A power of attorney is a legal document that is used in many European countries by persons who are not able to attend certain events or places and who want to be represented by someone else who will have the power to act on behalf of them for signing contracts, taking decisions, submitting documents etc. For the formation of a company in Portugal, granting a Power of Attorney is not necessary, but it is a very useful document for when the company’s shareholders are not in Portuguese territory, as the person who has the Power of Attorney can act on behalf of them.