Foreign Companies: step-by-step to establish you business in Brazil.

As good foreign business hosts we feel in obligation to provide information to foreign companies wishing to establish their business in Brazil. It would not be different for Accounting Expert, with work experience with some of these companies, giving you the contribution on how your companies can start its activities, the risks involved, taxes due, ways of hiring labor, etc.

Let’s set here foreign company. Well, it is a business society established and organized according to the law of its country of origin, in which it has its administrative headquarters. For this company to establish its business in Brazil means to have a branch in our country, but in legal terms, for the Brazilian laws means a new company normally constituted by foreign capital (almost 100%), and a small part of national capital.

As the new foreign company authorized to operate is obliged to have a permanent representative in Brazil, then it usually assigns a small part of the capital to a Brazilian partner (I have observed this in foreign companies that I have worked for). Generally to this representative is given all responsibility for the business in Brazil and reports to the “headquarter” abroad.

Brazilian legislation, as in any other country, must be understood mainly in tax matters in order to calculate the costs of the business. It is essential to hire professionals who have a broad knowledge, preferably having experience in international companies.

In general, when a foreign company begins its activities in Brazil it has to follow the following steps:
– To have a representative in Brazil and to take the appropriate power of attorney in their country of origin
– Consularize all foreign documents (copies of documents from foreign partners);
– Sworn translation of all foreign documents, including power of attorney in Brazil;
– Obtaining CNPJ and CPF in Brazil that are provided by the Federal Revenue Secretariat;
– Legal Legalization (Social Contract, registrations and Alvarás): for this procedure is necessary to hire competent accounting advice, including that it understands that it is not a national company that the procedures must be more careful, the rules must be more rigid. It is essential that this advisory can follow the development of all permits and permits necessary for the operation of the business.
– Opening of bank accounts and cash transfer structure: For many international companies the opening of bank accounts, in the beginning, to inject capital to start the business. Already in a future stage, the reverse role will be played: a part of the capital must return to the country of origin in the form of distribution of profits. At this point you should pay close attention to the legislation, how this capital will be distributed and what taxes are due.

The Accounting Expert would like to help! We have the due competence so that your business in Brazil should be successful!  Request a quote right now!

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