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Due Diligence in Brazil

Due Diligence in Brazil

Due diligence in Brazil is an investigation carried out to avoid potential harm to other persons or their properties. For instance, if you are going to invest in a pre-existing company, you must carry out detailed due diligence to clarify the company’s legal and financial health. Due to Brazil’s favorable business environment and consumer market size, many multinational companies tend to expand their businesses in this country. However, there are several legal peculiarities in Brazil one should know about, which can impact businesses.

With due diligence in Brazil, you can mitigate your business risks, so get in touch with our lawyers. The seasoned lawyers at our law firm in Brazil can help you reduce the risk chances you might face in the future.

In addition to this, if you want to obtain a Brazil investor visa, you can rely on the legal assistance of our lawyers. They will guide you throughout the process of applying to pick up your visa from the Brazilian embassy.

Requirement of due diligence in Brazil

Our lawyers practice due diligence to analyze background, legal and financial information to help decision-makers of a business prevent unnecessary risks. Their assistance can also help you to avoid unknown liabilities from new partnerships. So, our services related to due diligence in Brazil can help you make informed decisions about those possible risks that align with the best interests of your company. As a decision-maker, you can acquire the services of our Brazilian lawyers; they will undertake certain due diligence processes when you:

  • Purchase company assets;
  • Hire senior or specialized staff;
  • Purchase an existing company;
  • Contract with an unfamiliar agency;
  • Enter into partnership with an unknown agency;
  • Form key working relationships with organizations or individuals.

When you carry out any of the above dealings in Brazil, you can obtain legal help from our lawyers in Brazil. Our seasoned lawyers will provide you with legal assistance to understand the nature of a company or if the due diligence process is imposing additional standards on you. For instance, in the case of food companies, the regulatory requirements may differ significantly due to health or other criteria.

Furthermore, if you want to obtain Brazilian citizenship by investment, you can trust the legal guidance of our lawyers. They can guide you to the best possible options to invest in Brazil. Before applying for citizenship in this country, it is important to check its benefits. One of the most significant benefits of obtaining Brazilian citizenship is the ability to travel freely. Brazilian nationals can travel visa-free to over 146 countries and territories, including the Schengen region. Brazil also recognizes dual citizenship, so you will not have to worry about giving up your own. Brazilian nationals are eligible to work in the public sector.

Documents required for due diligence in Brazil

If you need to carry out the due diligence process with the legal assistance of our lawyers, you need to submit the following company documents:

  1. Articles of incorporation suitably registered;
  2. Clearance certificate of labor debts;
  3. Taxpayer number;
  4. Foreign Capital Registration before the Central Bank (if applicable);
  5. Clearance certificate provided by the governmental authorities;
  6. Federal, State and Labor Court Distribution Register;
  7. Payroll information and labor agreements;
  8. A certificate stating that the protest of titles in the concerned municipality has been resolved.

This is the general list of documents you must provide to our lawyers to carry out due diligence in Brazil. But please keep in mind, the process may demand additional documents if any need is observed during the due diligence.

In addition to the due diligence process, you can also rely on our lawyers for certain other tasks that need legal assistance. For instance, if you are facing any problems related to debt collection in Brazil, you are welcome to obtain the legal services of our lawyers in this matter. Besides this, if you are planning to apply for a Brazilian residence permit, our lawyers can explain to you its application process in detail. Permanent residency applications can be submitted at Brazilian embassies and consulates. There is a substantial quantity of paperwork to be completed, as well as documentary evidence to be provided. Anyone seeking a visa based on marriage to a Brazilian citizen must produce a marriage certificate as well as witness statements. Those seeking an investment visa, on the other hand, must first get permission from the Brazilian Ministry of Labor and Employment. A business strategy, as well as several other pieces of paperwork, must be presented.

Foreign direct investment in Brazil

Different countries make foreign direct investments in Brazil. For example, the Netherlands is the biggest investor of 2019 for Brazil, and these investments are made into various economic sectors. If these foreign investments are made business, it is necessary to carry our due diligence process in Brazil to retain those investments for the future and rectify any potential risks. Please find below the percentage of foreign direct investment in the different sectors of Brazil:

  • In 2019, 20% of FDI was directed into the commerce except for vehicles;
  • 13% of foreign direct investment was made into the non-metallic mineral vehicles in 2019;
  • 6.4% of FDI was directed into the chemical products.

Contact our experienced lawyers if you want the process of due diligence in Brazil. This step will help you perform with peace of mind because you already know the company’s background without any doubt, acting accordingly.

If you face any family issue, like divorce proceedings in Brazil, you can get in touch with our lawyers. They will help you to go through such court proceedings effectively.