{"id":59655,"date":"2022-08-24T17:28:11","date_gmt":"2022-08-24T11:58:11","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=59655"},"modified":"2025-03-11T18:15:58","modified_gmt":"2025-03-11T12:45:58","slug":"foreigners-guide-to-setting-up-a-company-in-brazil","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/foreigners-guide-to-setting-up-a-company-in-brazil\/","title":{"rendered":"Foreigner\u2019s Guide to Setting up a Company in Brazil"},"content":{"rendered":"

Brazil, the fifth largest country in the world, carries one of the biggest economies in the South American continent, with a large population making it a big consumer market<\/a>. Having a base in Brazil provides access to the entire South American market and opens up numerous opportunities for attracting investments and businesses. Additionally, Brazil is open to 100 per cent foreign ownership and provides supporting infrastructure for businesses to thrive, which makes Brazil an attractive commercial destination for foreigners to set up a business in Brazil. This piece of writing lists down the procedure for set-up a company in Brazil<\/a>. Entities available in Brazil for incorporation<\/p>\n\n\n\n

There are 4 types of companies that a foreigner can set-up in Brazil. They are:<\/p>\n\n\n\n

    \n
  1. Limited Liability Company (LLC)<\/strong>[1]<\/strong><\/a><\/sup><\/li>\n\n\n\n
  2. Joint Stock Company or Business Corporation<\/li>\n\n\n\n
  3. Single member LLC (EIRELI<\/em>)<\/li>\n\n\n\n
  4. Branch Office of a foreign corporation<\/li>\n<\/ol>\n\n\n\n

    Procedure to set-up a company in Brazil<\/h2>\n\n\n\n

    The following procedure should be followed step-by-step in order to set-up a company in Brazil:<\/p>\n\n\n\n

    1. Choosing the type of company<\/h3>\n\n\n\n

    The promoters must choose the type of company which would be suitable according to their business objectives. The promoters can choose a business entity from the following business entities: a Limited Liability Company (LLC), a Corporation and a single member LLC. These are the most common business vehicles that are chosen by foreigners to set-up a company in Brazil because, in these types of business entitis, the participants have limited responsibilities. Moreover, the law ascribes a different legal status to the company so formed, which is distinct from its participants.<\/p>\n\n\n\n

    2. Performing a viability study<\/h3>\n\n\n\n

    Once the promoters have decided on the type of business entity, the next thing which is supposed to be done is performing a viability study in the city’s municipal departments in whose jurisdiction the promoters wish to set up their business. This viability study aims to determine the availability of the name with which the promoters want to open their business and the compatibility of the proposed address with the company’s purposes.<\/p>\n\n\n\n

    The promoters must be aware of the following restrictions in terms of the sectors\/areas that are imposed on foreigners by the government:<\/p>\n\n\n\n