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Posted 07/04/2022 by Rick Rodriguez

Things to keep in mind when incorporating a company in Brazil

Things to keep in mind when incorporating a company in Brazil

Brazil is not only the largest country in both Latin America and South America, it is also the fifth largest country by area and sixth largest by population in the world. Brazil is also the ninth largest economy in the world in terms of nominal GDP (as of 2016). By 2010, Brazil was considered one of the fastest growing major economies in the world and gained new international influence and recognition due to its economic reforms. Its diversified economy includes industry, agriculture and various services.

Brazilian economy

Industry, including steel and petrochemicals, automobiles, computers, and aircraft and consumer durables, accounted for 30.8% of GDP and is heavily concentrated in Rio de Janeiro, São Paulo, Porto Alegre, Campinas and Belo Horizonte. Tourism is a growing sector in Brazil and a key industry for several regions. The most popular tourism product is natural areas for ecotourism combined with leisure and recreation. Brazil is also one of the largest producers of coffee, oranges, sugar cane, as well as soybeans and papaya.

Surely such a country attracts foreign entrepreneurs to expand their businesses in the local market or they might even choose to start a business in Brazil as a base to reach all of Latin America. If you too have decided to start your business in Brazil, there are a few things to discuss and consider so that your business is successful from day one.

Doing business in Brazil

The business environment in Brazil has its own set of rules and peculiarities linked to the culture and history of Brazil. In case you don't have a good knowledge of Brazilian customs or a local agent to guide you through them, you may consider incorporating your business in São Paulo as it is the most internationally oriented city in Brazil and the business there is usually more 'western than in other cities. The further north you go in Brazil, the more conservative the business mentality becomes.

In general, a large part of the Brazilian economy is made up of family businesses, which are more patriarchal and formally organized than Western companies. A decent family background is an important factor when evaluating a potential business partner. Brazilian companies are organized vertically and all business matters are discussed and decided by superiors. Good manners and dress code are a must, you should show an intellectual interest in Brazilian music, literature and history. If you want to be taken seriously in Brazil, don't try to skimp on a cheap hotel - opt for a first-class hotel and receive your business partners in style.

Business meeting

Before doing business in Brazil, it is very important to establish good personal relationships. Brazilians don't go into business straight away, they want to get to know you personally first. Therefore, it helps if you are introduced by a mutual acquaintance or someone respected by your business partner. Just as your Brazilian colleagues want to get to know you better, you are expected to show genuine interest in them. Due to the personal relationship in the store, it will take time to reestablish cooperation when a local sales representative or other personnel is replaced.

Business appointments often start later than planned and last longer than expected - you should bear this in mind if several meetings are planned on one day. You should arrange a business meeting about two weeks in advance and confirm two days before the meeting. It is highly inappropriate to visit a business without an appointment.

More tips for setting up a company in Brazil:

If you want to be successful in Brazil, you have to learn Portuguese;

Never offer bribes to circumvent bureaucracy - foreign entrepreneurs in Brazil are closely watched;

Consider hiring a local agent to take care of all the bureaucratic hurdles.

It takes a relatively long time to achieve anything in Brazil - be patient and adjust your plans and budgets accordingly;

Look your business partner straight in the eyes, otherwise it could be interpreted that you are hiding something.


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