EU Inc. vs Portuguese LDA

The quick answer

The LDA (Sociedade por Quotas) is Portugal's standard private limited company — the default choice for domestic business, and rightly so. The EU Inc. (Societas Europaea Unificata) isn't trying to replace it for purely domestic Portuguese businesses. But for founders operating — or planning to operate — beyond Portugal's borders, the comparison changes quickly.

Portugal's Empresa na Hora can create an LDA in under an hour — impressive — yet Lisbon's famously international founder scene mostly builds companies that outgrow Portugal within a year.

Side-by-side comparison

Feature	EU Inc. (S.EU)	Portuguese LDA
Formation time	48 hours (digital)	Same day to days
Minimum capital	€1	€1 per shareholder
Notary required	No	No (Empresa na Hora)
Valid in	All 27 EU member states	Portugal
Fully online formation	Yes (via BRIS)	Yes
Harmonised EU-wide rules	Yes — one rulebook	No — Portuguese law
Available now	Q1 2027 (law passing 2026)	Yes

What the LDA does well

Empresa na Hora same-day formation is one of Europe's quickest national processes
Universally understood by Portuguese banks, accountants, and public authorities
Available today — no waiting on the EU legislative calendar

Where the EU Inc. pulls ahead

One entity valid in all 27 member states — hire, contract, and operate anywhere in the EU without subsidiaries or branch registrations
48-hour fully digital formation with €1 minimum capital and no notary
One harmonised rulebook instead of 27 national systems — the same company law whether your customer is in Portugal or anywhere else in the Union
Built-in EU-wide frameworks from the proposal, including harmonised employee stock options (EU-ESOP) and standardised investment documents (EU-FAST)

Can a LDA become an EU Inc.?

The Commission proposal contemplates that existing national companies can become an EU Inc. through domestic conversion or cross-border merger, division, or conversion — meaning a LDA founded today shouldn't be locked out later. The exact conversion mechanics depend on the final text adopted by Parliament and Council, so treat this as direction of travel rather than settled law.

The bottom line

If your business begins and ends in Portugal, the LDA remains a sound choice. If your ambitions cross a border — hiring, selling, or raising anywhere else in the EU — the EU Inc. is purpose-built to make that simple in a way no national form, however good, can be. Many Portuguese founders will end up choosing it not against the LDA, but for everything the LDA was never designed to do.

National requirements are approximate, change with local reform, and may vary by structure and circumstances. EU Inc. figures reflect the European Commission proposal of March 18, 2026, which is subject to amendment before final adoption. This page is general information, not legal advice.