Company Options for Foreigners in Brazil

Learn about the main types of business entities available to foreign investors in Brazil. Choose the right structure for your goals with CoForma's expert guidance.

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Company Options in Brazil

Main Company Types for Foreigners.

Limitada (Ltda.)

The most popular choice for foreign investors.
A Limitada is a private limited liability company, similar to an LLC. It requires at least two shareholders (individuals or legal entities, Brazilian or foreign). Liability is limited to the capital invested. This structure is flexible, cost-effective, and suitable for most business activities in Brazil.

Corporation (S/A)

A Sociedade Anônima (S/A) is a corporation, similar to a joint-stock company. It can be public or private and is often used for larger businesses or those planning to raise capital from investors. S/As are subject to stricter regulations and governance requirements.

Branch of a Foreign Company

Foreign companies can establish a branch in Brazil, but this requires special government authorization (Presidential Decree). The process is more complex and less common. The branch operates under the name of the parent company, followed by "do Brasil".

Key Points for Foreign Investors
  • ✔️ Foreign individuals or legal entities can own 100% of a Brazilian company (except in restricted sectors).
  • ✔️ Foreign capital is generally treated the same as domestic capital.
  • ✔️ Some sectors (e.g., media, aviation, land near borders) have restrictions for foreign ownership.
  • ✔️ At least one local resident is required as a legal representative (Power of Attorney) for the company.
  • ✔️ CoForma can guide you through the entire process, from choosing the right structure to full incorporation and compliance.

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