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Category Archives: EU Free Trade Agreement

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May 24, 2026
May 24, 2026

From India to Europe — Start in Portugal Business Expansion – Investment – Residency

Author By Prashant Ajmera Categories EU Free Trade Agreement, Europe, Europe Golden Visa, Portugal, Portugal Golden Visa, Portugal Investor Visa

Portugal Is Not on Most Indian Business Leaders’ Radar. It Should Be.

By Prashant Ajmera  |  Founder, Ajmera Law International

Global Mobility & Cross-Border Law  |  30+ Years  |  20+ Countries

 

Here is a question I ask every Indian entrepreneur who walks into my office talking about Europe:

“Which country do you want to enter first?”

The answer is almost always the same. UK. Germany. Netherlands. Sometimes France.

Portugal almost never comes up.

And that is precisely why I am writing this article.

What Is Already Happening in Portugal — That Most People Do Not Know

Let me share something that surprises most Indian business leaders when I tell them.

 

Company Location What They Do
HCLTech Lisbon Digital Shared Services Centre since 2009. Product support, data analytics, EU-compliant delivery.
TCS Lisbon Delivery centre for European banking and financial services clients.
Infosys Lisbon Registered branch — Infosys Limited Sucursal em Portugal.
Wipro / Appirio Porto Commerce Cloud Centre of Excellence & Innovation Hub. Hiring local Portuguese talent.
Aurobindo Pharma Nationwide Acquired Generis — one of the most significant Indian pharma entries into the EU via Portugal.
Mahindra Portugal Active in automotive and technology sectors.
MGM Group Lisbon / Algarve Hospitality sector operations.
Sugee Group Portugal Real estate development.
Flying Wedge Defence Portugal 2025: Manufacturing AI autonomous aircraft Kaal Bhairava — first overseas production facility.

In total, Indian investments in Portugal are estimated at US$450 million. Approximately 180,000 persons of Indian origin live in Portugal today — a ready-made community, a ready-made network, and a ready-made market.

India’s biggest IT firms figured this out fifteen years ago. The question is: why haven’t more Indian SMEs, founders, and investors?

Then Came January 27, 2026 — Everything Changed

On January 27, 2026, at Hyderabad House in New Delhi, the European Union and India concluded negotiations on what is now being called — by both sides — the mother of all trade deals.

The India-EU Free Trade Agreement. Nearly two decades in the making. Finally done.

What It Means in Numbers

Consumers Covered 2 Billion — India + EU combined
Share of Global GDP 25% in one trade partnership
Indian Exports at Zero Duty 91% from Day One of entry into force
EU Goods Tariff Elimination 96.6% over 7 years
EU Service Subsectors Opened 144 — including IT, finance, professional services
FTA Concluded January 27, 2026 — Hyderabad House, New Delhi
Expected Entry into Force Early 2027 (after EU Parliament ratification)
Professional Mobility Formal framework for ICTs, business visitors, independent professionals

 

“This agreement creates the world’s largest free trade zone — two billion people, one quarter of global GDP, and a partnership built for the next century.” — European Commission President Ursula von der Leyen, January 2026

And critically for Indian businesses considering Europe: Portugal ratifies as part of the EU. One deal. One market. Portugal is your door in.

The window to enter, structure, and establish yourself before that moment — is right now

Why Portugal Specifically — Not Germany, Not France, Not the UK

I want to be direct here, because I see too many Indian businesses make this mistake. They choose their European entry market emotionally — based on familiarity, language, or where they attended a conference.

Portugal deserves a strategic conversation. Here is why.

  1. The Global Language Bridge

Portugal is a gateway not just to Europe’s 450 million consumers, but to Portuguese-speaking markets — Brazil, Mozambique, Angola, Cape Verde. If your business has any interest in lusophone markets, Portugal is an extraordinary launchpad.

  1. Highly Competitive Cost Base Within Western Europe

Operational costs — office space, talent, local management — are substantially lower than Germany, France, or the Netherlands. For Indian SMEs building their first European operation, this matters enormously.

  1. A Genuinely Startup-Friendly Regulatory Environment

Portugal introduced a dedicated Startup Visa — one of the most accessible founder immigration routes in the EU. The India-Portugal Startup Hub, created under a formal MoU between Startup Portugal and Invest India, is an active institutional bridge between both ecosystems.

  1. 180,000 Strong Indian Community

This is not just a diaspora statistic. It is a business network, a talent pipeline, a cultural bridge, and a customer base. Indian founders entering Portugal are not entering cold — they are entering a country where Indian business is already trusted and established.

