Foreign Investment And Foreign Companies In Brazil

Can you share exactly what the current foreign investment scene is much like in Brazil?

Among the most difficult aspects for foreign investment in Brazil are regulatory, tax, labour, and bureaucratic issues; factors that when unsuccessful or mismanaged, can seriously change up the results of a project.

However, despite expense and bureaucracy, the large Brazilian consumer market and the accessibility to investments attract foreigners to set up their business here.

Recently, after amendments within the law, it is possible to obtain a residence visa by way of investment, in ready or being built residential or commercial property.

With an investment, foreign investors will be entitled to a provisional two-year residence permit. After that, the authorisation becomes permanent.

This measure facilitates the entry of investors and helps the growth from the housing market, which was adversely affected throughout the crisis.

How can an overseas company make sure that the business conducted in Brazil is bringing progress towards the company locally and regionally?

In to provide legal certainty towards the foreign investment, it is crucial that the company, with the support of the legal expert, prepare the necessary preliminary documents and stick to the bureaucratic procedures. As for the segment of operations, there might be a differentiation concerning the requirement for registration before specific public agencies, as well as different variations of procedures according to the intended business structure.

After the creation of the company plan, the first thing to consider is easily the most appropriate legal corporate structure in accordance with each situation, while considering the tax impacts around the operation along with other laws, including labour and consumer law.

For the foreign investor, the primary problem for a business investment decision is legal certainty. Everything is clear when the company knows the legal and bureaucratic requirements of the business you want to explore.

The foreign company or investor needs to be certain they will not be presented with any surprises and they can plan, contract and execute their projects within an expectation already calculated under the aspect of legal certainty.

From this, are you able to share the most popular challenges clients face regarding foreign purchase of Brazil? How do you assist with this?

The biggest challenges that foreign clients face in Brazil are based on: the outlet times of the company; bureaucracy and acquiring the necessary licenses to start operations; the difficulties related to the variation from the local business culture; and, the complexity of tax and labour legislation.

Our main job is to soften these barriers to be able to provide foreign investors with greater efficiency and agility in conducting business in Brazil, always focusing on the legal certainty of international investment.

Knowing the organization legal challenges, we always try to anticipate the issues, passing on towards the foreign client the overall challenges that they may face when working locally.

As Thought Leader within this sector, can you share some tips which help foreign clients, individuals or companies, in order to be successful with their projects in Brazil? What are your tips for foreign traders entering Brazil for business?

It is essential for any foreign investor, individual or company, with an intimate knowledge of the neighborhood environment, including both the direct and indirect costs to do business in Brazil, related to distribution, government procedures, employee benefits, environmental laws and sophisticated tax structure. As speed in Brazil is a real problem, the investor also must adjust the budgets and strategic business plan accordingly.

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