Starting a Business in Brazil
Starting a business in Brazil can be a daunting task without the right help. For your business to succeed you must have competent local business contacts. The effort it takes to start a company in Brazil can feel overwhelming, but being part in one of the world’s fastest growing economies can set you on a path to business success
Brazil’s legal system is much more bureaucratic than most other countries; but we can help you to choose the best legal, accounting and business contacts for your specific business requirements. In Brazil, when setting up a company, finding a knowledgeable and experienced accountant is as important as finding the right business lawyers. Competent English speaking accountants you can rely on are not easy to find on your own. If you are unprepared entering the Brazilian market it becomes a leap into the unknown due to the peculiar legal, cultural and especially bureaucratic characteristics of Brazil.
Starting up the company is a project which requires project management. Unless you know first-hand that your lawyers are great project managers, we recommend you assume they are not. We do have the experience and contacts to help you. Before starting the process of forming a company in Brazil you need to have a clear idea about what type of activity the business will be operating and the purpose of registering the company.
A Sociedade Limitada (LTDA) is the most common form of company in Brazil. It is also the simplest, most flexible and inexpensive type of company to operate. It is governed by a Contrato Social (Articles of Association) and its capital is divided into quotas (shares). There are no minimum capital requirements and the company is managed by one or more Administrators, resident in Brazil and appointed by the quota holders. To be ensured total control of the company, a quota holder must own at least 75 percent of its quotas.
A Sociedade Anônima (SA) form of company is not as flexible as a Limitada and is considerably more expensive to operate and certainly not the best option for small companies.
Incorporating a company in Brazil will take at least 30 days and often much longer. By law, the services of a Brazilian lawyer are required to incorporate a Brazilian company. Incorporating a Brazilian company and being named its Director or Administrator are two separate things. To be able to be appointed as a Director or Administrator, a foreigner must obtain a permanent resident visa for Brazil.
A foreigner does not need a Brazilian visa to be a shareholder in a Brazilian company. If you intend to appoint a Brazilian resident to be the company’s manager (and Greatstart can help you to find the best for your company) and only come to Brazil from time-to-time to oversee the investment, it can be done on a tourist or limited business visa. However, if you intend to move to Brazil to personally manage the company, a permanent visa is required.
To get the permanent visa, you need to prove that you have invested at least a certain sum (this amount changes often) in the Brazilian company.
All companies formed in Brazil need to have a unique registered fiscal address. If you are forming a trading company or a company that operates some type of manufacturing, you will need to have a fiscal address that is regulated for this type of activity.
Great Start has been helping foreign company’s starting a business in Brazil since 1974. We will assist you through each step, including recruitment of your start-up staff, relocation needs and any other assistance you may require. We will always assure you of our most dedicated and personalized services, as you may be reassured by reading some of our testimonials.