Foreigner entrepreneur in Brazil: 5 steps without coming to the country

Brazilian legislation has considerable flexibility regarding the opening and operation of companies, even for foreign partners who are entrepreneurs in the country, who may operate them even when they are far from the national territory. So, is it possible for a foreigner to be an entrepreneur in Brazil? Find out in this article!

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Collaboration: Leonardo Almeida Lacerda de Melo

Can a Foreigner Become an Entrepreneur in Brazil?

No prohibition or government impediment exists for a foreigner to become an entrepreneur in Brazil. Quite the contrary, the government is interested in the entry of foreign capital.

Before the procedure itself, the entrepreneur must have a trustworthy and knowledgeable person residing in Brazilian territory.

This person must act as his attorney with powers both to manage the company and to represent it before public bodies (especially the Central Bank of Brazil and the Federal Revenue Service), and to receive legal summons if applicable (see IN RFB 2119/2022).

Step-by-step guide to opening a company by a foreigner

First step: The foreigner must register as an Individual Taxpayer (CPF), which can be done by filling out an application on the Federal Revenue website.

Second step: Appoint a proxy. The proxy must be appointed in Brazil. To do this, a power of attorney must be issued with powers to manage the company, defining what the proxy may do, the limits of transactions, whether authorization must be requested to perform them, among other details.

Third step: The power of attorney must then be apostilled and translated, as well as the foreign entrepreneur’s passport or other identification document, in order to open the company and allow the foreigner to be an entrepreneur in Brazil.

Fourth step: It’s advisable to register as a Non-Resident Declaratory Registry (CDNR) through the Central Bank website. The registry allows foreign exchange transactions to be registered with the Central Bank through the website itself. All that is required is a CPF number.

This step is not essential if the share capital is less than US$100,000.00, according to IN 278 of the Central Bank.

Fifth step: Define the legal entity’s tax address. To do this, you must own or rent a property that has an “occupancy permit” and a fire department licensing permit that certifies its safety. Or you can also rent a space in a trusted virtual office that provides this service in addition to other services that are interesting for the company. But be careful when doing this with any company you find on the internet  – choose one that your attorney trusts.

Sixth step: Obtain the payment slips for registration with the Commercial Registry, pay the registration fees, and then apply for company registration with the Commercial Registry. You must check whether the economic activity is not subject to total or partial restrictions on foreign capital, if it requires special licenses, or if it’s reserved for partners with a specific professional license.

Seventh step: Obtain federal, state, and municipal operating licenses and register with the Ministry of Labor and Social Security.

Eighth step: Open a bank account for the legal entity. Ideally, it should be in the same bank as the individual, but it is not mandatory.

Ninth step: Obtain a digital certificate in the name of the individual and the legal entity to sign the documentation.

Tenth step: Appoint an accountant to perform the company’s monthly accounting.

Is it possible for a foreign partner to manage the company remotely?

The company can be managed by the attorney with management powers, which, as described, is essential for opening the company. However, for direct management by the foreign entrepreneur, the latter may opt to issue a Digital Certificate.

After obtaining the digital certificate, appointing the accountant, and having access to the company’s bank account, it is possible to manage the company remotely without coming to Brazil. In this case, that means the entrepreneur does not even need a visa or, possibly, can come with a tourist visa.

Is a visa Necessary for a foreigner to become an entrepreneur in Brazil?

As demonstrated in the procedures for opening a company in Brazil, a foreigner does not need a visa to be an entrepreneur in Brazil.

For the purposes of administration, this may be done through a Digital Certificate, which allows the hiring of directors residing in Brazil, in addition to the attorney required by the Federal Revenue Service.

Therefore, there is no need for the foreign entrepreneur to come to Brazil, given the remote nature that can be acquired by business administration through the Digital Certificate.

Even regarding legal actions and representation before public bodies, it will be possible for this representation to be carried out by an attorney residing in Brazil.

Is it Possible for Foreigners to Obtain Residency in Brazil After Opening a Company?

In Brazil, foreigners who are entrepreneurs can obtain residency through the Visa and Residence Permit for Entrepreneur Investors, which can be requested after meeting certain basic requirements.

The costs of issuing the visa vary between R$ 110.00 and R$ 435.00 (as of the date this article was written), depending on the entrepreneur’s country of origin. The requirement for obtaining the visa is the full capital of a Brazilian company in the minimum amount of R$500,000.00. In the case of startup companies that demonstrably transfer innovative technology to Brazil, this amount may be lower.

The initial documentation required is:

• Investment Plan;
• Articles of Association or Articles of Association of the company, with full payment of the invested capital;
• Proof of foreign investment, requiring presentation of the Foreign Investment Declaratory Registration;
• Exchange Contract issued by the Bank receiving the investment;
• Other documents that are required to establish residence in the country.

Another way to obtain the same visa is by purchasing a property, the minimum value of which must be R$700,000.00, in the North and Northeast regions of the country, and R$1,000,000.00 in other regions.

How to Acquire Permanent Residency as an Investor Entrepreneur?

The residence permit for an investor entrepreneur is granted for two years, after which it is verified whether the business continues to operate, generating taxes and jobs.

From 90 days before completing these two years, the foreign entrepreneur must apply for a permanent residence permit.

For more information regarding the investor visa, access our article.