Doing business in Brazil

To truly understand Brazil, you must recognize its strategic position in the central-eastern part of South America. It is flanked to the east and northeast by the Atlantic Ocean.

To the north, Brazil shares borders with French Guiana, Suriname, Guyana, and Venezuela; to the northwest, it adjoins Colombia; to the west, it interacts with Peru, Bolivia, and Paraguay; to the southwest, it is bordered by Argentina; and to the south, it meets Uruguay.

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Why starting a business in Brazil?

Brazil is the world's fifth-largest country and the seventh most populous, holding a distinguished position as the largest economy in Latin America and the Southern Hemisphere. As one of the world's biggest agricultural producers, Brazil plays a significant role as an agri-environmental strength, preserving more than 60% of its territory while reaching record production.

The Action Plan of the last Lula Da Silva government (2023-2026) is betting on a foreign trade policy that leans towards the protection of local production and internal added value, (II) favors the improvement of the commercial regulatory space, through simplification and facilitation measures, (III) encourages sustainable production, and (IV) encourages exports (both from a quantitative and diversification perspective, particularly concerning advanced industrial goods and services).

Why Invest in Brazil?

Brazil is one of the largest economies in Latin America and the Caribbean, according to the gross domestic product (GDP) recorded in 2023. In that year, the value of goods and services produced in Brazil reached an estimated $2.12 trillion USD, based on current values.

The country boasts a diverse and robust economy driven by key industries such as agribusiness, where it leads global production and exports of soybeans, sugarcane, and coffee; mining, as the largest exporter of iron ore and a significant producer of gold, aluminum, and oil; and renewable energy, with hydropower as its main energy source and growing investments in wind, solar, and ethanol production.

This economic strength, combined with abundant natural resources and opportunities for growth, makes Brazil a prime destination for investment.

Brazil in Figures

Population: 212,3 million inhabitants

Urban Population: 192,9 million inhabitants (91%)

Curious facts: Brazil's population is equivalent to 2.6% of the total world population and the total land area is 8,358,140 Km2 (3,227,095 sq. miles)

Currency: Brazilian Real – BRL Official

Language: Portuguese

GDP per capita: US$9,032 (2023)

Main Cities: Sao Paulo (12 million inhabitants), Rio de Janeiro (6,7 million inhabitants), Belo Horizonte (2,7 million inhabitants), Brasilia (3 million inhabitants), Manaus (2 million inhabitants), Curitiba (1.7 million inhabitants), Porto Alegre (1.3 million inhabitants), Campinas (1.1 million inhabitants), Recife (1.6 million inhabitants), Salvador (2,7 million inhabitants)

Political regime: A federal presidential representative democratic republic.

Tax Treaty: Brazil signed tax treaties to avoid double taxation with the following countries: Argentina, Austria, Belgium, Canada, Chile, China, Colombia, Czech Republic, Denmark, Ecuador, Finland, France, Hungary, India, Israel, Italy, Japan, Luxembourg, Mexico, Netherlands, Norway, Paraguay, Peru, Philippines, Portugal, Russia, Singapore, Slovakia, South Africa, South Korea, Spain, Sweden, Switzerland, Trinidad & Tobago, Turkey, Ukraine, United Arab Emirates, Uruguay, and Venezuela.

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International Tax

Brazilian resident companies are taxed on worldwide income. Non-resident companies are generally taxed in Brazil through a registered subsidiary, branch, or PE, based on income generated locally. Also, companies can be subject to withholding tax (IRRF) on income derived from a Brazilian source. In Brazil, corporate taxation is defined by two primary types: the Corporate Income Tax (IRPJ), which ranges from 15% to 25%, and the Social Contribution on Net Income (CSLL), which typically imposes an additional 9%. The country employs four corporate income tax systems: the Presumed Profit Method, the Real Profit Method, the Arbitrated Profit Method, and the SIMPLES (a streamlined tax regime). Among these systems, the two main regimes for calculating income tax are the Real Profit Regime (RPM or APM) and the Presumed Profit Regime (PPM). This framework delineates how businesses are taxed in Brazil.

