Madeira IBC Formation

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Madeira International Business Centre Company

The Madeira International Business Centre (MIBC), officially known as the Zona Franca da Madeira (ZFM), is a special economic zone established within Portugal and fully embedded in the European Union legal and regulatory framework. Companies registered within the MIBC benefit from a reduced corporate income tax rate of five percent on qualifying international income, making it one of the most tax-efficient EU-based business structures available worldwide, while retaining full access to the EU's Parent-Subsidiary Directive, the Interest and Royalties Directive, and Portugal's extensive network of over 80 double taxation treaties.

MIBC companies must carry out genuine international activities with non-resident customers and counterparties to qualify for the reduced tax rate. The structure is widely used for international trading, holding, services, and intellectual property purposes. MIBC licences are granted until 31 December 2027 under the current EU-approved state aid framework. Neptune Fiduciaries assists clients in establishing their Madeira IBC company, including licence application, corporate registration, and ongoing compliance.

Key Features

Key Component	Description
Directors	Minimum of one director required At least one locally based director recommended for substance Corporate directors permitted Director records are publicly accessible
Shareholders	Minimum of one shareholder required Corporate shareholders allowed Shareholder records are publicly accessible
Public Accessible Records	Director and shareholder information publicly accessible Accounts filed but not publicly accessible
Registered Office in Madeira	Yes, required in the MIBC zone
Taxation	5 percent reduced corporate income tax on qualifying income Zero withholding tax on dividends paid to non-resident shareholders Full access to 80 plus Portuguese double taxation treaties EU Parent-Subsidiary and Interest and Royalties Directives apply
Share Capital	Minimum paid-up capital of EUR 5,000 (Lda structure) Standard currency is Euro Other currencies permitted
Duration for Incorporation	4 to 6 Weeks (includes MIBC licence application)
Accounts and Returns	Annual accounts must be prepared and filed Audit required Annual corporate and tax return filing mandatory Annual MIBC licence renewal required
EU Membership	Full EU member state Fully compliant with EU state aid rules Access to EU directives and Portugal DTT network
Nominee Services	Available
Banking	Yes, can secure Portuguese and international banking
Requirements for Incorporation	Proof of Address Passport Copy (Certified as True Copy of the Original) Business plan for MIBC licence application

For further details, please contact Neptune Fiduciaries via email info@neptunecorporate.com or sales@neptunecorporate.com or visit our contact page.

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