HOW TO SET UP A COMPANY IN BRAZIL

Choose the type of company for the business. For that, it is important to consider the types of businesses in Brazil.

Hire a local accountant to take all documents to the Board of Trade of the Brazilian state where you intend to open the company.

This professional should assist throughout the process, prepare and register the following documents:

I. Articles of incorporation/bylaws. One must choose the revenue method for calculating taxes when filing these – either the "National Simple" (Simples Nacional) for small businesses, Taxable Income or Estimated Profit - and make a number of other decisions, such as the company's name, the legal representatives in charge of the company's administration, etc. Legal assistance is also recommended in order to prepare the articles of incorporation/bylaws;

II. Power of attorney given to the Brazilian Representative;

III. Copies of the personal documents of the representatives, including the visa; and the address voucher for where the company will be established;

IV. Corporate taxpayer ID number (CNPJ);

V. State and Municipal Taxpayer Registries;

VI. Municipal License / Operation Permit (Alvará ou Licença de Funcionamento); and

VII. National Institute of Social Security (Previdência Social) and Special Fund for Unemployment - FGTS Registrations.

Note that all foreign documents must be translated to Portuguese by a sworn translator (whose contacts available at the local Board of Trade) and notarized in the Bureau of Registry of Deeds and Documents (Cartório). The paperwork must be also notarized by a Brazilian consulate located in the associate's country of origin.

Opening a Bank Account

A final important point related to this topic is opening a bank account in Brazil. The Brazilian banking sector is considered as one of the most modern in the world. State-owned banks, private banks, investment banks and other financial institutions, both domestic and international, compete in the retail banking industry in Brazil.

To open a business account, businesses need to fill out certain forms and provide legal documents, such as:

• Identification, proof of registration and registration status with the National

• Registry of Legal Entities of the Ministry of Finance/Internal Revenue Service issued no more than 30 days earlier;

• Identification of Legal Partners and Managers - Submit documents and information form for the registration of individuals who are shareholders or officers of the company/organization (ID, CPF, proof of residence);

• Chattel property, real estate and livestock (e.g. proof of property ownership, proof of payment of property tax or ITR for the last year, Certificate of Ownership, Registration and Licensing of Vehicles)

• Authorization for waiver of registration information – SCR (Credit information system)

• Authorization for waiver of registration information – REFIS (Taxpayers Program)