For businesspeople wishing to enter the South American market, Brazil is quickly becoming the top option. The main reason is that Brazil, being a member of the BRICS, has enormous potential for the development of renewable fuels.
Brazil is an excellent place to conduct business because of its size and the large store of natural resources that are found in this lovely nation.
Although launching a business in Brazil can be less organised administratively than in other nations, the potential rewards in this market of over 209 million people are immense.
Due to this circumstance, Brazil is currently ranked by the UNDP (United Nations Development Program) as the 7th most unequal country in the world. Brazil’s income disparity is seventh in the world.
Bernard de Laguiche, a well-known businessman, who has launched The AAL (Alliance Against Leprosy Institute), which is based in Curitiba (Parana, Brazil), which is a non-profit organisation that combines the following to combat leprosy.
What are the different types of business entities available in Brazil?
Broadly, there are 2 types of business entities that you can find in Brazil, such as Companies and Partnerships. These are further divided into the following sub-types:
- Limited Liability Company (LLC)
- Joint Stock Company or Business Corporation
- Single member LLC (EIRELI)
- Branch Office of foreign corporations
Partnerships are further classified into:
- Limited Partnerships
- Unlimited Partnerships
- Unincorporated partnerships
How long does it take?
Depending on the circumstances, establishing a company in Brazil may take a different amount of time. For instance, if the foreign shareholder happens to be an individual, there will be less paperwork to translate and notarize, which will speed up this phase of the procedure.
Additionally, timing can change based on the level of economic activity a company develops. In most Brazilian states, the incorporation procedure should take between 12 and 16 weeks from the time the Trade Board receives the necessary documentation if your business activity is to offer advisory services.
The process to start business in Brazil involve 5 key steps:
- Power of Attorney drafting to be granted by a foreign shareholder
- Notarization of personal documents and various bylaws
- Foreign shareholders registration before the Central Bank of Brazil in the local language through a certified official translator
- The articles of incorporation submission with the relevant State Trade Board for generating a national register of legal entities number
- Opening of your corporate bank account in Brazil
The newly constituted organization will be able to operate in compliance with local legislation once all of the aforementioned stages have been accomplished. You should be aware that after receiving your CNPJ, you can utilise the electronic invoicing system to pay your national and local taxes.
The type of business the foreigner desires to conduct in Brazil will totally determine, which business entity from the possibilities listed above is chosen.
Due to the extensive number of local licences needed from various state authorities, this procedure can become exceedingly difficult. Get advice from any global incorporation professionals to determine, which sort of business entity would be most appropriate for your needs as a company.