What are the benefits of Brazil's foreign investment climate for registering a Brazilian company?
In recent years, the Brazilian government has taken a number of measures to improve the business environment and attract the inflow of foreign investment.
The Brazilian Investment Promotion Agency (Apex-Brasil) actively promotes the entry of foreign investors into the Brazilian market with various policy incentives, including tax incentives, simplified approval procedures, and investment subsidies.
However, despite the fact that Brazil shows great potential for investment in a number of areas, there are still a number of potential risks that foreign companies need to deal with when operating in the country.
First, Brazil has a complex tax system. Brazilian taxation involves three levels of federal, state and municipal taxes, and there are significant differences in tax rates and tax requirements between states and municipalities, resulting in higher compliance costs for companies.
Second, Brazil's laws and regulations are lengthy, with more administrative approvals and legal requirements, especially when it comes to environmental protection, labor regulations, and foreign exchange controls.
In addition, the Brazilian economy is highly cyclical, with high inflation and volatile financial markets.
Historically, Brazil's high inflation rate, currency devaluation and high interest rates have posed serious financial risks to foreign companies.
Although the Brazilian government has stabilized the economy to a certain extent in recent years through macroeconomic regulation policies, changes in the global economic situation may still have a greater impact on the Brazilian economy.
Finally, Brazil's infrastructure development, although gradually improving, is still inadequate in some areas. Especially in the interior, roads, ports, airports and other infrastructure are relatively poor, which may affect the efficiency of supply chains and logistics costs for enterprises.
02 Why incorporate a Brazilian company? What are the benefits?
先来说说注册巴西公司有哪些好处，为什么出海巴西需要注册一家巴西本土公司。
1) Product Certification
Brazil has a strict certification system for imported products in order to maintain market order and protect consumer rights, and any uncertified products are at risk of being seized.
So what is the inevitable relationship between a Brazilian local company and product certification? Maybe you don't know, there is a mandatory condition before doing product certification, that is, you need a Brazilian company as a licensee in order to do the certification, so many sellers will be stuck in this step.
(2) Tax self-declaration
Brazil is a country with a complex and varied tax system, which has many types of taxes.
For companies, understanding and mastering tax filing is a key step to successfully entering Brazil.
Currently, Brazilian local companies are adopting the self-declaration model in terms of tax payment, which means that sellers can reduce their operating costs and increase their profit margins by reasonably planning their taxes, otherwise, it may give you a big headache in terms of the amount of tax payment.
3）No need to prove the flow of water in the store and be able to open full
If you are a new seller, only cross-border store, you must provide the relevant mainstream platform (single platform single store) in the past 6 months the average monthly water flow of more than 5000 U.S. dollars to prove in order to be stationed, this is a mandatory condition, otherwise you will not be able to carry out your business blueprint.
Secondly, having a local Brazilian company that can open full warehouses has two major advantages.
Product Flow:After opening the FULL warehouse, the product page will have a "green FULL mark", the traffic and ranking of the product link will be significantly improved, and the weight of the store will be higher. Especially during the promotion activities, FULL warehouse products will get more exposure.
Logistics:The use of FULL warehouse can reduce the tediousness of logistics operations, shipping directly from the official warehouse, and ensure that orders are processed within 24 hours, according to the buyer's address to control the product delivery in 1-3 working days.
Registered capital: unlimited registered capital, no need for paid-in. (Except for specific industries or the need to apply for import and export quota at a later stage)
3) Investment immigration companies (long-term layout, safe and controllable)
Registration time: about 3-7 months;
Advantage of registration: you can get permanent residence, the legal representative is your own person, compliance and security;
Registered Capital: Paid-up capital is required, with a minimum of R$150,000 paid-up capital (but with 10 registered Brazilian employees) or a one-time investment of more than R$500,000;
Registration requirements: first find a Brazilian to be the company's legal representative to register the company, then Chinese people for investment immigration visa, get the identity of the legal representative of the company changed to Brazil.
How does a Brazilian company choose the method of tax calculation? There are currently three types of tax calculation methods.
(1) Simples Nacional (Simplified Taxation Act)
Created specifically for small and micro businesses with annual revenues up to $4.8 million, the tax system pays a single tax (DAS) based on the type of business, which includes federal, state and municipal taxes.
The simplified tax method uses a progressive form of taxation, taxed as a percentage of a business's gross receipts, usually between 4% and 19%, and is paid on a monthly basis.
