Brazil is the largest economy in Latin America and offers a vast internal market with over 200 million consumers. Key sectors such as technology, agribusiness, renewable energy, and services are constantly growing, making Brazil an attractive destination for both local and foreign entrepreneurs.
Registering a company in Brazil provides legal security, access to credit lines, eligibility for public tenders, and the formal recognition necessary to operate legally. A registered company can issue invoices, legally hire employees, and scale operations with greater ease.
However, the company formation process in Brazil can be bureaucratic and requires careful attention to each step. Understanding the full process is very important to ensure a successful business launch.
In this article, we’ll break down the step-by-step process for starting your business in Brazil. I invite you to follow along now.
How to register a company in Brazil
There are some important steps to be considered from now on. We are glad to help you on this journey.
Step 1: Choosing the right legal structure
The first step in registering a company in Brazil is choosing the most suitable legal structure for your business. The main options are:
- Sociedade Limitada (LTDA): The most common type, ideal for small and medium businesses. Partners have limited liability based on their share capital.
- Sociedade Anônima (S/A): Recommended for large companies, especially those planning to raise funds through shares or bonds. This model has a more complex governance structure.
- Single-Member Limited Company: A simpler option for solo entrepreneurs.
- Branch of a Foreign Company: Foreign businesses can set up a branch in Brazil, but the process is more complex and requires federal government approval.
The choice of structure directly impacts tax obligations, legal requirements, and management style. It’s highly advisable to consult a specialist to determine the best fit.
Step 2: Selecting the business activity (CNAE) and drafting the articles of incorporation
Once the legal structure is defined, the next step is choosing the business activity using the CNAE (National Classification of Economic Activities). This code determines licensing requirements.
With the CNAE selected, you must draft the Articles of Incorporation (or bylaws for a corporation), which is the foundational document of the company. It should include:
- Corporate name and business address
- Corporate purpose (business activities)
- Share capital and partner participation
- Management rules and powers
- Rights and obligations of partners
- Rules for the admission or withdrawal of partners
Professional legal or accounting guidance is recommended to ensure compliance with Brazilian law, along this important step.
Step 3: Registering with the state board of trade
After drafting the Articles of Incorporation, the next step is to register the company with the State Board of Trade (Junta Comercial) in the state where the company will operate. This registration gives the company its legal existence in Brazil.
You’ll typically need:
- Signed Articles of Incorporation
- ID and corporate documentation of a shareholder
- Business address proof in Brazil
- Official registration forms
- Payment receipts for registration fees
Once approved, your company will receive a NIRE (Business Registration Identification Number), which is required to proceed with tax registration.
Step 4: Getting a CNPJ from the Brazilian Federal Revenue Service
With the NIRE, the company can apply for its CNPJ (National Registry of Legal Entities) from the Brazilian Federal Revenue Service. This number is similar to a tax ID and is required to operate legally.
In most states, this process is integrated through the Rede Sim (Integrated Registration System), which simplifies registration across federal, state, and municipal levels.
The CNPJ is essential to open a corporate bank account, issue invoices, hire staff, and apply for licenses.
Step 5: State and municipal tax registrations
Depending on the company’s activities, further registrations may be necessary:
- State Registration (Inscrição Estadual): Required for businesses that sell physical goods, operate in industry, or offer transportation services. This registration enables payment of ICMS (Sales Tax) and is handled by the state tax authority (SEFAZ).
- Municipal Registration (Inscrição Municipal): Required for service providers. It enables the collection of ISS (Service Tax) and is obtained from the local city hall.
Each municipality and state has its own documentation requirements. Some may require a business license or inspection before issuing the tax registration.
Read: Starting a business in Brazil
Step 6: Business license and special permits
A business license (alvará de funcionamento) must be obtained from the local city hall before the company can begin operations. Required documents often include:
- CNPJ registration
- Proof of municipal registration
- Lease agreement or property deed
- Floor plan or property sketch
- Health, safety, or fire department inspections (if applicable)
Some business sectors require additional permits, such as:
- Health inspection license for food, healthcare, or beauty services
- Environmental license for industries or businesses with environmental impact
- Fire department certificate for businesses open to the public or with storage risks
It’s very important to check specific requirements for your industry and location, though.
Step 7: Social security registration and Invoice authorization
Even if your company has no employees initially, you must register it with Brazil’s Social Security System. This enables the company to hire legally and comply with labor regulations.
The process is completed via eSocial, the federal government’s digital platform for managing tax, labor, and social security obligations.
Next, you must request authorization to issue electronic invoices:
- NF-e (Electronic Invoice for Goods) — for companies selling physical products
- NFS-e (Electronic Service Invoice) — for service providers
This authorization is obtained from the state tax authority or city hall, depending on your business type.
Estimated costs and timelines for registering a company in Brazil
Costs can vary depending on the state, company type, and activity. On average, expect:
- Board of Trade registration fees: USD $20 to $120 approximately
- Professional fees (accountants/lawyers): Starting from USD $200 to $1,500+, depending on the complexity and level of service
- Digital certificate costs: Around USD $30 to $60 per year
- Licensing fees: Vary by municipality and industry, typically ranging from USD $50 to $300
These values are approximate and can vary depending on your business model and location in Brazil.
Estimated timelines
If all documents are prepared and submitted correctly, a simple company can typically be registered within 5 to 15 business days. More complex setups — especially those involving foreign shareholders — may take 30 to 60 business days or longer due to the need for document legalization, translations, and central bank registration.
Working with experienced local partners such as Europartner can streamline the process significantly, helping avoid delays and ensuring full compliance from day one.
Read: Legal Representation in Brazil
Key considerations for foreign companies entering the Brazilian market
Foreign investors are welcome in Brazil, but there are some specific legal and regulatory requirements to keep in mind:
- a) Local legal representative:
Brazilian law requires companies with foreign shareholders to appoint a resident legal representative — a Brazilian national or a foreigner with permanent residency — to represent the business before tax and regulatory authorities.
- b) Legalization of foreign documents:
All foreign documents must be apostilled or legalized, then officially translated into Portuguese by a sworn translator in Brazil.
- c) Central Bank Registration (RDE-IED):
Foreign capital must be declared via the Brazilian Central Bank’s RDE-IED system. This is essential for ensuring legal remittance of profits and reinvestment of capital.
- d) Local support is key – Work with trusted professionals:
Brazil’s tax and legal system is complex. To ensure a smooth process, it’s critical to have a reliable partner on the ground.
That’s where Europartner comes in. With over 15 years of experience, Europartner has helped numerous international companies successfully establish and grow their presence in Brazil. From company formation and bank account setup to tax optimization, accounting, and fiscal management, Europartner provides end-to-end support and acts as your trusted representative in Brazil.
Whether you’re just starting out or expanding a global operation, Europartner’s bilingual, cross-cultural team is ready to guide you through every step of Brazil company registration.
This process becomes much easier with the right guidance. Brazil offers significant growth opportunities for businesses looking to expand into one of the world’s most dynamic emerging markets.
Understanding how to register a company in Brazil is your first step. But beyond the paperwork, your success depends on reliable support and local knowledge.
Europartner stands out as a key partner for international businesses entering Brazil. Their team of experts delivers tailored solutions, ensuring full compliance, operational efficiency and peace of mind.
Ready to start your business in Brazil?
Contact Europartner today and take your first step with confidence.
