BRAZIL: A GOOD INVESTMENT ALTERNATIVE

With an economy in recovery situation, infrastructure investment, strategic location in the center of South America, with continental dimensions and  a population of more than 210million people, one of the world’s largest producers of ethanol, iron, soy, meat and leather, Brazil presents a great variety of investment opportunities. 

Although the country is involved in a political crisis, there is a clear effort to embrace economic measures in order to restore the fiscal balance and to restore a new cycle of sustainable investment, aiming to guarantee the social achievements of recent years. 

Find bellow some important information for those who intend to invest in the country by means of startups, joint ventures or acquisitions:

 a. The foreigner must obtain an fiscal code and  point an attorney in fact in Brazil, who receives legal notices on his           behalf;

b. Each Brazilian company has to have at least two quotaholders, and there is also the possibility of the incorporation of     a company with only one quotaholder (recent normative);

c. The foreigner is allowed to be the controlling partner of a Brazilian company, unless otherwise provided in the               Brazilian Constitution;

d. The members of the executive administration of the Company have to be resident in Brazil;

e. An investment of R$ 600.000,00 allows the acquisition of a permanent visa for sending a foreigner administrator for       administrate the company in Brazil;
f. Dividends remitted abroad are exempt from taxation;

g. The company that has social capital over R$ 600,000.00 is able to import and export unlimitedly;

h. Brazil adopts the international accounting standards IFRS;

i. The regulatory system regarding this subject is the Brazilian civil law. 

For more than 27 years in Brazil, Guarnera Advogados is specialized in serving foreign clients which intend to invest in the country, offering support in a wide range of law areas such as Corporate, Contractual, Litigation, Immigration, Labor, Tax and Regulatory Law (Central Bank of Brazil).