Invest in Brazil

Meet the Brazil

Brazil is the largest country in South America, stretching from the Amazon Basin in the north to the vineyards and the gigantic Iguaçu Falls in the south. His great commercial skills are agribusiness, real estate, technology, finance and consumer cyclical retail.

Brazil has been gaining notoriety for environmental factors. However, we have the strictest laws in the world on environmental factors. The legal reserve is a percentage that the Brazilian government obliges landowners in Brazil to keep in a virgin state, in the Amazon region this percentage is 80% of the property.

The main Brazilian energy sources are Hydroelectric Energy (64%) of the national energy matrix and it is estimated that currently only 35% of the hydroelectric potential is being explored; Thermoelectric Energy represents about 27% of the energy matrix; Wind Energy represents about 7% of the Brazilian energy matrix and nuclear energy represents about 1% of the energy matrix. Domestic Public Securities Debt (in bonds) (DPMFi) in the first quarter of 2022 fell by 2.69%, from R$5.49 trillion in February to R$5.342 trillion in March.

The OECD (Organization for Economic Cooperation and Development) gave Brazil the go-ahead for joining the group. The decision was taken at a ministerial meeting in June 10, 2022, Paris, stating the country's financial strength.

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Population

212.6 million (2020)

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Gross Domestic Product

1.445 trillion USD (2020)

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GDP (1st Quarter 2022)

1.0%

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It feeds with its products

10% of the world population.

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Basic interest rate

13.25% per year.

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Expected inflation for the year 2022

 7.89%.

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Public debt

78.3% of GDP in April.

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Average cost of energy in Brazil

-  U$ 0.17 per kWh for the residential rate;

-  U$0.16 kWh for commercial rate.

The Brazilian National Financial System (SFN) is one of the most solid in the world, being formed by a set of entities and institutions that promote financial intermediation, that is, the meeting between creditors and borrowers of funds. It is through the financial system that people, companies and the government circulate most of their assets, pay their debts and make their investments.

 

The SFN is organized by regulatory agents, supervisors and operators. The regulatory bodies determine general rules for the proper functioning of the system. The supervisory entities work so that the members of the financial system follow the rules defined by Organs regulatory bodies. Operators are institutions that offer financial services, in the role of intermediaries.

Important informations

From the exchange rate difference:

Brazil is very concerned about keeping interest rates at viable levels for the export of our products, so it carries out dollar auctions in the Brazilian market to keep the exchange rate at values ​​parameterized by the Brazilian Central Bank, which is an independent body. As a result, currencies such as the dollar and euro allow greater purchasing power in relation to the real. There are some exchange costs, the largest being the IOF, around 1.1% of the transaction. Calma, the Brazilian Government announced its intention to reduce the IOF levied on foreign exchange operations was formalized with the publication of Decree No. alignment with the practices adopted by the member countries of the OECD (Organization for Economic Cooperation and Development), aiming at the entry of Brazil. According to the Brazilian Government, the reductions will be gradual and will start in 2023. All financial operations are carried out legally by the interbank system – swift, and must declare the reason for the inflow of capital into Brazil.

Who can open a company in Brazil?

1. Over 18 years of age who are in the free administration of their person and assets. The foreigner must be domiciled in the country or appoint a proxy to represent him.

2. A minor emancipated or who reaches the age of majority granted by the parents, or by one of them in the absence of the other, if the minor is sixteen years old. The grant will be included in a public instrument, which must be registered in the Civil Registry of Natural Persons and filed with the Board of Trade.

Can non-residents open companies in

 

Brazil?

The foreigner can be a partner or shareholder of Brazilian companies without having residency in the country. For this, he will need registration with the Federal Revenue (to obtain a CPF) and the Central Bank of Brazil (Bacen), through the Electronic Declaratory Registry (RDE), in addition to having an attorney residing in the country with powers to receive service of process. From then on, the foreigner will be able to invest in Brazilian companies (new or existing).

If the entry into Brazil took place with a temporary visa, the foreigner will only be considered a tax resident if he has an employment relationship, obtains a permanent visa (residence permit) or stays in the country for more than 183 days, consecutive or not, within the 12 months.

