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Guidelines for foreign investors when opening a business in Brazil

The historically complex process of opening a business in Brazil has undergone significant changes. Simplification measures have been adopted with the aim of making the procedure more accessible, providing a friendlier environment for foreign investors.

However, for those unfamiliar with the Brazilian business landscape, making such important decisions presents a challenge. One wrong decision can affect the viability of the operation.

Here are some tips to help foreign investors navigate this business environment and make better informed decisions.

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1. Legal representative

The appointment of a legal representative for the foreign investor is a requirement. This professional will play a key role in the process of establishing and operating the company in the country. They will be responsible for representing the foreign investor’s interests before the Brazilian authorities and ensuring compliance with all the legal and tax obligations necessary for the company to operate.

Therefore, appointing an attorney is a crucial step and must be made with care and consideration.

2. Legal nature

Choosing the legal nature of the company is an important step in the process of opening a business in Brazil. It consists of defining the company’s legal structure and the partners’ responsibilities under Brazilian law. To make this decision, you need to consider the objectives of the business, the type of activity to be carried out, the number of partners involved etc.

It is important to understand that the legal nature selected will have a direct impact on issues such as taxation, corporate structure, and legal obligations.

3. Tax regime

The most common tax regime options in Brazil include National Simples, Actual Profit, and Presumed Profit. Each has its own rules and tax rates, as well as specific requirements. The choice of tax regime should be based on the nature of the company’s activity, its estimated revenue, corporate structure, and other relevant factors.

4. Legal documentation

A series of documents are required for a company to operate legally in Brazil. Legal documentation includes, among others, articles of incorporation, mandatory registrations such as the CNPJ (National Register of Legal Entities), a business license, state, and municipal registrations, as well as other specific licenses for certain types of activities, such as health or environmental licenses.

5. Specialized advice

Seeking expert advice right from the start of the process of opening a company in Brazil is essential to the success of the business. In this context, you can count on Pryor Global, which has been helping foreign investors establish and expand their businesses in Brazil for 28 years.

With a team of experts who are deeply familiar with the Brazilian business environment, we offer personalized guidance to meet the specific needs of each client.

Contact us to help you!

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