Brazil free zones in 2023
- Brazil free trade zones are a gift for foreign investors willing to incorporate a company in Brazil and use it as a gateway to South America. Brazil FTZs may qualify for i) up to 75% reduction on corporate income tax ii) 100% duty exemption for imported products iii) 10 years exemption from business licenses fees;
- Brazil currently boasts several free zones including Manaus free zone, Macapa free zone, Tabatinga free zone, Guajara-Mirim free zone, and Boa Vista and Bonfim free zone;
- Brazilian free zones are suitable for foreign companies intending to use Brazil as a manufacturing or import/export base, with the bulk of their business conducted outside of Brazil;
- Healy Consultants will be pleased to liaise, on behalf of our Clients planning to conduct operations within Brazil FTZs, with the Manaus Free Trade Zone Authority (SUFRAMA) and other relevant FTZ authorities, in order to obtain approval for a free trade zone license. Our Firm will also be pleased to apply to the Amazon Development Authority for additional tax exemptions applicable to our Client’s project;
Manaus free trade zone
- Companies operating in MFTZ are eligible for i) exemption from import tax on goods destined for use in Amazonas state ii) 88% reduction on import duty for raw materials iii) excise tax exemption for goods traded within MFTZ;
- Manaus FTZ covers an area of 10,000 square kilometers in the capital city of Amazonas State which can be accessed via road, land, and sea transport;
- MFTZ does not offer incentives to business sectors of ammunition, tobacco, alcoholic products, perfume, and cosmetics;
- This FTZ invites multinationals from the business sectors of electronics, two-wheel vehicles production, chemicals, metallurgy, and mechanicals;
- Manaus FTZ in Brazil offers good export infrastructure and well developed electric power and telecommunications network. In addition, corporates established in this FTZ have access to qualified and productive workforce.
Macapa free trade zone
- Companies operating in Macapa FTZ enjoy exemption from the government fee on imported goods. Duty exemptions are also available depending on the nature of goods to be imported, their origins and value;
- Macapa FTZ occupies an area of 220 square kilometers in the region bordering French Guiana;
- This FTZ only engages in commercial operations and invites multinationals from the business sectors of domestic and international import activities.
Tabatinga free trade zone
- Tabatinga FTZ offers a reduction of up to 75% on corporate income tax. However, this incentive will be granted on a case-to-case basis, with companies investing large amounts of share capital in desired industries more likely to earn the tax reduction;
- Tabatinga FTZ has a total area of 20 square kilometers bordering Colombia and Peru. Consequently, this location enhances logistics for trading activities between Brazil and these two countries;
- This FTZ only engages in commercial operations and invites multinationals from the business sectors of importing domestic and international goods for consumption within its surrounding areas.
Boa Vista and Bonfim free trade zone
- Companies operating in Boa Vista and Bonfim FTZ may be eligible for i) duty exemption on products imported for internal use in the FTZ ii) exemption from customs and administrative controls for imported and exported goods;
- Boa Vista and Bonfim FTZ was established in 2008 for the purpose of improving trade relationship between Brazil and neighbor countries such as Venezuela and Guyana;
- This FTZ only engages in commercial operations which invites multinationals from the business sectors of domestic and international import and export.
Comparison between the free zones
|Manaus FTZ||Macapa FTZ||Tabatinga FTZ||Boa Vista and Bonfim FTZ|
|How long to set the company up?||12 weeks||13 weeks||14 weeks||14 weeks|
|How long to open company bank account?||8 weeks||8 weeks||8 weeks||8 weeks|
|Quality of Utilities||Excellent||Average||Good||Average|
|Allowed to sign sales contracts with Brazilian Clients?||Yes||Yes||Yes||Yes|
|Allowed to invoice Brazilian Clients?||Yes||Yes||Yes||Yes|
|Corporate tax exemption/ reduction?||Yes||Yes||Yes||Yes|
|Corporate bank account||SCB Brazil||SCB Brazil||SCB Brazil||SCB Brazil|
|Physical office space required||Yes||Yes||Yes||Yes|
|Industrial space availability||Many||Limited||Limited||Limited|
|Allowed to import raw materials?||Yes||Yes||Yes||Yes|
|Allowed to export goods?||Yes||Yes||Yes||Yes|
|Wholly foreign owned||Yes||Yes||Yes||Yes|
|Can the entity hire expatriate staff in Brazil?||Yes||Yes||Yes||Yes|
|Do you visit Brazil for company registration?||No||No||No||No|
|Minimum number of directors||1||1||1||1|
|Minimum number of shareholders||2||2||2||2|
|Tax registration certificate required||Yes||Yes||Yes||Yes|
|Individual shareholders allowed||Yes||Yes||Yes||Yes|
|Corporate shareholders allowed||Yes||Yes||Yes||Yes|
|Public register of shareholders and directors||Yes||Yes||Yes||Yes|
|LLC company allowed||Yes||Yes||Yes||Yes|
|Can apply for immigration visas||Yes||Yes||Yes||Yes|
|Annual audited financial statements||No||No||No||No|
Frequently asked questions
How to register a company in Brazil free trade zones?For starting, in a free trade zone, a company in Brazil, Healy Consultants will i) obtain the necessary permissions from the local FTZ authority ii) reserve the company name iii) prepare the incorporation documents iv) notarize the documents at the public courts v) apply for the business license vi) register the company for tax purposes and vii) obtain work visas for our Clients and their employees.
What will be the benefits if I incorporate my company in a Brazilian free trade zone?Brazilian free trade zones offers several incentives for company formation, including exemption from income tax, sales tax, import, and export duties.
How many directors will I be required to appoint for free trade zone company incorporation in Brazil?Only 1 director is required for free trade zone company registration in Brazil.
How many shareholders are required for Brazil free trade zone company registration?Only 1 shareholder is required for Brazil free trade zone company incorporation.