If you are thinking about starting a business in Brazil, or entering Latin America’s biggest market some other way, you will need to find reliable corporate legal representation. Because a high-quality legal counsel in Brazil will have sufficient experience and knowledge of local norms to facilitate your market entry in the quickest time possible while avoiding any inconveniences or penalties along the way.
Known as ‘The Giant of South America’, Brazil has the largest economy in Latin America by gross domestic product (GDP), and the 9th-largest in the world. GDP stood at $1.84 trillion (all figures in USD) in 2019, while gross national income (GNI) reached $9,130 per capita, according to figures from the World Bank, which classifies Brazil as an upper-middle income nation.
Brazil has the 5th largest population in the world, with over 211 million inhabitants in 2019, and has a ready labor pool and fast-growing middle class. Those factors make Brazil an attractive investment destination and Brazil was the world’s fourth-largest recipient of foreign direct investment (FDI) in 2019, according to the United Nations.
Brazil shares borders with every country in South America except for Chile and Ecuador, and is part of the Southern Common Market (Mercosur) — an economic association that also includes Argentina, Chile, Paraguay, and Uruguay, and to which Bolivia is awaiting acceptance. As such, Brazil enjoys favorable conditions for regional trade and has strong economic relations with not only the United States and European Union, but also China. Key Brazilian exports include coffee, sugarcane, fruit, soybeans, crude petroleum, iron ore, and sulfate chemical wood pulp.
Read on to find out more about the how good legal counsel in Brazil can ensure the success of your commercial expansion, or reach out to us now to discuss your business options.
Choose the right legal counsel in Brazil
Ideal legal counsel in Brazil for company formation, due diligence, or any other market entry service, will be a corporate attorney with a track record of helping foreign organizations doing business in Brazil.
Your legal representative in Brazil will provide support with complex and time-consuming responsibilities, such as filling forms, drafting contracts, and reviewing legal documents. Likewise, a legal counsel will be able to engage with customers and partners, in support of your business objectives.
It is worth keeping in mind that your corporate legal counsel in Brazil will be able to represent your company before government entities, with some decision making power that can affect your commercial operations, so you will need someone who you can effectively communicate with and who you can trust to properly represent your interests.
What to look for when choosing a corporate legal representative
When choosing a legal counsel in Brazil, it is strongly recommended to keep the following in mind:
- Legislative knowledge: As in many countries in the region, corporate laws in Brazil can be subject to frequent change, so you need to work with a legal counsel who is up-to-date on recent reforms in local legislation.
- Industry knowledge: An attorney with experience supporting companies in your industry will best understand the particular needs of companies like yours.
- Professional reputation: By researching their professional history and past client comments, you should be able to draw a good impression of the regard any given legal counsel in Brazil is held in, which will inform your decision on who to hire.
- Communication skills: Unless you speak strong Portuguese, you will want to find someone capable of communicating with you effectively in your preferred language. However, you will also want someone able to represent you effectively in the local language.
What will a legal counsel in Brazil do for you?
Choosing a reliable legal counsel in Brazil will give you the peace of mind and time to focus on other aspects of your commercial expansion. The legal matters your corporate attorney will be able to oversee include:
Company formation: Forming a company in Brazil can be a challenging process for foreign investors, given the particularities of the Brazilian legal system. Your legal counsel in Brazil will have extensive experience navigating this environment.
Tax Planning: Brazil’s tax system is known for its complexity. Your legal representative will have extensive knowledge of the foibles of the system and opportunities for better tax planning, which could ultimately make you significant savings.
Understanding labor law: Brazilian labor legislation involves taxes on payroll, overtime, vacations, maternity leave, and layoffs, while some job categories require specific legal treatment.
Compliance with data protection law: In 2018, the Brazilian government a General Data Protection Law, which establishes the ways to process and store data in the country. A legal counsel in Brazil will be aware of all of your compliance needs in this regard.
Drafting legal documents: Some of the main types of contracts a legal counsel can help with include:
- Real estate sale contracts: During a real estate sale and purchase process, there are several documents that must be drawn up and analyzed, such as owner certificates and data from the property registration certificate.
- Intellectual property contracts: These types of contracts require specific technical knowledge that only an experienced legal counsel will know, and must be analyzed in detail to identify inconsistencies involving licenses, infringement of intellectual property, or non-payment of royalties.
- Leasing contracts: These contracts are drafted from a very specific and regularly changing legislation, if they are not examined by a qualified professional, the contractor can suffer serious economic losses
Biz Latin Hub can be your legal counsel in Brazil
At Biz Latin Hub, our experienced team of multilingual corporate attorneys in Brazil can provide the specialist legal advice you need to enter the market smoothly and risk-free. With our complete portfolio of company formation, HR, and legal services, we can be your single point of contact to establish and manage your business in Brazil, as well as in any of the other 15 countries in Latin America and the Caribbean where we have a presence.
Contact us now to find out how our services can meet your needs.
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