{"id":19291,"date":"2015-05-29T11:35:20","date_gmt":"2015-05-29T14:35:20","guid":{"rendered":"https:\/\/www.plbrasil.com.br\/how-to-invest-in-a-business-in-brazil-as-a-foreigner-in-6-steps\/"},"modified":"2025-06-04T11:49:35","modified_gmt":"2025-06-04T14:49:35","slug":"how-to-invest-in-a-business-in-brazil-as-a-foreigner-in-6-steps","status":"publish","type":"post","link":"https:\/\/www.plbrasil.com.br\/en\/how-to-invest-in-a-business-in-brazil-as-a-foreigner-in-6-steps\/","title":{"rendered":"How to invest in a business in Brazil as a Foreigner in 6 steps"},"content":{"rendered":"

The success of the investment in a new foreign market depends, firstly, on the compliance with the country\u2019s regulations.<\/p>\n

The faster and easier the process is, the greater the guarantee the local company will have the tools it needs to growth and success.<\/p>\n

 <\/p>\n

Having the support of paralegal services may be the decisive solution to companies looking for opportunities of investments in Brazil to speed up the constitution of the legal entity, with competitive costs and effectiveness. Brazil stands as one the most bureaucratic countries in the world when it comes to starting a business, including those with foreign partners as shareholders, the hardship and documents demanded are increasingly larger. Besides demands as for legalization of documents drafted abroad, there are procedures in the Notaries Public to be done before filling the Articles of association of the Brazilian Company to be registered at the Board of Trade.<\/p>\n

 <\/p>\n

Are you willing to invest in the Brazilian market? PLBrasil has large experience with business consulting and legal representation of foreign companies. Here are 6 basic steps on how to start a business in Brazil:<\/p>\n

\n<\/div><\/div><\/div><\/div><\/div>

1 \u2013 Legal representation<\/p>\n

<\/h2><\/div>

The first step to stablish a subsidiary of the foreign company in Brazil is to grant powers to an attorney in fact for \u201ccompany law and tax purposes\u201d. The future attorney in fact has to be Brazilian, denizen, or hold a permanent visa and be resident in Brazil as well as have tax residence. From this moment on, he\/she will be responsible for the interests of the foreign company as shareholder of the Brazilian company. The attorney in fact, with powers to receive summons and subpoenas from courts and\/or tax tribunals, will be responsible vis-\u00e0-vis the Brazilian official authorities.<\/p>\n

\n<\/div>

It is also necessary to appoint and administrator of officer to the Brazilian company. This administrator shall not be prevented by the law or convicted, which will prevent him\/her from, even if temporarily, to accede to be a civil servant, or convicted from bankruptcy crime, malfeasance, bribery, graft, embezzlement, or against the national finance system, against the rules of concurrence, consumer relations, or crime against welfare public faith or property.<\/p>\n

\n<\/div>

2 \u2013 Articles of association<\/p>\n

<\/h2><\/div>

The second step, after appointing the legal representative, is to draft the articles of association. In this document the local or foreign shareholders shall be nominee, the company\u2019s name, the corporate purpose, the headquarter address, the capital, administration, directors, corporate governance, amongst others. At this point, it is important to rely on the support of an attorney for the drafting of the terms. PLBrasil can refer lawyers that suit your needs.<\/p>\n

\n<\/div>

3 \u2013 Enrollment at the Government bodies<\/p>\n

<\/h2><\/div>

At this point, the constitution of a new company will be under federal, state and municipal levels. In order to operate legally and according to the corporate purpose, it is necessary to obtain beforehand permits, in some cases before filing the articles of association at the Board of Trade of the State in which the company will be set up. When the Articles of Association are dully filed, one shall move to the federal level, in order to obtain the Legal Entity Tax Identification Number (CNPJ), which will allow the payment of the taxes and obligations to the Federal Revenue Office.<\/p>\n

\n<\/div>

It is also necessary to start analyzing the documentation from the municipality and State (as for the State Treasury Office), in case the corporate purpose is for industry, commerce or Transportation.<\/p>\n

\n<\/div>

4 \u2013 Registration at the Brazilian Central Bank<\/p>\n

<\/h2><\/div>

In order to the foreign shareholder be able to invest or loan money to the Brazilian subsidiary, electronic registers in the Brazilian Central Bank system are necessary, which will allow the inbound of foreign capital, being considered long term capital and\/or foreign loan. The Law 4.131\/62, which allows foreign investment, grants equal treatment to the foreign capital in Brazil, and set deadlines for the statement to be sent to the Brazilian Central Bank about the foreign capital invested in Brazil. The register of the foreign capital at the Electronic Declaratory Register (RDE) allow the return of the invested capital overseas, fast and without any need of authorization beforehand.<\/p>\n

\n<\/div>

At this point, the Brazilian company must be about to open a bank account in Brazil, in order to allow exchange contracts and receiving of remittances.<\/p>\n

\n<\/div>

5 \u2013 Accounting and Human Resources<\/p>\n

<\/h2><\/div>

In case you intend not to overspend in these areas, we can recommend companies of our trust specialized in Business Process Outsourcing.<\/p>\n

\n<\/div>

6 \u2013 Contracts, clients and signatures<\/p>\n

<\/h2><\/div>

After all the steps above described were taken, and the company is dully incorporated, PLBrasil will be able to answer your demands as for signing documents, represent in meeting and intermediating the interests of the foreign company in the Brazilian Market.<\/p>\n

\n<\/div>

This newsletter is only informative and must not be considered as a legal opinion.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[96,95],"tags":[145,144,524],"class_list":["post-19291","post","type-post","status-publish","format-standard","hentry","category-articles","category-paralegal-en","tag-foreign-participation","tag-legal-representation","tag-paralegaladvisory"],"yoast_head":"\nHow to invest in a business in Brazil as a Foreigner in 6 steps<\/title>\n<meta name=\"description\" content=\"The success of investing in a new market depends, in the first place, on the correct adaptation of the business to the rules of each country.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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