Incorporating A Company In Brazil

Starting a business venture in Brazil is not a big issue as foreign as well as native Brazilians can start a company. However there are many legal as well as national matters that need to be seen to before one can start his/her business venture in full swing.

There are restrictions when it comes to foreigners starting business ventures in Brazil and to be on the safe side it will be better if one takes the help of a Brazilian law firm to take care of the paper work pertaining to the company.

Below is information that should be known if one wants to start a business venture in brazil.

- Visa specifications.

If a foreigner is a shareholder in a Brazilian company he or she doesn't need a visa. However if a foreigner is made the manager of the company only for a come- to -see and go back basis it is imperative for that individual to have a tourist visa in hand. However if a foreigner is made the manager of the company for a continued time period he/she needs to possess a permanent visa which can be got on showing proof that that individual has invested more than R$150,000 in the company under consideration.

- categories of companies

Companies in Brazil have the extension LTDa in their name which stands for Sociedade Limitada. This is the simplest type of company to operate in Brazil as it requires no initial capital and can be divided in shares or quotas. The resultant company is managed by administrators who are nationals of Brazil and chosen by the shareholders of the company. In order to have total control of the business settings the individual should show proof of having about 75% of the shares under his/her name. sociedade Anonima is a type of company that is difficult to float as it is very difficult to operate and maintain. Companies followed by this extension are available on the stock exchange and its BOD is made up of the shareholders.

The procedures for setting up the company are as follows:

- Name of the company: the company name must be registered keeping in mind the exact origin of its location. If a foreign investor is setting up the company the name of the company should be followed by the following words: do Brasil which mean of Brazil.

- Shareholders: the number and names of the shareholders of the company should be known to the legal representatives before the company is formally incorporated.

- Address: the address provided should be legal, however if the company will not be using any office establishment to carry out its activities a virtual office address can be used.

- Capital and management: the initial sum of money that needs to be invested in the company should be known to the shareholders as this amount of money will need to be returned in the near future.

Once these details have been finalized the company should be registered keeping in mind all the rules and regulations of the country. The company papers should be finalized by the legal representative who has to be a Brazilian national.