Arquivos Representation of foreign companies - Pryor Global

Novo marco cambial: principais mudanças e expectativas

prylocawp23 prylocawp23 — Wed, 08 Feb 2023 19:53:13 +0000

The new legal framework for foreign exchange is already in effect. Law Nº 14,286/ 2021 regulates the Brazilian exchange market, Brazilian capital abroad, foreign capital in the country, and the provision of information to the Central Bank of Brazil (BC). The rules have been in effect since December 31, 2022.

The law, which was sanctioned in 2021, aims to simplify foreign currency transactions. The change will benefit Brazil’s performance in the international market and help the country’s growth. For the bill’s rapporteur, Carlos Viana (PL-MG), “the norm seeks to modernize the [Brazilian] market, aligning regulation with the countries of the Organization for Economic Cooperation and Development (OECD).

The scope of the law is broad, impacting the activities of both individuals and companies. In practice, it covers everything from international travel and the buying and selling of foreign currency to the activities of exporting and importing companies.

Main changes

Besides expanding the scope of dollar payments in the national territory, the new legal framework for foreign exchange allows foreign currency to be used to settle debts incurred by Brazilian companies.

The exchange contract is no longer mandatory, and each financial institution can define its own criteria to prove the operation, as long as the parties are aware of and agree with the established conditions.

It is up to the client to indicate the code for the exchange operations. For transactions of up to US$50,000, the classification can be made in only eight codes, and the sending of the information from the financial institution to the Central Bank can be done until the 5th day of the following month.

The issue of the RDE – ROF (Electronic Declaratory Registry – Financial Operations Registry) is only mandatory in some cases, such as in foreign credit operations with a value equal to or greater than R$1 million; financed imports of goods or services with payment terms as of 180 days, with a value equal to or greater than US$500 thousand; and anticipated receipt of exports and foreign financial leasing, with payment terms greater than 360 days, with a value equal to or greater than US$1 million.

As for the issue of the RDE-IED (Electronic Declaratory Registry of Direct Foreign Investment) is required in direct foreign investment operations, when the financial transfer is related to a non-resident investor, with a value equal to or greater than US$100 thousand; and movement in various cases, such as barter, assignment, dividends, among others, with a value equal to or greater than US$100 thousand.

Financed import operations also benefited, because it is no longer necessary to wait for the arrival of a product in Brazil before payment can be made.

For individuals, significant changes are the possibility of buying and selling foreign currency on an occasional basis – which already happened, it is true, but was not foreseen by law – and the amount that does not need to be declared when traveling internationally – which was previously R$10 thousand and is now US$10 thousand.

What to expect?

In general, it can be said that the new legal framework for foreign exchange came to insert Brazil within a more modern regulatory environment regarding foreign currency transactions, expanding the country’s presence in the international market and encouraging its development.

It is worth noting that the new law is aligned with OECD guidelines, which simplifies transactions involving foreign currency in the national territory.

Brazilian legislation is complex and constantly changing. Therefore, it is necessary to be always attentive to comply with the new rules. In this context, there is nothing better than to be on the side of those who understand the subject.

For over 26 years, Pryor Global has worked in the implementation and acceleration of foreign companies in Brazil, offering, among other services, consulting, and exchange operations to its clients. Want to know how we can help you? Talk to our specialists!

O post Novo marco cambial: principais mudanças e expectativas apareceu primeiro em Pryor Global.

Processo de liquidação de sociedades: o papel do liquidante

prylocawp23 prylocawp23 — Mon, 26 Dec 2022 19:14:43 +0000

Just like opening a company, closing it is also a bureaucratic process. Whether it is in the interest of the partners or due to economic difficulties, the closure of a company must comply with certain rules set out in legislation. In most cases, it is mandatory to appoint a liquidator to carry out the process. This is a service that Pryor Global provides to its clients and which we will talk about later.

Liquidation is the intermediary process between dissolution and extinction, and its purpose is to state the company’s assets and rights, as well as to pay its debts. The dissolution of the company is the situation, described in the law or determined by the articles of association or even by the will of the partners, for the company to cease its activities.
Dissolution makes it possible for the company to subsist during the liquidation process, as well as allowing time for the appointment of a liquidator.

