Brazil Company Formation

If properly-structured, Brazil company formation is an excellent way to legitimately conduct international business in Brazil and South America. Brazil company formation is challenging because of complex and inconsistent company formation regulations from state to state. The following information will help you determine whether Brazil company formation is the optimum corporate structure to fulfill your international business objectives:

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AVERAGE ENGAGEMENT COSTS

US$50,000 to 60,000*

Resident director fee
US$12,600 **

Company de-registration
US$4,450

* Total fee depends on corporate structure and range of professional services required by our clients.

**Excludes US$2,200 refundable deposit,

Advantages of Brazil Company Formation

Brazil company formation allows entrepreneurs to legally conduct business in Brazil, obtain an import license, rent business premises, hire employees and obtain a tax number.

Brazil company formation allows 100% foreign ownership. A minimum of two shareholders is required with corporate shareholders being permitted for Brazil company formation.

There are no minimum capital requirements with Brazil company formation.

Regional governments encourage Brazil company formation with incentives such as tax exemption, access to low-interest loans or reductions in import duties for certain raw materials.

Healy Consultants will open corporate bank accounts to support Brazil company formation.

Brazil has signed double taxation treaties with several key trading partners around the world, including Argentina, Canada, China, France, Germany, India, Italy, Japan, the Netherlands, South Korea and Spain. To see a full list of the countries that Brazil has signed such treaties with, follow this link.

Disadvantages of Brazil Company Formation

Brazil company formation is time-consuming and complex because of inefficient bureaucracy and inconsistent regulations. According to the 2010 Doing Business Survey by the World Bank, Brazil is the world's 129th easiest place to do business. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business.

Under Brazil company formation law, a minimum of two directors is required, one of which is required to be a Brazil resident.

Brazil has a corporate tax rate of 15% for annual profits up to US$110,000, and a 25% corporate tax thereafter. Under Brazil company formation law, capital gains are taxed as profit. Brazil is negatively ranked as the world's 113th freest economy in the Heritage Foundation’s 2010 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.

Brazil is a politically unstable country. Brazil is perceived poorly as the 80th least corrupt country in the world, according to the 2009 Index of Economic Freedom by Transparency International, a global measure of corruption amongst public officials and politicians.

Brazil is poorly ranked as the world's 56th most competitive economy on the World Economic Forum's Global Competitiveness Report 2009-2010.

Contact Us

For more information on Brazil company formation, email email@healyconsultants.com or telephone us at (+65) 6735 0120.

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