Company Formation in Brazil
Updated on Monday 09th January 2023
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If you are interested in the procedure for company formation in Brazil, you can find out numerous important matters from our consultants.
Brazil has had a growing economy over the last years and it is situated ninth in the world, having the largest economy in Latin America. Thus, many foreign entrepreneurs choose to open a company in Brazil.
Our consultants in company formation in Brazil can provide legal representation to foreign investors who want to start a business here. We can also handle immigration matters (such as applying for a business visa).
What types of services can our team provide in Brazil?
When wanting to invest in a foreign country, you need to go through the types of business entities first and choose the best one for you. When it comes to entering the Brazilian market, we can talk about two options: directly, by opening a new company or establishing a branch office or subsidiary, or through third parties.
The company types in Brazil are as follows: the non-profit company, the general, the limited or the overt/convert partnership, the limited partnership by shares, the corporation or the limited liability company. However, the type that is usually preferred by foreign investors is the latter, the LLC.
When you want to set up a company in Brazil, you have to meet some requirements. These are the demands for the limited liability company:
One of the advantages with forming an LLC in Brazil is that this legal entity can pursue any type of business activities. The whole process of company incorporation should take a couple of weeks. Our specialists can assist you with the procedures so as to be completed in the shortest amount of time.
The first thing you have to do is to choose a suitable name for your company and then check it with JUCESP (Junta Comercial do Estado de São Paulo). Then you have to pay a registration fee and receive a receipt that you will use later on.
You also need to register with the Municipal Taxpayers' Registry in São Paulo.
Another step is to register with the State Board of Commerce in order to get the Identification Number, with the Secretary of Federal Revenue for tax registration, with the State Department of Finance, Social Security Institute and finally with the Patronal Union and the Employees Union.
A new business must also obtain digital certification to be able to use the electronic billing (e-invoice). You also need an operations permit and in order to acquire it you have to apply to the municipality. Last, you need to register and pay TFE (Taxa de Fiscalização de Estabelecimentos) with the Municipal Taxpayer's Registry.
What are the reasons for investing in Brazil?
For more information about how to open a company in Brazil, please contact our specialists. They can assist you in the process of company registration in Brazil, as well as in other countries of the world; assistance will be provided no matter the type of business entity you want to set up.
For any other matter concerning the process of company formation in Brazil, such as obtaining business permits and licenses, we invite you to address to our team.
Brazil has had a growing economy over the last years and it is situated ninth in the world, having the largest economy in Latin America. Thus, many foreign entrepreneurs choose to open a company in Brazil.
Our consultants in company formation in Brazil can provide legal representation to foreign investors who want to start a business here. We can also handle immigration matters (such as applying for a business visa).
What types of services can our team provide in Brazil?
Foreigners who will want to open a business in Brazil can request legal representation. In fact, it is highly recommended to be represented in such procedures by specialists in the field.
This is necessary, as the setting up of a business involves many procedures, institutions, documents and parties with that foreign investors may not be familiarized and this can lead to many issues, which can delay the registration of a business.
Besides the basic incorporation procedure, running a business (in a foreign country or in the country of residence), will need other types of services that can’t be handled by the founders (accounting, for example).
In the list below, you can find out some of the basic services that our team can offer:
- full services for the process of company formation in Brazil (preparing the documentation, signing the incorporation documents, obtaining necessary certificates, etc.);
- immigration services (advising foreign investors on the visa options for investment/business and the conditions to comply with, as well as representation throughout the entire visa processing procedure);
- opening a bank account – we can help foreigners set up a bank account in their own name, as well as corporate bank account, necessary for all corporate entities in Brazil;
- obtaining a business address – another compulsory matter that is imposed to local businesses;
- accounting services – all companies need the services of accountants and for this, you can rely on us.
Our specialists at Bridgewest can assist foreigners interested in offshore company formation. Of course, our services also include the setting up of an offshore bank account, following the legal procedures applicable in the offshore jurisdiction of choice.
When referring to Brazil, we also invite you to address to our consultants for assistance on employment matters. When you will hire employees, they must be registered for employment taxes and social security.
Our team can also present the types of employment contracts that can be signed under the local legislation. For any other services that can be of interest when relocating here for business purposes, our consultants in company formation in Brazil remain at your service.
Business setup types in Brazil
When wanting to invest in a foreign country, you need to go through the types of business entities first and choose the best one for you. When it comes to entering the Brazilian market, we can talk about two options: directly, by opening a new company or establishing a branch office or subsidiary, or through third parties.
The company types in Brazil are as follows: the non-profit company, the general, the limited or the overt/convert partnership, the limited partnership by shares, the corporation or the limited liability company. However, the type that is usually preferred by foreign investors is the latter, the LLC.
When you want to set up a company in Brazil, you have to meet some requirements. These are the demands for the limited liability company:
1. a minimum of two shareholders;
2. at least one director (the nationality is not important);
3. appointing a legal representative for the company;
4. a minimum share capital of only $1.
One of the advantages with forming an LLC in Brazil is that this legal entity can pursue any type of business activities. The whole process of company incorporation should take a couple of weeks. Our specialists can assist you with the procedures so as to be completed in the shortest amount of time.
How to register a company in Brazil
The first thing you have to do is to choose a suitable name for your company and then check it with JUCESP (Junta Comercial do Estado de São Paulo). Then you have to pay a registration fee and receive a receipt that you will use later on.
You also need to register with the Municipal Taxpayers' Registry in São Paulo.
Another step is to register with the State Board of Commerce in order to get the Identification Number, with the Secretary of Federal Revenue for tax registration, with the State Department of Finance, Social Security Institute and finally with the Patronal Union and the Employees Union.
A new business must also obtain digital certification to be able to use the electronic billing (e-invoice). You also need an operations permit and in order to acquire it you have to apply to the municipality. Last, you need to register and pay TFE (Taxa de Fiscalização de Estabelecimentos) with the Municipal Taxpayer's Registry.
What are the reasons for investing in Brazil?
Brazil is a competitive economy at a global level, not only its region. Although the 2020 pandemic has had a negative impact on the Brazilian economy, just like it happened throughout the entire world, the economy was revitalized in many aspects.
Below, our consultants in company formation in Brazil have prepared a short presentation concerning the local economy:
- the value of the Foreign Direct Investment (FDI) flow rapidly increased from 2020 to 2021 (in 2022 it stood at $28,318 million, while in 2021, it increased at $50,367 million);
- the number of greenfield investments decreased from 2020 to 2021 (from 222 to 184 respectively), but the value of such investments increased;
- thus, the value of greenfield investments in 2020 was of $17,212 million and in 2021, it increased at $23,250 million;
- Brazil has very good trading relations with European countries – the Netherlands was the country’s main investor, accounting for 23.2% of all the investments (while the 3rd and the 4th investors were France, with 12.8% and Spain, with 9.5%);
- foreign investors prefer the commerce industry (20% of the FDI), the non-metallic mineral products industry (13%), and the chemical products industry (6.4%).
For more information about how to open a company in Brazil, please contact our specialists. They can assist you in the process of company registration in Brazil, as well as in other countries of the world; assistance will be provided no matter the type of business entity you want to set up.
For any other matter concerning the process of company formation in Brazil, such as obtaining business permits and licenses, we invite you to address to our team.