Company Incorporation: Brazil Rules to Navigate First
Incorporating a company in Brazil poses a unique set of challenges for business owners, due to the large amount of bureaucracy. Rules also vary in each state, as do costs. That’s why many business owners choose to utilize the help of start-up services to navigate the complex system. Here are some of the incorporation rules you would need to deal with first:
- Company name search – Brazil does not allow company names within a state that are already registered or have been registered.
- Foreign funding registration – If your company is funded by foreign capital, then that capital has 30 days to be remitted and registered with the central bank of Brazil.
- State registration – Companies will need to register, get an identification number, and pay registration fees to the state where their main office resides.
- Tax registration – Any company incorporation Brazil allows will need to register with the Secretariat of Federal Revenue. This is for federal and state taxes, obtaining a company number, confirming taxpayer enrollment, and obtaining inspection of state taxes.
- Employees – Company employees will have to be registered with the social integration program. Permission for a limited number of expatriate employees has to be gained from the Ministry of Labor and Employment. An unemployment bank account will also have to be opened for the Length of Service Guarantee Fund. Incorporations also need to register with the Employees Union and Patronal Union.
- Receipt and invoice permission – Any company incorporation Brazil considers has first to get permission to print any invoice or receipts from the state-level Ministry of Economy.
That’s just the beginning, so it’s easy to see how the massive amount of bureaucratic details that need to be taken care of in order to do an incorporation in Brazil are often best handled by professionals who are experienced at doing so.