Do You Need a Fiscal Address in Brazil?

You are searching for register a business in BrazilYou will also need to set up a fiscal address. Even if your company does not require physical premises, the Brazilian fiscal address will house all tax-related correspondence and official correspondences.

Brazil is the largest nation in Latin America — in terms of landmass, population, and economy size — and on that basis the country is widely known as “The Giant of South America.” 

This is also where you will find the largest amount of foreign direct investment (FDI) in 2020. stood at $69.2 billion (all figures in USD) — the fourth highest FDI figure registered worldwide.

In 2020, Brazil registered a gross domestic product (GDP) of $1.44 trillionThe figure was roughly the same as the total South American GDP. However, it showed a slight decline from the prior year, due to COVID-19.

The country witnessed a similar decline in gross national income (GNI) — a key indicator of general prosperity — however the figure of $7,850 per capita registered in 2020International standards still place the country at an upper-middle income level.

Brazil is well-known for its abundance of natural resources, including large deposits of precious metals, gems, and oil, while coffee, soybeans, and timber are all key export goods produced by the country’s massive agricultural sector.

Brazil also has a highly-developed manufacturing sector, while the services sector is of increasing importance — generating more than 60% of GDP since 2015. It also includes a growing profession services industry, concentrated in cities like Sao Paulo or Rio de Janeiro.

It is also a founding member. the Southern Common Market (Mercosur) — a 30-year-old economic integration initiativeIt also covers Uruguay, Paraguay and Argentina. Bolivia, however, is still waiting for formal acceptance. 

Brazil’s most popular official language is Portuguese. falling in the mid-range of English proficiency, you will need to make sure that anyone you partner up with a provider who can communicate effectively in English — or any other language you know. 

But it’s worth noting, Brazil is one the Latin America countries. saw English proficiency rise during the pandemic.

Continue reading to learn more about Brazil’s fiscal addresses and other considerations for doing business there.

Oder, you can go ahead contact us nowLearn more about our support for Brazil-based businesses. 

Why is Brazil required to have a financial address?

Your company’s fiscal address in Brazil will generally be where your operations are headquartered and where core administrative, commercial, and managerial operations are carried out.

As such, it will be the address that is lodged with authorities, including the Brazilian Federal Revenue (“Receita Federal”) service and state or city tax authority, for correspondence on taxes and other compliance matters. 

This address will be required to register for your tax identification, also known as the a Cadastro Nacional das Pessoas Jurídicas (CNPJ).

It is also necessary for:

• Register your company 
• Register for a Corporate Bank Account
• Participation in tenders 

If you plan to open a Brazilian business, but do not need a physical address, you’ll still need a fiscal adress to receive official correspondences. A back-office service provider can offer one service: a fiscal address where correspondences may be sent.

It is important to note that any company that holds a stock or goods has to have physical premises and not only a fiscal address.

The usual time it takes to register a Brazil fiscal address is between two and three days. You should remember that in order to change a fiscal address registered in Brazil, you must amend its bylaws.

The most common Brazilian legal entities

You will have to select which fiscal address you want to register in Brazil if you wish to support a company’s formation. type of entityTo form. These are the most popular types of entities that foreign investors use:

1. Limited Liability Company (“Limitada” / “Ltda.”)
   This is one of the most common types of entities used in Brazil, for which at least two shareholders are needed, with each shareholder’s responsibility limited to the amount of capital invested. To establish this entity, there is no minimum capital or maximum capital.
2. Limited Liability Corporation – S/A (“Sociedade Anônima” / “S.A.”)
   These entities are regulated by a specific law, and shareholders’ liability is limited to the payment of shares to which the shareholders have subscribed. This entity must also have at least 2 shareholders. It should also be governed by a Board.
3. Silent Partnership – SCP
   These are unincorporated organizations  and generally used in specific situations, such as real estate or forestry projects. Under this structure, one member is the “ostensible partner” who oversees operations, while others are “silent partners”   
4. Single Holder Limited Liability Entity (”Empresa Individual de Responsabilidade Limitada” / “EIRELI”)
   EIRELIs, the most common type of entity that entrepreneurs use, must have shareholders who are individuals. One EIRELI can be created by an individual. For these entities, shareholders’ liability is limited to the amount of their shares. This entity should be created with minimum 100 salaries paid (approximately $120,000 by 2021).

Biz Latin Hub helps you get a Brazilian fiscal address

Biz Latin Hub assists entrepreneurs and companies to do business in Latin America by providing tailored back-office support. 

Our portfolio contains 16 teams that are based in the regions. company formation, accounting & taxation, corporate legal services, due diligence, hiring & PEOYou can also apply for visas. 

We can help you get a Brazil fiscal address if you do not need a physical place to begin your business.

Contact us nowFind out how we can help you do business in Brazil.

Learn more about us team and expert authors.