Starting a Business in Brazil as a Foreigner | US Guide

Brazil, the economic powerhouse of Latin America, presents a promising landscape for foreign investors. While Brazil ranks 138th globally in ease of doing business, out of almost 200 countries, the potential rewards can make it worthwhile.¹

As a foreign investor, you can set up your business in Brazil and choose from various entity types. Let’s look at the complexities of establishing a company in Brazil, and the steps you’ll need to take.

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How to Start a Business in Brazil as a Foreigner: First Steps

Brazil, Latin America's largest economy, presents a compelling landscape for international entrepreneurs and independent contractors. As a member of key trade blocs like MERCOSUR and BRICS, it opens doors to diverse commercial opportunities, making it an attractive destination to establish a business.²

The very first step is to figure out whether you can start a Brazilian business, and if so, the steps and legal requirements you’ll need to adhere to.

Can I Start a Business in Brazil as a Foreigner?

Yes, you can start a business in Brazil as a foreigner. However, Brazilian regulations can be intricate, and you’ll need to understand the requirements and procedures to ensure a smooth and successful venture. The entire process can be done in a few steps.

What Steps will be involved in starting a business in Brazil for foreigners?

Here's a simplified roadmap of the steps for establishing your business in Brazil:

1. Plan your business: Pick a feasible business idea and create a detailed business plan.
2. Select the best structure: Define your business structure, with a limited liability company (LLC) being the most popular.
3. Reserve your company name: Choose a company name that includes your business activity and complies with Brazilian naming rules and reserve it with the Board of Trade (Junta Comercial).
4. Register with the Board of Trade: This is where you’ll submit your Certificate of Incorporation and Memorandum and Articles of Association. This process typically takes 60-90 days.³
5. Enroll foreign shareholders: This is done at the Brazilian Federal Revenue's taxpayers' registry.⁴
6. Complete tax registration: Apply for a CNPJ number (taxpayer ID) with the Department of Federal Revenue Service.
7. Secure a CPF (Brazilian Tax ID): Complete a simple form on the Brazilian IRS website to get your CPF.
8. Obtain business licenses and permits: Apply for necessary business licenses and permits, which often require various documents.

Don’t forget to stay updated with and adhere to Brazil's tax and regulatory requirements.

How Much Does it Cost to Set up a Company in Brazil as a Foreigner?

The cost of setting up a company in Brazil as a foreigner can range from $3,000 to upwards of $10,000. This includes the cost of translation, consularization, and registering capital. If the owners handle the process themselves, the cost may be less than $500.

Note your costs for starting a Brazilian business vary widely, depending on the chosen legal structure, location, and industry requirements. The typical costs to expect include:

1. Registration Fees: These are paid to the Board of Trade (Junta Comercial) and vary depending on the state and type of company.
2. Notary and legal fees: Engaging a local lawyer or legal service provider is crucial for navigating the complex legal landscape and ensuring compliance. These professionals can assist with drafting documents, obtaining necessary licenses, and fulfilling registration requirements.
3. Translation and apostille fees: If your documents are not in Portuguese, you'll need to have them translated by a certified translator and apostilled to be recognized in Brazil.

While Brazil, as Latin America's largest economy, offers enticing opportunities for foreign investors, it's important to understand the associated costs before setting up a company.

How Long Does it Take to Start a Business in Brazil for Foreigners?

The incorporation process in Brazil typically takes 60 to 90 days, excluding the time required to open a business bank account. The complexity arises from having to work with various authorities.

You can consider streamlining the process by engaging local experts well-versed in Brazilian business law. They can assist in selecting the appropriate entity, preparing accurate documentation, navigating the registration procedures and ensuring compliance with tax and regulatory obligations.

However, with careful planning and the right guidance, you can streamline the process and get your business up and running sooner.

Legal Requirements for Starting a Business in Brazil as a Foreigner

The key legal requirements for starting a Brazilian business include picking a legal entity and registering your business with the proper authorities. For example, there are only two key legal entities you’ll choose from—a limited liability company (LLC) or corporation—but regardless of the chosen entity you choose you’ll also need:

• Registration with the Board of Trade is mandatory: This process involves reserving a unique company name that adheres to specific naming conventions, submitting essential documents like the Certificate of Incorporation and Articles of Association, and adhering to strict timelines.
• Tax and regulatory compliance: Getting a taxpayer identification number (CNPJ) from the Federal Revenue Service is crucial for tax compliance.

Note that Brazil's corporate tax rate stands at 34%, and businesses must adhere to specific financial reporting requirements.⁶

Choose a Legal Structure in Brazil as a Foreigner

For foreign entrepreneurs, selecting the right legal structure is a crucial first step. Here are the two most common options:

Limited liability company (LTDA)

• Best for: Small to medium-sized businesses, startups, and self-employed international freelancers needing a simple structure
• Pros: Limited liability protection, no minimum capital requirement
• Cons: Requires two shareholders and one director

Corporation (SA)

• Best for: Best for large businesses and those seeking investors
• Pros: Easier to raise capital, offers limited liability
• Cons: More complex and costly to set up and maintain

Regardless of the chosen structure, foreign investors are restricted from doing business in certain industries like media, transportation, healthcare, and security services.

