Starting a Business in Brazil: An Expat’s Guide

Published on October 4, 2025 and written by Cyril Jarnias

Relocating to Brazil to Start a Business: An Entrepreneurial Adventure

Moving to Brazil to establish your own business represents an exciting adventure, filled with both significant opportunities and unique challenges. This guide is designed for expatriate entrepreneurs ready to explore the dynamic landscape of the Brazilian economy, where booming sectors offer unprecedented opportunities.

Whether in tech, agribusiness, or tourism, Brazil is asserting its place on the global stage. Yet, navigating this exotic environment requires both a deep understanding of local regulations and cultural adaptation.

With strategic advice and testimonials from entrepreneurs who’ve already taken the leap, this guide aims to equip you to transform your business dream into a prosperous reality in the heart of this vast South American country.

Understanding Legal Structures for Starting a Business in Brazil

Main Legal Structures for Starting a Business in Brazil:

Structure	Key Characteristics	Advantages	Disadvantages	Specific Legal Requirements
Sociedade Limitada (LTDA)	Limited liability for partners. Share capital divided into quotas. Flexible management and simplified formalities. Majority required for important decisions.	Flexibility, simplified procedure, low minimum capital, suitable for SMEs/family businesses. Possibility of foreign partners.	Less suitable for public fundraising or large international projects; structure sometimes considered less transparent than S.A.	Articles of incorporation drafted before a notary, registration with the Commercial Registry and obtaining CNPJ (tax ID).
Empresa Individual de Responsabilidade Limitada (EIRELI) *(replaced by Individual Limited Company since the Economic Freedom Law)*	Company owned by a single person with liability limited to the amount of share capital (relatively high minimum required).	Asset protection for the entrepreneur; simple individual management; quick adaptation for small activities or foreign freelancers.	Relatively high minimum capital; less flexible than LTDA for rapid growth or need for partner(s).	Individual statutory filing with proof of financial capacity for minimum capital; registration identical to LTDA but without multiple partners.
Sociedade Anônima (S.A.)	Operation similar to French société anonyme: shareholders, board of directors, possibility of IPO or public offering. Liability limited to capital contributions in shares only.	Easier access to external capital/institutional investors; increased transparency through accounting obligations/annual external audits.	Complex and costly procedure for incorporation/ongoing management; strict regulatory requirements; mandatory publication of accounts.	Detailed articles of incorporation filed with a notary; registration with the Commercial Registry; mandatory external audit; strict compliance with local accounting standards.

Tax Implications and Accounting Obligations

• LTDA:
  • Taxation on profits according to chosen tax regime (“Lucro Real” or “Lucro Presumido”).
  • Regular accounting maintenance.
  • Monthly/quarterly tax returns.
• EIRELI / EI Ltda:
  • Same tax regime as LTDA.
  • Simplified accounting possible depending on activity.
• S.A.:
  • Strict taxation on profits (“Lucro Real” generally imposed).
  • Increased obligations: mandatory annual independent audits, official publication of financial statements.

Practical Tips for Expatriates

• Choosing the right legal structure depends mainly on:
  • The type of planned activity
  • Expected volume
  • Potential need to raise funds/third-party investors
  • Desired level of personal control
• Important cultural/legislative points:
  • Brazilian bureaucracy is known to be complex; it’s highly recommended to engage a specialized local lawyer and an experienced accounting firm from the start.
• For expatriates seeking simplicity and speed, opting for LTDA or EI Ltda/EIRELI often allows for a smoother startup while offering asset security.

Scenarios Where Each Structure Can Be Advantageous:

• LTDA
  Ideal for a local exporting SME managed by two French partners.
• EI Ltda/EIRELI
  Perfect for a foreign freelancer opening their digital office without a local partner.
• S.A.
  Essential when launching a tech startup quickly aiming for international funding from institutional investors.

Practical Checklist Before Creation

• Check if a local partner is required according to the target sector.
• Prepare all documents translated/apostilled according to Brazilian requirements.
• Anticipate administrative delays that can take up to several weeks.

Visual Summary – Suitable Choice According to Entrepreneurial Profile

Entrepreneur Profile	Recommended Structure
Freelance / solo	EIRELI / EI Ltda
Family SME	LTDA
High-tech startup	S.A., possibly foreign subsidiary

To maximize your chances in Brazil,
it’s always advisable to adapt your legal strategy to the local cultural reality,
particularly through regular physical presence to develop your professional network on the ground.

Administrative Procedures for Establishing Yourself as an Expatriate Entrepreneur

Types of Visas Needed for Entrepreneurs

• Investor Visa (VITEM IX): To create or invest in a local company, with a minimum investment generally of 500,000 BRL (can be reduced to 150,000 BRL for tech startups or in certain less developed regions). This visa allows for renewable residence and opens the path to permanent residency.
• Golden Visa (VIPER): Permanent residency for investors making a significant economic contribution, notably through real estate or commercial activity.
• Work Visa (VITEM V): For entrepreneurs recruited locally or associated with a Brazilian company.

