Language: The official language is Portuguese, but English is widely used in international trade and commerce.

Population: Madeira has a population of 265,000, and 100,000 people live in the capital. Most of the inhabitants are of Portuguese origin.

Political System: In 1419, Madeira was colonized by the Portuguese, and in 1976, it was given partial political autonomy. The Madeiran Regional Parliament legislates on Madeiran interests, but it cannot overrule decisions by the central government in Lisbon. The political structure and the legislature are defined by a Portuguese written constitution.

Legal System: Madeira is a Civil Law jurisdiction, and many law firms specialize in International Trade and Commerce as well as in offshore matters.

Taxation: Madeira takes advantage of Portugal's double-taxation agreements and enjoys full membership of the European Community. Double-taxation agreements exist with following countries:

• Austria
• Belgium
• Brazil
• Denmark
• Finland
• France
• Germany
• Italy
• Holland
• Norway
• Spain
• Switzerland
• United Kingdom

Private Limited Company: This type of company requires only a limited review of the accounts, which must be done by a licensed person who must also sign the balance sheet and file them with the Tax Authorities. However, because the papers do not have to be filed at the Public Registry, they are not available to the public.

The company must have a registered office in Madeira where the accounting and statutory records with supporting documentation must be kept.

The minimum paid-up capital, which is represented by quotas, is Esc. 400,000 with each quota not less than Esc. 20,000. At least two subscribers are required, and there has to be at least one director.

A Stock Company: Following are requirements for incorporation:

• The company name must be in Portuguese unless the company name incorporates the name of a foreign shareholder.
• The company must have a registered office address in Madeira where the accounting and statutory records must be kept with all supporting documents.
• The company is subject to supervisory controls regarding auditing of financial accounts by a resident qualified auditor and the lodging of the audited accounts with the Tax Authorities and the Public Registry.
• Each January, an annual license fee of US$ 1,000 must be paid.
• There has to be a minimum of five shareholders with a capital of not less than Esc. 1,000 each.
• At least one director of any nationality is required, but corporate directors are not allowed. Three directors are required if the share capital exceeds Esc. 20 million.
• Directors meetings can take place anywhere in the world, but shareholders meetings must be held in Madeira. Proxies can be appointed.
• A share capital of Esc.5 million is required with 30% paid up on incorporation and the remaining 70% within five years after incorporation.
• A document called " Pacto Social" must state the specific and concise objects of the company.
• A Private Limited Company may issue bearer shares, and there is no need to file annual returns

• Full membership of the E.E.C
• Non-disclosure of beneficial ownership
• No Exchange controls
• Excellent communications, economic and commercial infrastructure
• Exemption from domestic Madeiran and Portuguese taxation until 2011
• Excellent location for holding companies because of the extensive double-taxation agreements
• An well-established banking system
• Political, social and economic stability