Understand the Jurisdictions Setup Requirement Before Proceed Your Brazil Company Formation
Brazil is the leading economy in Latin America and the seventh largest economy in the world. Other than being an attractive destination for tourists from all over the globe, it also has an array of inviting commercial opportunities that have seen foreign investors troop in the country to start different kinds of businesses. If you are a foreigner and you want a piece of the Brazilian economic pie, then you need to have a sound understanding of the legal entity you will need to as your investment driver. At 3E Accounting, we specialize in offering affordable, reliable and customized Brazil company formation services to help you start your preferred business without any hassles.
Types of Legal Entities in Brazil
Here is a brief look at some of the legal entities you may consider when thinking about starting a company in Brazil-:
Limited Liability Company
A limited liability company is the most common type of legal entity for foreigners in Brazil. With this entity, the responsibility of the shareholders is dependent on their number of shares. In its formation, no minimum or maximum capital is necessary, unless the business conducts trading activities, or it hires foreigners as directors or managers. Again, at least two shareholders are needed, and the percentage of interest in ownership is not necessary.
Limited Liability Corporation
With a limited liability corporation, the shareholder’s liability is also limited to the number of shares subscribed. This company structure may have different classes of shareholders – voting shareholders and non-voting shareholders. This is the type of entity that works best for large companies who wish to set up base in Brazil and look forward to raising funds from the general public. To form a limited liability corporation in Brazil, there has to be a minimum of at least two shareholders. Also, the corporation can either be closed or publicly traded. Get in touch with us for more requirements for starting a limited liability corporation in Brazil.
This is an unincorporated organization with members who take part in business, trade, or financial operations ventures and then share the profits. Silent partnerships ideal for businesses in industries such as hotel pooling, reforestation projects, and real estate. These partnerships aim to be in existence until the objectives of the operations have been achieved.
A consortium is another type of legal entity available for those in need of Brazil company formation services. However, a consortium refers to a conglomeration of different companies who come together with the aim of carrying out a pre-determined activity or operation. In most cases, consortiums are unincorporated entities with two or more members or incorporated companies. These entities agree to come together to take part in a business venture and share profits.
Foreigners companies may also choose to have a presence in Brazil without registering a new legal entity. They do this by merely opening a branch office. However, it is usually more expensive and time-consuming to open a branch office compared to incorporating a new legal entity. It may take up to six months before the branch office can commence operations.
Let Us Help You
Irrespective of which legal entity you prefer in starting a company, you can use our reliable, affordable and customized Brazil company formation services to get your investment vehicle going. We have the experience, and the expertise to help you navigate through all the legal requirements. We can also open and activate your business bank accounts so that you can start running your business. Contact us for more information.