The difference between dissolution and liquidation is that the former orders the latter. Dissolution and liquidation cannot be carried out all at once. Likewise, there can be no dissolution without liquidation.

This situation describes voluntary liquidation, but it is also possible for a company to be liquidated judicially. When it encounters difficulties that it cannot overcome and its recovery is clearly impossible, it is mandatory to proceed to a judicial liquidation. This procedure is usually longer because it takes place under the supervision of a judge.

The liquidator appointed by the company ensures that the liquidation process is carried out properly, presenting the accounts for the conclusion of the liquidation. As described in Law 6,404/76, Art. 210, the duties of the liquidator are:

a) Complete the company’s business, state the assets, settle the liabilities, and share the
remaining among shareholders.
b) Demand from the shareholders, when the assets are not sufficient to settle the liabilities, the payment of their shares.
c) Call a general meeting, in the cases provided for by law or when it deems necessary.
d) At the end of the liquidation, submit a report of the acts and operations to the general meeting settlement and its final accounts.
e) File and publish the minutes of the general meeting that ended the liquidation.

Finally, the termination of the CNPJ (National Register of Legal Entities) must be requested, which can be done through the FR (Federal Revenue) website.

Here at Pryor Global, we help companies in the process of closing their activities by acting as liquidators. We also support our foreign clients with the dissolution of the branch in the country. Schedule a conversation with us!

O post Processo de liquidação de sociedades: o papel do liquidante apareceu primeiro em Pryor Global.

Startups estrangeiras passam por momento difícil, mas recuperação está à vista

prylocawp23 prylocawp23 — Tue, 11 Oct 2022 18:15:29 +0000

After the “funding winter for startups”, the sun will shine again

The current political situation has affected the most diverse fronts of the economy. As the world has barely recovered from the post-pandemic impacts, we are dealing with a war between Ukraine and Russia, major exporters of wheat, oil, and natural gas, to cite just a few. Therefore, lack of inputs, high-interest rates, and inflation are more present than ever.

Therefore, it is no wonder that foreign companies established in Brazil are going through a difficult time. Especially startups are experiencing waves of layoffs, considering the unfavorable scenario for growth. This was the case of the Mexican company Kavak, for example, which dismissed at least 300 people this year from its offices in São Paulo and Rio de Janeiro.

More than 5,000 people were fired from startups established in Brazil in the first half of this year, according to the Layoffs Brasil report. The situation also occurs in other countries, such as India and the United States. More than 40 thousand employees would have been dismissed from their functions in these countries.

That investors have sought to invest in companies with more established business models was to be expected. After all, the current economic scenario requires caution. However, startups continue to raise capital, despite the crisis.

Although the total volume of investment fell dramatically between the first half of 2021 and the same period this year, investments in “early stage” startups increased. In this regard, the increase was 21.5%, according to information from Distrito.

It is worth noting that most of the past investments were made in unicorn startups, valued at more than US$1 billion. This is the case with Kavak, which we mentioned above, whose valuation was at US$8.7 billion in September 2021. These companies have felt the effects of the economic scenario more drastically.

It seems urgent that unicorn and later-stage startups change strategies and behavior, including cutting expenses and postponing projects and investments. Some have already done so, as have several startups that have sought more sustainable growth models.

After the “funding winter for startups”, the sun will shine again. The IMF (International Monetary Fund), for example, has improved Brazil’s growth projection. The GDP (Gross Domestic Product) went from 0.8% in April to 1.7%. There is also the end of the rise in the basic interest rate. This is an optimistic scenario for investors.

For establishing your business in Brazil, you can count on Pryor Global, which has been in the market for over 26 years. With professionals highly specialized in local legislation and a portfolio that includes relevant players in the international market, we can serve your company with excellence. Contact us!

O post Startups estrangeiras passam por momento difícil, mas recuperação está à vista apareceu primeiro em Pryor Global.

Abertura de empresa por estrangeiro no Brasil

prylocawp23 prylocawp23 — Tue, 27 Sep 2022 13:14:21 +0000

What does a foreigner need to open a company in Brazil?