Legal Requirements for Company Registration

• Choice of legal form (EIRELI, LTDA, S.A., MEI, etc.).
• Drafting and registration of articles of incorporation with the Commercial Registry (Junta Comercial) of the state of domicile.
• Registration with the National Registry of Legal Entities (CNPJ) with the Receita Federal.
• Registration with local tax authorities and, depending on the activity, obtaining specific permits (health, environmental, etc.).
• Company domicile (physical address required).

Documents Required for Tax Registration

• Valid passport and, if applicable, corresponding visa.
• Proof of residence in Brazil.
• Signed company articles of incorporation.
• Proof of investment (certificate of fund transfer via the Central Bank).
• Clean criminal record.
• Properly filled-out CNPJ registration form.
• Sworn translation into Portuguese of foreign documents.

Formalities for Opening a Professional Bank Account

• Prior registration with CNPJ.
• Company articles of incorporation and proof of registration.
• Passport and visa of the legal representative.
• Proof of company address.
• Proof of tax registration and local permits if applicable.
• Physical presence of the manager often required for signature.

Useful Government and Local Resources

• Receita Federal: For obtaining CNPJ and tax procedures.
• Junta Comercial of the relevant state: For legal registration of the company.
• Banco Central do Brasil: For registration of foreign investments.
• SEBRAE (Brazilian Service of Support for Micro and Small Enterprises): Support, advice, and training for foreign entrepreneurs.
• Ministério da Justiça e Segurança Pública (MigranteWeb): Official platform for visa and residency applications.
• Foreign chambers of commerce and local consulates.

Typical Timeframes to Expect

Step	Indicative Timeframe
Obtaining investor visa	4 to 12 weeks
Company registration	2 to 8 weeks
Obtaining CNPJ	3 to 10 business days
Opening bank account	1 to 4 weeks
Registration with local authorities	1 to 3 weeks

Regional Particularities to Consider

• Registration procedures and timeframes vary by state (São Paulo, Rio de Janeiro, Minas Gerais, etc.) depending on service digitalization, administrative load, and local requirements.
• Some regions offer tax incentives (free trade zones, corporate tax reductions) or lower investment requirements to attract foreign entrepreneurs.
• Domiciliation costs, availability of skilled labor, and access to infrastructure differ significantly between major metropolises (São Paulo, Rio, Brasília) and northern or northeastern regions.
• The level of support from local institutions (SEBRAE, development agencies) may be higher in regional capitals.

Note: All foreign documents must be apostilled and translated by a sworn translator into Portuguese. Procedures can be facilitated by engaging a specialized lawyer or local support firm.

Tax Considerations and Funding for International Startups in Brazil

Brazilian Tax System

The Brazilian tax system is known for its complexity and multi-level organization (federal, state, municipal). An international startup may face the following main taxes:

Tax	Level	Description
Imposto de Renda de Pessoa Jurídica (IRPJ)	Federal	Corporate income tax, generally at 15%, with a 10% surtax beyond a certain profit threshold.
Contribuição Social sobre o Lucro Líquido (CSLL)	Federal	Social contribution on net profit, current rate of 9%.
Imposto sobre Serviços (ISS)	Municipal	Tax on services, rate from 2% to 5% depending on the municipality and type of service.
Imposto sobre Circulação de Mercadorias e Serviços (ICMS)	State	Value-added tax applicable to goods and certain services, rates varying from 7% to 18% depending on the state and product.
Programa de Integração Social/Contribuição para o Financiamento da Seguridade Social (PIS/COFINS)	Federal	Social contributions on revenue, combined rates between 3.65% and 9.25%.

Tax obligations therefore vary according to location, activity, and chosen tax regime (Simples Nacional, Lucro Presumido, Lucro Real).

Tax Incentives and Support Programs

• Simples Nacional: Simplified regime for SMEs, including startups, with annual revenue threshold (BRL 4.8M) and unified payment of several taxes. Certain activities remain excluded.
• Free trade zones (e.g., Zona Franca de Manaus): Partial or total exemptions from federal and state taxes to encourage innovation and industrial establishment.
• Innovation programs: Tax incentives for R&D, such as the possibility to deduct certain expenses from the tax base.
• Grants: Some government programs (e.g., Finep, BNDES) offer reduced-rate loans, grants, or tax credits for technological projects.

Administrative Challenges

• Complexity of reporting obligations (multiplicity of taxes, periodic returns, specific electronic requirements).
• Variability of rules from one state or municipality to another.
• Frequent changes in legislation.
• Risk of tax disputes in case of interpretation differences.
• Need for a local tax representative for foreign companies.

