits also have a maximum number of 5. Therefore, the same entrepreneur will not be able to apply for the StartUp Visa with two projects and express interest in two different incubators.
Startups are regulated by Normative Order No. 4/2018
The Startup Visa process takes place in two phases. To know:
The first step will be the certification of the incubator with the aim of ensuring that these entities are able to welcome citizens from third states, as defined in Ordinance No. 344/2017, of November 13, amended by Ordinance No. 275/2018, October 4th. The entity responsible for applications and the execution of the program itself is the Institute for Support to Small and Medium Enterprises and Innovation (IAPMEI). Currently, there is a list of certified incubators that foreign investors can access;
The second step consists of entrepreneurs applying through the online platform.
The question that arises is whether all innovative or entrepreneurial ideas will be accepted for the purposes of obtaining the Startup program:
Foreign entrepreneurs who wish to access the StartUp Visa program and obtain a visa or residence permit must comply with and demonstrate the following criteria, set out in paragraphs 2 and 3 of article 5 of Normative Order no. 4/2018, of 02 of February:
a) Who intend to develop activities for the production of innovative goods and services from a perspective of internationalization;
b) That their projects and/or companies focus on technology and knowledge, with prospects for developing innovative products;
c) That have the potential to create qualified employment;
d) Who have the capacity to set up a company, where applicable, during the duration of the program;
e) That have the potential to reach, up to 5 (five) years after the term of the incubation contract, a turnover exceeding €325,000/year and/or an asset value exceeding €325,000/year. For the purposes of proving the turnover, the company is asked to indicate the turnover and assets, estimated in the 5th year of operation of the project.
But how does the evaluation process for acceptance of the program develop?
The application is evaluated taking into account several criteria, namely the degree of innovation, the market potential, the capacity of the management team and the potential for creating qualified jobs in Portugal.
Once approved by IAPMEI, the application cannot undergo changes regarding the number of elements. If initial entrepreneurs still intend to integrate new elements, they may withdraw from the initial application and formalize a new application in which they include the new elements.
The next step is to conclude the incubation contract.
Obtaining a Visa and Residence Permit:
After the entrepreneur has accepted the Startup program, he or she can apply for a visa at the Portuguese embassy in his area of residence by submitting all the necessary documents. After entering the National Territory, the entrepreneur may request a residence permit from the SEF (Foreigners and Borders Service). If so desired, the entrepreneur may later request, from the SEF, the reunification of their family members.
Source Legal Block – FA Accounting Partner