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If you think Brazil is only famous for it’s annual Rio de Janeiro Karneval, you are wrong. It entices more and more businessmen every year.

Basic information:

  • largest and most populous country in South America (one of the most largest in the world)
  • total area is 8,511,965 square kilometers
  • big part of the area make up the largest tropical rainforest in the world - the Amazon
  • Brazil is home to over 200 million people
  • official language is Portuguese
  • In 2014 hosted the World Championships in football and next year will host the XXXI. summer Olympic Games
  • Brazil is known for its strong relationship to sports, especially football..

But if you are not thinking about football career and you are not next Messi or Ronaldo, don’t worry, Brazil welcomes different people, business people, as well.

Why would you consider Brazil for company incorporation ?

  • First of all, If you are an investor, Brazil market is suitable for investors who want to enter the South American market. Brazil offers investors access to half the population of South America, investment incentives, low inflation and stable growth of GDP.
  • The most commonly used companies in Brazil are Limited Liability Company (SL) and the Corporation (Sociedade por Acoes - SA)
  • Limitada is the cheapest, the easiest and most flexible type of company in Brazil
  • Two shareholders are required, who may be non-residents, which is a great advantage, no stragers in your business (But be aware,that you must have a local agent!)
  • Shareholders are liable for their subscribed deposits
  • SA may be a publicly traded company, it depends whether its securities are traded on the stock market
  • Articles of Association must be fully described in a document called "Estatuto social"
  • Not forget to mention taxation in Brazil.The basic rate of income tax is 15%, to which only adds a 10% surtaxCapital income is subject to 15% tax and the revenue generated from sales of securities on the stock exchange is 20%. Those numbers are quite good, considering the location choice. Although, be aware, that tax system in Brazil is extensive and quite complicated. Taxes are levied at three levels - state, federal and municipal.
  • The advantage is that in Brazil there is no withholding tax on paid dividends. Some municipal areas can, for certain types of business and real estate transfer tax to collect a tax between 0.6% - 2%, depending on the communal area. But apart from that, no withholding tax is guaranteed! Which means win win again and you save your money. Nice.
  • Minor drawback in Brazil,that is has some strict currency controls, that we think will not make any major problems and somehow affect your business, although from our experience every single case is very individual. (If you want to find out more, what is better for you business, book a consultation with Zenron )
  • Non-residents can open an account in the Brazilian currency, since a lot of countries have some difficulties with opening bank Account, Brazil made this process simple and fast (open an offshore bank Account)

If we analyze the Brazil market, Zenron recommends you to incorporate in Brazil, if you are planning to expand your business on Brazilian market or South American market in common.

Discuss Brazil Incorporation possibilities with ZENRON AGENT!

Receive a non-binding proposal today. Call us +44 (0) 20 3735 5557 or fill out the form below.

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