‎Setting Up Company in Brazil

Can a foreigner open a company in Brazil?

Yes, the opening of a company by a foreigner in Brazil is possible, and he may form or have interests in companies in Brazil, living in the national territory or not.

But he must fulfill some requirements and carry out some bureaucratic procedures.

Who can open a company in Brazil?

According to the civil code, anyone who is in full civil capacity and is not legally prevented can open a business.

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1. Over 18 years old, Brazilian or foreign

that finds himself in the free administration of his person and assets. The foreigner must be domiciled in the country or appoint a proxy to represent him.

2. Underage emancipated or reaching the age of majority

By concession of the parents, or one of them in the absence of another, if the minor is sixteen years old. The grant will consist of a public instrument, which must be registered with the Civil Registry of Natural Persons and filed with the Commercial Registry;

By judgment of the judge, who must also be registered with the Civil Registry of Natural Persons;

For marriage;

For the exercise of effective public employment (civil servant occupying a position in a direct administration body, autarchy or federal, state or municipal public foundation);

For the graduation of a degree in a higher education course;

For the civil or commercial establishment, or for the existence of an employment relationship, provided that, depending on them, the minor with 16 years of age has his own economy.

What does a foreigner need to open a company in Brazil?

1. With fixed residence or permanent visa

To obtain a visa as an investor in Brazil, the foreigner needs to prove the application of at least R$ 500,000 thousand Brazilian Reais

2. With residence in another country

The foreigner can be a partner or shareholder of Brazilian companies without residing in the country.

For this, he will need to register with the Federal Revenue Service (to obtain a CPF) and with the Central Bank of Brazil (Bacen), through the Electronic Declaratory Registry (RDE), in addition to mandatorily having an attorney residing in the country with powers to receive service.

From then on, the foreigner will be able to invest in Brazilian companies (new or existing).

If you entered Brazil with a temporary visa, the foreigner will only be considered a tax resident if he has an employment contract, obtains a permanent visa (residence permit) or stays in the country for more than 183 days, consecutive or not, within the interval of 12 months.

How to open a company for those who are foreigners and live in Brazil?

The opening of a company by a foreigner in Brazil, he may constitute or have participation in companies in the country, living or not in the country, as long as he meets some points.

In any case, it is worth remembering, the foreigner will need to register with the CPF.

The process is the same as that of foreigners residing in the country, including the documents: certified photocopy of the RNE, National Registry of Foreigners, and identity document, issued by a Brazilian authority, CPF, Cadastro de Pessoa Jurídica.

The holder must present himself at the Board of Trade and show proof of a permanent visa, and the document provided by the Federal Police Department, with the indication of the registration number, can be requested.

See how much it costs to open a company in Brazil.

How to open a company for those who are foreigners and live abroad?

For the opening of a company by a foreigner in Brazil that has a residence abroad, with social functions being fulfilled in Brazil, with Brazilian CPF and address, it is necessary to present a specific power of attorney, granted to the representative here in the country, giving powers to receive service in lawsuits against him.

This is after a notarized signature and / or embassy.

The identity document must be presented in a certified photocopy for individuals and the legal entity must present the legal requirement of the company authenticated or endorsed by a Brazilian authority.

How to open a company as a Brazilian who resides and is domiciled abroad?

Here we talk about the Brazilian who left Brazil and informed the IRS about the change, so he does not have his social functions in the country.

The foreign entrepreneur may open his company in an individual format such as Eireli e Sociedade Ltda. For that, he will need a prosecutor to solve the bureaucratic issues in Brazil.

An important point is that this entrepreneur will not be able to opt for the Simples Nacional Tax Regime.

Soon it will be classified as Presumed Profit.

The postage will be defined as "too much."

In order to be characterized as such, you will need legal advice from an intelligent online accounting service.

Recalling that it is necessary to send the documents for signature in physical form, also valid for the opening of a Sociedade Ltda.

In addition to all these formalities, all documents of foreign origin, accompanied by the respective translations, must be registered in the Registry of Titles and Documents.

This registration is necessary to take effect in offices of the Union, the States, the Federal District, the Territories and the Municipalities or in any instance, court or tribune.

Activities forbidden to Foreigners in Brazil

There are some restrictions on investments for the opening of a company by a foreigner in Brazil provided for in Brazilian legislation, for example, investments in activities related to nuclear energy, health services, postal and telegraph services and the aerospace industry.

There are also restrictions on foreign investments in certain economic activities, such as participation in financial institutions, the exploitation of the mining sector, the operation of public air services and the ownership and administration of newspapers, magazines and other publications, as well as radio and television networks.

See below the activities that a foreigner cannot develop in Brazil without the presence of Brazilians:

Foreign Capital Company in the Health Care Segment: Foreigners are not allowed to participate, except in cases where, for example, organizations linked to the UN make donations.

Cabotage and Navigation Company: in this case, the foreigner can only be part of a company and its participation must be less than 50% of the company's capital. The individual format, without members, only Brazilians will be able to develop these activities.

Journalistic, radio and image broadcasting company: only native Brazilians or foreigners naturalized for more than 10 years.

Cable TV company: its constitution must be 50% of Brazilians born or naturalized for more than 10 years.

Cargo Road Transport Company: four fifths of the company's constitution must be composed of Brazilians.

Mining Company: a company whose composition must be 51% Brazilian.

Investments

If you are going to enter foreign capital in Brazil, it must be done formally.

That is, the capital must be registered with the Central Bank in a declaratory and individualized manner, in foreign or national currency, before the first inflow of funds in the country.

Investments are subject to Electronic Declaratory Registration (RDE) at the Central Bank, in the Foreign Direct Investment (IED) module for which it is necessary that the holders involved, residents and non-residents, as well as their representatives, be registered at the CDNR - Declaratory Register Non-Resident.

Can a foreigner be MEI?

Yes. Foreigners can be MEI.

However, the opening of the MEI is only allowed to those who have a permanent National Registry of Foreigners (RNE).

You only need to provide the number of one of the following documents: National Migration Registration Card or Provisional National Migration Registration Document or Refuge Request Protocol.

Brazil is a good business for foreigners

The opening of a company by a foreigner in Brazil is something more and more common and has its particularities.

Despite bureaucratic obstacles, the country has new businesses opening every year and more than 300 visas are granted annually to foreigners who want to start new projects and many open their own businesses.

If you are a foreigner and want to open a company, check the restrictions so as not to spend money and time on unnecessary procedures and count on the help of people specialized in the area.