Doing Business in Brazil - Looseleaf
Doing Business in Brazil - Electronic
A. CHOICE OF TYPE OF ORGANIZATION
3.101 Although other forms of business organizations are recognized by Brazilian law, this chapter is mainly concerned with sociedades anônimas and sociedades limitadas, which are the most important and most widely used types of company in Brazil. Some attention will also be given to branches of foreign companies. Branches are not frequently used in practice, but are often considered by foreign investors.
3.102 In Brazil the formation and operation of companies is governed by federal laws applicable throughout the country. Consequently, from a strictly legal point of view, there is no advantage to be gained from choosing a particular region or state.
3.103 There is no restriction on the participation by foreigners in Brazilian companies as such. Similarly, there are in general no limits on the proportion of capital which may be held by foreigners, nor is there any need to obtain authorization from any government department before a Brazilian company may be formed by foreign individuals or companies. The regulations governing the formation of companies, with a few exceptions, are the same for Brazilians and foreigners.
Pinheiro Neto - Advogados, established in 1942, is Brazil's leading commercial law firm with offices in Sao Paulo, Rio de Janeiro and Brasilia. The founding Editor of this publication, the late J.M. Pinheiro Neto, was the Legal Advisor to the British Chamber of Commerce in Brazil.