Company Registration in Brazil: Procedure & Benefits

Brazil is strategically located between North America and South America, making it a natural hub for trade and investment in the region. With a population of over 214 million (as of 2025) and a Gross National Income (GNI) per capita of USD 9,140 (2023 est.), Brazil presents vast business opportunities for entrepreneurs and investors.

The Brazilian government has actively signed numerous free trade agreements, including those with the EU, Mercosur, and China, providing enhanced access to international markets. Additionally, it has implemented policies aimed at promoting foreign investment through tax incentives and streamlined registration processes.

In this article, we will discuss the detailed process of company registration in Brazil, the required documents, various business entity types, tax obligations, estimated costs, and the advantages of incorporating a company in Brazil.

Eligibility for Brazil Company Registration

To register a company in Brazil, certain basic legal and structural requirements must be met:

• The company name must be unique and not previously registered.
• Shareholders and directors must be legally capable of entering into contracts.
• A minimum share capital applies depending on the entity type (e.g., R$100.00 for an LTDA).
• Depending on the business activity, additional licenses or permits may be required.
• A registered office address in Brazil is mandatory.
• All documents (like Articles of Incorporation) must be in Portuguese and in compliance with Brazilian law.
• The business must comply with Brazilian tax and accounting regulations.

Procedure for Company Registration in Brazil

The following steps outline how to open a company in Brazil:

Step 1: Choose a Company Name

Ensure the company name is available and not in use by another entity. It should follow naming conventions established by Brazilian regulations.

Step 2: Obtain a CNPJ Number

Apply for a CNPJ (Cadastro Nacional da Pessoa Jurídica) from the Brazilian Federal Revenue Service. This serves as the business tax ID.

Step 3: Register the Articles of Incorporation

Submit the Articles of Incorporation to the Commercial Board of the state where the company will be located, and with the Federal Revenue Service.

Step 4: Obtain a Business License

Apply at the municipal government office where your business is headquartered. A local business license is mandatory for operation.

Step 5: Register for Taxes

Register with the Federal Revenue Service to obtain tax ID numbers and fulfill corporate tax obligations.

Step 6: Apply for Industry-Specific Licenses (If Applicable)

Depending on the industry (e.g., food, health), obtain additional permits from relevant authorities like the Ministry of Health.

Documents Required for Company Registration in Brazil

The following documents are generally required for company incorporation in Brazil:

• Articles of Incorporation
• CNPJ Registration Form
• Passports or IDs of shareholders and directors.
• Business License Application
• Tax Registration Form
• Proof of Address (Lease agreement or utility bill of registered address)
• Industry Licenses/Permits (if applicable)
• Bank Statement or Proof of Funds

Types of Business Entities in Brazil

Choosing the right legal structure is a critical decision for your Brazil business registration.

Here are the main types:

1. Limited Liability Company (LTDA)

• A limited liability company in Brazil is the most common type of company in Brazil.
• Requires a minimum of one and a maximum of 20 shareholders.
• Shareholders are liable only up to the amount of their capital contribution.
• Flexible structure suitable for both small and medium-sized businesses.

2. Corporation (S.A. – Sociedade Anônima)

• Best suited for large-scale businesses or those planning to raise capital through the stock market.
• Requires a board of directors and regular shareholder meetings.
• Minimum share capital of R$1,000,000.
• Can be either publicly or privately held.

3. Individual Microentrepreneur (MEI)

• Designed for solo entrepreneurs with annual revenues under a specific threshold (currently around BRL 81,000).
• Simplified tax regime and lower compliance requirements.
• Personal liability applies, but is widely used for low-risk businesses.

4. Branch Office

• An extension of a foreign company with operations in Brazil.
• Must appoint a legal representative who resides in Brazil.
• Subject to the same taxation and regulatory obligations as local entities.

5. Joint Venture

• A contractual or corporate arrangement between two or more parties.
• Common in large infrastructure, oil & gas, and technology projects.
• Enables foreign companies to partner with local businesses for strategic growth.

Still unsure about which type suits your needs? Our team at OnDemand International can help you choose the best structure tailored to your business model and goals.

Taxes Applicable to Companies in Brazil

Businesses in Brazil are subject to the following taxes:

• Corporate Income Tax (IRPJ): 15% on net income
• Social Contribution on Net Profit (CSLL): 9%
• Value Added Tax (ICMS): 18% average, varies by state
• Payroll Tax (INSS): 20% on salaries
• Property Tax (IPTU): Municipal level, varies
• Social Security Tax (FGTS): 8% on salaries

Cost of Registering a Company in Brazil

Company registration costs can vary based on business type, location, and industry. Generally, expenses include:

• Legal Fees: Paid to attorneys/accountants for document preparation
• Government Fees: Registration, licensing, and tax applications
• Share Capital: Deposited to company bank account (varies by structure)
• Notary Fees: For notarizing documents

Advantages of Company Registration in Brazil

1. Access to a Massive Consumer Market

With over 214 million consumers, Brazil is the largest economy in Latin America. Companies have access to a diverse population and a growing middle class with increasing purchasing power.

2. Gateway to South American Markets

Brazil is a founding member of Mercosur, a trading bloc that facilitates tariff-free access to neighboring countries like Argentina, Paraguay, and Uruguay.

3. Government Support for Foreign Investment

Brazil offers incentives such as tax exemptions, reduced import tariffs, and simplified licensing processes for foreign companies in priority sectors.

4. Resource-Rich Economy

Brazil boasts abundant natural resources—including oil, iron ore, and agricultural goods—making it a hotspot for manufacturing, agribusiness, and energy sectors.

5. Strategic Geographical Location

Its location between the Atlantic Ocean and neighboring economies allows companies to connect trade routes between North America, Europe, and the rest of Latin America.

6. Robust Legal and Financial Infrastructure

Brazil’s legal system is rooted in civil law and provides a stable environment for commercial operations. Its financial institutions are modern and globally integrated.

7. Opportunities Across Diverse Sectors

From fintech and logistics to agritech and e-commerce, Brazil’s economy is growing in both traditional and tech-driven industries, making it ideal for startups and MNCs alike.

Also Read: Reasons to incorporate a business in Brazil

Conclusion

Registering a company in Brazil opens doors to one of Latin America’s largest and most dynamic economies. Though the process can be complex and time-consuming, the rewards in terms of market access, growth potential, and government incentives are significant.

To simplify the process and ensure compliance, it’s recommended to engage professionals. Contact OnDemand International today and let our expert team assist you through every step of your Brazil company registration journey.