Tax structure

Corporate Income Tax: Corporations are subject to tax on worldwide income at a nominal rate of 15%, but the tax rate is 34% with surtax and social contribution.

Personal Income Taxation: Brazil's personal income tax is progressive with rates from 0% to 27.5%, and it is collected by the federal government.

Federal VATs (PIS/COFINS): Generally, a combined rate of 3.65% (cumulative) or 9.25% (non-cumulative).

State VAT (ICMS): normally between 17% and 20%. Municipal Service Tax (ISS): 2% to 5% (cumulative).

Technology

On the technological front, Brazil's key sectors in the digital economy include artificial intelligence (AI), cybersecurity, the Internet of Things (IoT), edge computing, cloud services, and digital government, especially as it relates to building a trustworthy and inclusive digital public infrastructure (DPI).

Cybersecurity: the cybersecurity market in Brazil is projected to reach US$3.34 billion in 2024 and US$ 5.46 billion by 2029, growing at a CAGR of 10.3%.

Human Capital

Employment trial period: In Brazil is 90 days, which can consist of two separate periods totaling 90 days. If an employee starts with a 45-day probation, it may be extended for an additional 45 days.

Types of Leave: Employees are eligible for seven paid national holidays and five religious or municipal holidays. They are also eligible for three days' paid leave upon marriage, two days' paid leave for a period of mourning, and fifteen days' paid leave (annually) for illness. Paternity leave (Licença Paternidade) is paid for five days, and maternity leave is paid for 120 days. For every 12 months of service provided to the company, the employee receives 30 days of paid vacation.

Entity Management

The entire process of incorporating a new entity in Brazil can take 60-90 days, excluding the time needed to open a bank account. Brazil offers several legal structures for business operations. Some of the most common include: 

  • Sociedade Limitada (Ltda): This structure limits liability to company assets and is the most suitable option for small and medium enterprises. 
  • Sociedade Anônima (S.A.): This is a corporation with stricter regulatory requirements, suitable for larger enterprises and those intending to raise capital through public offerings.
  • Individual Microentrepreneur (MEI): This designation simplifies the regulation for small businesses, allowing for reduced taxes and simplified compliance.

It is required for foreign companies to designate a legal representative (Representante Legal). This individual must be a Brazilian resident, serving as the point of contact for local authorities and ensuring compliance with Brazilian law.

Brazil Inside

We offer a more general overview of Brazilian customs and places to visit in the country.

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Interested in doing business in Brazil ?

 

Start doing business in Brazil

Our Offices

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São Paulo

Av. Brigadeiro Faria Lima, 4221,
1° andar, Itaim Bibi
 
 
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Curitiba

Rua Comendador Araújo, 499
10º andar, Centro.
 

Key Contacts

Contacts

LUIS DIAZ
President H&CO Technology
 
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LUIS DIAZ
President H&CO Technology
FELIPE JACOB
Vp Operations Tech
 
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FELIPE JACOB
Vp Operations Tech
GEISON CORREA
Operations Manager
 
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GEISON CORREA
Operations Manager
CASSIO MENEZES
New Names Sales Manager
 
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CASSIO MENEZES
New Names Sales Manager
PAULO CESAR DOS SANTOS
Installed Base Sales Manager
 
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PAULO CESAR DOS SANTOS
Installed Base Sales Manager
Flavio Henrique Silva
Customer Experience Manager
 
 
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Flavio Henrique Silva
Customer Experience Manager
Gilmar Ferreira de Lima
Customer Success
 
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Gilmar Ferreira de Lima
Customer Success
Bruno Bonfim
Architect Solutions Manager
 
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Bruno Bonfim
Architect Solutions Manager
Vanessa Moraes
Marketing Manager
 
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Vanessa Moraes
Marketing Manager
Richard Grein
PMO Coordinator
 
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Richard Grein
PMO Coordinator
Thabata Rezende
Support Coordinator
 
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Support Coordinator
Edmilson de Lima
Development Coordinator
 
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Edmilson de Lima
Development Coordinator
Uiliam Elustondo
Consulting Coordinator
 
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Uiliam Elustondo
Consulting Coordinator
Tales Rego
Lead Financial Analyst
 
 
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Tales Rego
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