 

For the opening of a company by a foreigner in Brazil who resides abroad, with social functions being fulfilled in Brazil, with a Brazilian CPF and address, it is necessary to present a specific power of attorney to the Board of Trade, granted to the representative here in the country, giving powers to receive service of process. court in actions brought against him. This is after a notarized signature and/or embassy.

The identity document must be presented in an authenticated photocopy for an individual and the legal entity must present the legal requirement of the company authenticated or endorsed by a Brazilian authority.

 

The foreign entrepreneur can open his company in an individual format as SLU e Sociedade Ltda. For this, it will need a prosecutor so that it can resolve bureaucratic issues in Brazil.

Our recommendation

We leave here a recommendation that mitigates the risks of the activity giving more security to your operations in Brazil, whose objective is to enhance the return on your investments. We recommend acting in the real estate area in Brazil. We explained that Brazil has a system for the judicial settlement of assets to satisfy judicial debts that has a discount on the value of the asset of up to 60% of the value of the appraisal carried out by an official expert. With an approximate value of 1,000,000.00 euros it is possible to acquire these properties with the profitability of the investments made in the country. We explain in simulation.

 

We recommend that you open your current account in Brazil through the C6 digital bank, as it is one of the largest Brazilian digital banks with JPMorgan as one of its shareholders, which demonstrates its solidity. The bank offers the opening of global accounts in euros or dollars with an opening cost of U$30, this current and global account can be opened directly by the customer, after opening the company, registering passwords, choosing investments and applying for a credit card. Cards must be addressed to an address in Brazil, we recommend that it be directed to our headquarters at Av. Paulista in São Paulo – Brazil, so that we can expedite the shipment. The Global Account Card can be used in your home country with peace of mind, as long as the currency is US Dollar or Euro, for other currencies the bank charges a conversion fee.

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Simulation (C6):

Amount invested: 1,000,000.00 euros

Amount in reais: BRL 5,745,425.41

The transfer of the amount must be carried out in the global account, after its opening, being converted into reis and deposited in the company's current account in reais. This procedure must be used both for sending and receiving values.

Investment of R$5,745,425.41 in CDB C6 Fixed rate 6-month security with a yield of 14.4% p.a., this security is literally lending money to the bank.

Profitability after 6 months: R$413,670.00.

With this amount, you can buy an apartment at auction in Brazil, for R$ 330,936.50 with an appraisal value of R$ 661,873.00, renovate the property and sell it for a price higher than that indicated in the appraisal. With this strategy being carried out twice a year, profitability can reach 23.03% without capital risk, only interest.

 

Note: the costs of the operation are not included in the margin, but a reserve on capital was allocated to pay the costs of the operations without compromising the capital.

Note: Values ​​may change depending on whether the customer chooses one bank or another.

Our services

1. Advice on the company's field of activity;

2. Company opening;

3. Tax planning;

4. Succession;

5. Representation in the Country;

6. Address for opening the company in Brazil; and

7. Opening a bank account in Reais;

We take care of the entire constitution reducing operating costs. This entire process can take some time, being carried out by lawyers regularly registered with the OAB, a body analogous to the American Bar Association. You will have 24-hour access to your lawyer, being able to ask questions, make suggestions or requests. In Brazil the most used communication system is Whats App, we ask that our customers use this service for the ease of communication.

Our costs are 2% of the monetary value of the transaction. Payments will be made:

- First installment: upon signature - 30%;

- Second installment: company opening - 40%; and

- the third and final installment: opening a current account in Brazil in reais - 30%.

We provide our customers with a package of additional services. These packages are paid monthly in the amount of 2,000 Euros covering the following services.

 

1. Performance in lawsuits in Brazil (Brazilian court costs and fees not included);

2. Company accounting in Brazil;

3. Payment of taxes; and

4. Payment of Fees.

Hiring additional services are essential for you to be able to carry out a business activity in Brazil without problems. If you are interested, contact us by "chat" or directly by whats app +55 (11) 99519-1514.