Beyond that, the best legal structure for your business will depend on factors like the size and scope of your business, the number of business owners and liability concerns.

Obtain Licenses and Permits for Your Business

Navigating the regulatory landscape is a critical step in establishing your business in Brazil. The specific business licenses and permits required vary significantly depending on your business activities and chosen location within Brazil.

Regardless of your business type or location, certain registrations are mandatory for all businesses operating in Brazil. Key business registration documents you’ll need include:

• Articles of Association: Prepare and register the Articles of Association with the Junta Comercial.
• CNPJ (National Register of Legal Entities): Obtain a CNPJ number from the Federal Revenue Service.
• State registration: Register with the State Department of Finance for a state tax ID.
• Municipal registration: Register with the municipality for a municipal license.

Meanwhile, some business licenses and permits you might need depending on your industry:

• Operating license: Obtained from the local municipality.
• Health permit: Required for businesses involved in food, healthcare, etc.
• Environmental license: Necessary for businesses that may impact the environment.

Certain industries, such as financial institutions, healthcare providers, and transportation companies, often have additional licensing requirements and regulations. These industry-specific licenses may involve stricter compliance standards and specialized procedures.

How to Get a Business Visa in Brazil

Beginning April 10, 2025, citizens of the US, Canada, and Australia will need a visitor visa (VIVIS) to enter Brazil for business. To obtain a VIVIS visa, you will generally need to provide the following documents:⁵

• Valid passport: Your passport should be valid for at least six months beyond your intended stay in Brazil.
• Visa application form: Complete the online application form accurately and thoroughly.
• Proof of business activities: Provide documentation that supports the purpose of your business visit, such as a letter of invitation from a Brazilian company, contracts, or agreements.
• Financial means: Demonstrate that you have sufficient funds to cover your expenses during your stay in Brazil.

The specific requirements and application process may vary depending on your nationality and the Brazilian consulate or embassy in your country.

Tips for Opening a Business Account in Brazil as a Foreigner

Opening a business bank account in Brazil as a foreigner is a key step to establishing your company. Here are some key tips for opening a business account in Brazil:

• Have your required documents in hand: Before you approach a bank, ensure you have all the necessary documents, which typically include: Company registration documents, taxpayer ID (CNPJ number), ID documents for shareholders and directors and proof of address.
• Research banks: Different banks in Brazil have varying requirements and fees for business accounts. Research and compare different banks to find one that suits your business needs and budget.
• Establish a relationship: If possible, try to establish a relationship with the bank beforehand. This can sometimes expedite the account opening process.

The items you need to open a business account in Brazil will vary by bank and business type. Contact the bank directly for their specific requirements.

Discover Wise Business: The Easy Business Account for Foreign Business Owners

Navigating the financial landscape of starting a business in Brazil as a foreigner can be a complex process. Wise Business is designed for global business needs, offering a seamless and efficient way to manage your finances across borders.

With a US Wise account, you can send USD to BRL. If you are a local tax resident in Brazil, you can add BRL to your account and send money.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in 40+ currencies. You can get major currency account details for a one-off fee to receive overseas payments like a local. You can also send money to 160+ countries.

Here's how Wise Business can help global businesses:

• International payments at the mid-market rate: Send and receive payments internationally at the mid-market exchange rate, avoiding hidden fees and markups.
• Multi-currency management: Hold and manage over 40 currencies in a single account, eliminating the need for multiple accounts for different currencies.
• No monthly fees: Enjoy the convenience of managing your business finances without the burden of recurring monthly fees.

Wise Business understands the unique financial needs of foreign entrepreneurs venturing into the Brazilian market—making it an ideal solution for growing your business in Brazil.

Read the guide on how to open a Wise Business account

Helpful Links for Starting a Business in Brazil as a Foreigner

Here are some useful resources for further reading before embarking on your new business in Brazil:

• Ministério da Economia: Official government website with information on business regulations, investment incentives, and procedures for starting a company.
• Receita Federal (Federal Revenue Service): The official website of the Brazilian tax authority, providing information on tax obligations, registration procedures, and relevant legislation.
• Junta Comercial (Board of Trade): Each state in Brazil has its own Junta Comercial, responsible for registering companies and providing information on the process.
• ApexBrasil (Brazilian Trade and Investment Promotion Agency): ApexBrasil provides support and guidance to foreign investors interested in doing business in Brazil.
• Anvisa (National Health Surveillance Agency): If your business involves products or services related to health, you will need to consult Anvisa's regulations and requirements.

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Sources:

1. World Bank Group - Ease of Doing Business rankings
2. Statista - Gross domestic product (GDP) in Latin America and the Caribbean in 2024, by country
3. International Trade Association - US Commerical Service Brazil
4. Ministério das Relações Exteriores - Individual taxpayer registry - CPF
5. Ministério das Relações Exteriores -Visitor Visa - VIVIS
6. BPC Partners - Overview of Brazil’s Tax Landscape

All sources checked August 2024.