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Important things to know before starting the company formation process in Brazil

Update Date:2023-9-25 10:20:36     Source:www.3737580.com     Views:136

Before incorporating your company in Brazil you must familiarize yourself with some critical
aspects of the process. For example, in Brazil a branch is different than a subsidiary. Opening a
subsidiary company in Brazil is less complicated than opening a branch. By law, any foreign
company can be a partner, investor or shareholder in a Brazilian company, making the Brazilian
company a subsidiary of the foreign entity. The Brazilian company will then be fully governed by
law and will have the same rights and responsibilities as any other company.


On the other hand, opening a branch can be quite complicated. This process requires specific
authorization from the Brazilian Ministry of Development, Industry and Foreign Trade. You must
know the differences between these two and decide which model works better for you.


Company ownership and investment
Another thing to consider is company ownership in Brazil. To open a limited liability corporation in
Brazil, for example, you must have at least one shareholder. Moreover, it is important to note that
foreign shareholders must be represented by local residents.


There are no formal investment requirements to form a new company, except for the registration of
the investment before the Brazilian Central Bank. There is, however, an investment required for the
permanent Brazilian investor visa. Normally, an investment of R$500,000 is needed to qualify for
this visa.


All companies formed in Brazil need to have a unique registered fiscal address. This address must
represent a physical location; it cannot be a virtual address.
Other items things to consider during the formation or incorporation process include the trading
name, requirements for a company administrator in Brazil, and company name.


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