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Doing Business in Brazil
A foreign company that intends to do business in Brazil can create a branch office or incorporate a Brazilian company to develop its business.
However, foreign companies that want to establish a branch, agency or establishment in Brazil must request authorization from the Federal Government for installation and operation of units, by means of an Ordinance published in the Official Gazette. Although the procedure
to open a branch office of a foreign company in Brazil has been simplified over the last couple of years, taking today around 15-30 days to be completed, most foreign companies choose to incorporate a Brazilian company to start their business in the country.
As a general rule, Brazilian law
does not prohibit or restrict the participation of foreign investment in business activities. Except for certain limitations, foreign investors are free to establish any business in Brazil without participation of a Brazilian entity as a partner.
The few areas in which foreign investment is either totally prohibited or limited to a certain minority interest include health and telecommunications services and media segments. In these restricted areas, foreign investors are required to enter into joint venture types
of arrangements with Brazilian companies or individuals or organize a subsidiary company under Brazilian laws, depending on the specific case.
The incorporation of a Brazilian company, even with 100% foreign capital, does not require governmental authorization
and takes approximately 30-60 days, depending on the place of the business and the necessary registries/permits to develop the corporate activity.
The incorporation of a Brazilian company, even with 100% foreign capital,
does not require governmental authorization and takes approximately 30-60 days
Please find below a summarized overview of the procedures and requirements to set up a company in Brazil.
1. Incorporation of a Brazilian Company
Brazilian law provides that companies, in general, must have at least two partners, with no restriction as to the number of quotas held by those partners and their nationality, meaning that they can be foreign companies or individuals.
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