Legal Tips for Foreign Companies Doing Business in Brazil

As you may know, Brazil has a somewhat complex legal system, with bureaucracy, complicated regulation and other challenges having an effect on foreign companies doing business in the region. 

Despite the complexities, Brazil is a wonderful country which has a vast array of unexplored business opportunities. For this reason, our legal team wants to provide you with some ‘doing business’ tips before you begin operations in the largest economy in Latin America. 

1 – Doing Business in Brazil – Be Prepared 

Brazil presents a wealth of business opportunities for good entrepreneurs, however, your company needs to be 100% prepared before beginning commercial operations: 

  • You must have your company’s Social Contract submitted to Commercial Registry; also registering at Federal Revenue and, State Inscription (to commercial companies) and Municipal Inscription (to services companies).
  • Do not forget to get your business license(s) before beginning operations – this will depend on the type of business activity that you are involved with. 
  • The Brazilian Government imposes fines and restrictions on companies that try to operate without formal registrations. 
Every company must know the tax costs and formal reporting needed

2 – Be Aware of the Brazilian Tax System

The Brazilian Government is famous for its complex tax rules and advanced tax monitoring system. Doing business in Brazil means that every company here must know all the taxes and accounting obligations. 

Foreign companies have struggled to keep up-to-date with constant changes to the Brazilian Tax System. To be aware of all these variations, working with a local accountant/accounting team is highly recommended. 

3 – Brazilian Labor Regulations 

The Brazilian authorities take labour rules very seriously. Even with the recent labour legal reform, there are many employer regulations that restrict the freedom of labour agreements. Foreigner companies must have a comprehensive understanding of their legal obligations when it comes to employment.

4 – Foreign Employment in Brazil

Foreign companies who want to bring foreign employees to work in Brazil must formally apply for a work visa permit before the employees arrive in Brazil. A work visa permit must be obtained from the Ministerio de Trabajo (Labor Ministry).

5 – Brazilian Regulatory Environment

There are many regulatory agencies in Brazil that monitor sectors such as medicines, technological products, finance etc. Before beginning operations, be sure that your company adheres to the Brazilian regulatory framework.

6 – Foreign Investment in Brazil 

Foreign companies or Brazilian companies with international investors are obligated to inform the local authorities of the total value of these investments in Brazil. They must use the proper system (Sistema de Registro de Investimento Estrangeiro Direto/RDE-IED) to complete this process. 

The Brazilian Central Bank has the role of monitoring the total amount of foreign investment in Brazil.

7 – Brazilian Bureaucracy

Brazilian bureaucracy is complex and endless, and everyone who wants to invest here must be conscious that bureaucracy presents itself in many parts of the business environment. However, working with a local partner will help to mitagte Brazilian bureaucracy. 

8 – Work with Local Partner 

As you can see, the Brazilian legal system can be exhaustive and difficult to understand, especially for foriegners.

For this reason, to avoid problems and seek the best results it is necessary to have a good legal support while you are doing business in Brazil.

Interested in Exploring Commercial Opportunities in Brazil?

These legal tips have been created by our legal team to help you successfully navigate the Brazilian business environment. The Biz Latin Hub Group is ready to support you and your business in Brazil and Latin America. We have a specialized and experienced team that can offer professional and tailored business services in Brazil. Get in contact with us for more information on how we ca support your business in Brazil.

Biz Latin Hub understand local Latin American accounting and tax regulations. Learn more here. 

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The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.
Legal Team Brazil

Legal Team Brazil

Legal Team Brazil is the Biz Latin Hub leading experts on doing business in Brazil The Team writes on the news, doing business, law, and changing regulations. The team are experts in corporate law, Administrative law, Employment law, Immigration law and legal advisory services. Read more about them here. You can contact Legal Team Brazil via our "contact us page".

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