Setting up a business in Brazil

 The ultimate guide – Part II

Is it complicated? Can I have an idea of the different steps?

Brazil has a high level of bureaucracy. We will explain bellow the step by step timeline to the creation of two companies in Brazil. These case studies are based on real companies that set up operations in Brazil.

 

Case Study 1 – Joint Venture

Multi-function business

  • Sell UK-created SaaS to Brazilian companies
  • Provide customer support to existing and growing customer base across Latin America

Why a JV?

  • Customer pressure forcing urgent establishment
  • Had to have branding and country presence
  • Only justified 3 staff initially
  • UK owner could only dedicate minimum resources due to other commitments

 

Case Study 1:

  • UK business determined Sao Paulo as an ideal base                                        [Day 1]
  • 15 possible partners found through remote library research                         [Day 15]
  • Prospectus sent and telephone call with CEO of each of 15                            [Day 18]
  • 3 were not interested, reducing list to 12                                                            [Day 30]
  • 6 of those eliminated by local representative visit                                            [Day 40]
  • Shortlist of 6 – half day visit by UK team (with local support) to each        [Days 55-57]
    • 4 in Sao Paulo metro area
    • 1 in Campinas
    • 1 in Sorocaba
  • First choice – one in Sao Paulo                                                                              [Day 60]
    • Fell through on business negotiation on terms within 3 days

Second choice (in Sorocaba) selected                                                                              [Day 63]

 

Remaining steps:

  • Legal agreements reviewed and refined by both parties                                   [Day 75]
  • Employee hiring process started                                                                             [Day 76]
  • UK Power of Attorney signed and sent for legalisation                                      [Day 76]
  • Company registered as 50/50 JV – Contrato Social signed                              [Day 85]
  • Candidates interviewed, and 3 selected                                                                 [Days 86-87]
  • 3 employees start work and training                                                                       [Day 90]
  • All other necessary business setup arrangements in place                                 [Day 95]

Official launch of Brazil company and announcement to world                                  [Day 100]

 

Case Study 2: Wholly-Owned

Provide communications and hospitality support to broadcasters and sponsors of major events – initially World Cup 2014 then Olympics 2016

  • Branded local presence essential for contracts with certain Brazilian suppliers and partners
  • Paramount need for total control over product quality
  • Urgency dictated by event timings

 

In case study 2:

  • Business requirements and deadlines dictated                                                                    [Day 1]
  • Decision made to pursue Turnkey Solution                                                                          [Day 2]
  • Detailed proposal and company definition drafted                                                            [Day 12]
  • Proposal and Definitions refined and agreed with UK management                             [Day 20]
  • UK contract for ownership handover signed                                                                       [Day 20]
  • Hiring process for Manager and Sales person commenced                                              [Day 21]
  • Contrato Social signed and legalised, interim Administrator appointed                       [Day 30]
  • Serviced offices contracted, initial staff interviewed and hired                                        [Day 44]
  • Banking, Accountants, Lawyers appointed                                                                           [Day 50]
  • Business launched and trading                                                                                                [Day 60]
  • UK Power of Attorney signed and sent for legalisation                                                      [Day 61]
  • Revised Contrato Social signed and legalised                                                                       [Day 70]

Company now fully owned by original UK parent                                                                          [Day 70]

 

Nice… Can I do the same for my company?

Contact us for a free consultation on: +44 (0)20 7278 9210.

 

by Oliver Dowson, CEO – ICC – International Corporate Creations

These case studies were presented at the UKTI Exporting is Great – Opportunities in Latin America Roadshow

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