A Federative Republic of Brazil is the largest country in South America. Brazilian law creates attractive conditions for those, who wish to open business in Brazil.
You can set up a company in Brazil in the following forms of enterprises:
- Limited Liability Company;
- Representative offices of foreign companies;
In order to register a company in Brazil, LLC requires two founders. Brazilian law does not have a statutory capital requirement for an LLC. As with LLC, a minimum of two founders, who are resident of Brazil, are required to establish a corporation in Brazil.
In order to open a commercial firm in Brazil, the following documents must be submitted to the Brazil Registration Chamber:
- a standard set of statutory documents for the company;
- copies of EIN of founders or shareholders;
- a basic registration document for registration with the Federal Tax Service;
- documents confirming the identities of speakers and shareholders.
All documentation must be notarized, legalized by the consulate or embassy of Brazil.
Depending on the state in Brazil, value added tax will vary from 17% to 25%. The standard tax rate in Brazil is 15% for all entrepreneurs, for partnerships or for legal entities. If profits are made outside Brazil, then no tax is levied.
In order to start business in Brazil, you need to get a tax number.
The establishment of a local company also requires the presence of a trustee, who must be a resident of Brazil. His direct responsibility will be the signing of documents on behalf of foreign shareholders.
It is also necessary to hire a legal manager, who must also be a resident of Brazil. This manager will sign the documents on behalf of the Brazilian company.
Registering a GBC company in Brazil, tariffs:
- the fee of the city hall of Brazil is $80;
- a certificate of origin of the country of goods (in this case, Brazil) is $270.
The company must hold a shareholders meeting at least once a year. Meetings of directors are held in order to review and approve the financial statements of the company, as well as confirm the position of the current director and shareholders.
If you nevertheless decided to register a company in Brazil, then you will ask for legal advice on how to open a commercial enterprise in Brazil from competent specialists of YB Case.