Legislation allows single-holder limited-liability firms in Brazil

December 18, 2012
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Brazilian Commercial Law

Companies attempting to develop mergers or incorporations in Brazil will need to follow the business laws of this country, which may be why speaking with a knowledgeable attorney at a Brazilian law firm could be beneficial.

Brazilian commercial law identifies a wide number of business entities that can be established in this country legally. While some may be similar or even identical to the ones offered in the United States and European countries, others are more geared toward Brazilian culture.

The types of business entities that may be established in Brazil include general partnership, limited partnership, limited liability company, corporation, limited corporate partnership and other types of company establishments.

The Economist reported that Brazil may be a more challenging country to develop company relations, but a new law has been established to allow business owners to create a single-holder limited-liability firm.

"It was quick and easy because I didn't have to hunt for a partner," Taise Litholdo, an architect, told the source regarding the new law and his ability to form a business.

This new law, which was initiated in January 2012, has brought more capabilities and simplified business owners' lives. Before this legislation took hold, in order to open up a small business in Brazil, professionals needed at least two partners. By complying with this requirement, business owners were able to open a limited-liability company.

Foreign investors and business executives attempting to conduct transactions, mergers or acquisitions in Brazil should consider consulting a Brazilian attorney specializing in business developments and expansions.

Additionally, law firms in Brazil can provide firms with quality legal representation when a dispute or lawsuit arises.

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