Foreign entrepreneurs who are looking to expand their business presence by setting up a company in Brazil
are confronted with different legal questions. In this article, our company formation
consultants in Brazil
answer a few of the most frequently asked questions
1. What are the main forms of legal entities in Brazil?
The local legislation confers the legal frame for different legal entities, such as:
• the undeclared partnership;
• the simple company;
• the partnership;
• other types of legal entities.
2. How can a foreign company establish a business presence in Brazil?
Foreign companies usually choose to set up a limited liability company in this country. Our Brazil company formation advisors
can assist you to open
such a company in Brazil
3. How can a company be incorporated here?
It takes several steps to set up a company in Brazil. Briefly, these are:
• preparing the documentation in the country of origin of the company and sending it to Brazil;
• translating the documents with a certified translator;
• registering the documents and translation in Brazil;
• obtaining the tax payer ID;
filing the Articles of Incorporation with the Commercial Registry or with the Civil Registry office;
Our company registration
agents in Brazil
can offer further details on what these other steps consist of.
4. How can quotas be transferred in this country?
Any transfer of the title of the quotas in Brazil necessitates an amendment in the Articles of Incorporation of the legal entity. The local legislation requires the approval of quotaholders which own minimum ¾ of the entire company capital to amend the Articles of Incorporation.
5. What is the difference between a branch and a subsidiary in Brazil?
The main rule is that a foreign company can be a partner, investor or shareholder in a local company, making the local entity a subsidiary
of the foreign corporation.
To open a branch in Brazil, a more complex procedure is necessary. If you wish to open such an office here, our company formation consultants in Brazil can help.
6. Are there any sectors which are prohibited for foreign companies?
Even though foreigners are able to own legal entities in Brazil, there are certain sectors which are prohibited for foreign investors, such as:
• Radio, TV and publishing;
• Cable television;
• Air transports etc.
7. How long does it take to open a bank account in Brazil?
In Brazil, it takes eight weeks to open a corporate bank account
which is needed to set up an LLC, a branch or a representative office.
8. Can foreign entrepreneurs employ personnel in Brazil?
Foreign entrepreneurs who own LLCs or branches in Brazil are able to hire employees in this country. However, this is not possible for the representative offices here.
9. How are legal entities able to execute deeds or contracts?
Generally, there are no set formalities for the execution of deeds or contracts by companies in Brazil. The general regulations of the Civil Code are applied.
10. Can a company be 100% owned by foreign entrepreneurs in Brazil?
Indeed, a company can be 100% owned in Brazil.
For further questions on
the company formation
procedures in Brazil
, or for help to open
a company in Brazil
, please contact us