Even though Brazil has one of the most thrilling growths in the recent years it does has its own limitations if one is thinking of setting up a business in brazil. Many economies in brazil remain underdeveloped. Many factors like your target customers, the regulations and the investments are not as established as a developed country would have. The bureaucracy might be the biggest hurdle to start a business for any overseas firm. Out of 180 plus countries brazil ranks 126th. This data is as per the World Bank annual global report. This ranking means that the ease of starting a business, obtaining the regulatory permits, or registering your property where you want to start a business will be a long haul. On an average there are around thirteen procedures and 3 months of work to start a business. This is not the only duration. The constructions permits take longer than the above said duration. It can be as much as 470 days which is more than a year!
While the regulations and permits actually take a very long time, what demotivates most of the overseas investors is the corruption. It is famously notoriously famous for corruption amount business people and politicians.
The taxes are another set challenges which can be unpredictable. The prices are soaring high in Brazil because of the economic boom. The currency rates have moved up and it may not be a cheap affair as ne would think it might be.
Imports and exports can be complicated in brazil as imported goods are seized for quite some time and it take a very long time to complete the whole process. Exports also take longer time which can be almost 2 weeks just to leave the Brazilian territory.
Lastly to keep in mind is that unions have a lot of impact on brazil. Although there are positive points to their existence and labor market has developed mainly due to them. But it is easy to become a victim to the high fines.
Below are some points to remember while you work your way through this maze.
Check for a local attorney who would guide you through the process
Decide about your visa status: if you would be making sporadic visits then a visitor visa should suffice or if you need to be physically be around for your business then you may need a resident visa.
A resident visa approximately cost you $150,000 dollars because the requirement is that you need to invest this amount in your business.
There are two types of business entities your firm may need. And the most common one is Sociedade Limitada. This is the cheapest form which is based on the articles of association. The second option is Sociedade Anônima. This might be the least flexible type but can be most transparent as well. This type requires you to published disclosure of corporate activity.
So to conclude if Brazil has been on your radar as a possible home to unveil your business, be ready to work your way through the legal and regulatory maze.