Insights

Practical notes on opening and running a subsidiary in Brazil.

Subsidiary or branch in Brazil: which one for a foreign company?

A branch is the foreign company itself registered in Brazil and needs federal authorization. A subsidiary is a new Brazilian legal entity. How to choose.

Single-shareholder Ltda in Brazil: what foreign companies should know

Since 2019 a Brazilian limited company can have one shareholder. What that means for a foreign parent, and what you still need locally.

Lucro Presumido vs Lucro Real for a foreign-owned subsidiary

Lucro Presumido is capped at R$78 million of annual gross revenue and taxes a presumed margin. Lucro Real has no cap. How to compare them.

Documents to open a Brazilian subsidiary: apostille, translation and power of attorney

You do not need to travel. A power of attorney and the parent company documents, apostilled and sworn-translated, are the core of the file.

Foreign capital in a Brazilian subsidiary: registration with the Central Bank

Capital sent from abroad to a Brazilian company is registered with the Central Bank through the SCE-IED system. What it is and why it matters.

Employer of record or subsidiary in Brazil: when to switch

For a small team, an employer of record is usually faster and cheaper. A subsidiary makes sense when headcount, contracts or sales need your own entity.

The legal representative requirement: the first hurdle for foreign companies

A foreign shareholder needs a Brazil-resident attorney-in-fact and the company needs a resident administrator. What each role does.

Opening a corporate bank account in Brazil: why it can take longer than the company

The company can exist legally while its bank account is still pending. Banks run extra checks on foreign-owned companies.