Establish a Branch in Brazil
Updated on Monday 12th February 2018
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When a foreign company chooses to set up a branch in Brazil, this is governed by the Brazilian legislation. The establishment of a branch in this country necessitates an authorization issued by ministerial ordinance, which is a complex procedure. As follows, our company formation advisors in Brazil cover a few aspects related to establishing a Brazilian branch.
Obtaining the authorization to set up a branch in Brazil
The legal entity which intends to establish a branch in Brazil has to address a request to the Ministry of Development, Industry and Foreign Trade to be researched by the National Department of Trade Registration (DNRC).
This request has to contain:
• The corporate decision related to its setting up in Brazil, with the operations the company intends to undertake in the country, as well as the capital, in the local currency, assigned for its activities here;
• The articles of association;
• A list of the partners and associates, comprising their complete names and qualifications;
• The certificate which proves that the company was set up and it abides by the legislation in its country of origin;
• The appointment of a regal representative who resides in Brazil, together with his or her acceptance on the conditions of setting up and activating in the country;
• Other documentation: our Brazil company formation consultants can offer more details about what this other documentation consists of.
Characteristics of a branch in Brazil
After the publication in the official press and filing the set up documents with the Public Register of legal entities and all the other formalities have been completed, the branch in Brazil is allowed to start doing business.
A certain capital has to be set aside for the activities which are effectuated in the country by the Brazilian branch.
This capital is considered a foreign investment, therefore it has to be acquitted and registered with the Central Bank of Brazil.
As about taxation, branches in Brazil constitute permanent establishments of non-resident legal entities, therefore they are not a separate company from the parent corporation. Our company registration agents in Brazil can offer more details about the taxation imposed on branches in this country. We can also help entrepreneurs to open a company in Brazil.
If you have more questions about branches in Brazil, or for assistance in setting up a company in Brazil, please do not hesitate to get in touch with us.