If you want to invest in Brazil, you are advised to conduct a market analysis and find the necessary capital. You will need a local investment partner.
Businessmen from around the world are increasingly choosing to invest in Brazil for a few years. Many investment opportunities exist in the country particularly in fields like real estate, tourism, catering and trade. Obviously, you will have to follow certain procedures. You will get more information about these at the Brazilian Ministry of Foreign Affairs or Ministry of Taxes.
It is important to conduct a market analysis and select cities encouraging more investment. You must adapt your project to the local economic context. It is highly recommended to hire a lawyer who can guide you through the formalities. Note that these can be relatively long since Brazil is a bureaucratic country.
You are also required to find a local or foreign partner living in Brazil. This should facilitate the procedures as your partner will already have professional experience in the country. Thus, you can also get financial assistance from Brazilian banks more easily. If your capital originates from foreign sources, you will need to justify it to the Banco Centra Cela and specify where you intend to invest.
Thereafter, you are required to register with the Federal Police, whether you are an individual investor or you already have a company abroad. You will obtain a Cadastro Pessoa Física (CPF) or Cadastro Nacional de Pessoa Jurídica (CNPJ). You will also have to register with the Junta Comercial nearest to the company in which you want to invest, as well as with the Union, the State and city authorities, the Social Security and other economic organizations.
Good to know:
You can also invest in the country with a tourist visa which is valid for 90 days. But you will still need to look for a legal representative in the country.
Financing a project can be quite complicated for an expatriate in Brazil. This is why you must seek information on Brazilian taxation and, above all, hold sufficient capital. Investing in local currency can be advantageous. But there is no real constraint when it comes to the capital of a subsidiary, regardless of field in which you want to invest.
Brazilian law requires a minimum capital of at least 50,000 reals, or about US$ 24,000 (€ 18,000) for the creation of certain types of companies, especially those involved in import, export and trade.
You should also know that companies in Brazil have to pay income tax at a rate of about 15%.
Types of companies
There are different types of companies in Brazil, the most common being the Sociedade Anonima (SA) and the Sociedade Limitada (Limitada). The limited company is the creation of a subsidiary of law can serve as operating company in Brazil. This will ensure the commercial representation or distribution of the company's products and services.
Whatever the type of company you choose, you must define its status by specifying key information such as the name of the company, its activities, the address of its head office, details of associates and the amount of social capital.