Brazil’s status as the largest economy in Latin America and the 9th largest worldwide explains why the country is so attractive to entrepreneurs. Although the administrative process for starting a business in Brazil can be less streamlined than in other countries, the potential rewards are spectacular in this market of over 209 million people.
What is more, options are available to get your business moving sooner than it takes to incorporate — through a professional employer organization (PEO) providing payroll outsourcing in Brazil.
Starting a business in Brazil can sometimes be a challenging endeavour for foreign entrepreneurs, given the layers of bureaucracy and language barrier. As such, many look to a local experienced partner to assist in the process.
Learn more about starting a business in Brazil below:
First things first: key steps for starting a business in Brazil
Although the process for starting a business in Brazil has steadily improved over the years, it can still take a few months to reach full completion.
That process will involve five key steps:
1. Drafting of the Power of Attorney to be granted by the foreign shareholder
2. Notarization of personal documents and bylaws
3. Registration of foreign shareholders before the Central Bank of Brazil (Note that all documents presented must be translated by a certified official translator)
4. Submission of articles of incorporation with the relevant State Trade Board to generate a national register of legal entities number (CNPJ)
5. Opening of a corporate bank account in Brazil
Once all the above steps are completed, the newly formed company will be able to work in accordance with local laws. Note that once your CNPJ is issued, you’ll be able to access the electronic invoicing system to pay national and municipal taxes.
How long does it take?
Now that you know the key steps to starting a buinsees in Brazil, you might wonder how long it takes for the Brazilian authorities to formally conclude this process. Unfortunately, there is no hard or fast answer.
To begin with, the time to incorporate a company in Brazil may vary according to specific circumstances. For example, if the foreign shareholder is a private individual, there will be fewer documents to translate and notarize and, therefore, this part of the process will be faster.
Furthermore, times can vary depending on the economic activity developed by a company. If your business activity is to provide advisory services, in most Brazilian states the incorporation process should take between 12 and 16 weeks from receipt of the required documents by the Trade Board.
Given the timeframes involved in starting a business in Brazil, executives are strongly advised to engage with a local trusted specialist to ensure that this process complies with all legal requirements and thus avoids delays, liabilities, and unexpected expenses.
Save time when starting a business in Brazil with PEO services
Finding a Professional Employer Organization (PEO) payroll outsourcing company in Brazil will allow you to hire local staff without having to go through a potentially months-long company onboarding process.
A PEO will hire, fire, and pay staff on your behalf, meaning your business can become productive in the time it takes to find suitable workers — which is generally a matter of weeks, if not days, depending on their required skill set.
In this sense, PEO services represent both an alternative option to starting a buinsess in Brazil, as well as a possible stop-gap while you go through incorporation.
Find the right partner to exploit business opportunities in Brazil
At Biz Latin Hub, our multinational team is equipped to deliver expert advice on company formation and starting a business in Brazil. With our full suite of market entry and back-office services, we are your single point of contact to help you to enter the Brazilian market in the shortest possible time.
Contact us now to discuss your expansion options.
Learn more about our team and expert authors and watch our video to find out about 6 phenomenal reasons to do business in Brazil.