Doing Business in Brazil
Published in March 2020
Financial hub of Brazil
Brazil has the world’s eighth largest economy by GDP, and the region of São Paulo is responsible for a third of that. São Paulo competes with countries such as Poland and Belgium in terms of economic performance and is, therefore, the natural home of financial services in Brazil. With some of the world’s biggest banks establishing a Latin American base in São Paulo, it’s easy to apply for business loans and capital, and connect with some truly influential figures in the world of banking. That’s not only great news for businesses looking to set up in the financial technology sector, but businesses across virtually every sector in need of loans.
According to one report, 63% of all companies that operate in Brazil have a São Paulo base, which demonstrates the pull of the region and its appeal over other states. In simple terms, if you want to be considered a big business and work in the same field as some of the world’s most renowned names in finance, São Paulo is the ideal starting point for your Brazilian expansion.
Advantages of a large population
As of 2019, São Paulo is home to more than 12,100,000 people. The city now holds the title of being the most populous city in Brazil, and the Western and the Southern Hemispheres. It is now the eleventh most populous city on the planet. São Paulo’s urban agglomeration, the Macro metropolis, is also home to more than 33 million people across Campinas, Santos, Sorocaba, and the Paraíba Valley. The most obvious advantages of operating in such a populous city are that you can enjoy access to a huge potential pool of clients and customers, as well as an endless stream of new talent as your organization grows and develops. What’s more, despite relatively low levels of tourism in the city, São Paulo is home to some stunning architecture, restaurants, and nightlife, which offer unique opportunities for businesses entering into the tourism and services sectors. This setting enables businesses to pull in talent traveling from overseas, if so desired.
Benefits of doing business in Brazil
With an estimated population of over 214 million people, Brazil presents several opportunities for foreign investors to do business in the country.
Large consumer market
Brazil has the fifth largest global population, and a fast-growing middle class (as is present across the entire Latin American region), meaning that there is a huge consumer market. The size and diversity of the consumer market has created a wealth of exciting commercial opportunities for foreign businesses looking to access new clientele within Brazil.
International trade access to the rest of the Americas
Companies incorporated in Brazil have direct access to Argentina, Paraguay, and Uruguay (founding members of MERCOSUR), and also 7 other Associated Members through this multilateral agreement.
Establishing a commercial presence in Brazil gives companies easy access to other countries in the region, and allows them to take advantage of strategic trade agreements. Brazil is part of the Southern Common Market, commonly known as MERCOSUR, which was established in 1991.
The trade group’s objectives include: Free movement of goods and services through the removal of customs duties and non-tariff restrictions. Standardized external tariffs and commercial policies among members, including economic, agricultural, industrial, fiscal capital, services, customs and transport policies
Cooperation in international economic forums
Integrated legislation to make it easier for businesses and people operating across MERCOUR member countries.
Companies incorporated in Brazil have direct access to Argentina, Paraguay, and Uruguay (founding members of MERCOSUR), and also 7 other Associated Members through this multilateral agreement.
Desirable geographic conditions
Brazil is geographically large and naturally diverse, providing an ideal climate for agricultural production and business ventures. Traditionally, agriculture has been a staple national sector, and despite the effects of the Global Financial Crisis, Brazil continued with strong agricultural output. For companies looking to invest in this sector, there are ample opportunities. One example of an opportunity includes the introduction of new technology and equipment to improve efficiency and increase agricultural output. This innovative section of agribusiness, known as ‘aggrotech’, also contributes to a wider national agenda of ensuring and improving food security. It’s therefore in Brazil’s interest to support agribusiness growth on a medium and large scale, and improve outputs generated by the large proportion of small, family-owned agriculture businesses.
Openness to foreign investment
For those thinking about incorporating a local company in Brazil, 100% foreign ownership is allowed, and companies can sponsor the visas of foreign employees. For those thinking about incorporating a local company in Brazil, 100% foreign ownership is allowed, and companies can sponsor the visas of foreign employees. Additionally, local companies can be incorporated in Brazil without the need to physically visit the country; the process can be completed through a Power of Attorney. The new government has declared their support for foreign investment in Brazil and are extremely ‘pro-business’, giving confidence to foreign companies interesting in engaging the local market.
Great infrastructure for doing business
Unlike some of its neighbors, Brazil has excellent infrastructural and transportation facilities. Brazil has large and developed roads – and one of the largest highway systems in the world – and has various railway systems for land transportation. There are 175 maritime and river ports in the country, 32 of which are public. There is therefore an extensive network of land and maritime logistics support for businesses moving goods across the country and internationally.
The Brazilian Government is actively cultivating relationships with international and U.S. businesses and prioritizing macroeconomic stability. In order to avoid the 'redundancy' risk of the use of static data about various countries, this portal incorporates various data feeds from:
The intention is to provide access to live information extracted from the regularly refreshed databases maintained by these organisations.