There are two ways in which a foreign company can start its business activities and the decision to open a branch vs a subsidiary in Brazil should be based on factors such as the level of liability and the desired level of control the foreign company will have.
Both the branch and the subsidiary have particularities and advantages. In this article, our team of lawyers in Brazil offers a summary of their characteristics.
For more in-depth information, as well as for assistance during the registration of each of these two business forms, we invite you to reach out to our local attorneys specializing in company formation. We also welcome you to get assistance from our lawyers if you are interested in permanent residence in Brazil.
The table below presented by our team of lawyers in Brazil highlights the main general differences between a branch and a subsidiary.
Branch | Subsidiary | |
Parent company liability | The parent company is fully liable | The company abroad is not liable for the actions of its subsidiary |
Parent company control | Full control | To the extent of its shareholding |
Registration | Needs to register in Brazil | Needs to register as a local company |
Taxation | 15%/34% including surtax | 15%/35% including surtax |
Tax compliance | Files annual return | Files annual return |
Both options are valid ones, depending on the parent company’s objectives. If you would like complete legal assistance when you open a branch or a subsidiary in Brazil in 2024, our team can help.
Our English-speaking team can also provide complete services related to tax laws for each of these business forms and offer details about the regulations imposed by the Brazilian Revenue Service.
The branch in Brazil is registered upon receiving special approval. Part of the key documents that are submitted when opening a branch are the following:
The appointed representative is a Brazilian resident. The person can be a foreign national with the right to reside in the country.
The requirements for opening a subsidiary include the following:
Our lawyers in Brazil can help you with more information about these requirements to open a business. Furthermore, if you want to apply for citizenship in Brazil after living there for a significant period, consult with our lawyers. They can offer you comprehensive information on different scenarios in which you can apply for citizenship. Our lawyers will also practically assist you in the application procedure. With their assistance, you will able to comply well with the requirements.
Deciding whether to establish a branch or subsidiary in Brazil depends on various factors, including your business goals, operational requirements, legal considerations, and tax implications. Here’s a brief description of each option:
When making the decision, consider these key factors:
It is crucial to consult with professionals, such as lawyers, accountants, and business advisors, who have expertise in international business and Brazilian regulations. They can provide tailored advice based on your specific circumstances and goals. You are welcome to get in touch with our experienced lawyers in Brazil if you are planning to open a company here. They can offer you detailed guidance along with practical assistance.
Furthermore, if you are interested to immigrate to Brazil, the services of our attorneys are at your disposal.
Our Brazilian lawyers can play a crucial role in assisting with company formation in this country. It does not matter if you choose to incorporate a branch or a subsidiary in Brazil in 2024, the services of our lawyers are available. Here is how our lawyers can assist you:
It is important to engage our reputable lawyers who specialize in corporate and commercial law in Brazil. They have a good understanding of local regulations, business practices, and cultural nuances to effectively guide you through the company formation process and provide ongoing legal support.
In addition to this; if you need any assistance with your Brazilian citizenship application, our lawyers can offer their services.
According to data here:
Brazil’s economy performed better at the end of 2023 than economists with ties to the banking sector had predicted. The country saw growth beyond forecasts, decreased inflation, and a higher-than-expected positive trade surplus. Bank economists predict that the country’s economy would expand by 1.5% in 2024, or around half of what it did in 2023. Also, a 3% GDP gain in 2024 may be sustained via the Growth Acceleration Program and other government initiatives to revive public investment.
For more information on company formation in Brazil, including how to open a branch or a subsidiary in Brazil in 2024, you can contact our lawyers. Besides this, if you want to immigrate to Brazil, our lawyers can help you with documentation. With the varying circumstances, the paperwork also varies. Some applications might need further supporting documentation. For instance, candidates under the age of 18 are required to submit documentation demonstrating parental approval. First, the candidate must specify whether they have one parent, two parents, or a legal guardian as their primary caregiver. After that, they must present the required paperwork. For further details, get in touch with our lawyers.
Besides this, if an investor spends R$150,000 in technological or scientific fields, he/she can become a resident of Brazil. A person may qualify for Brazilian permanent residency if he/she hires ten nationals of the country. Regarding where one should invest to be eligible for an investment visa, there is no written framework. He or she could make an investment in stocks, real estate, or company establishment in Brazil. So, if you want to apply for a residency permit in Brazil by investing, get in touch with our lawyers.