Brazil is considered the leading economic and political power in South America. In 2019, it recorded a Gross Domestic Product (GDP) of US$1.878 trillion, with a Gross National Income (GNI) of US$9,130. With a population of 212 million, a rapidly growing middle class, abundant natural resources, and many unsaturated domestic markets, the country offers several opportunities for foreign investors.

All these factors partly explain why Brazil is the top destination for Foreign Direct Investment (FDI) in the region, and the fourth largest recipient worldwide – with FDI inflows reaching US$65.4 billion in 2019.

To help foreigners who want to open a company in the country, Pryor Global has launched the e-book “Constitution of Foreign Companies in Brazil”, available for download on our website. There, all interested parties have access to important information, such as the first steps and documents prior to the constitution of the Brazilian company, articles of association or by-laws, and mandatory registrations at the competent bodies, to name just a few topics.

To help our future clients even more, today we will take a deeper look into what a foreigner needs to open a company in Brazil, with direct questions and clear answers. Check out our Q&A section below.

What does a foreigner need to open a company in Brazil?

According to the legislation, people who are in full possession of their civil capacity and are not legally impeded can open a company in Brazil. They must be over 18 years old, Brazilian, or foreign citizen, who is in free administration of his/ her person and property, or an emancipated minor, or coming of age as described by law.

The opening of a company by a foreigner in Brazil, living in the national territory or not, is possible, and he or she may constitute or have interests in companies in the country. However, there are different requirements to be met for each of these situations.

Resident permit or permanent visa

To obtain a visa as an investor, the foreigner must prove an investment of at least BRL150 thousand and the hiring of Brazilian professionals. For detailed information, check Normative Resolution No. 84 of the National Immigration Council.

Living in another country

If the foreigner lives in another country, he or she must appoint an attorney-in-fact residing in Brazil with powers to receive a summons, in addition to being registered with the Federal Revenue (RF) and with the Central Bank of Brazil (BCB), through the Electronic Declaratory Registry (RDE).

If the foreigner has only obtained a temporary visa, he or she will be considered a fiscal resident when getting a residence permit; having an employment relationship; or staying in the country for more than 183 days, consecutive or not, within 12 months.

How to open a company for foreigners who live in Brazil?

The requirements are similar to those for foreigners living in Brazil: an authenticated photocopy of the Foreigners National Registry (RNE) and an identity document, issued by a Brazilian authority, in addition to the Taxpayer Identification Number (CPF). He or she must also go to the Board of Trade and present proof of a permanent visa.

How to open a company for a foreigner living abroad?

In this case, it is necessary to present a specific power of attorney at the Board of Trade, with the signature notarized at the notary’s office and/or embassy, empowering the representative in Brazil to receive a judicial summons in lawsuits filed against the foreigner citizen.

A notarized photocopy of the identity document and the legal existence of the company must also be presented, notarized, apostilled, or certified by a Brazilian authority (Brazilian consulate in the country of origin of the foreign company).

How to open a company being a Brazilian who lives and is domiciled abroad?

In this case, the Brazilian must appoint an attorney-in-fact residing in Brazil, giving him/her powers to sign and file documents with the respective bodies.

Activities that are forbidden to Foreigners in Brazil

Companies with foreign capital in the health care sector;
Cabotage and Shipping Company;
Newspaper Company, Radio and Image Broadcasting Company;
Cable TV Company;
Road Cargo Transport Company;
Mining Company.

The opening of a company by a foreigner in Brazil implies a series of legal obligations. Count on an experienced partner to guide you through this journey. Pryor Global has been representing multinational companies operating in the Brazilian market for over 26 years. Get to know our portfolio and talk to one of our experts.

O post Abertura de empresa por estrangeiro no Brasil apareceu primeiro em Pryor Global.

Vantagens de constituir uma empresa estrangeira no Brasil

prylocawp23 prylocawp23 — Thu, 28 Jul 2022 20:58:54 +0000

Brazil was the sixth largest destination for foreign investments in 2021

The economic crisis motivated by the pandemic, added to the political instability that is daily shown in the news, has lowered the expectations for foreign investment in Brazil. In a scenario of uncertainties, as the last two years were, it is normal – and even expected – that there is more caution from international investors, but the country has managed to overcome the discouraging perspectives.

