Registering a business in Brazil is actually very easy and the process can be completed in just 7 steps. Starting a business in Brazil means accessing Latin America's largest market.
Open company: Brazil map and main cities
If you are planning a short-term or small-scale business in Brazil, you may consider hiring staff through a professional employer organization (PEO). PEO companies can hire staff quickly, eliminating the need to set up a company in Brazil.
Brazil is known as the “Giant of South America”. With a population of over 200 million people, it is the fifth largest country in the world and the largest country in Latin America. It has the largest economy in the region. According to World Bank data, the GDP is $1.6 trillion and the gross national income (GNI) is $7,500. The OECD predicts that Brazil's economic growth rate in 2023 will be 1.2%, slightly lower than in 2022.
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 full membership.
Brazil's population of 214 million, growing middle class and rich supply of natural resources make it an attractive location for foreign investors. In 2021, Brazil received $46 billion in foreign direct investment (FDI), making it the largest FDI recipient in the region. Investment declined during President Bolsonaro's term, but the election of new president Luiz Inácio Lula da Silva (commonly known as Lula) is expected to stabilize the market.
Brazil's main exports include coffee, ore and slag, soybeans, and timber. The main destinations for its products include Argentina, Chile, China, the Netherlands, and the United States.
If you are considering registering your business in Brazil, here are the key considerations and eight steps involved in the process. Or, go ahead and Contact us now Discuss your business options and get help navigating the legal requirements for starting a business in Brazil.
Registering a business in Brazil: important considerations
When starting a business in Brazil, you should consider the following:
Legal representative: Brazilian law requires companies operating in Brazil to appoint a legal representative who can represent them before local authorities, customers and partners. This representative must be a Brazilian citizen or a foreigner with a permanent residence visa and permanent residence in Brazil.
Appointing a legal representative is an important decision that carries significant responsibility and can have a significant impact on your company's operations. Therefore, it is important to choose someone with a law or accounting background and experience in the local market.
legalized documents: If you need to submit an official document issued abroad to a Brazilian government agency, it must first be legalized by a notary public in your country of origin. Additionally, some government agencies may require official translations of documents.
A legal representative in Brazil will be able to advise you exactly what you need to do in order for your particular document to be accepted.
Business in Brazil: Employment distribution by economic sector in Brazil
How to register a business in Brazil in 7 steps
To register your business in Brazil, you must complete the following steps:
Step 1: Obtain a local Brazilian tax identification number
To register a business in Brazil, you must have at least two shareholders to obtain a Brazilian tax identification number. Companies call this CNPJ, but an individual must obtain her CPF.
Step 2: Appoint a legal representative
A Brazilian legal representative must be appointed to represent the company. You will need to draft and sign a Power of Attorney (POA) so that your agent can act on your behalf.
Step 3: Draft company rules
To register a business in Brazil, you and your legal representative must draft the bylaws of your organization. This includes information about the nature and structure of the business, as well as information about internal procedures.
Step 4: Register your business terms
Once a company has drafted an ordinance, it can register it with the local Board of Trade and other important local authorities.
Step 5: Open a corporate bank account
Once the authorities approve your company's registration, you can open a bank account for your company. Your legal representative can advise you on which provider is best to choose based on your business activities in Brazil.
Step 6: Register paid-up capital
After opening a corporate bank account, you will be able to register your paid-up capital with the central bank.
Step 7: Deposit initial capital and register your business in Brazil
Finally, you can complete the business registration process by depositing the first funds into your business bank account.
First published: May 13, 2021 | Updated: June 19, 2023.
The content of this article is intended to provide a general guide on the subject. You should seek professional advice regarding your particular situation.
