Setting up company in Brazil

[flaviopinto]

The resident representative must accomplish the following issues:

- Full management powers of the account assets, as the Brazilian law requires.

- Legally liable among the Brazilian Central Bank, Internal Revenue Service, Federal Police and whatever government body you can realize. He is the foreigner face in Brazil.

- Be someone the bank accepts as a non-resident representative.

Besides, the non-resident will need to make at least a trip to Brazil to sign a Public POA under a Brazilian Notary according to the model released by the bank, because POAs in Brazilian Consulates by non-residents are not considered public by the Brazilian Law.

It is hard to accept someone you no more than barely know managing your account in another country. It is hard for me, it will be for anyone. But it is the Brazilian law.

Beyond this, even opening a bank account for a non-resident is completely legal, with a specific regulation from the BR Central Bank, not every bank offers bank accounts for non-residents. I personally dealt with seven different banks here, five Brazilian, an American and a British one, to succeed with just one after almost two years of hard work...

Banks in Brazil seem to be more conservative than the Brazilian Central Bank itself! They are afraid of money laundry. Because of this I always advise to avoid registering in Brazil companies settled in countries considered by the Brazilian IRS as "tax heavens" or use any residence proof from these countries. It will result in more taxation and a big eye from the three "Hard Guys" (Central Bank, IRS and Federal Police) over the people involved. And I do not want it for me.

 

[globalinvestor]

hi all,

what are the benefits of setting up a company in brazil? is it better than buying as an individual?

thanx

 

[Jones Ralf]

Is there any value in setting up a brazilian company to purchase the property as opposed to an individual? Tax savings etc?

 

[debzor]

There are no benefits (generally speaking) to opening a company to purchase an individual property in Brazil. Indeed it will cost you substantially more, and is to be avoided unless required for immigration, etc.

 

[flaviopinto]

The cheapest and easiest way to buy property in Brazil is as an individual.

Setting up a Brazilian company is more for developing, producing or selling due to the monthly costs.

 

[Monji]

Hello everyone.
I know this may not be apropriate to this forum, but i have a doubt that i am sure you can help me with.
I am a Portuguese citizen and i reside in portugal.
I would like to sell items on mercadolivre
In order to do so, im required to get a CPF and a local bank account.
My question is, can i get these, and can i get them from Portugal?

Thank you so much for your time.

 

[JMBroad]

Oi Monij

You can get a CPF from Portugal but to do so you will probably need a legal representative in Brazil. Either directly or through legal representative in Portugal.

In other words, either you can hire a Brazilian lawyer to get you a CPF or you can hire a Lawyer in Portugal who will source a Brazilian lawyer who will get you the CPF. The lawyers will of course charge you for the service and that will involve a lot of paperwork and take a while. Most now require you to authenticate the POA at the Brazilian Embassy where you live in this case in Portugal - not sure if you can only do it in the Embassy in Lisbon (the one on the parking lot between Chiado and Bairro Alto or if there is one in Porto - I don't think so)

Having said that it takes about 1 hour to do and costs R$ 5,00 to do it yourself in Brazil - 48 hours later you get the CPF card. As such it may be cheaper and faster and easier simply to get on a plane to Brazil and do it yourself - That way you also get to know Brazil.

There are probably other issues with putting things on Mercado Livre though - for example how will you receive the money? Do they send the money out of Brazil or do you have a Brazilian bank account where they can deposit the money for your sales? If you have a bank account, you must already have a CPF - so check all those things before you spend money on getting a CPF.

 

[Monji]

Wow that was fast, thank you so much JM.
The thing is, i am just starting my Ecommerce business, still i believe i can get good rpoducts that would be very competitive in Mercadolivre.
What they told me is get a cpf and a brazillian bank account.
Can you tell me where i can find out for sure if and where i can get the CPF and bank account.
I can´t really afford to travel to Brazil right now, but maybe in the future if i could get the cpf and bank account in one trip, i would probably considere it.

Again, much apreciated.

 

[Stephen Naish]

Administrator

I think it depends on where you are with regard to whether or not you can be the administrator. Some commercial registries are less diligent than others.

I was able to be the administrator of my companies while a temporary resident.