e-Business & ICTs

Highlights

Madeira is a hub for several international optical submarine cables allowing interconnectivity with national and international SDH networks and providing significant advantages in terms of quality, cost, bandwidth and scalability.


e-Business and Telecommunication Activities in Madeira

ebusiness   Madeira is an obvious choice for companies in the areas of telecommunications and for e-business companies considering, on the one hand, its reduced taxation and, on the other hand, the quality of its telecommunications infrastructure and its condition of major hub for fiber optic cables with its geographic cross-roads’ location.

 

Infrastructures for ICTs and eBusiness

Madeira benefits from the existence of the “Madeira Data Centre”, a modern dedicated building designed to host telecommunications and data equipment, such as Data Centres and Internet Service Providers, among others. The Data Center offers uninterrupted power supply, an intrusion and a fire detection systems, a specialized air conditioning system, computerized access control system, redundant telecommunications network and technical support by dedicated personnel.

Madeira is also a hub for several international optical submarine cables, operated by the Submarine Cable Station also hosted in the Data Centre, allowing interconnectivity with national and international SDH networks and providing, as such, significant advantages in terms of quality, cost, bandwidth and scalability.

Another available infrastructure is the Internet Gateway provided by Marconi Internet Direct (MID), which offers international Internet access without any kind of contention and using diversity in the access to international backbones. The IP platform has its international connectivity distributed by: 3 PoPs (London, Amsterdam and Paris), peering connections with hundreds of major international ISPs and IP transits to Europe and the USA.

networks

Support services and business environment

All types of high quality support services are available in Madeira - an efficient network of computer-related companies, legal advice as well as financial and administrative support.

There is availability of highly - qualified professionals and, on the other hand, there are no restrictions on the employment of foreign qualified staff.

All the relevant EU directives on e-commerce have been transposed into the Portuguese law, such as e-commerce’s legal framework, e-signature and e-invoicing.

The operational costs are low, as compared to other European locations, and telecommunication costs are at the level of the EU average.

A science park and regional innovation centre have recently been implemented in the island with the purpose of promoting and implementing new technologies.

Formalities

In order to benefit from the preferential tax regime of the International Business Centre of Madeira, companies must be subject to a licensing process.

An application (in Portuguese language) is submitted to S.D.M., the official concessionaire of the IBC of Madeira, in two copies, addressed to the Cabinet of the Regional Secretary for Finance and Public Administration of the Regional Government of Madeira in the name of an existing company, in Portugal or abroad, or of a company to be incorporated. Branches of existing companies may also be licensed.

The licence application must be submitted in accordance with articles 18º and 19º of the Regulation approved by the Regional Regulatory Decree n.º 21/87/M, of the 5th of September, and by Article 36º-A of the Tax Incentives Statute.

All relevant information concerning the activity to be performed by the company must be included in the licence application, namely:

  • Company name and address;
  • Activity to be undertaken and respective NACE code (European nomenclature of the economic activity);
  • Total value of the investment;
  • Indication of the number of jobs to be created.

In the case of a successful application, the licence is deemed to be granted in favour of the company once the applicant furnishes proof of the formation and registration of such company. All documents in support of the licence application must be duly translated into Portuguese and legalised.

Please consult the Legislation and our Document Library for details on the relevant law and pro-forma documents, namely examples of licence applications.

Applicable fees

Companies licensed to operate in the IBC of Madeira will be subject to licence and annual fees which are set by Order n.º 222/99, of the 28th of December published by the Regional Government of Madeira.

Service-oriented companies formed as Lda. and performing telecommunications or e-business activities will be subject to an application fee of €1,000 and to an annual fee of €1,800.

Company Formation

Among the various legal structures available according to Portuguese law, investors have generally chosen the share company (S.A.) and the private limited company (Lda.). Also available is the branch, often used to operate within the legal framework of Madeira's IBC.

Private limited companies (Lda.) may be incorporated with a single shareholder and a minimum capital of €1 (one Euro) per shareholder. This type of company does not need to appoint directors; the minimum requirement is to appoint a manager who, by law, has the powers to undertake the management of the company.

Share companies (S.A.) may also be incorporated with a single shareholder and a minimum capital of Euro 50,000. The management of these companies must be guaranteed by a board of directors made up by the number of members defined in the bylaws of the company. If the share capital does not exceed Euro 200,000, these need only one director.

Branches, on the other hand, have no minimum capital requirements.

Shareholders of IBC companies may be an individual or a company, national or foreign. According to Portuguese Law, shareholders may also be the managers or directors of the company or may choose to appoint an individual to act as manager of the company.

Companies must keep the head-office in Madeira, whilst branches are required to maintain legal representation.

Companies are formed in the IBC of Madeira through the use of the Private Deeds Registry Office with full exemption from fees and notary costs. Before incorporation, a name approval certificate and a provisional identification card must be requested to the National Company Registrar (RNPC). The public deed will be performed at the date indicated by the notary office.

 

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