If you are looking to register a business in Brazil, the process can be completed in just eight steps. Once you have completed the company formation process, you will have access to Latin America’s largest market, where a host of untapped commercial opportunities can be found.
If you are only planning a short-term or limited-scale operation in the South American country, you may want to consider hiring staff through a professional employer organization (PEO) in Brazil. Because a PEO firm can hire staff on your behalf, facilitating market entry in only the time it takes to find the right personnel, thus allowing you to avoid having to incorporate a company in Brazil.
Known as ‘the Giant of South America’, Brazil is Latin America’s largest economy — as well as the 8th largest in the world — as highlighted by its gross domestic product (GDP). In 2019, the country registered a GDP of $1.84 trillion (all figures in USD), with a gross national income (GNI) of $9,130, placing Brazil as a prosperous upper-middle income nation by international standards.
The country is a founding member of the Southern Common Market (Mercosur,) a regional economic integration initiative that recently celebrated its 30th anniversary and also includes Argentina, Paraguay, and Uruguay, with Bolivia awaiting formal membership.
With a population of 211 million, a fast-growing middle class, plentiful natural resources, and numerous unsaturated internal markets, Brazil offers a host of opportunities to foreign investors. That partly explains why it is the primary destination for foreign direct investment (FDI) in the region, and the fourth-largest recipient worldwide — with FDI inflows reaching $73.5 billion in 2019.
Among Brazil’s major export products are coffee, ores and slag, soybeans, and timber. Some of the main destinations for its goods are Argentina, Chile, China, the Netherlands, and the United States.
If you are looking to register a business in Brazil, read on to understand some of the key considerations you will have to make, as well as the eight steps involved in the process. Or go ahead and contact us now to discuss your business options.
Register a business in Brazil: important considerations
When starting a business in Brazil, you will need to consider the following aspects:
Legal representative: According to Brazilian law, it is mandatory to appoint a legal representative able to represent the company before local authorities, clients, and partners. Note that this person must be a Brazilian citizen or have a permanent visa and fixed residence in the country.
A legal representative plays a crucial role that entails significant responsibilities and the ability to significantly influence your operations. As such, you would be wise to appoint someone with a past career in law or accounting and who has experience in commercial representation.
Legalized documents: All official documents issued abroad must be legalized by a notary public in the country of origin. Note that some Brazilian government agencies require that the submitted documents be officially translated.
Your legal representative in Brazil will be able to advise you on exactly what needs to be done for a particular document to be accepted.
How to register a business in Brazil: an 8-step guide
To register a business in Brazil, you will need to complete the following steps:
Step 1: Obtain a local Brazilian tax identification number
Before you can register a business in Brazil, at least two company shareholders will have to obtain Brazilian tax identification numbers, known as the CNPJ for companies and the CPF for individuals.
Step 2: Register the tax identification number before the corresponding authorities
Once the shareholders have obtained their tax identification numbers, these must be registered before the Central Bank and the Federal Revenue of Brazil.
Step 3: Appoint a legal representative
You will need to appoint a legal representative in Brazil to represent your company, which will mean drafting and signing a Power of Attorney (POA) to provide them with the right to act on your behalf.
Step 4: Draft the company bylaws
To register a business in Brazil, you and your legal representative must draft your organization’s bylaws and include information regarding the nature and structure of the business, as well as information on internal procedures.
Step 5: Register your business’ bylaws before the local trade board
After drafting the bylaws, the business can be registered before the local trade board and other important local authorities.
Step 6: Open a corporate bank account
With the business registered before authorities, you will be able to open the company bank account. Depending on the nature or location of your business in Brazil, your legal representative may have advice on which provider is best to choose.
Step 7: Register the paid capital
After opening the corporate bank account, you will be able to register the paid capital with the Central Bank.
Step 8: Register a business in Brazil by depositing the initial capital
With all prior steps completed, you can complete the process of business registration by making the initial deposit of capital into the corporate bank account.
Biz Latin Hub can help with company formation in Brazil
At Biz Latin Hub, our team of multilingual company formation agents is equipped to help you successfully register a business in Brazil in order to enter the market with maximum efficiency. With our complete portfolio of back-office support, including legal, accounting, recruitment, and tax advisory services, we can be your single point of contact to manage your market entry and operations in Brazil, or in any of the other 15 countries across Latin America and the Caribbean where we are present.
Reach out to us now for a consultation or free quote.
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