Brazil
Capital: Brasilia.
Official languages: Portuguese.
Currency: Brazilian real.
Benefits of Registering a Company in Brazil:
- Huge consumer market: Brazil ranks 5th in the world by population size.
- Access to Mercosur countries.
- Government incentives and support. Brazilian authorities actively stimulate business, especially in knowledge-intensive industries.
- Competitive workforce and production costs. Brazil attracts outsourcing thanks to skill/wage ratio.
Brazil – a state occupying nearly half of the South American continent.
The capital and largest megacity of the country – Sao Paulo – is the financial and economic center of Brazil and all of Latin America.
Brazil attracts foreign investors thanks to its capacious consumer market and access to Mercosur countries. One of the popular legal forms for small and medium businesses here is a Limited Liability Company or Sociedade Limitada (Ltda).
Taxation and Reporting Requirements
All legal entities in Brazil are required to prepare and submit annual financial statements. It includes the balance sheet, profit and loss statement, statements of changes in equity and cash flows.
Financial statements are prepared in Portuguese in the national currency of the real, based on Brazilian accounting standards.
Submission of monthly tax returns is required even if the company does not conduct any transactions/activities (this is provided as an Executive Compliance Service).
- Corporate income tax: for most companies the rate is 15% with deductions and incentives possible. For small businesses with annual revenue up to 60,000 BRL, a simplified regime without corporate tax applies.
- Value added tax (ICMS): Rates vary from 17% to 19% across different states. Levied on most goods and services.
- PIS and COFINS financial transaction taxes: Charged on revenue at rates of around 3.65% each.
- Import duties: 0 to 35% depending on the product categories imported. Applied under Mercosur.
Company Registration
Company registration time: 100-120 business days (for all procedures from filing documents to obtaining the CNPJ tax number).
There is the possibility of full foreign ownership, which makes the process of opening a company in Brazil more accessible to foreign investors.
The company must have a real office at the registered legal address. It is also necessary to have an account with a local bank, a Brazilian citizen with signing authority, and a local auditor.
The company is registered in São Paulo.
- To register an Ltda in Brazil, a minimum of 1 shareholder is required with no restrictions on foreign participation.
- There is no requirement to make a minimum capital contribution, which facilitates startups and small businesses.
- A legal representative is required, who can be a local citizen or foreigner with valid local residency or authorized visa.
- If the company has foreign shareholders, legalization and apostille of documents may be required. Original documents are sent to a local address.
How to quickly register a company in Brazil:
To quickly register an Ltda in Brazil, contact the IT-OFFSHORE specialists. Our service cost includes:
- Preparation of documents (collection, filling out, notarization, etc.).
- Company registration.
- Payment of all state fees.
- Services of a registration agent for 1 year with the possibility of extension.
- Translator services.
- Delivery of registration documents to any address.
Opening an account with a local bank, accounting services, and a legal address are paid additionally.
The bottom line
Registering a company in Brazil is an important and strategic step for those seeking opportunities in the Latin American market. Taking into account the peculiarities of Brazilian legislation, it is recommended to contact IT-OFFSHORE specialists to ensure a successful company registration process.
Our specialists will be able to register a company in Brazil on a turnkey basis. We will help you prepare all the necessary documents and registration forms.
We offer not only legal support for company registration, but also a wide range of services, which includes accounting services, nominee services, and full support of the company after its registration; Thus, we provide full year-round service to your company.
