Global Expansion Resources | Brazil
Brazil Entity Set Up
Expand your business into Brazil with our expert PEO services
Weigh up the pros and cons of a Brazilian entity set-up versus using a global PEO partner when expanding your business internationally
To carry out business legally in Brazil, you will need to register your company and create a legal entity, otherwise known as a foreign subsidiary. This task can be daunting for many businesses, but partnering with a PEO or EOR service can streamline the process and ensure you are compliant with foreign regulations.
Essentially, any business that wishes to operate in Brazil needs to set up a legal entity. This is to ensure that liability, tax obligations and employment laws are followed.
The easiest way to set up a subsidiary for a company in Brazil is to form a new legal entity in the country – a process which is typically completed within 20 weeks due to regulations, documentation and translation requirements.
Find out more about how an EOR or PEO service can ensure your company’s hassle-free Brazilian expansion below.
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Brazil Expansion Advice
Which kind of Brazilian subsidiary do I need?
There are a number of company entity types in Brazil, including:
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Limited Liability Companies (Sociedade Limitada, or Ltda.)
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Limited Liability Corporations (Sociedade Anônima, or S.A)
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Silent Partnerships (SCP)
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Consortiums
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Single Holder Limited Liability Entities (Empresa Individual de Responsabilidade Limitada, or EIRELI)
The two most common types of entities are Limited Liability Companies (Ltda) and Limited Liability Corporations (S.A). It is vital you select the correct entity type to avoid any risk of non-compliance.
How do I set up a subsidiary in Brazil?
The type of subsidiary you require will affect how you will apply. However, as a general rule to set up the most common Brazilian entity – a private limited liability company (Ltda) – you will need to:
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Ensure the business name is currently free and available – this can be checked via the Trade Board
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Complete operation requirements and licences, and complete a background search to find a Brazilian resident to act as an administrator for the company in Brazil
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Legally register the company with the State Trade Board (Junta Comercial do Estado) or in the Business Entities Registry (Cartório de Registro de Pessoa Jurídica)
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Register with the municipal authority in charge of the company location
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Open a Brazilian bank account, apply for the CNPJ and enrol in the State Registration
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Obtain any specific or special licences (depending on the nature of the business)
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Register with Social Security and complete accounting books and invoices
When the company has been successfully registered, you will receive confirmation in the form of a NIRE (Número de Identificação do Registro de Empresa) document.
This is not an exhaustive list of all requirements when setting up a legal entity in Brazil, with many more steps being required depending on the company paperwork and documentation. You should always seek expert advice when establishing your company to ensure compliance at every stage of the process.
Brazilian entity laws
Brazil’s expansive economy presents many opportunities for foreign investors and international businesses, but some legislation has not kept pace with the country’s economic modernisation. Company accounts, social insurance and labour laws are all likely to be time-consuming to navigate, and the tax system in Brazil is one of the most complex in the world.
Fortunately, Brazil’s government is in the process of removing some of the red tape preventing foreign companies from setting up legal entities in the country, streamlining the process for international businesses. However, it can still be difficult to ensure your business is compliant with the law in Brazil, as staying up to date with changing policies can be arduous.
The benefits of setting up an entity in Brazil
Brazil is the fifth largest country in the world and has the sixth largest economy by nominal GDP. The abundance of natural resources, diversified economy and stability make it an attractive prospect for companies looking to expand abroad.
Furthermore, Brazil has signed treaties with certain countries to avoid double taxation and prevent tax evasion. You can find a full list of these agreements here.
Why use a PEO partner instead of setting up a legal entity?
Setting up a legal entity in Brazil is costly, time-consuming and diverts vital resources away from other parts of your business. From the processing of tax and accounts reports, to the monetary cost of continued support, companies need to be able to dedicate time and money to setting up a new legal entity.
By choosing to outsource your international business expansion to an EOR or PEO, you can start reaping the benefits of Brazil’s booming economy and business network without any of the stress or financial burden of a legal entity. Utilising a PEO or EOR can make your business more flexible and save you time and money in the process.
At Leap29, we can handle the legalities of taxes, national insurance, employee onboarding, employment contracts, payroll, visas and work permits – ensuring all operations are conducted compliantly. Our expert team has in-depth knowledge of the Brazilian business market, meaning that they can be fully relied upon to navigate your expansion into Brazil, taking into account relevant employment and subsidiary laws.
If you want to know more about how our EOR and PEO Services in Brazil can support your global expansion, give our experts a call today on +44 (0) 20 8129 6860 or email [email protected] to get started.
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Brazil
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Employing people compliantly across international borders can be challenging but we make it simple, bringing down barriers and making light work of the complexities. We offer the full range of compliant global expansion solutions so that wherever, whenever and however you want to employ people, we can support you.
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Entity Services
Follow the opportunities to grow your business – wherever they take you.
We lighten the load of establishing and managing foreign entities and can help you solve all your entity challenges from running compliant, accurate multi-country payroll to local accounting and financial reporting.
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