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Entity Formation

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Business Structure

There are five types of business structures in Brazil. However, the two most common are:

Sociedade Limitada (Ltd): it is a private limited company in which members enjoy limited liability. This usually fits small and medium businesses since they are not authorized to issue shares in order to raise capital. Its incorporation document is known as “contrato social”.

Sociedade Anônima (S.A): it is a public limited company and its shareholders also enjoy limited liability. This is advisable for big companies entering into the market considering they are entitled to issue shares and sell them in the stock exchange. Its incorporation document is known as “estatuto”.

Trick Issues

Although Brazil has emerged over the last years as a power house economy in South America, some legislation has not kept up pace with the economic modernization. As a result, foreigners are likely to find difficult when dealing with:

  • Taxation: the country has of the most complex tax systems in the world. Companies are taxed in the municipal, state, and federal level. In addition, double taxation is probable depending on where your base is set up.
  • Labor Law: regardless where a company is willing to invest, it will end up eventually paying twice for each employee it takes on. That is because the Brazilian Labor Code (CLT) sets out a myriad of entitlements, such as: Christmas bonus, social security benefits, maternity leave and so on.
  • Background check: prior to selecting a local partner in the country, it is advisable to conduct a thorough investigation so as to ensure you are not getting involved with a fraudulent scheme. Some shell companies you contact might attempt to request money in advance and then leave you blindfolded with no real investment in Brazil.

Startup Companies

We understand their needs especially in a globalized and interconnected world. The Internet has also changed the way people and businesses interact and it is crucial to know how to set up a business model in a certain area and then replicate it throughout the world. In this process, understanding startup companies’ needs and goals is important for us.

Our services

Since Brazil is a major player internationally, companies can no longer afford not to invest in the country. However, in order to avoid incurring unnecessary costs, it is necessary to retain lawyers and professionals experienced and able to provide advice and be in charge of the steps to set up a business in Brazil. Therefore, our services include:

  • Drafting incorporation documents
  • Conducting background check
  • Providing advice both on tax and labor matters
  • Filling documentation with companies’ house and any other appointed office
  • Obtaining the necessary certificates for your company to start operating

Our team will provide you with all relevant information and be at your disposal to answer any questions you might have involving setting up a business in Brazil.

Phone: 212-300-7174

Email: info@oliveiralawyers.com