Brazil company registration
Healy Consultants Group PLC
24 June, 2014
Brazil is the world's sixth largest economy, one of the top 10 fastest growing economies in the world and the largest economy in Latin America with annual average annual growth of 6% since 2006. Multinational firms find Brazil attractive because of the massive growing consumer market. Brazil company registration has the following advantages:
1. Online business in Brazil is a lucrative industry. Brazilians are already spending $13 billion a year online, despite only 40% of the country having internet access. As internet access improves, this section of the economy is expected to grow rapidly.
2. As of 2013, 52% of Brazils population is middle-class. Annual GDP growth of 6% also means family incomes are rising; meaning demand for foreign company products and services is rapidly increasing.
3. The tourism, services and infrastructure sector provides huge opportunities to foreign investors because of the Brazil 2014 FIFA World Cup and the 2016 Olympic Games.
4. Brazil is a viable manufacturing hub, with the 2nd largest industrial sector in the Americas and boasting an abundance of cheap raw materials including iron and coal as well as natural resources such as crude oil.
5. Brazil has one the largest renewable energy programs in the world. Brazil produces 25% of the world's ethanol and has been adding new biomass and wind power plants to the country. Brazil currently produces 70% of the total wind energy in all of Latin America.
6. In Brazil, 60% of qualified workers are computer literate. This rate will vary depending on the state where you want to incorporate the company.
7. Brazil has four Free Trade Zones offering foreign companies tax exemption/reduction and flexible trading laws.
8. There are no withholding taxes on dividend distributions to non-residents whether corporate or individual.
In order to facilitate the business activities of a Brazil company, investors should consider the following compliance regulations:
1. According to the Companies Act, a Brazil company must have at least one director and two shareholders of any nationality.
2. There is no minimum share capital requirement for a Brazilian LLC.
3. Every company is mandated to lodge annual returns verifying relevant details of the company for the public register including names and addresses of all directors, address of principal place of business and details of shareholders and their shareholdings.
4. A private Brazil company is required to maintain a local registered address.
5. Each foreign company must appoint a Brazil legal representative to act as a sponsor. This representative can be a Brazilian or a permanent resident.
6. Not all sectors in Brazil allow 100% foreign ownership. Foreign ownership is restricted in the health services, postal services, and aerospace and nuclear energy industries.
For more information about setting up a business in Brazil, contact us today!
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