Driven by the commodities boom, Brazil was the sixth largest destination for foreign investments in 2021, recovering its pre-pandemic position. Data published by the UN Conference on Trade and Development show that Brazil received $50 billion in inflows last year, against $28 billion a year earlier. The expectation is that the high price of commodities will stimulate multinationals to increase investments in the country by 2022. In May, the country had already contracted R$ 188 billion.

But what are the advantages of setting up a foreign company in Brazil? We will discuss some important points below:

– A significant consumer market

Brazil is the largest economy in Latin America and has one of the largest consumer markets in the world, with 215 million inhabitants. Therefore, the country offers many opportunities for those who know how to take advantage of them. Today, consumers have more access to information than ever before, and seek reliable data about brands to help them make purchasing decisions. They also demand specific products and services, so those who want to operate in the country can do so in a variety of ways.

– Natural resources / Geographical conditions

The Brazilian natural landscape is very varied, formed not only by the Amazon Forest, the largest in the world, but also by the other biomes, quite different from each other. It is not by chance that Brazil is one of the world’s largest exporters of commodities, very prominent in agribusiness. Companies that operate in this sector will find fertile ground to develop in the country, if they are interested.

– Easy access to Mercosul

Among the international agreements of which Brazil is part, Mercosul (Southern Common Market) stands out. It provides benefits such as free circulation of goods and services and integrated legislation, in order to make life easier for companies operating in member countries. Foreign companies that start operating in Brazil can benefit from these same advantages and have the chance to expand their business even further.

– Open to innovation

There are many reasons why Brazil has not yet emerged significantly in global trade, and one of them is the barrier to innovation. Investment in Science, Technology, and Innovation (ST&I) is low in the country today, limited to 1.2% of GDP. Most of our exports are commodities, therefore, they have lower added value. The private initiative has joined efforts to reverse this scenario. According to a survey by the National Confederation of Industries (CNI), 90% of innovation in Brazil is done with private investment.

To make sure you meet all the mandatory requirements for opening a company in Brazil, you must have the appropriate support. Pryor Global values the trust of its clients, applying internal compliance controls so that the administrator or legal representative always signs documents in accordance with what is established in the contractual relationship and in the articles of association/corporate act or power of attorney of the company.

One of the advantages of appointing an administrator or legal representative is to have documents signed quickly and securely, allowing the company to focus on other important matters, such as growth strategy and negotiations. We have already talked about this here.

For over 26 years, Pryor Global has been assisting foreign companies that want to operate in Brazil. We work in compliance with the complex Brazilian legislation and within the best legal practices. Count on the support of an experienced company that understands your business. Send a message right now.

O post Vantagens de constituir uma empresa estrangeira no Brasil apareceu primeiro em Pryor Global.

Representação de empresas estrangeiras: o que, afinal, este serviço oferece?

prylocawp23 prylocawp23 — Thu, 30 Jun 2022 14:18:05 +0000

Foreign companies that want to establish themselves in a country like Brazil can count on the service of legal representation

When a company decides to expand its operations beyond national borders, there are many challenges. Each country is governed by a specific set of laws and regulations, and understanding the details and processes involved can be difficult without proper professional assistance. Therefore, foreign companies that want to establish themselves in a country like Brazil can count on the service of legal representation.

In general terms, a legal representative has the authority to act on behalf of another person. When it comes to representing foreign companies in Brazil, it is mandatory that the representative is an individual domiciled in the country, who will be the signatory of all the company’s operational activities, protecting its interests.

There are several steps to open a company in Brazil, such as applying for registration with the Board of Trade, a mandatory requirement to proceed with the legalization process of the company, obtaining the National Registry of Legal Entities (CNPJ), paying fees, and obtaining permits and licenses from the respective agencies. The legal representative must be authorized to perform all these tasks by means of the power of attorney granted to him/her.

