Brazil’s tourism industry is expanding and is vital to the economies of several Brazilian states. In terms of foreign tourist visits, the nation had 6.589 million tourists in 2018, placing it third in Latin America and second in South America, after Mexico and Argentina. Among the most popular types of tourism in this nation are ecotourism, leisure, recreation, adventure, beach, historic, and cultural travel.
Establishing a tourist company in Brazil
Planning and compiling all the data you will need to provide to authorities throughout the remaining procedures is the first step in incorporating your tour company in Brazil. These plans must be specified in advance, together with the precise actions to be taken and the locations in the nation where they will be carried out. This is crucial since each state and municipality has unique tax laws and regulations based on the kinds of commercial operations that are conducted, which will be important when registering with the authorities at various levels.
Select a company structure
You must specify the legal form that your company will take in Brazil. A branch, corporation, or limited liability company (LLC) are a few alternatives. In Brazil, almost 90% of enterprises choose to form LLCs. The kind of entity you select depends on several variables, including the intended level of corporate governance, whether it will be a wholly owned entity or have multiple shareholders with different needs, the particular requirements for a particular type of activities, and the company’s plans in Brazil.
Make the articles of incorporation and file them
You must organize the data to complete the articles of incorporation and the forms can be submitted to the Board of Trade. Different registration fees are depending on the state the business is being formed in. The articles of incorporation must include, among other things:
- The company’s name.
- The business’s location.
- Shareholders’ information.
- Information on capital
- Information on the planned business activity.
- Information on the management of the business.
Foreign shareholders’ registration with Brazilian authorities
For the aim of later registering their investment in the Brazilian firm, foreign owners must first enroll with the Brazilian Central Bank. Additionally, foreign stockholders must register with the taxpayer’s registration of the Brazilian Federal Revenue. They must designate a Brazilian citizen with the capacity to act as their representative before the relevant authorities and to oversee their Brazilian assets for this purpose. The ultimate beneficial owner (UBO) of the company’s information must be submitted, together with any necessary supporting papers, within 90 days after the original filing. This procedure may be started online (at the moment through the Central Bank’s website). It’s also vital to keep in mind that some activities will also be required in advance if the key shareholders and/or management do not now live in Brazil or want to do so in the future. This involves choosing a Brazilian attorney to represent any non-residents for business and tax reasons.
Registering with government agencies
The Federal Revenue Bureau and the local authority are two of the numerous agencies that need registration to proceed with the incorporation procedure. The business must also be registered with the state administration and any particular union relating to tourism.
Establishing a bank account
Even though this is the last stage in the incorporation process, it is highly complicated and may take some time. Depending on your connection with the bank and your financial status, this process may take a few days to a few months due to the bank’s comprehensive KYC standards. The following papers, among others, that any bank may need at their discretion, are required to create a bank account:
- The shareholders’ documents (such as articles of organization and evidence of the relevant UBO)
- Brazil’s entity’s articles of incorporation
- Brazil’s taxpayer identification number
- Brazilian company’s financial statement
- Personal records of the executive of the Brazilian organization.
