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Brazil Company Registration

Brazil Company Registration

Lawshi Law Firm's Brazil team is your strategic partner for entering this vital South American market. As the economic engine of Latin America, Brazil boasts a vast market of over 210 million consumers. Our local experts in São Paulo and Rio de Janeiro will provide you with professional legal and business support, ensuring your company's smooth launch and enabling you to seize market opportunities.

30 days
Average registration time
210 Million
Population market
R$1
Minimum registered capital
#1
Latin America's largest economy

Recommended Company Type in Brazil

Overview of Brazil's Investment Environment

🌎

The market size is huge

Latin America's largest economy, with a population of 210 million and a middle class of over 100 million, possesses enormous consumer market potential.

🏭

A well-developed industrial system

Latin America has the highest level of industrialization, with well-developed industries such as automobiles, aviation, petrochemicals, and steel, forming a complete industrial chain.

🌾

Abundant agricultural resources

The world's largest producer of coffee, sugar, and orange juice, and a major exporter of soybeans, corn, and beef.

Huge energy reserves

The deep sea has abundant oil reserves, plentiful hydropower resources, and rapidly developing renewable energy, achieving energy self-sufficiency.

🤝

China-Brazil relations are close

Latin America is China's largest trading partner, with bilateral trade exceeding US$150 billion, and a comprehensive strategic partnership.

📍

Regional radiation center

Mercosur, at its core, radiates to 300 million people in South America, making it the best platform for entering the South American market.

Investment Advantages and Highlights

The Brazilian government actively attracts foreign investment, offering equal national treatment, free capital flow, and no foreign exchange controls. It provides tax incentives and financing support, particularly in infrastructure, energy, and technological innovation. Mechanisms such as the China-Brazil Business Council and the China-Brazil High-Level Cooperation Committee provide strong support for Chinese enterprises. Brazil is an important partner of China's Belt and Road Initiative in Latin America.

Taxation Essentials

Brazil has a complex tax system, comprising federal, state, and municipal levels, resulting in a high overall tax burden. Companies can choose different tax systems depending on their size. The government offers tax incentives for specific industries and regions, and foreign-invested enterprises enjoy national treatment. Special attention should be paid to Brazil's stringent tax compliance requirements.

15-25%
Corporate income tax
The base tax rate is 15%, and the excess is 10%.
9%
Social contribution tax
CSLL, paid by all enterprises
5%
Outward tax
Funds remitted overseas
7-19%
Turnover tax (ICMS)
State tax, circulation tax
2-5%
Service Tax (ISS)
Municipal tax, levied on the service industry
7.6-10.45%
Industrial product tax
IPI, manufacturing tax
Special offers
Investment incentives
Manaus Free Trade Zone and other preferential policies

Frequently Asked Questions about Brazilian Company Registration

Can LTDA really be established by one person now?

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Yes, significant changes following the enactment of Law No. 14.195 in 2022:

  • Before 2022: LTDA must have 2 shareholders
  • After 2022: Allowing one shareholder to establish an LTDA
  • EIRELI was eliminated (requiring capital at 100 times the minimum wage).
  • Existing EIRELI units can be converted to LTDA for free.

This brought Brazil in line with international standards and greatly facilitated foreign investors.

What's the difference between CNPJ and CPF? Are both necessary?

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Both have different functions but are important:

  • CNPJ:Company tax identification number (14 digits), format XX.XXX.XXX/XXXX-XX
  • CPF:Individual Taxpayer Identification Number (11 digits), format XXX.XXX.XXX-XX

Foreigners need:

  • Shareholders: Must have CPF
  • Administrator: Must have CPF
  • Company: Must have CNPJ

CPFs can be generated instantly through consulates or by applying online.

Does Simples National really save a lot of taxes?

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Significant tax savings:

Tax system Overall tax burden Number of applications
Simples 4-19% Once a month
Lucro Real 35-40% Multiple times per month
Lucro Presumido 15-25% Quarter

Restriction: Annual income not exceeding 4.8 million reais (approximately 1 million US dollars).

Can the REDESIM system really complete registration in 5 days?

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Most cities allow it, but there are differences:

  • São Paulo: 3-5 days (most comprehensive system)
  • Rio: 5-7 days
  • Brasilia: 3-5 days
  • Small cities: possibly 10-15 days

Acceleration conditions:

  • Use standard contract template
  • Choose low-risk CNAE code
  • All shareholders' CPF has prepared
  • The address has been approved by the municipality.

What is CNAE code? Why is it important?

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CNAE (Classificação Nacional de Atividades Econômicas) is a classification of economic activities in Brazil.

  • A 7-digit code defines the company's business scope.
  • The applicable tax rate is determined by the differences between Simple and National tax rates.
  • Impact on license requirements
  • Determine the level of environmental and safety inspections

Choose a strategy:

  • Multiple CNAEs can be selected (1 primary + multiple secondary).
  • Choose the one with the optimal tax rate as the primary CNAE.
  • Avoid high-risk industry codes (on-site inspection required).

Is the eSocial system complex? Is it necessary for small companies to use it?

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All companies that employ workers must use:

  • Integrate 15 previously separate labor declarations
  • Real-time transmission of employee information to the government
  • Automatically calculate all labor taxes and fees
  • Fines for violations are severe (2,000-50,000 reais per violation).

Simplified solution:

  • Use accounting firm services (monthly fee 500-2000 reais)
  • Automated integration with cloud-based HR system (monthly fee: 200-500 Reais)
  • MEI (Self-employed Individuals) Exempt from eSocial

Are Brazil's labor laws very strict? Are the costs of dismissing employees high?

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CLT labor law does indeed offer strong protection:

Employment costs (excluding wages):

  • FGTS: 8% (Unemployment Fund)
  • INSS: 20% (Employer's Social Security)
  • 13th month salary: 8.33% (year-end bonus)
  • Holidays: 11.11% (30 days of paid leave)
  • Total: Approximately 70-100% of salary

Cost of dismissal:

  • FGTS penalty: 40% of cumulative FGTS
  • Advance notice: 30 days' pay
  • The ratio of 13 months' salary to holidays
  • Total: Approximately 2-3 months' salary

What do I need to open a bank account in Brazil? Is it difficult?

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Opening a business account is relatively simple:

Required documents:

  • CNPJ card (can be printed online)
  • Company Contract
  • Shareholders and Managers CPF
  • Address Proof
  • NIRE (Business Registration)

Time: 3-7 business days

Features:

  • Account opening is available 100% online (major banks).
  • Initial deposit: Usually 1,000-5,000 reais
  • Monthly fee: 50-500 reais
  • PIX Instant Payment System 24/7 Free

Ready to do business in Brazil?

Our professional team is ready to provide you with Brazil company registration and commercial legal services

Contact us