It's actually very simple to register a business in Brazil, the process can be completed in just seven steps. Starting a business in Brazil means you access the biggest market in Latin America!
Open Company: Brazil's map and its key cities
If you're planning a short-term or small-scale venture in Brazil, you can consider hiring staff through a professional employer organization (PEO). A PEO firm can quickly hire staff for you, saving the need to incorporate a company in Brazil.
Brazil is known as 'the Giant of South America. It is the world's fifth-largest country and the largest in Latin America, with a population of over 200 million. It has the biggest economy in the region. Data from the World Bank with a GDP of $1.6 trillion, and a gross national income (GNI) of $7,500. The OECD predicts that Brazil's economy will grow by 1.2% in 2023, 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 formal membership.
Brazil is an appealing location for foreign investors due to its large population of 214 million, growing middle class, and rich supply of natural resources. In 2021, Brazil received $46 billion in foreign direct investment (FDI), making it the top FDI recipient in the region. Whilst investment declined during Bolsonaro's presidency, it's expected that the election of the new president, Luiz Inácio Lula da Silva (commonly known as Lula), will stabilize the market.
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're looking to register a business in Brazil, here are some key considerations and the eight steps involved in the process. Or go ahead and contact us now to discuss your business options and get some help navigating the legal requirements to start a business in Brazil.
Register a business in Brazil: important considerations
When starting a business in Brazil, you will need to consider the following aspects:
Legal representative: Under Brazilian law, companies operating in the country must appoint a legal representative who can represent them before local authorities, clients, and partners. This representative must be either a Brazilian citizen or a foreigner with a permanent visa and a fixed residence in Brazil.
Appointing a legal representative is a crucial decision that comes with significant responsibilities and the potential to greatly influence your operations. Therefore, it's important to choose someone with a background in law or accounting, as well as experience in the local market.
Legalized documents: If you need to submit official documents that were issued abroad to Brazilian government agencies, they must first be legalized by a notary public in the country of origin. Additionally, some agencies may require that the 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.
Business in Brazil: Distribution of employment by economic sector in Brazil
How to register a business in Brazil in 7 steps
To register a business in Brazil, you will need to complete the following steps:
Step 1: Obtain a local Brazilian tax identification number
To register a business in Brazil, you need a minimum of two shareholders to acquire Brazilian tax identification numbers. Companies refer to this as the CNPJ, while individuals must obtain the CPF.
Step 2: Appoint a legal representative
You will need to appoint a legal representative in Brazil to represent your company. You'll need to draft and sign a Power of Attorney (POA) so that they can act on your behalf.
Step 3: Draft the company bylaws
To register a business in Brazil, you and your legal representative must draft your organization's bylaws. This includes information regarding the nature and structure of the business, as well as information on internal procedures.
Step 4: Register your business' bylaws
Once the company drafts the bylaws, it can register with the local Board of Trade and other important local authorities.
Step 5: Open a corporate bank account
When authorities accept your company's registration, you can open a company bank account. The legal representative may have advice on which provider is best to choose based on your business's activity in Brazil.
Step 6: Register the paid capital
After opening the corporate bank account, you will be able to register the paid capital with the Central Bank.
Step 7: Register a business in Brazil by depositing the initial capital
Finally, you can complete the process of business registration by making the initial deposit of capital into the corporate bank account.
Originally published 13 May 2021 | Updated On: 19 June 2023.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