  1. Direct Diplomatic Momentum at the Highest Level
  • India’s President Droupadi Murmu visited Portugal in April 2025 — the first Indian state visit in 27 years.
  • Finance Minister Nirmala Sitharaman met her Portuguese counterpart in Lisbon, July 2025.
  • Portugal’s Secretary of State for Economy is actively building a regulatory bridge for Indian and Portuguese companies.
  • India and Portugal held their 1st bilateral consular dialogue in November 2024.

This is not background noise. This is signal.

What Indian Companies Are Getting Right — And What They Are Getting Wrong

What the Successful Ones Get Right

HCLTech did not just open an office in Lisbon. They set up a Digital Shared Services Centre with a proper local entity, employment structure compliant with Portuguese labour law, and service delivery frameworks aligned with EU data protection rules.

Aurobindo did not just export medicine to Portugal. They acquired Generis — a locally regulated, properly licensed pharmaceutical company — giving them instant compliance infrastructure and market credibility.

These are not accidents. These are the results of deliberate legal and structural planning before market entry.

What the Unsuccessful Ones Get Wrong

The Indian companies that have stumbled in European markets almost always made the same errors:

  • Entered informally, operating before the entity was properly incorporated
  • Assumed their Indian contracts, IP registrations, and employment frameworks would travel with them — they do not
  • Did not register their trademarks in Portugal before launch — and found competitors had done it for them
  • Ignored Portuguese labour law — which is employee-protective and very different from Indian norms
  • Had no GDPR compliance structure — which in the EU is not optional, it is existential

Portugal is welcoming. The legal framework is accessible. But it still requires proper entry architecture.

The Practical Checklist: Before You Enter Portugal

Whether you are a founder considering your first EU entity, an SME exploring a distribution partnership, or an investor looking at the Golden Visa route — these are the non-negotiables before you take a single step:

  • Choose Your Entity Structure Deliberately — Lda (Private Limited) vs SA (Public Limited)? Branch vs subsidiary? Each has different tax, liability, and banking implications for your Indian parent company.
  • Understand Your Founder and Team Mobility Pathway — Startup Visa? Intra-company transfer? The India-EU FTA now includes a formal mobility framework — the right route depends on your company structure, your role, and your business model.
  • Register Your IP in Portugal Before You Launch — Trademark registration in Portugal is an EU trademark through EUIPO — covering all 27 member states. Do this before your first commercial activity. Not after.
  • Structure Your India-Portugal Tax Position Correctly — India and Portugal have a Double Taxation Avoidance Agreement. Transfer pricing between your Indian entity and Portuguese subsidiary must be documented from day one.
  • Build GDPR Compliance Into Your Operations From the Start — If you handle any data from EU residents — customers, employees, partners — you are subject to GDPR. This includes website analytics, CRM, and email marketing.
  • Know Your Banking Pathway — Indian-owned EU companies can open Portuguese bank accounts — but the KYC process requires proper documentation of your India-Portugal corporate structure. Plan this in advance.

A Personal Note — Why This Moment Matters

I founded Ajmera Law International in 1993. For over thirty years, I have watched the arc of Indian business ambition.

In the 1990s, going global meant IT services outsourcing. In the 2000s, it meant pharma exports. In the 2010s, it meant startup ecosystems and unicorn valuations.

In 2026, something different is happening. It is quieter. More deliberate. More serious.

Indian founders are not just looking to serve European clients from India anymore. They want to be present in Europe. To build European businesses. To access European capital, European talent, and European markets from the inside.

The India-EU FTA — the largest trade agreement either side has ever concluded — is the formal acknowledgement by two of the world’s largest economies that this is the right moment.

Portugal, with its Indian community, its startup ecosystem, its lower cost base, its language bridges to lusophone markets, and its established Indian corporate presence from HCL to Aurobindo — is arguably the most strategically underrated entry point into the EU for Indian businesses today.

The companies that recognise this now, structure properly, and build patiently — will have a meaningful advantage over those who arrive two years from now when the FTA is in force and the market is crowded.

Watch this EU webinar series playlist – https://www.youtube.com/watch?v=Iz3JN8rJJGU&list=PLta9RijQ5wdRN_eXYBlIwVAmTWfCMjsUs

Or reach out to us directly:

 

📞 +91 99 74 25 3030 📧 info@ajmeralaw.com 🌐 www.ajmeralaw.com

About the Author

Prashant Ajmera is the Founder of Ajmera Law International (ALI), an Ahmedabad-based law firm with over 30 years of experience in business immigration, global mobility, and residency and citizenship by investment programmes across 20+ countries. ALI advises Indian businesses, HNIs, and families on structured, compliant, and strategic international expansion.

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