Brazilian Law Firm

The time it takes to register a company in Brazil varies by state. In São Paulo State, registering a limited liability company (LTDA) takes 15-30 business days. The process includes applying for a CNPJ tax number (5-7 days), registering for state and municipal taxes (5-10 days), and obtaining a business license (5-7 days). Certain industries require additional permits. We can expedite the process, completing basic registration in as little as 10 days.

100% foreign investment is permitted in most sectors, but some restrictions apply: media (30% cap), aviation (20%), rural land (subject to approval), and border areas (within 150 kilometers). Foreign investments must be registered with the Central Bank (RDE-IED). All companies must appoint a Brazilian resident as legal representative.

Brazil's tax system is indeed complex, with three levels of taxation: federal, state, and municipal. Major taxes include: 15% corporate income tax with a 10% surcharge, 9% social contribution tax, 9.25% PIS/COFINS combined, 12-25% ICMS state tax, and 2-5% ISS service tax. You can choose between the Simples Nacional system (for annual incomes under R$4.8 million) or the Lucro Presumido system (presumed profits).

Brazil's labor law (CLT) provides strict protection. The minimum wage is R$1,412 per month (as of 2024). Mandatory benefits include 13 salaries, 30 days of paid vacation (plus a 1/3 vacation bonus), a FGTS (a security fund of 8% of the salary), and transportation and food allowances. Dismissal costs are high, with a 40% FGTS penalty. It is recommended to use formal labor contracts to avoid labor lawsuits.

To open a Brazilian company bank account, you'll need: a CNPJ, articles of incorporation, the legal representative's CPF, proof of identity, proof of address, and a business description. Major banks include Itaú, Bradesco, Santander, and Banco do Brasil. Foreign-owned companies face stricter review processes, typically taking 2-4 weeks. Some banks require an initial deposit and a minimum monthly balance.

Brazil offers numerous investment incentives: the Manaus Free Trade Zone (with up to 88% tax reduction), export processing zones (ZPEs), the Innovation Law (with a Lei do Bem R&D expense deduction), REIDI infrastructure tax incentives, and state-by-state ICMS incentive competition. Chinese companies have numerous opportunities in infrastructure, manufacturing, and agriculture.