Learn about the advantages and get step-by-step instructions on how a foreigner can open a company in Brazil.
Brazil is a country that generates successful results for many foreign ventures despite the tax complexities.
It is a country of great opportunities for foreigners who intend to want to participate in business. It offers receptivity and excellent conditions to enter various branches of business activity.
Learn more about opening a business in Brazil, key tips, the process of opening and maintaining a company in the country, visa, and residency.
Does a foreigner need to be a resident to open a company in Brazil?
For a foreigner to open a company in Brazil, set up a company or just own shares, they do not need to live in the national territory, but rather complete certain bureaucratic procedures prescribed by law.
The first step to become an entrepreneur in Brazil without taking up residence in the country is to enroll with and obtain the CPF through registration with the Federal Revenue.
For foreigners who intend to open a company in Brazil, other steps done by the Central Bank of Brazil (Bacen) through Electronic Declaratory Registration (RDE) are also necessary.
The foreigner must also have an attorney residing in the country with the power to receive notices and be served by process.
After this process, the foreigner will be able to open a company in Brazil or invest in Brazilian companies.
What does a foreigner need to open a company in Brazil?
For the foreigner to have an investor visa, they need to verify the application of the minimum amount of R$ 150 thousand in addition to the requirement to create jobs for Brazilians.
Do you want to know more about the rules for this type of visa? Normative Resolution No. 84 of the National Immigration Council clearly provides all the details on this subject (in Portuguese).
If the foreigner is in Brazil with a temporary visa, they may be a tax resident if they are being employed.
Another way to obtain a permanent (residence) visa is to stay in the country for more than 183 days within the 12-month period, whether the days are consecutive or not.
Business opening format for foreigners: what are they?
Before deciding on the best format to open a company in Brazil, the foreign entrepreneur needs a proxy to solve the bureaucratic issues.
The two individual format opening models are Eireli and Sociedade Ltda. And all documents that will be signed are required in physical format, including Sociedade Ltda option.
It is important to emphasize that the foreign entrepreneur is limited to opting for the Simples Nacional Tax Regime. This, therefore, in this framework will be pointed out as presumed profit.
Another fundamental step is that all documents of foreign origin (with the translations) are registered in the Registry of Titles and Documents.
The registration of these documents is important and necessary to produce as evidence for the Federal Government, Federal District, States, Territories, and Municipalities, and in case of any court or tribunal.
Certain business lines of activity that foreigners are not entitled to exercise in Brazil without the presence of a Brazilian include:
- Mining
- Cable TV
- Road Cargo Transport
- Cabotage and Navigation
- Journalism (Broadcasting and Images)
- Health Care Sector
The foreigner can also be MEI (Individual Micro Entrepreneur), as long as they are in the permanent National Registry of Foreigners (RNE) (with the provisional RNE it is not allowed).
Comprehensive consultancy is the best way for foreigners to know everything about opening a company in Brazil. You can rest easy knowing that Brasco Enterprises consultancy is an expert on the subject.
Brasco Enterprises is a consulting company located in the USA and managed by Brazilians. The company aims to help foreign investors to invest in businesses in Brazil.
The company offers advice on starting a business, feasibility analysis, compliance, mergers, and acquisitions, among other services in the business world.
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