How to open a company or even hire professionals in Brazil?

Opening a company in Brazil as a foreigner can seem like a long and complex process, it all depends on the type of company you want to open. The first steps will be to obtain documents and an address in the country, present yourself at the Board of Trade with a specific power of attorney, granted to the company's representative in the country, giving powers to the latter to receive court summons with a notarized signature and/or embassy.

Even more complex?

For a Brazilian or a company already established in Brazil, with organization and planning, it can become easier, we have to evaluate each of the steps and possibilities for opening. This is what we intend to present in the following paragraphs that H&CO is already doing and how we can help.

Having the documentation or the company to help you, let's choose the type of company to open:

MEI, ME or EPP

MEI – Model used for low-invoicing companies, with low taxes, it is not mandatory to issue invoices, however, its annual invoicing is what makes the use of this company model quite limiting. As the annual revenue limit is approximately R$ 81,000, this model is recommended only for individual entrepreneurs, with small transactions and customers.

ME – It already has a much higher revenue limit, it can also be part of other taxation categories that need their own explanations. But it is already a better possibility, for a company that is not individual.

EPP – It has already become a model of a corporate company, with bigger billings , bigger size, and it will require a lot of details and care with its opening.

Next step is to define the legal nature of the company, since we have the size, we will have the other classifications, EI, SLU, Ereli and LTDA.

EI – A company without partners, very careful with indebtedness will be important, there is no need for a minimum capital for its opening, so be very careful with this modality. Another important point is that some professional categories cannot constitute an Individual Entrepreneur, another care that we can help.

SLU – A limited liability company, from 2019 onwards, has been the most used model by entrepreneurs who want, in addition to opening a company, to maintain greater control and security in their personal assets. It also does not require minimum capital for its opening, but it has less risk for the private equity of the entrepreneur. This model will be better explained with statements and help from a company like H&CO

Ereli - This model, unlike the SLU, requires a share capital of 100 minimum wages in force at the time of incorporation and has a single partner. Similar to SLU, it keeps the assets of the company and the Partner separate, this structure is already limited liability.

LTDA – Finally, the most robust format, which can contain two or more partners contributing to the company's capital, either with goods or currency. There is also no requirement of a minimum capital, but its responsibility is restricted to the values of the company's share capital.

With so many ratings, the best way to choose, for sure, will be Using H&CO already established in Brazil to help you.

?We still have to define what activity the company will carry out, this will be vital for taxation, issuance of notes, among other future needs. The Tax Regime, the next step, will also have a direct impact on how much you can earn, on capital and on the company's growth possibilities.

We will then have a social contract, established by the partners, company registration, which will be issued the CNPJ, later, with a place of operation, we will have the Operating Permit, Municipal or State registration...

The whole process seems quite complex, right?

The Brazilian tax system is really one of the most complex IN THE WORLD, so why not let H&CO help you with this opening.

Or even, assist you in the recruitment of professionals who will be in your company, after all, we have already carried out this whole process, we have these services outside Brazil, now we are also expanding to this new territory.

?Contact us at H&CO through our website or channels:

Staffing Solutions - HR Consulting (hco.com)

Or with one of our Account Managers:

(1) Ivan Caperuto Fidencio | LinkedIn