A client assessing whether to cooperate with a newly formed company registered in the Madeira Free Zone. A structured due diligence report was delivered covering registration, licensing, ownership, management, related entities, screening results, and identified risk factors.
Client provided only the company name. No prior verification of legal status, licensing, ownership, or management. No visibility into whether the entity was real, operational, or connected to other structures.
Verify registration and licensing status in the Madeira Free Zone. Identify ownership and management. Screen for sanctions, criminal records, and PEP status. Surface any related entities or cross-border arrangements.
Company confirmed as validly incorporated with required licence. No adverse screening findings. But: early-stage structure with no operating history, unpaid minimum capital, cross-border management, and future licence conditions requiring monitoring.
The company was verified in the Portuguese commercial registry: legal form, registered address, and share capital confirmed. The Madeira Free Zone licence was reviewed, including the issuing authority, licence number, date of issue, and conditions attached.
The licence conditions included requirements for job creation within six months, minimum investment within two years, activity limited to international services, and notification upon commencement of operations.
Ownership was traced to a single participant and director — a 25-year-old Georgian national. An attorney-in-fact acting on the company's behalf in filings was also identified and checked.
A second company under the same management was identified in Estonia — registration, declared activity, and address confirmed. The same individual controlled both entities, creating a cross-border management picture that extended beyond the original inquiry.
Sanctions, criminal, and PEP screening was conducted on the company, director, and representative. No adverse findings were returned.
The company's payment details referred to an electronic money institution rather than a traditional bank.
The company was validly incorporated with the required licence in place. However, it remained an early-stage structure with no operating history, no financial track record, no filed accounts, and no visible trading activity or commercial footprint.
Share capital was set at the legal minimum of €5,000 and remained unpaid at the time of review. The director was a foreign national, and all filings were handled through an attorney-in-fact from a third country. The Estonian entity under the same management pointed to a broader operating arrangement.
The client now had a documented picture of the company's legal status, management structure, screening results, and early-stage risk factors.
The company could be treated as a real registered entity within the Madeira regime, with a valid licence and no adverse findings. At the same time, the lack of operating history, unpaid minimum capital, cross-border management setup, and future licence conditions remained relevant factors in the cooperation decision.
The due diligence report provided the basis for an informed decision rather than reliance on the company's own representations.
The report was compiled using the Portuguese commercial registry, Madeira Free Zone licensing information, EU corporate records, sanctions and PEP databases, criminal and enforcement screening sources, and open-source checks.
Initial conversations are confidential and without obligation.
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