Brazil is a country known for its rich coffee, the brightest carnivals, and excellent football players. The country is established in South America and is the only Portuguese-speaking state on the American continent. Brazil covers an area of 8,515,770 square kilometers, which is 5.7% of the entire land area of the Earth.
Brazil is the largest state in South America, both in territoriality and in terms of population, which is 205,737,996 inhabitants. The state of Brazil is considered a federation, which includes a federal district, 23 states, and 3 territories.
The Brazilian economy has surpassed the development of the economy in other South American countries and occupies a special market position in the world. In 2004, Brazil stabilized the microeconomy by getting rid of debt and building up foreign exchange reserves.
Since 2008, the state has been an external creditor without any debts and has investment status, according to two rating agencies. There were, of course, economic falls in the period from 2008 to 2010, but Brazil has successfully dealt with all the difficulties and returned to the ranking of the most prosperous country.
For external investors, the state is one of the most beneficial investments due to its high-interest rates and resistance in terms of economic growth.
The rise in Brazilian capital led to the fast growth of the local currency, which made the heads of government raise taxes on some foreign investments. Brazil has been and remains an oasis of stability in the global economy, thanks to a smart approach to financial management in the country.
Brazil is one of the most key and significant countries in the developing world and has the greatest economic potential among Latin American countries.
It is not unusual why many investors choose Brazil to direct their business and are happy to start offshore companies in the state. It is especially profitable to open your own business for the production of coffee and its transportation to other countries.
Features of offshore companies in Brazil
The procedure for registering an offshore company itself will take no more than two months, and if you wish to register a foreign company, you must have a preliminary permit and the issuance of a document confirming this from the Executive Department.
The following conditions must be taken into account:
- Brazilian law states that an enterprise must have at least two companions (foreigners, legal entities, or Brazilian citizens);
- before buying/starting a company in Brazil, it is worth studying the taxation of existing Brazilian enterprises;
- each enterprise owns its financial capital, divided into parts (shares), which in turn are responsible for part of the profit of each partner in the company;
- those who are involved in quotas (founders) are responsible for obligations for a quantity that is equal to the value of the shares they own;
- due to the above feature, all founders have the possibility and the right to control the company;
- the director is not responsible for the company itself, but he can be held liable in case of non-compliance with the law or exceeding of authority by those who managed the company during a certain period;
- It is obligatory to hold meetings at least 2 times a year to track reports on financial results of previous months/years and to determine the competence of the owner/approval in the position.
Data required for registration
- Approval of the charter by the board of founders, where the charter provides the following information:
- if a shareholder is an individual, detailed information about him is required (name, place of residence, nationality, profession, marital status);
- if a legal entity acts as a shareholder, detailed information about it is required (name, legal address, period, period of existence of the enterprise, field of activity, nationality).
- Indication of the amount of the authorized capital in Brazilian national currency and provision of the number of shares.
- Requirement of the shares of each partner, which form the share capital and methods of payment of these shares.
- If the partners have subsidiary liability, provide details of this information.
Documents required for company registration:
- photocopies of documents, approved by a notary, proving a legal entity or individual;
- papers verifying the location of the director of the enterprise (photocopies attested by a notary) and documents proving their identity;
- a photocopy of a report proving the payment of taxes by companions and the head of the enterprise (despite whether it is a legal entity or private)
- a document (its certified photocopy), confirming the legal right to use the real estate by the company, in the place where the head office appears (lease agreement);
- document to the director to grant/transfer powers (issued by foreign partners);
- document to the director to grant/delegate powers represented by a representative, in bodies such as the Central Bank of Brazil, the Ministry of Revenue, and the Ministry of Labor (also issued by foreign partners).
The benefits of setting up an offshore company in Brazil or buying a ready-made offshore company are obvious: due to its financial stability, the country is unlikely to have a problem with doing business. In most situations, the owners of offshore companies remain unknown, so the chance to go about their business without any complications is very high.
When registering an offshore company, the owner also can open his account with a local bank, and this process does not require personal presence.
Registration of an offshore company does not take much time and literally, in the shortest possible time, you can not only become the owner of your own company abroad but also immediately start doing business without attending meetings.