How to start a business in Brazil: Requirements and steps

Starting a business in Brazil sounds attractive: It’s Latin America’s largest economy, a market of more than 200 million people, and one of the favourite destinations for foreign investment in sectors like technology, agribusiness, and e-commerce. However, before getting excited, ask yourself the right question: Is opening your company here really worthwhile? Bureaucracy remains real, the tax system ranks among the continent’s most complex, and foreigners require twice as many procedures as Brazilians to incorporate a business. Is the investment worthwhile? In this guide, we break everything down.

Here, we’ll cover everything you need to know about opening a company in Brazil as a foreigner: The real process costs, available company structures, legal requirements, tax obligations, and a step-by-step guide for completing registration smoothly. We’ll also explain how to stay connected during your business trips to the country.

How Much Does It Cost to Start a Business in Brazil?

Company incorporation costs in Brazil vary according to the chosen company structure, the registration state, and whether you hire professional advisors. Below, we break down the main expenses:

• Registration fees at the state Commercial Board: Between $250 R and $600 R ($43–104 US; €37–89), depending on the state.
• Obtaining the CNPJ (company tax number) from the Receita Federal: No additional cost, completed online.
• Notary and document legalisation fees: Between $500 R and $2,000 R ($87–348 US; €75–300).
• Official translation of foreign documents: Between $300 R and $800 R ($52–139 US; €45–120) per document.
• Document apostille in the country of origin: Costs vary by country, although prices usually range between $55 US (€50) and $165 US (€150).
• Minimum share capital: Standard Ltda structures don’t require mandatory minimum capital. However, investor visas require at least $500,000 R ($86,950 US; €74,800) in capitalisation.
• Tax address (virtual office): From $200 R per month ($35 US; €30/month).
• Opening a corporate bank account: No fixed cost, although banks require minimum balances.
• Monthly accounting and legal advisory: From $500 R per month ($87 US; €75/month).

Overall, the incorporation process may range between $3,000 R and $8,000 R ($520–1,390 US; €450–1,200) when hiring external advisors. Handling everything independently reduces costs, although Brazil’s bureaucratic complexity makes hiring a local lawyer or accountant highly advisable.

Which Types of Companies Can You Open in Brazil?

Brazil recognises several legal structures for foreigners. These remain the most common:

Limited Liability Company (Ltda)

This remains the most popular structure for foreign investors. It offers liability limited to contributed capital, allows a single shareholder since 2021, and doesn’t require fixed minimum capital. It suits small and medium-sized businesses perfectly.

Public Limited Company (SA)

This structure suits larger companies seeking investment capital or stock market listings. Its management remains more complex and expensive. Additionally, it requires at least two shareholders and stricter accounting obligations.

Individual Microentrepreneur (MEI)

This structure allows simplified operations with lower revenue limits. Foreigners may only access this option if they hold a permanent National Foreigners Registry (RNE), or temporary residency of at least two years for Mercosur citizens.

Foreign company branch

This structure works as a direct extension of the foreign parent company, without independent legal personality. It requires special authorisation from Brazil’s Ministry of Development, Industry, and Foreign Trade. Consequently, the process becomes longer and more complex.

Requirements for Starting a Business in Brazil

Opening a company in Brazil as a foreigner doesn’t require residency in the country. However, you must meet several legal and administrative requirements:

• CPF (Cadastro de Pessoas Físicas): Individual tax identification number, essential for every foreign shareholder. You can request it online or through a Brazilian consulate.
• Resident representative in Brazil: Appointing a legal representative with authority to manage the company and represent it before public bodies like the Receita Federal and Central Bank remains mandatory.
• Apostilled power of attorney: You must issue it in the country of origin, apostille it, and translate it into Portuguese through an official translator.
• Tax address in Brazil: This may include a rented property or virtual office address with certified occupancy approval.
• CNPJ: Company tax identification number issued by the Receita Federal after registering the company bylaws.
• Registration with the Central Bank (BACEN): Mandatory for non-resident investors through the Non-Resident Declaratory Registration (CDNR), especially when capital exceeds $100,000 US (€92,000).
• Specific licences: Depending on the sector, municipal, state, or federal permits may become necessary (health, environmental, fire department, etc.).
• Digital certificate: Necessary for signing documents and managing procedures remotely.

You can complete most of the process online without travelling to Brazil, thanks to the power of attorney and digital certificate.

