HOW TO START UP A BRAZILIAN COMPANY
• How long does it take;
• How much cost;
• Process steps;
• Documents needs;
• Labor Rules & Costs; WHY START A BUSINESS IN BRAZIL?
It’s BIG – Almost the same size of EUA
Brazil shares borders with ten neighbouring nations
Brazil is plenty of investment opportunities (of course)
It resides comfortably at number ten in the world economic rankings, yet it is still a developing nation
Accordingly, the federal republican government offers numerous business opportunities to foreign investors, and maintains a steady process of privatisation and deregulation.
There is huge economic potential, an eager domestic market and the third most advanced industrial sector of the Americas.
Brazil's consumer class has been growing expeditiously. They are earning money, developing appetites, refining tastes and buying, buying, buying. There has never been a more opportune or pragmatic moment to invest.
SOURCE - http://www.startupoverseas.co.uk/starting-a-business-in-brazil STARTING A BUSINESS IN BRAZIL
It is as challenging yet fascinating as the country itself. A variety of opportunities for commerce exists in Brazil.
The keys to starting a business in Brazil are primarily patience, appropriate knowledge and strong partnerships with trusted Brazilian law firms and local partners.
Endeavor to learn more about the country. Although Brazil's land mass is quite large, its population is concentrated in its major cities. Sao Paulo is the largest city in the country and also in the Americas. Rio de Janeiro, on the other hand, is the headquarters of the country's biggest companies, including energy giant Petrobras, and most of the major oil and communications businesses. Sao Paulo and Rio de Janeiro two cities dominate Brazil's population, which make them favorable places in which to start a business.
SOURCE - http://www.ehow.com/how_6790699_start-company-brazil.html STARTING A BUSINESS RANK
RANK Procedures Time (Days) Cost (% of income Paid-in Min, (Number) per capita) Capital (% of income per capita) New Zealand 1 1 1 0.4 0
Australia 2 2 2 0.7 0
Canada 3 1 5 0.4 0
USA 9 6 6 1.4 0
United Kingdom 17 6 13 0.7 0
France 21 5 7 0.9 0
Italy 68 6 6 18.5 10.1
South Africa 75 6 22 6 0
Russian Federation 108 9 30 3.6 1.9
Brazil 128 15 120 7.3 0
China 151 14 38 4.5 118.3
India 165 12 29 56.5 188.8
Guinea-Bissau 183 17 216 183.3 415.1
Source - Word Bank Doing Business 2011 Report http://www.doingbusiness.org/~/media/FPDKM/Doing%20Business/Documents/Annual-Reports/English/DB11-FullReport.pdf HOW LONG DOES IT TAKE
Starting up a business company in Brazil is a very bureaucratic and opaque process, in which the pilgrimage to various government agencies and the lack of information are enormous challenges for those willing to have a business presence in Brazil
In addition to laborious and time consuming, is a very expensive process. The high cost and its variation in relation to the size and sector of activity to become a real barrier to entry.
HOW MUCH COST
In comparison with other countries, it is very expensive to open a company in Brazil. In fact, comparing the data on research conducted with data from the World Bank indicates that Brazil occupies the 65th position in world ranking *. Even among the so called BRIC countries, Brazil is an expensive country.
* Source – Doing Business 2010 Report, World Bank Start up Process to open one company (Medium/Big size)
To start up a company in Brazil could envolve up to 12 government entities from federal, state
and municipal:
1. Prefeitura;
2. Junta Comercial ou Registro Civil de Pessoa Jurídica (RCPJ);
3. Receita Federal
4. Corpo de Bombeiros – estadual;
5. Secretaria de Fazenda Estadual e/ou Secretaria de Fazenda Municipal;
6. Agência Nacional de Vigilância Sanitária (ANVISA) ou Vigilância Sanitária Estadual
ou Vigilância Sanitária Municipal;
7. IBAMA ou órgão de licenciamento ambiental estadual
Start up Process to open one company (Medium/Big size) – THE PUZZLE
SUMMARY OF THE BUREAUCRATIC AND LEGAL HURDLES
1. Check company name with State Commercial Registry Office (If already in use, will be chosen the alternatives indicated in the process, if all are in use the process stops untill new names was presented) – (1 day)
2. Pay registration fees – (1 day)
3. Register with the commercial board of the state where the main office is located and obtain identification number (NIRE) – (1 day)
4. Register for federal and state tax (Secretaria da Receita Federal do Ministério da Fazenda, SRF/MF), obtain the CNPJ number, which also registers employees with the National Institute of Social Security (Instituto Nacional da Seguridade Social, INSS) – (22 days)
5. Receive state tax inspection – (1 day)
6. Get the authorization to print receipts/invoices from the Secretaria da Fazenda Estadual – (1 day)
7. Register with the Municipal Taxpayers’ Registry (Secretaria Municipal de Finanças) of the City where you decide to open the office – (5 days)
8. Pay TFE to the Municipal Taxpayers’ Registry – (1 day)
9. Get the authorization to print receipts/invoices from the Secretaria Municipal de Finanças – (1 day)
10. Order receipts/invoices (notas fiscais) with CNPJ numbers from authorized printing companies – (3 days)
11. Apply to the municipality for an operations permit (auto de licença de funcionamento) – (90 days)
12. Register the employees in the social integration program (Programa de Integração Social, PIS) – (1 day)
13. Open a special fund for unemployment (FGTS) account in bank – (1 day)
14. Notify the Ministry of Labor (Cadastro Geral de empregados e desempregados, CAGED) – (1 day)
15. Registration with the Patronal Union and with the Employees Union – (5 days)
Source - Word Bank Doing Business 2011 Report http://www.doingbusiness.org/~/media/FPDKM/Doing%20Business/Documents/Annual-Reports/English/DB11-FullReport.pdf OTHER REQUIREMENTS NOT INDICATED BY W.B.
