Brazil is considered one of the most interesting economies globally. At the same time, business leaders face a complex and bureaucratic system when establishing operations in the country. Learn more about how to set up business operations in Brazil.

The Brazilian Economy: Opportunities and Challenges

The Brazilian economy is considered one of the most attractive for foreign investments today, especially compared to other emerging countries. Brazil is the main economic presence in Latin America and the 8th largest economy in the world. With Jair Bolsonaro’s government, there is a promise of a more open and business-friendly economy aiming to be among the top 50 countries to do business by 2022.

However, investors must navigate challenges, such as a complex tax system and the preference of Brazilian companies for working with local entities for tax reasons.

Four Main Ways to Do Business in Brazil

Depending on your business purpose and planned commitment, here are the main approaches for foreign investors and companies:

1. The Business Development Agent

Objective: Local support to analyze the Brazilian market or find potential business partners or suppliers in Brazil.

Solution: Hire a local business development agent. This avoids visa issues for non-residents while providing insights and connections.

2. The Sales Representative

Objective: Find Brazilian customers for goods, services, or software.

Solution: Hire one or more Brazilian sales representatives. They identify potential customers, sign contracts (if authorized), and keep you informed about market developments.

It’s important to draft a commercial representation agreement that complies with Brazilian law to protect both parties’ interests.

3. The Distributor

Objective: Work with a partner who intermediates transactions and handles product distribution to end customers.

Solution: Partner with a Brazilian distributor. Unlike sales representatives, distributors purchase products before reselling them and typically hold import licenses.

4. Incorporate a Brazilian Subsidiary

Objective: Long-term commitment and building a Brazilian brand.

Solution: Incorporate a subsidiary. This allows for better control over operations, provides tax advantages, and signals a commitment to the Brazilian market.