Federal Republic of Brazil – the largest country in South America with one of the most significant economies in the region, demonstrating high growth rates. Recently, company registration in the jurisdiction has been in demand among foreign investors seeking to reach the international level. The developed IT market makes the country especially attractive for businesses in this sphere, as well as for fintech companies.

Advantages of registering a company in Brazil

• large and dynamic consumer market;
• government incentive programs to support business;
• access to Mercosur – the common market of South American countries;
• a significant number of international agreements on the avoidance of double taxation;
• possibility of 100% foreign ownership of companies.

The most popular type of company in Brazil for non-residents is a limited liability company (Sociedade Limitada, Ltda).

Requirements for Ltda in Brazil

• minimum of two founders, who may be non-residents, as well as legal entities;
• presence of a resident managing director, who can be either a shareholder or a third party;
• no limit on the amount of authorized capital, which makes the opening procedure cheaper and simpler;
• no restrictions on the type of activity;
• annual financial statements, which include balance sheet, profit and loss statement, and statement of changes in equity;
• filing of monthly tax returns, including in the absence of activity.

Taxation features

The corporate income tax for most companies is 15% with the possibility of deductions and incentives. For small businesses with an annual income of up to 60,000 reals, a simplified regime without income tax applies.

Value-added tax (ICMS) applies to most goods and services. Rates vary from 17% to 19% depending on the state.

The PIS and COFINS financial transaction taxes are levied on revenue at rates of about 3.65% each.

Import duties range from 0 to 35% depending on the imported commodity groups. They are applied under the agreements of the Mercosur countries.

How to register a company in Brazil

If you are interested in registering a company in Brazil in 2024, contact IT-OFFSHORE specialists directly, who will help simplify interactions with the local regulator and government agencies.