Commercial Law / New Business

We represent clients with the establishment of companies. We assist our clients in contracts, negotiations and related matters, transfers through the Brazilian Central Bank; Preparation and submission of applications for foreign capital registration with the Central Bank of Brazil that our law firm is agency. The Law 4131/62 defines foreign capital as “any goods, machinery, equipment, cash and financial resources that enter Brazil for the production of goods or services, or for investment in economic activities, provided that in either case they belong to individuals or legal entities resident, domiciled or headquartered abroad”.

The entity in charge of the registering, monitoring and following up on foreign investments is the Brazilian Central Bank, while the Federal Revenue Secretariat is encumbered with the eventual taxation of these foreign investments. Also, foreign investors must translate their foreign currencies into Brazilian currency by entering into a foreign exchange contract with .Foreign investments in Brazil are usually made through the incorporation of a company, the opening of a branch or subsidiary, or through direct investments on the capital or financial markets, among others. Foreign capital is granted equal treatment to domestic capital and the Law prohibits any discrimination unless expressly prescribed.

·         We advise on and document transactions of all kinds in relation to companies including: 

·         formation and acquisition off the shelf of new companies

·         internal structure in relation to shareholders and directors

·         acquisitions and disposals of shares and assets

·         commercial agreements (distribution, agency, joint venture, supply, manufacturing, standard terms of trading)

·         maintenance of intellectual property rights

·         human resources advice and employment documentation

·         finance documentation and funding agreements

·         insolvency, receivership and liquidation

·         Commercial lawyers here arrange the formation of limited companies or their acquisition in ready-made form off the shelf. Our lawyers undertake appointments of directors, transfers of shares and the preparation and filing of all required companies' forms.advise on partnership law and supply agreements and other documentation for partnerships

Brazil - Country Information

Key Facts

Local Time: GMT-4
Language: Brazilian Portuguese
Local currency: Real (BRL)
Dialling code: + 55

What are the opportunities? Brazil has a broad and sophisticated industrial base and the government continues its programme of privatisation and deregulation. There is also a growing middle class in Brazil who have real spending power and who appreciate high quality merchandise. If a product or service is generally competitive in world markets it is also likely to be so in Brazil.
 There are also opportunities for companies from all around the world, to help develop the infrastructure needed for the Football World Cup 2014 which will be hosted in Brazil.
Brazil’s main export markets are the EU, US, Argentina and, increasingly, China. Commodities in particular have been strong performers. Domestic demand has also begun to pick up, with a rapid expansion in consumer credit, lower interest rates and a healthy trade surplus as the main drivers.
Brazil's current top 5 imports sources in Goods and their market shares, for 2007 are:

1.    USA (15,7%),
2.    China (10.5%),
3.    Argentina (8.6%),
4.    Germany (7.2%),
5.    Nigeria (4.4%).

In the same period, Brazil's top 5 export markets are:

1.    USA (15.8%),
2.    Argentina (9%),
3.    China (6.7%),
4.    Netherlands (5.5%),
5.    and Germany (4.5%).

Principal commercial centres and towns

At 248,000 sqKm São Paulo State is about the size of Great Britain. It has roughly 50% of the country's industrial output and 42% of all manufactured goods exports. The metropolitan area of São Paulo has a population of around 19million and comprises some highly industrialised towns (Santo Andre, São Bernardo do Campo, São Caetano do Sul, Diadema and Maua). A large proportion of the country's automotive industry is concentrated in these towns. With some 60,000 companies based there, São Paulo has the largest industrial complex in Latin America.
The state of Minas Gerais responds for the second industrial output in the country with 11.43% of manufactured good exports. It has one of the largest cattle herds and is the country's main centre for milk production and dairy products. Its other main sectors are mining and steel.
Rio de Janeiro State is the second largest economy in Brazil and the fourth exporter state in the country, with 8.91% of manufactured goods export. It is responsible for 80% of the oil produced in the country, along with 50% of the total gas production, attracting many oil and gas companies, including Shell, Esso, BG, BP, Chevron, Devon, StatoilHydro, with branches in Rio de Janeiro.

Economic Overview

Brazil is a country of continental size and potential. It has largely transformed its economic performance over the last 15 years and is now one of the most rapidly developing economies in the world. Brazil is responsible for almost half of Latin America’s GDP, the Sao Paulo economy alone is bigger than Argentina and Chile combined.
The Brazilian business environment is modern and sophisticated with a broad domestic industrial base and many larger multinational investors. Strong balance of trade figures in the last 3 years have lead to a US$60 billion record surplus in 2007.
Brazil’s sovereign risk rating was upgraded from BB+ to BBB- by Standard & Poor’s (April 2008) and by Fitch Ratings (May 2008), achieving Investment Grade status. Brazil is now the third mainland Latin American country to reach Investment Grade status after Chile and Mexico.

e-mail: alessandro@alvesjacob.com