Brazil - registering business practical data
From European or American perspective it may occur relatively more difficult to register a company in Brazil than it is in Mexico for instance and takes about from 4 to 6 months, but the size and purchasing power of local market in Brazil may definitely be a reword of the effort.
The duration of the procedure of registering and opening business in Brazil is relatively long comparing even to the average duration time for Latin American region. However, fast economic development, absorptive market, rapidly growing investments in new technologies make this market one of the most attractive on the world. Brazil has the status of one of four most promising markets to invest and make business with referred to as one of BRIC countries (Brazil, Russia, India, China).
In a case of foreign companies wanting to register business in Brazil, it is recommended to hire a local company that will help to lead through all the steps and procedures. The reason for it is that usually local companies can make the procedure a little bit quicker knowing all tips of how to speed up and parallel certain steps. Although hiring external local company that will help to register company on Brazilian market results in needs of higher investments in general but at the end it may be worth to save on all efforts and time.
The steps to start and register business in Brazil:
1. Hiring a local accountant that will lead you with legal-financial issues
2. Registering company name with State Commercial Registry Office
3. Registering with Local Authorities where the company will reside - Commercial Board of State
4. Getting NTRE identification number from Local Authorities
5. Registering for federal and local tax (Secretaria de Receita Federal do Ministerio da Fazenda)
6. Obtaining CNPJ registration number (also registers with Social Security National Authority - Insituto Nacional da Seguridade Social)
7. Obtaining authorization for printing and issuing invoices and receipts - Secretaria de Fazenda Estadual (fiscal authorities)
8. Registering for the Municipal Taxpeyer Registry (Secretaria Municipal de Financas) of the city the company will be registered)
9. Pay the TFE to the Municipal Taxpayer Registry
10. Obtaining authorization for printing and issuing invoices and receipts - Secretaria Municipal de Financas
11. Ordering invoices/receipts with CNPJ number of the company from a company that is authorized to print such invoices/receipts
12. Obtaining fire brigade license from the state the company is registered (it involves inspection of the Fire Brigade (which may take up to one month)
13. Application for the municipality for an operations permits (Alvara de Funcionamiento)
14. Registering employees for Programa de Integracao Social (social integration program)
15. Opening special bank account - fund for unemployment (FGTS)
16. Notification for the Ministry of Labor (CAGED)
17. Registering for Employees and Patronal Union
