To start a company, you have to deal with some legal bureaucracy. One of the steps is to choose the CAE.

What is the CAE code?

It is a common expression used in the financial and business accounting. The CAE refers to the Economic Activity Code and serves to classify the activities of each company, which are used for taxation purposes.

The code has its own classification system for the various activities and is organized by INE. When grouping entities that produce goods and services, each company knows what taxation it will have to contribute depending on the activities that its business performs.

For example, there is a group that brings together activities linked to the sectors of fisheries, agriculture, which, consequently, will give taxation.

How many CAE codes can a company have?

Since July 2017, each company can have more than one CAE, choosing a primary CAE and secondary CAE. For some companies, it is relevant to have a primary CAE to distinguish the company's industry. But you should not neglect secondary CAE, as it should be that, on the whole, all CAEs chosen cover all types of activities that the company will or will be able to carry out.

Do not forget that only expenses related to the activities of companies are deductible.

For example, a café/coffee place may have a main CAE for coffees, and then have another CAE connected to own-made pastries, as it also has or may have this service. So, even if you don't immediately choose to have your own production, you already have that possibility and if you need to buy any material related to manufacturing or related expenses (flour, etc.) they will be accepted as a deductible cost.

How to choose the CAE code for my company?

For those who are going to register a company or for a self-employed person, it is necessary to choose the CAE code related to the activities and or services that you will provide. So you have to consult CAE-REV.3 through this link.

It is an extensive document that you must read carefully. Below is an example:

To choose the CAE we have to see Secção, Divisão, Grupo, Classe e Subclasse. (in english, Section, Division, Group, Class and Subclass.)

Let's see Section I, regarding Accommodation, Restaurants and Similar.

Within this section we have two divisions: division 55 for accommodation and division 56 for restaurant and similar.

Then we have to choose a code. If, for example, we have a hotel with a restaurant, the CAE code is 55111. But if it is a hotel without a restaurant, the code will be 55121.

Other example: a restaurant with "take-away meals" has CAE code 56106, but a Bar has a CAE code 56302.

Alternatively, Royaltax can help you to open the company and follow the codes most suitable for the company's activity.

How to consult the CAE code?

The official database that aggregates all available CAE is the SICAE - Information System for the Portuguese Classification of Economic Activities. Just visit the portal and choose “Consulta de CAE” and know the codes associated with your business.

Can I change my CAE code?

Yes, it is possible for a company to change the CAE, as long as it does so within the legal deadline and in the right place. You can do it on the Finance Portal or in a face-to-face office. The request is free, but contingent on acceptance by the entity.