BRAZIL: A TAILOR-MADE COUNTRY FOR YOUR BUSINESS
Doing Business in Brazil
By Fernando Pieri
Brazil offers all facilities for opening your business on its territory. Would you like to open a branch of your company in Brazil? Brazil allows the opening of branches of foreign companies, without any participation of Brazilian individuals or legal entities, or you can, not needing any prior government approval, opt to run a new company with Brazilian participation in it. The dividend to be remitted to Canada, as a reward for participating in a Brazilian company, is tax free as well as the foreign investment done for acquisition of shares.
Maybe you have know-how and manufacture capital goods or have technology in computer without similar one in Brazil?
Running a company in Brazil, you can request to the Ministry of Development, Industry and Foreign Trade (MDIC) the “ex-tarifário” which is a reduction on rate of Importation Tax on capital goods or related to computers technology that are of great importance to the production by the Brazilian industries or for the modernization of their industrial park.
Perhaps you want to expand your business to Latin America. Brazil is the leader of MERCOSUR (trade bloc of countries-South Cone) and is one of the “BRICS” countries, being a gateway to South American market. In this sense, the new Brazilian company can import the inputs from the Canadian company, proceed with the manufacture in the territory of Brazil and then export to neighboring countries. The benefit of this operation? Suspension or even exemption from all taxes that a traditional importation would be subject to. This model of “import for export” is called “drawback”.
Do you want to experience the Brazilian consumer market and the receptivity of your product by the Brazilians before running a new business over there?
Alright! You can use the “warehousing import”, a customs regime in which you can export from Canada to Brazil, with suspension of taxes. The goods are placed under fiscal control, as dry ports, until the sale to a Brazilian consumer. The sale coming true, you pay the taxes that was suspended, proceed with the customs clearance and then delivered the goods to your Brazilian client, what enables, above all, fast delivery of an imported product without opening a branch in Brazil.
Are you interest in investing in Brazil?
Tell us what the features of your business are, Brazil has the right benefit for you!
Service:
Fernando Pieri Leonardo, lawyer and consultant with 16 years experience, is a partner at HLL Lawyers, specialising in International Trade, Customs Law, Tax and Business.
Contact: fermandopieri@hll.com.br Website: www.hll.com.br Facebook: http://www.facebook.com/HLLADVOGADOS Twitter: https://twitter.com/HLLADVOGADOS
