Brazil is known as a hard place to operate a company. That being said, it is still a country ripe with opportunity, despite the ongoing crisis. In order to help you with setting up your own business here, we have written this simple guide.
Both foreigners and locals are allowed to open a business here, but foreigners might be subjected to a few restrictions. These restrictions are present in some areas such as publishing, or when the company operates near the country’s borders. A foreigner is also allowed to incorporate a company in Brazil, though a permanent visa is necessary in order to be appointed the company’s administrator or director.
In Brazil, there are two types of limited liability companies, the “Limitada” (limited) and the “Sociedade Anônima” (Anonymous Society). The most common of these two is the Limitada, which is simpler and cheaper than the Sociedade Anônima. There are no minimum capital requirements for opening a Limitada, which is managed by one or more administrators appointed by the shareholders. This type of company is based on Articles of Association known in Brazil as “Contrato Social” (social contract).