The legal representative also signs electronically some tax declarations, such as the ECF (Tax Accounting Bookkeeping) and ECD (Digital Accounting Bookkeeping), using the digital certificate e-CPF.

Actions of a legal representative: administrator x attorney-in-fact

The legal representative may act as the administrator of the Brazilian company or as the attorney-in-fact for foreign companies. By means of the powers granted to him/her in the articles of association, the administrator will answer for the Brazilian company before public entities of all levels, such as the Federal Revenue and the Boards of Trade of the States, Central Bank and/or banks in general, tax authorities, among others.

The attorney-in-fact, on the other hand, acts on behalf of the foreign company. His/her powers must be granted by means of a power of attorney from the country of origin, with the proper legalizations, such as Notarial and Authentication Services. To be valid in Brazil, the power of attorney must be translated by a sworn translator and registered at a notary’s office.

Therefore, when hiring the service of representation of foreign companies, it is necessary to pay attention to the difference between the services of an administrator and an attorney-in-fact. In Brazil, their attributions are different.

What services does a lawyer perform?

The services offered by a legal representative and a legal counsel can be confused. The drafting of the articles of association, for example, which establish the activities of the company and its operation, as well as the capital shares of each of the partners, is the responsibility of the corporate lawyer. All corporate documents, such as meeting minutes, are his or her responsibility.

Legal services can also include the formation, reorganization, and dissolution of business entities, including corporations, partnerships, and limited liability companies, acting in the preparation, negotiation, and review of documents required for mergers, acquisitions, sales, and other business arrangements.

Overall, lawyers offer advice on a wide range of corporate matters, as well as acting in the preparation, review, and negotiation of contracts for their clients.

For the representation of foreign companies, count on Pryor Global. We have over 26 years of experience representing legal companies. Our team is composed of specialists in Brazilian regulation. Contact us and find out how we can help your business to operate in the country.

O post Representação de empresas estrangeiras: o que, afinal, este serviço oferece? apareceu primeiro em Pryor Global.

Em tempos de instabilidade, Brasil é porto seguro para investidores estrangeiros

prylocawp23 prylocawp23 — Thu, 19 May 2022 18:30:04 +0000

Brazil has offered the stability needed in times of uncertainty: good foreign relations, abundant natural resources, and fertile ground for good business

Coronavirus pandemic, climate crisis, and now the conflict between Russia and Ukraine. The world is dealing with several serious and urgent problems at the same time. If, on the one hand, there is the fear of the unknown, on the other, there is the search for security. Making investments in times of instability, be it political or economic, is a challenge, but also a good opportunity for those who know how to correctly use it.

In particular, the war in Eastern Europe has directly impacted investors’ decision-making. The economic sanctions on Russia, the migration movement, and the rise in oil prices are just some of the many aspects one needs to consider before placing a bet on the international market.

In this context, Brazil appears under a positive aspect. In February this year, Direct Investment in the Country (IDP) totaled US$11.8 billion, according to the Central Bank (BC), an increase of 34% in relation to the same period last year. The amount is the result of the return of Brazilian investments abroad, the resources from equity participation, and the direct loans granted to branches of multinational companies in the country.

In the foreign investment ranking, Brazil has already regained the position it occupied before the pandemic. According to the Kearney Foreign Direct Investment Confidence Index, the country left the 24th position to 22nd, and its score rose from 1.64 to 1.71. The positive result in 2022 is directly related to the rise in the price of raw materials and the relaxation of measures to contain Covid-19.

According to an analysis carried out by XP Investimentos, Brazil is on the list of 25 countries that most attract foreign investors, alongside China, the United Arab Emirates, and Qatar. As the research does not consider the situation in Eastern Europe, analysts believe that the country can easily advance three positions in the ranking because it presents a positive context for investment in the face of the conflict.

Since the beginning of the war between Russia and Ukraine, foreign investors have been looking for safer investment opportunities. Brazil has offered the stability needed in times of uncertainty: good foreign relations, abundant natural resources, and fertile ground for good business.

