How to Start a Business in Brazil as a Foreigner

Index

Guide to Starting a Business in Brazil | Timeline to Open a Business | Opening a Business Bank Account | FAQs

Brazil, the largest economy in Latin America, offers a wealth of opportunities for foreign investors and entrepreneurs. With its diverse market, strategic location, and growing middle class, Brazil is an attractive destination for international business ventures. However, navigating the Brazilian business landscape requires a thorough understanding of local regulations, cultural nuances, and administrative procedures. 

Before establishing a business in Brazil, it's crucial to conduct comprehensive market research. Brazil's economy is diverse, with significant opportunities in sectors such as agriculture, energy, technology, and consumer goods. Understanding regional differences, consumer behavior, and local competition will help in crafting a viable business strategy.

>> For more detailed information, read Doing Business in Brazil.

Can Foreigners Start a Business in Brazil?

Yes, foreign nationals can start a business in Brazil. However, the process involves multiple legal steps, and understanding the local regulations is essential to avoid delays and ensure compliance.

Guide to Starting a Business in Brazil

1. Define Your Business Idea and Plan

Choose a feasible business idea and create a detailed business plan that includes your financial projections, market strategy, and operational model.

2. Choose a Legal Structure

Brazil recognizes several business structures, but the most common for foreigners are:

• Limited Liability Company (LTDA): Ideal for small and medium-sized businesses. Requires at least two shareholders and offers limited liability protection.

• Corporation (Sociedade Anônima - SA): Suited for larger businesses, especially those planning to raise capital. More complex and costly to maintain.

3. Reserve Your Company Name

Register a unique name with the Board of Trade (Junta Comercial) that reflects your business activity and follows local naming conventions.

4. Register with the Board of Trade

Submit your Articles of Association and other incorporation documents. This step typically takes between 60 to 90 days.

5. Obtain a CNPJ (Taxpayer ID)

Apply for a CNPJ number with the Federal Revenue Service (Receita Federal). This is your official company tax ID in Brazil.

6. Register Shareholders

Enroll foreign shareholders in the taxpayer registry. This process may require a CPF (individual tax ID) for each shareholder.

7. Obtain Licenses and Permits

Depending on your industry and location, you may need operating licenses, health permits, and environmental clearances.

8. Register at the State and Municipal Levels

• State registration: For businesses that sell goods and services.

• Municipal registration: Required for a municipal license to operate locally.

Timeline to Open a Business in Brazil

The company registration process typically takes 60 to 90 days, excluding the time to open a corporate bank account. The process involves coordination with federal, state, and municipal authorities.

Hiring local consultants familiar with Brazilian business law can streamline this process. If you need to hire staff for your local business, our global expansion team can help.

Legal Requirements

• Board of Trade registration: Essential to legally establish your business.

• CNPJ: Required for tax compliance.

• CPF: Required for individual shareholders.

• Licenses and permits: Industry-dependent but mandatory.

• Corporate tax compliance: Brazil's corporate tax rate is 34%. Businesses must also meet financial reporting obligations.

Business Visa for Brazil

Starting April 10, 2025, citizens from the US, Canada, and Australia will need a Visitor Visa (VIVIS) for business purposes. Required documents typically include:

• Valid passport

• Completed visa application

• Proof of business activities (e.g., invitation letter, contracts)

• Proof of financial means

Consult your nearest Brazilian consulate for detailed requirements.

Opening a Business Bank Account in Brazil

Opening a bank account is essential for operational activities. Follow these tips:

1. Company registration papers, CNPJ, proof of address, and shareholder IDs.

2. Compare banking services and fees.

3. Try to establish a relationship with a bank to ease the onboarding process.

Streamline Your Finances in Brazil with Us

Managing international business finances can be complex, especially in a high-compliance market like Brazil. At H&CO, we help foreign investors optimize their financial operations by ensuring full tax compliance, selecting the right banking partners, and implementing efficient cross-border payment solutions.

Our team of international tax and accounting professionals provides strategic support tailored to your industry and business goals.

Frequently Asked Questions (FAQ)

What is the minimum capital requirement to open a company in Brazil?

There is no legal minimum capital for most business types, but in practice, many banks and authorities expect a reasonable initial investment. For companies with foreign shareholders, a minimum of BRL 150,000 is often recommended, especially if applying for a business visa.

Do I need a local partner to open a company in Brazil?

No, but you do need a local legal representative (an individual or entity residing in Brazil) who can represent your business before Brazilian authorities.

What are the most common types of business entities for foreigners?

The two most common structures are LTDA (Limited Liability Company) – Ideal for SMEs, S.A. (Corporation) – Suitable for larger ventures or businesses seeking outside investment.

What taxes will my company be subject to in Brazil?

Corporate income tax in Brazil is approximately 34%, including social contribution taxes. Your business may also be subject to municipal service taxes (ISS), state VAT (ICMS), and federal taxes (PIS/COFINS), depending on your industry.

Do I need to travel to Brazil to open the company?

Not necessarily. With the proper power of attorney and support from a local advisor, you can complete most procedures remotely. However, some banks may require in-person presence to open a business bank account.