How to start an Export Import business in or with Brazil?
As per the Custom Import Export Data, the United States is the second largest trade partner of Brazil. The country has increased foreign trade to more than 30% of its USD 1.832 trillion GDP in 2020.
As per Brazil Import Data, the main imports of Brazil are refined petroleum, motor vehicles, parts and accessories, vaccines, blood, antisera, toxins and cultures, mixed mineral or chemical fertilizers and petroleum gas. The main import partners are China, United States, Argentina, and Germany.
According to Brazil Export Data, the main exports of Brazil are Iron Ore, Soybeans, Crude Petroleum, raw sugar and poultry meat. The main leading export partners are the United States, Argentina, Netherlands and Chile.
The country imported goods of the value USD 219.4 billion and exported USD 280.8 billion in 2021. Brazil is the largest economy in Latin America and is the 9th largest economy in the world. The government has declared its support for the foreign investment to develop a business-friendly environment to attract foreign investors.
Starting a business in Brazil as a foreigner can be done in two ways either directly as a subsidiary or through third parties. By starting business as a subsidiary, the Brazilian company will be fully governed by the law of Brazil, holding same rights and responsibilities as a local Brazilian company.
How to open export import business in Brazil?
1. Plan a business idea: Plan a business idea whether you want to import or export business in Brazil. Choose the address to operate and this address must be compatible with the business activity.
2. Choose a suitable entity: The most popular entity is a Limited liability company.
3. Reserving company name with Board of Trade: The corporate name chosen for your import/export business must contain the kind of activity your business will conduct. The company name will have to address the five rules of company naming in the country.
4. Registration with the board of trade: Submission of certificate of incorporation, memorandum and articles of association. The entire process of incorporating a new import/export business in Brazil can take in 60-90 days.
5. Opening of corporate bank account: The next step is to open the corporate bank account for your import/export business. The following documents from shareholders, articles of association and tax payer ID are required. This process may take from a few days to three months, depending on the relationship with the bank and the financial situation.
6. Tax registration: For tax registration application for CNPJ number with the department of federal revenue service and the net annual corporate tax is 34%.
7. Obtaining business permit and license: There are few options business license are not required but it is required in most cases. Documents like real estate clearance certificate, a formal request for business license, statement of responsibility, approved articles or association, copy of identification document for the company administrator and payment of the registration fee for business license application is required. Some import/export businesses may also require obtaining sanitary permit.
Rules for naming company in Brazil
1. Veracity: The real name of partner or the partners is to be used both in the firm as well as in the denomination. The activity indication incorporated into the name must also be real and it must showcase the social subject.
2. Novelty: A new name is to be adopted and it must be different from the names that already exist to avoid confusion for identification of the companies.
3. Providing the type: The legal type of EIRELI or the partnership must be provided.
4. Moral protection: Use of immoral words or expressions and that are against good manners are to be avoided.
5. Prohibition of use of initials and denominations of public entities: Import/export companies in Brazil is not allowed to use initials or denominations of public entities or the ones showcased in the law and in regulatory acts of public power.
Wrap up
Starting an import/export business in Brazil may seem challenging at first sight because of many formalities and procedures. It is important to consult a professional consultant who will help the business in choosing a suitable entity, complete the registration process, obtain license and open corporate account.
Also, it is equally beneficial to collaborate with a professional data service provider to know the trade dynamics of Brazil so that the importers and exporters plan their business moves in an informed way and reap success and profits in their import export business.
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