DOING BUSINESS IN BRAZIL IN 2023
Since 2003, Healy Consultants Group has assisted our Clients with Brazil business registration. Our experts provide our Clients with the following services i) Brazil company incorporation ii) business license registration iii) immigration solutions iv) recruitment strategies v) corporate banking options and vi) office rentals solutions.
| Compare different Brazil entities | LLC | Fast business solution | Free zone LLC | One Person LLC (“EIRELI”) | Representative office | Branch office |
|---|---|---|---|---|---|---|
| Also known as | Sociedade Limitada | Solucao rapida | Zona franca | Empresa Individual de Responsabilidade Limitada | Agencia | Filial |
| Best use of company? | All products and services | Close a customer deal now | Manufacturing and export trading | 100% foreign ownership | Marketing & research | Specific projects |
| How soon can you invoice Clients/sign sales contracts? | 5 months | 2 months | 5 months | 5 months | Cannot trade | 5 months |
| How soon can you hire staff? | 5 months | 2 months | 5 months | 5 months | 5 months | 5 months |
| How soon can you sign a lease agreement? | 5 months | 2 months | 5 months | 5 months | 5 months | 5 months |
| How long to supply corporate bank account numbers? | 6 months | 2 months | 6 months | 2 months | 6 months | 6 months |
| How long to supply company registration / tax numbers? | 6 months | 2 months | 6 months | 6 months | 6 months | 6 months |
| Corporate tax rate on annual net profits? | 15% | 15% | Up to 75% reduction | 15% | 0% | 15% |
| Corporate tax rates companies annual turnover less than US$75,000? | 15% | 15% | Up to 75% reduction | 15% | 0% | 15% |
| Limited liability entity? | Yes | Yes | Yes | Yes | No | No |
| Government approval required for foreign owners? | In certain industries | In certain industries | In certain industries | In certain industries | Yes | Yes |
| Resident director/partner/manager/ legal representative required? | Yes | Yes | Yes | Yes | Yes | Yes |
| Minimum/recommended paid up share capital? | US$50,000* | US$50,000* | US$50,000* | US$50,000* | none | none |
| Corporate bank account location? | Standard Chartered | Bradesco | Santander | Citibank | Itau | Caixa |
| Average total business set up engagement costs? | US$54,180 | US$36,630 | US$24,259 | US$40,330 | US$26,930 | US$29,330 |
| Average total engagement period? | 8 months | 8 months | 8 months | 8 months | 8 months | 8 months |
*recommended: US$50,000, depending on business activity
| Accounting and tax considerations | LLC | Fast business solution | Free zone LLC | One Person LLC (“EIRELI”) | Representative office | Branch office |
|---|---|---|---|---|---|---|
| Statutory corporate tax payable? | 34% | 0% | 34% | 34% | 0% | 34% |
| Legally tax exempt if properly structured? | No | No | Yes | No | Yes | No |
| Government grants available? | Yes | Yes | Yes | Yes | No | Yes |
| Must file an annual tax return? | Yes | Yes | Yes | Yes | Yes | Yes |
| Must file annual financial statements? | Yes | Yes | Yes | Yes | Yes | Yes |
| Must appoint an auditor? | No | No | No | Yes | No | No |
| Access to double taxation treaties? | Yes | Yes | Yes | Yes | No | Yes |
| Average federal VAT payable? | 20% | 20% | 20% | 20% | None | 20% |
| Company Registration | LLC | Fast business solution | Free zone LLC | One Person LLC (“EIRELI”) | Representative office | Branch office |
| Resident director/partner/manager/ legal representative required? | Yes | Yes | Yes | Yes | Yes | Yes |
| Minimum number of shareholders/partners? | 2 | 2 | 2 | 2 | Parent company | Parent company |
| Minimum / recommended statutory paid up share capital? | US$1 | US$1 | US$50,000 | US$50,000 | none | none |
| Shelf companies available? | Yes | Yes | No | Yes | No | No |
| Time to incorporate a new entity? | 5 months | 2 months | 5 months | 5 months | 5 months | 5 months |
| Can easily convert to a PLC? | Yes | Yes | Yes | Yes | No | No |
| Public register of shareholders and directors? | Yes | Yes | Yes | Yes | Yes | Yes |
| Can have preference shareholders? | Yes | Yes | Yes | Yes | No | No |
| Business Considerations | LLC | Fast business solution | Free zone LLC | One Person LLC (“EIRELI”) | Representative office | Branch office |
| Can bid for Government contracts? | Yes | Yes | Yes | Yes | No | Yes |
| Can secure trade finance? | Yes | Yes | Yes | Yes | No | Yes |
| Good entity for trademark registration? | Yes | Yes | Yes | Yes | No | No |
| Can secure an import and export license? | Yes | Yes | Yes | Yes | No | Yes |
| Maximum shareholding for foreigners? | 100% |
| Each foreign director needs a personal income tax number? | Yes |
| Sponsorship by a local citizen required? | No |
| Our Client needs to travel to Brazil for business set up? | No |
| Temporary physical office solutions available? | Yes |
| You need a local resident as bank signatory? | Yes |
| Can be wholly foreign owned? | Yes |
| The entity will likely be regulated by? | State Commercial Registry Office |
| Minimum number of directors/managers? | 1 |
| Monthly VAT reporting to the Government? | Yes |
| Must sign an office lease agreement during incorporation? | No |
| Shareholders & directors documents to be attested\translated? | Yes |
| Foreign director needs a residence visa? | No |
| Maximum number of staff allowed? | No maximum number for any entity |
| Expatriate to local staff ratio? | 1/3 |
| Can secure residence visa for business owner? | Yes |
| Other useful information | |
| Withholding tax on payments to foreign shareholders? | None |
| What will be included in my customer sales invoice? | Click link |
| This country has signed free trade agreements? | Yes |
| This country is a member of WIPO/TRIPS? | Yes |
| This country is a member of the ICSID? | No |
| Average custom duties suffered? | 10% |
| Government foreign investment approval required? | In certain industries |
| Security deposit to be kept with Government? | No |
| Group HQ tax incentives? | No |
| Average monthly office rental? (US$ per sq m) | US$35 |
| Minimum statutory monthly salary? | US$297 |
| Average monthly US$ salary for local skilled employees? | US$650 |
| US$ deposit interest rate? (1 year average) | 1.75% |
| Overseas remittance currency controls? | None, but all transactions must reported with the Central Bank |
| Banking considerations | |
| Multi-currency bank accounts available? | Yes |
| Corporate visa debit cards available? | Yes |
| Quality of e-banking platform? | Good |
| Crowd funding available in this country? | Yes |
