Open a Business in Brazil - 2021 Updated Procedure
Open a Business in BrazilUpdated on Monday 20th September 2021
Rate this article
based on 3 reviews
based on 3 reviews
Brazil offers a wide range of business opportunities for all types of investors. With a well-built economy, international business collaborations and known as the 5th largest market on an international scale, Brazil is a generous and an appealing investment market in South America. Opening a business in Brazil in 2021 requires a few important steps like knowing the legislation, the business style, and management. The legal aspects involved in a business registration in Brazil can be explained by our lawyers in Brazil.
What types of companies can I open in Brazil?
Limited liability companies, joint stock companies or sole proprietorships are among the preferred and adopted business structures for nationals and foreigners in Brazil. LLC or Sociedade Limitada (Ltda.) respects the general rules for formation like the number of members and the documents that stand at the base of the establishment. At least two shareholders can form an LLC in Brazil, whether natural persons or other companies. You can also consider the following requirements as part of the business formation in Brazil:
- an LLC in Brazil needs a bank account for the capital contribution of members;
- the shareholders of the business need to appoint the board of directors;
- as soon as the incorporation number is provided by the Trade Register, the registration for tax purposes needs to be done;
- the application for the company’s seal in 2021 can be overseen by our advisors.
The business management in Brazil and the ways in which you should properly manage and organize the company will mostly depend on how foreigners will understand the requirements of the business environment.
Can I set up branches and subsidiaries in Brazil?
Yes, international companies can establish branches and subsidiaries in Brazil once the approval from the Brazilian Ministry of Development, Industry and Foreign Trade is issued. We remind that foreigners in Brazil cannot run companies in sectors like healthcare, TV & radio, air and road transportation. For other details on these matters, as well as on the steps to immigrate to Brazil, please address to our team.
Business style in Brazil
The commercial culture in Brazil is not complicated and it is adopted in a fast manner by all types of investors. The key to a successful business in Brazil in 2021 is to create, develop and maintain the relationships with local and foreign partners in a very appealing, yet competitive market. There are numerous family businesses running in Brazil, all of them transmitted from a generation to another generation, but there is plenty of room for large corporations willing to explore the business opportunities and to benefit from the market and economic stability. Keeping in touch with your collaborators in Brazil and developing long-term commitments should be in the attention of foreign business owners in this country.
Foreign investors in Brazil need to be mindful of the taxes that apply to companies. These include the corporate income tax, a surtax on annual income in excess of BRL 240,000, the social contribution tax as well as a number of indirect taxes, including the State VAT, the federal excise tax, the municipal tax and the federal social contributions. Discussing the main requirements for tax payments as well as annual reporting in 2021 with our team of Brazilian tax lawyers before incorporation can be very helpful.
Those who are interested in opening a business and remaining in the country can reach out to us for information on Brazil citizenship by investment.
We invite you to contact our law firm in Brazil and ask for tailored legal services if you want to open a business in this country.