Chapter X · Divisions of companies · Section I · Domestic divisions

Article 118 Definition and forms of division

Artigo 118.º · Noção. Modalidades

Código das Sociedades Comerciais · Decree-Law No. 262/86 · consolidated text checked 26 October 2026

#

1. A company may:

1 - É permitido a uma sociedade:

#

a) Separate part of its assets and liabilities in order to form another company with that part;

a) Destacar parte do seu património para com ela constituir outra sociedade;

#

b) Dissolve and divide its assets and liabilities, each of the resulting parts being intended to form a new company;

b) Dissolver-se e dividir o seu património, sendo cada uma das partes resultantes destinada a constituir uma nova sociedade;

#

c) Separate parts of its assets and liabilities, or dissolve and divide its assets and liabilities into two or more parts, in order to merge them with existing companies or with parts of the assets and liabilities of other companies separated by the same processes and for the same purpose.

c) Destacar partes do seu património, ou dissolver-se, dividindo o seu património em duas ou mais partes, para as fundir com sociedades já existentes ou com partes do património de outras sociedades, separadas por idênticos processos e com igual finalidade.

#

2. The companies resulting from the division may be of a different form from that of the divided company.

2 - As sociedades resultantes da cisão podem ser de tipo diferente do da sociedade cindida.

What we checked in this article

The three forms of division in points (a) to (c) of paragraph 1 and the permission for resulting companies to be of a different form are retained.

Is Article 118 relevant to a company you run or plan to set up?

We advise on Portuguese company law in English every day: formation, capital, members’ resolutions, managers’ liability and restructuring. A written answer and a fixed quote within one working day.

Unofficial English translation prepared by BCA Portugal for reference. Only the Portuguese text published in the Diário da República has legal force. Editorial notes are ours and are not part of the statute.

Applying the law

Portuguese company law, explained in English by the people who apply it

Reading the statute is the first step. Applying it to your articles of association, your capital and your board is where mistakes cost money. Tell us what you are deciding and we will set out the rules that apply and what it costs to get it done.

Get a quote