Simplified tax system tax rate table / Image from the Internet
The tax system has certain limitations - it is not available to companies with annual revenues of more than R$4.8 million, to foreign companies, and to some companies belonging to specific industries (finance, transportation, electricity, importers of cars and motorcycles, etc.).
(2) Lucro Presumido (imputed profit method)
The tax system is based on corporate income and estimated profit margins to calculate taxable income, which is then used to calculate the income tax (IRPJ) and the net profit social contribution charge (CSLL).
In estimating profits, taxable income is 81 TP3T of the business's gross receipts from the sale of goods in the case of a business that sells goods, or 321 TP3T of service receipts in the case of a business that provides services.
In addition, companies that choose the imputed profits method of taxation are subject to income tax (PIS rate of 0.651 TP3T and COFINS rate of 31 TP3T), which is calculated on a cumulative basis, and the tax base for this method is gross business income, with no credit against the tax base for the company's related costs and expenses.
The imputed profits method is subject to certain limitations, such as the exclusion of companies with annual revenues exceeding R$78 million and financial institutions from the use of the tax system.
3) Lucro Real Profit Method
The tax regime applies to businesses with annual revenues exceeding R$78 million or those that want to keep precise records of income and expenses, detailed accounting of costs and expenses, and have requirements for completeness and accuracy of financial records.
The Actual Profit Method requires a business to accurately record revenues and expenses to calculate net profit, deduct tax-exempt income through actual profit, and add non-deductible income tax expenses to calculate the business's taxable income.
06 Choosing Enterprise Caiying Group as a long-term partner
🏆 Why choose Enterprise Finance? --Professional strength, global trust
Enterprise Caiying Group, since its establishment in 2015, has always been adhering to the mission of "empowering every entrepreneurial dream", focusing on providing one-stop globalized industry, commerce, finance and tax and business services for enterprises.
Our bottom line, from the deep precipitation and authoritative certification:
✅ Service Scale Witnesses Reputation: Accumulated services for more than 300,000+ enterprises, long-term cooperation with more than 50,000+ customers.
✅ Global Network Local Support: Branches are set up in Beijing, Guangzhou, Shenzhen, Hong Kong, Southeast Asia, and the United States, with services covering Asia, Europe, and the Americas.
✅ Official certification qualification escort: with 3 Hong Kong government certified licensed secretarial firms, a U.S. branch and a self-employed Hong Kong accounting firm, and at the same time is the vice president of the Shenzhen Agency Bookkeeping Association, etc., to ensure that the service is fully compliant and reliable.
The four core advantages of Enterprise Caiying's overseas company registration service:
🔹 1. A team of experts to guide you throughout the process
Our team of nearly 400 professionals consists of senior lawyers, accountants, tax accountants and cross-border business consultants. They are well versed in international regulations, handle thousands of high-end cases annually, and can provide optimal customized solutions from structural design to on-the-ground implementation.
🔹 2. digitally empowered, smart and efficient
We have spent 20 million RMB to research and develop our own digital system "Echobo", which realizes process standardization and progress visualization. The integration of AI intelligent analysis can provide quick insight into demand and assist in generating solutions, making complex affairs clear, transparent and efficient.
🔹 3. Eco-links, extra value
We connect over 500,000+ entrepreneurs with domestic and international associations. By regularly organizing cross-border salons, tax law seminars and other activities, we not only solve registration problems, but are also committed to linking resources and creating business opportunities for you.
🔹 4. Full-cycle accompaniment for worry-free sailing
Our services go beyond "successful registration". We provide a full life cycle of services from early consultation, mid-term implementation, to late financial and tax declaration, annual audit and maintenance, and compliance consulting, to become your long-term and stable partner for overseas expansion.
statement denying or limiting responsibility
Image source: some of the image material in this article from the network, such as copyright issues, please contact us to replace the deletion of processing.
Information reference: The content of this article is synthesized from the internal materials of Enterprise Caiying and relevant public network information.
Content Editor: This article was edited and designed by the Operations Department of the Enterprise Caiying Group.
Warm reminder: The relevant policies, conditions, time limits, fees and other information described in this article may be subject to dynamic adjustments, please refer to the latest official announcements or the actual application of the specific circumstances prevail.
Tags:
巴西公司注册优势
Types of Brazilian company registration
Brazilian company registration process
Brazilian company
Brazilian Company Registration
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