Despite the positive scenario for investments, it is necessary to know the ins and outs of Brazil’s complex fiscal and tax system in order to operate in the country. For companies that want to establish their business in Brazil, depending on their size and area of operation, it is necessary to comply with specific regulations and seek the necessary registrations with the respective bodies for their correct operation.

Pryor Global has 26 years of experience in representing foreign companies in Brazil. Our team is composed of experienced specialists in the Brazilian regulatory environment, working within the best legal practices.

O post Em tempos de instabilidade, Brasil é porto seguro para investidores estrangeiros apareceu primeiro em Pryor Global.

Vantagens de contratar o serviço de endereço fiscal

prylocawp23 prylocawp23 — Wed, 06 Apr 2022 12:56:00 +0000

The tax address service is a simple and secure alternative to open your business in Brazil

When opening any company, there are a series of obligations to be fulfilled by the entrepreneur. In addition to the National Registry of Legal Entities (CNPJ), it is necessary to have the respective registrations, licenses and permits so that the business can legally operate. Likewise, providing truthful information is an important part of this process.

The type of business, the services and/or products offered, as well as the tax address, are some of the information that must be provided to the competent bodies. The address is not merely a formality and will be used for sending notifications and communications regarding taxation, for example. It is not the same thing as a business address, which is where a business properly operates.

In general, companies that have State Registration (IE) for the collection of ICMS (Tax on Circulation of Goods and Services) are required to inform a tax address that is different from the residential address of its owner. The same goes for industries, which must follow building specifications, in addition to health surveillance guidelines, to carry out their activities. Other cases can be consulted in municipal and state legislation.

For foreign companies that do not physically operate in Brazil, the tax address can be an inconvenience. After all, it is necessary to own a property or be authorized by the owner to inform the address to the proper legal entities. In addition, it entails costs and takes time for those who already face the common difficulties of operating in another country.

In such cases, it is possible to hire a company that offers the tax address service. This is a simple and secure alternative to obtain the famous CNPJ, register with the Board of Trade and finally open your business in Brazil.

By hiring a tax address, you avoid spending on rent and on the maintenance of a property, which can considerably compromise the budget of any business. In addition, the company that provides the service will be responsible for receiving your mail and sending it to you wherever you are. Even if your establishment has to change its business address, the tax address will be fixed.

Choosing a strategic location for the tax address can also attract and retain clients. Located in the heart of the city of São Paulo, on Paulista Avenue, Pryor Global offers the service of tax addresses for companies that do not have state registration. Contact our team.

O post Vantagens de contratar o serviço de endereço fiscal apareceu primeiro em Pryor Global.

Serviços de paralegal: otimização de processos e aumento de eficiência

prylocawp23 prylocawp23 — Thu, 10 Mar 2022 18:01:01 +0000

Although the world is becoming much more digitized, paperwork still constitutes a substantial part of daily business life

Bureaucracy. Companies operating in complex regulatory environments know what it is. Filling out forms, sending documents, updating registration, to name just a few examples of activities that every company is required to perform in order to operate legally in the country. Although many people imagined that technology would determine the end of bureaucratic processes in business environments, little has changed.

Whether for good or bad, the fact is that bureaucracy exists and needs to be respected. Failure to follow any step of the bureaucratic process can have serious consequences for companies that want to operate in a country like Brazil, whose regulatory environment is complex. To help them comply with these rules, companies can count on the help of paralegal services.

Paralegal services cover a wide range of tasks, but mainly smaller legal issues such as reviewing, organizing, and processing documents at the responsible agencies. Although the world is becoming much more digitized, paperwork still constitutes a substantial part of daily business life.

By outsourcing paralegal services, companies can reduce operating expenses and, at the same time, increase their efficiency. After all, they will have at their disposal specialized professionals who know the legal procedures with public and private agencies for the acquisition of permits and licenses, submission of supporting documentation, filling out information on the platforms, among others.

The scope of services depends on the client’s type of business.

Federal Revenue suspends CNPJ of foreign companies with outdated registration

A task as simple as updating the company’s registration can determine the suspension of the CNPJ (National Register of Legal Entities) of foreign companies operating in Brazil. The Federal Revenue (RF), in accordance with the legal provision COCAD Ordinance No. 5119/2021, has verified and suspended the registration of foreign companies with an active registration, but which have failed to update information such as legal representative and final beneficiaries.

