Are you a foreigner residing in Brazil and want to open a business?
First, you must be legal in the country. If you don’t yet possess a “Registro Nacional de Estrangeiro (RNE)” (legal ID for foreigners in Brazil), start your process with the Department of the Federal Police (www.pf.gov.br). It will also be necessary to aquire a “Cadastro de Pessoa Física (CPF)” (a legal ID for tax purposes) at Brazil’s Federal Revenue Services (www.receita.economia.gov.br).
Once you get the personal documents (an RNE and, CPF) and an operating business address, it will be necessary to consider whether to start the company alone or with an associate, which will depend on your company business plan, initial capital invested, corporate purpose of the company, and if there will be any hiring of employees.
It is also important to understand that the Brazilian tax obligation is one of the highest in the world. There are several principal fiscal obligations and ancillaries that must be fulfilled in order to avoid tax assessments and executions.
Brazil possesses a population of more than 211 million, according to the demographic census conducted by the IBGE (the Brazilian Institute of Geography and Statistics) released in 2020. Also, research done by Ebit reveals that in 2019, the billing of Consumer Week (which occurs in March) reached R$1.174 billion.
Considering the potential client in Brazil, and the opening of a business, there is huge potential for profit. And in order to maximize results, it is recommended that a tax intelligence business is consulted to analyze, from the beginning, the best options for your company’s tax framework, tax planning strategies, and competitive geolocation mapping, with a view for optimizing the tax burden, and consequently, your company’s profits.
With this vital information in hand, it’s time to legally open your business!