Recommended solutions:

• Engage firms specialized in Brazilian taxation.
• Automate tax management using tools adapted to local legislation.
• Maintain active regulatory monitoring.
• Train local staff on current obligations and practices.

Funding Options

• Venture capital: Presence of local and international investors, often concentrated in São Paulo.
• Incubators and accelerators: Support programs, startup funding, networking (e.g., Cubo, Endeavor, ACE).
• Financial institutions: BNDES and Finep offer credit lines or grants for innovation.
• Local partnerships: Strategic alliances with Brazilian banks or investment funds to facilitate market access and funding.

Exchange Regulations

• Brazil applies strict exchange controls: Any capital inflow or outflow must be registered with the Central Bank.
• International transfers (capital contributions, loans, dividend repatriation) require registration of foreign capital and compliance with specific procedures.
• Profit repatriation is permitted but subject to withholding tax (generally 15%, up to 25% for certain countries).
• Exchange rate fluctuations can impact the profitability of transfers.

Case Studies or Examples

Example 1: A European fintech startup established itself in São Paulo through a partnership with a local bank, opted for the Simples Nacional regime in the first years, and benefited from an incubation program. Despite administrative complexity, support from a tax firm and digitalization of procedures helped avoid disputes and optimize taxation.

Example 2: A North American company specialized in AI benefited from a free trade zone to reduce setup costs and obtained a Finep grant for its R&D project. It structured its financial flows to facilitate profit repatriation while complying with exchange obligations.

Visual Summary of Key Points

Aspect	Key Points
Main taxes	IRPJ, CSLL, ISS, ICMS, PIS/COFINS
Incentives	Simples Nacional, free trade zones, R&D grants
Challenges	Complexity, local variability, electronic requirements
Solutions	Specialized advice, automation, regulatory monitoring
Funding	Venture capital, incubators, BNDES/Finep, partnerships
Exchange	Strict control, mandatory declaration, withholding tax

Key takeaway: Navigating the Brazilian tax and financial system requires anticipation, local support, and constant adaptation to regulatory evolution.

Adapting to Business Practices and Support Resources for Expatriate Entrepreneurs

Business Practices in Brazil: Differences and Particularities

Brazil presents a distinct business environment, marked by strong state presence in the economy, complex regulation, and an entrepreneurial culture where interpersonal relationships play a central role.

Aspect	Brazil	Country of Origin (e.g., Europe/USA)
Legal framework	Complex commercial legislation; strong state involvement; importance of respecting local procedures (RADAR/SISCOMEX for import-export). Presence of specific free trade zones.	Often more transparent and predictable; less bureaucratic.
Business culture	Personal relationships prioritized, trust to establish before business, often indirect communication, consensus-seeking.	More direct and task-oriented approach; marked separation of private/professional life.
Decision-making	Sometimes slow process; hierarchy valued; decisions made at the top after several informal meetings.	Often faster and decentralized decision-making according to Western management structures.

Brazilian Legal and Regulatory Framework

• Foreign companies must understand the local legal system: mandatory obtaining of RADAR number for international trade via the SISCOMEX platform.
• Several free trade zones (Manaus, Macapá…) offer targeted tax advantages but require strict compliance with local rules.
• International trade negotiations are influenced by protectionist national policy – multilateral trade agreements in constant evolution.

Local Business Cultures & Interpersonal Relationships

• Personal networking essential: it’s common for several informal meetings to precede any contractual agreement.
• Mutual trust, often built during lunches or social events, takes precedence over immediate contracting.
• Communication favors non-verbal cues: pay attention to implicit signals during professional exchanges.

Practical Tips for Integrating into Brazilian Entrepreneurship

• Mastering or surrounding yourself with Portuguese-speaking contacts greatly facilitates administrative and commercial procedures.
• Invest time in building a strong local network (participation in professional or associative events).
• Get precise information on regional specificities as each federated state may apply its own taxes or economic incentives.

Resources & Available Support

Government Institutions

• SEBRAE (Serviço Brasileiro de Apoio às Micro e Pequenas Empresas): Support for SMEs via legal/tax/financial advice dedicated to foreigners wishing to create their business.

Foreign/Local Chambers of Commerce

• Bilateral chambers France-Brazil, Germany-Brazil… regularly organize practical workshops/newcomer sessions/networking.

Incubators & Entrepreneur Networks

• Multiple public/private incubators specifically support international startups in São Paulo/Rio/Belo Horizonte…
• Networks such as Endeavor Brasil offer personalized mentoring/coaching for expatriate entrepreneurs.

Non-Governmental Organizations

• Associations such as Junior Achievement Brasil facilitate social/professional integration through educational programs dedicated to foreign project holders.

Key Takeaways

• Prioritize competent local support from the outset;
• Immerse yourself in the Brazilian professional relational fabric;
• Anticipate administrative delays;
• Demonstrate constant cultural adaptability to durably gain the trust of local partners.