Brazil has moved on a lot since it was named a “BRIC”, one of the world’s best emerging economies, about a decade ago. This enormous and diverse Latin American powerhouse has been one of the most exciting growth stories of recent times.
Tons of foreign companies come to do business in Brazil! Brazil is the largest country in Latin America by both size and population. Sao Paulo is also the best place to do business in Latin America. Hosting both the football World Cup (2014) and the Olympic Games (2016) only increased Brazil’s attractiveness to investors and businesses.
With all that being said, doing business in Brazil is a unique and possibly profitable opportunity! But how exactly do you start a business in Brazil?
Keep reading to find out!
1. Plan Ahead
Just like anything in life, you’re going to want to do your homework! You should gather all of the necessary information you will need to provide to authorities throughout the rest of the process. Some things to consider:
- Check out Brazil’s export.gov page to get an overview of economic conditions and opportunities.
- Contact in-country business support organizations like the American Chamber of Commerce in Brazil.
- Reach out to the U.S. Embassy and Consulates in Brazil for commercial diplomacy, business matchmaking, and more!
Once you have a general idea about the opportunities in the Brazilian market, it’s time to decide what your business will look like.
Think about things like the type of entity you want to operate under (LLC, partnership, etc.), name of the company, address, and more! Try to be super specific because you’ll need all this information when you file your articles of incorporation or organization.
If interested in setting up an online store, make sure to check out Brazil E-Commerce: A Guide to Selling Products in Brazil.
2. Register the Articles of Incorporation or Organization
After the planning step is done, you’ll now have all the information you need to complete the articles of incorporation or organization to submit to the Board of Trade. This is important so stay with me!
The articles of incorporation are documents submitted by a business or company that is seeking to become incorporated. The Articles of Organization will refer to the documents drafted and required to form a limited liability company (LLC).
A partnership and sole proprietorship don’t require registration but are risky because you can be fully liable for damages, unlike in an LLC or corporation.
Costs and requirements can vary for both types of articles, but for the most part, you should include:
- Name of the entity
- Address of the business
3. Open a Bank Account
This is a hard step, so take your time with it! It can take a few days to a couple of months to open a bank account depending on your bank and financial situation. The necessary documents to open a bank account for your business in Brazil may vary depending on the type of business you are.
For example, the documents needed to open a bank account for corporations are:
- Documents from the shareholders
- Articles of incorporation
- Taxpayer ID
For a partnership, you’ll need very different things such as:
- Permanent or temporary resident visa
- Identity document
- National tax ID number
4. Register Your Employees
You can’t set up your business in Brazil without registering your employees. So make sure they’re registered in the social integration program by creating a fund for unemployment with a bank.
Secondly, register with the employees union and notify the labor ministry.
Overall, opening a business in Brazil takes 60 to 90 days. But it is dependent on many factors like the type of business entity you want to set up, the bank used to open an account, whether you’re a citizen of Brazil, and more!
Want To Start a Business In Brazil?
Now that you’ve learned the basics about setting up a business in Brazil, are you ready to take it to the next level? Our team of Brazilian marketing strategists can help you expand into this new market. Contact us at email@example.com today!