Taxes for Opening a Company in Brazil

Brazil’s tax system ranks among Latin America’s most complex, with obligations at federal, state, and municipal levels. These are the main taxes affecting companies:

• IRPJ (Corporate Income Tax): Base rate of 15% on net profits, with an additional 10% surcharge on profits exceeding $240,000 R ($41,700 US; €35,900) annually.
• Social Contribution on Net Profit (CSLL): 9% additional funding for social security.
• PIS/COFINS: Federal contributions applied to business turnover. From 2025, the CBS (Contribution on Goods and Services) gradually replaces them following Brazil’s tax reform.
• ICMS: State tax on goods circulation, with rates ranging between 17% and 20%.
• ISS: Municipal services tax, with rates ranging between 2% and 5%.
• IPI: Federal tax on industrialised products, applicable to manufacturing companies.
• Withholding tax on overseas dividends: From 2026, Brazil plans a 10% withholding tax on profits and dividends distributed to non-residents.

Companies may choose different taxation regimes: Simples Nacional (for lower revenues), Lucro Presumido (up to $78 R million annually / $13.5 million US; €11.6 million), or Lucro Real (mandatory for large companies). The tax reform approved in 2023 gradually transforms the system, with full changes expected between 2026 and 2033.

Steps for Starting a Business in Brazil

Foreigners can complete most of the company incorporation process in Brazil remotely. Below, we explain every stage in detail:

Step 1: Obtain the CPF

The first step involves requesting the CPF (individual tax identification number) for every foreign shareholder. You may complete this online through the Receita Federal website, at a Brazilian consulate or embassy in your country, or personally in Brazil. This number remains essential for appearing within the company bylaws.

Step 2: Appoint a Local Representative

You must appoint a legal representative residing in Brazil. This person acts as attorney-in-fact with authority to manage the company, represent it before the Central Bank and Receita Federal, and receive judicial notifications. Additionally, you must issue a power of attorney, apostille it in your country, and translate it into Portuguese through an official translator.

Step 3: Choose the Company Structure and Reserve the Name

Select the most suitable legal structure (usually the Ltda) and verify name availability on the Commercial Board website of the state where the company will incorporate. The name must remain unique and comply with Brazilian naming regulations.

Step 4: Draft and Register the Company Bylaws

You must prepare the incorporation bylaws with assistance from a local lawyer or accountant and register them with the Commercial Board (Conselho de Comercio) of the relevant state. At this stage, the company defines share capital, business purpose, shareholders, and ownership percentages.

Step 5: Obtain the CNPJ

After registering with the Commercial Board, the company requests the CNPJ (legal entity tax identification number) from the Receita Federal do Brasil. This number remains essential for operating legally, opening bank accounts, and issuing invoices.

Step 6: Register with the Central Bank (BACEN)

If contributed capital exceeds $100,000 US (€92,000), registering the foreign investment through the Central Bank’s RDE-IED system becomes mandatory. This registration allows foreign capital monitoring and remains necessary for distributing dividends abroad.

Step 7: Obtain Operating Licences and Permits

Depending on the business activity and location, you must request municipal (commercial licence), state, and federal permits. These may include health, environmental, or fire department authorisations. Therefore, consult the local municipality where your company will operate.

Step 8: Open a Corporate Bank Account

Open a corporate bank account with a Brazilian financial institution. This process may take between several days and three months, depending on the bank and submitted documentation. You’ll need the CNPJ, registered bylaws, and shareholder documentation.

Step 9: Hire an Accountant

Brazilian legislation requires every company to maintain regular monthly accounting. Therefore, hire a qualified accountant to manage tax obligations, Receita Federal declarations, and social contributions.

Internet for Business Trips to Brazil

If you travel to Brazil for business or manage company procedures personally, you’ll need reliable internet access immediately. With Holafly’s monthly plans, you can manage video calls, sign digital documents, communicate with your legal representative, and solve procedures in real time without relying on hotel or coworking Wi-Fi.

Holafly’s Always On feature guarantees uninterrupted connectivity across more than 70 countries, including 1 GB free every month. Without contracts, unexpected charges, or connectivity worries, you’ll always stay connected whether visiting São Paulo, travelling through Rio de Janeiro, or working in Brasília. The perfect solution for international entrepreneurs.

Frequently Asked Questions About Opening a Company in Brazil

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