Companies whose CNPJ has been suspended cannot carry out activities with the Brazilian authorities, nor issue federal certificates, which impairs their operations in the country. To regularize their status, they must update their registration through an administrative process, which can be requested from the legal representation service provider.

Pryor Global’s paralegal team provides support in the preparation of Basic Entry Documents (DBEs), articles of incorporation before the commercial board and public entities, updating on the Shareholders and Managers Chart (QSA) and other certification and updating services, as well as the Declaration of Final Beneficiary. Contact us for more information.

O post Serviços de paralegal: otimização de processos e aumento de eficiência apareceu primeiro em Pryor Global.

Mesmo com oscilações políticas e econômicas, Brasil continua terreno fértil para startups e investidores estrangeiros

prylocawp23 prylocawp23 — Fri, 28 Jan 2022 20:51:21 +0000

For decades, Brazil has been an unstable country, marked by political and economic oscillations. Other factors that now require attention from foreign investors are the high unemployment rates, the return of inflation, and the breaching of the spending cap, which generates the fear of a new wave of fiscal irresponsibility combined with the social crisis. Despite all this instability, foreign economic agents are still attracted to Brazil, due to its large consumer market (more than 200 million people), productive capacity, and the advance of the digital transformation in business. Proof of this is that foreign investments in Brazil grew 133% in 2021 ($58 billion) compared to 2020 ($28 billion). The values have not yet returned to the levels of 2019 (US% 65.8 billion), before the pandemic, but show a considerable recovery.

In other words, Brazil continues to be a great investment destination, with good advantages in relation to other Latin American countries. One of its advantages, according to market analysts, is that the country has the proper tools to overcome the crisis, because, since the 1990s, it presents certain continuity of principles in economic policy, regardless of the orientation of the different governments, which are/were considered solid. Brazilian democracy has also shown resilience, through strong institutions, which has been proven, in recent months, with a new attitude of the Presidency of the Republic in search of governability, ruling out the possibility of an institutional rupture in the short term.

Another positive aspect is that, despite all the human losses and the contribution to economic instability, the COVID-19 pandemic created a series of business opportunities in Brazil, especially in the area of technology. A clear demonstration of this is the contrast between the exit of large multinationals and the arrival of billions in investments from foreign startups. In other words, the attractiveness of foreign capital remains firm, even though the effective applications in businesses have decreased by 23% in relation to last year. The accumulated foreign capital flow in the year is R$57.65 billion, a very significant amount.

Simultaneously, mergers and acquisitions in Brazil reached R$ 76 billion (65% increase in relation to 2020). In other words, even in the face of all the setbacks and the oscillations of 2021, the market remains alive and seeks alternatives to expand new businesses.

This scenario indicates the dynamization of the market, not only with a greater variety of products and services, but also with a greater presence of technology in everyday life, as the digital inclusion of the population has intensified. For example, we can cite the expansion of the banking process, the vertiginous growth of e-commerce, and the offer (still incipient) of online education, in order to keep students in schools and universities.

The Brazilian population lacks quality products and services and is quite open to innovations. Brazilians like and consume technology, whenever they can afford it, adhering with great ease to novelties concerning applications and social media. In several areas, there is a good, repressed demand, and any sign of economic recovery will soon revert into a quick reward for startups that have decided to bet on Brazil.

Brazil is a huge country, full of opportunities, the question is to know how to analyze and identify where to find them, when and how to invest, measuring the risks in order to avoid unexpected surprises. In general, companies that establish in Brazil guarantee not only the return on their investments, but also good results in the medium and long term. For this, investors must always count on the administrative, operational, and legal support of a local consulting firm to understand the Brazilian business culture, support the development of strategic human resources, and overcome the fiscal, tax, and legal complexities.

*Article written by Dalton Locatelli, partner at Pryor Global.

O post Mesmo com oscilações políticas e econômicas, Brasil continua terreno fértil para startups e investidores estrangeiros apareceu primeiro em Pryor Global.