1. Elaboration of the Social Contract of the company, must seek a lawyer registered by the Brazil Lawyers Order;
2. Fire Department License - featuring NIRE and CNPJ and six documents (presentation of a project and inspection on site);
3. Health Surveillance License required for food and health sector;
4. Environmental License in case of needed;
A TOTAL OF 43 DOCUMMENTS ARE REQUESTED TO OPEN A COMPANY IN BRAZIL ( The 43 documents) Brazilian labor rules and regulations
applicable to Brazilian employees and foreign employees working in Brazil on a
permanent basis MAIN LABOR LAWS AND RULES
The basic legislation governing the legal relationship between an employer and an employee in Brazil is the Brazilian Labor Code (Consolidação das Leis do Trabalho - "CLT")
The CLT and other Brazilian labor legislation and jurisprudence, as well as the Collective Bargaining Arrangements (Acordos ou Convenções Coletivas de Trabalho), are applicable to employees working in Brazil for Brazilian or foreign employers (companies, associations, sole proprietorships and the like organized or existing under Brazilian or foreign laws).
BASIC COST OF AN EMPLOYEE IN BRAZIL, IN ADDITION TO HIS REMUNERATION
Guaranteed Severance Fund Contribution (Fundo de Garantia por Tempo de Serviço - "FGTS") equal to 8.5% per month plus 3.4% (50% of 8,5%) in case of termination without cause by initiative of the employer, or termination for cause due to an act of the employer;
Social security contribution of approximately 26%;
Vacation bonus of 1/3 of a monthly remuneration per year, corresponding to 3.83% (FGTS and social security contributions included);
Annual Christmas bonus (or thirteenth salary) corresponding to 11.48% (FGTS and social security contributions included), totaling approximately 54%.
TERMINATION ASPECTS
• An employer is required to give an employee a thirty-day termination notice.
• The employer also must make the FGTS deposit related to such thirty- day notice.
• In lieu of the notice, the employer may pay to the employee an amount equal to the remuneration the employee would have received during the thirty-day period.
• If an employer unilaterally terminates an employment relationship without "just cause", the employer must pay to the employee severance indemnity in an amount equal to 50% of the total amount deposited in the employee's FGTS account. If an employer unilaterally terminates an employee for just cause, the employer will not be liable for any severance indemnity payment to the employee.
PAYMENT OBLIGATION UPON TERMINATION OF AN EMPLOYMENT RELATIONSHIP
• Salary up to the termination date;
• Accrued vacation corresponding to a full-year period which has not been taken before the termination date;
• Vacation bonus equal to one-third of the accrued vacation pay;
• Accrued vacation equal to one-twelfth of the employee's monthly remuneration multiplied by the number of months (or fraction thereof of 15 days or more) between the first day of the last vacation accrual period and the termination date;
• Accrued Christmas bonus equal to one-twelfth of the employee's monthly remuneration multiplied by the number of months (or fraction thereof of 15 days or more) between the beginning of the calendar year and the termination date.
OTHER EMPLOYMENT ISSUES
After twelve months of continuous employment, employees are entitled to a calendar thirty-day vacation period. The employee is entitled to receive his/her regular monthly remuneration while he/she is on vacation. In addition, the employer must pay to the employee a "vacation bonus" equal to 1/3 (one third) of the employee's monthly remuneration. The employer must cause the employee to take a vacation within twelve months as of accrual of the right to vacation. Otherwise, the employee becomes entitled to twice his/her vacation pay (monthly remuneration plus the 1/3 vacation bonus).
Employees are entitled to receive an annual Christmas bonus (13th salary)equal to his/her highest monthly remuneration (if remuneration is fixed, the one corresponding to the last month, if variable, the average received during the preceding twelve months). The employer must pay the Christmas bonus to its employees as follows: 50% between February and November of each year; and the remaining 50% up to December 20 of each year. WHAT TO DO SO
Brazil is a fascinating country full of opportunities to be developed. The most effective way to accomplish is through a Brazilian law firm, Brazilian partners and patience.
IF YOU WANT TO BE IN BRAZIL IN JUST ONE DAY AS IS IN NEW ZELAND!!
Your solution is to hire www.visumtec.com as a Country Manager Service Provider.
WE CAN BE YOUR COMPANY IN BRAZIL AS FAST AS THIS