Nonresident individuals or legal entities may adopt any type of business organization recognized by Brazilian legislation. There is no distinction made between domestic and foreign companies in the legislation in general and one of the basic rules is that foreign capital is treated as equal to domestic capital. There are, however, some restricted economic sectors, where foreign capital is still prohibited or subject to certain limitations. These sectors are those considered to be of great national interest, for example media ownership.
Formation of a company in Brazil is a complicated process and continues after formation with a substantial number of monthly , quarterly and annual reports to local, state and federal authorities. The most common type of formation is a Limited Liability Company or Limitada.
LIMITED COMPANY (Ltda).
The Ltda can be organised as a civil or commercial company, depending on the definition of its objectives set forth in the Social Contract or Articles of Incorporation. Liabilities are limited to the total amount of company capital;
A limitada requires 2 partners, each partner (an individual or foreign company) must have a legal representative in Brazil, this can be any Brazilian or other person woth residency in Brazil. Many clients use their accountant, lawyer or other professional to be their Power of Attorney.
There is no minimum capital requirement except for certain types of companies such as export/import and trading companies.
The articles of association must state who is to be the managing shareholder. If the appointed manager is not a resident of Brazil, a Power of Attorney must be appointed who is a Brazilian national or resident .
We will send you an application form that will request information about the partners, legal representatives, company name and proposed business activity. When we have that information we will prepare the documents to be legalised at the Brazilian consulate in your country. If you will be in Brazil we can do everything at our office.
It will take from 30 t0 60 days before you can see your company registration on the government website. Your CNPJ, which is available to see online, gives the details of your business and statss of the company.
Opening a company is not always the best solution and we are pleased to recommend other options when we know your business objectives in Brazil.