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Global Expansion Handbook

Brazil

Latin America's largest economy and consumer market, and a Mercosur member. Companies register with the state commercial registry and obtain a federal tax ID (CNPJ); foreign investment must be registered with the Central Bank. The tax system is complex and enters a VAT reform transition from 2026.

Consumer marketEnergyAutomotive Tier 1 · Core markets
Handbook
Updated 2026-11-12
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01Overview

Region
Latin America
Capital
Brasília
Currency
BRL
Languages
Portuguese
ISO code
BR / BRA

Jurisdictions

  • Brazil (federal) — Federal level; states and municipalities levy ICMS, ISS and others

China's direct investment

China's 2025 FDI flow
8.2 USD 100m
End-2025 FDI stock
42.2 USD 100m
Flow rank
#18 by flow

Source：2025 Statistical Bulletin of China's Outward Foreign Direct Investment ↗ · Flow is for calendar 2025; stock is at end-2025. Flow rank is from Table 8 (top 20); other countries from Annex Tables 1–2 (originally USD 10k, converted to USD 100m; one decimal, two below 1). A negative flow means divestment exceeded new investment that year.

Macro indicators such as GDP and population will be added from the World Bank in the data release (P1).

02Market Entry

Industries to study: Cross-border e-commerce & consumer brandsEVs, batteries & energy storageMedical devices & pharmaAgriculture, food & minerals

Foreign ownership

Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.

100% foreign ownership allowed in most sectors

Applies to
Restrictions apply to rural land, media, border areas and some other sectors
Jurisdiction
Brazil (federal)
Source
Banco Central do Brasil ApexBrasil
Cross-check

Outward Investment and Cooperation Guide: Brazil (2025 ed.) partly consistent MOFCOM guide notes a 30% foreign cap in newspapers and broadcasting

Local SubsidiaryIncorporate a separate legal entity in the target country Manufacturing InvestmentSet up production capacity abroad Cross-border E-commerceReach overseas consumers via marketplaces or your own store Distributor / AgentUse a local partner's channels and licences

03Business Formation

Common legal entity

The company form most commonly used by foreign investors for a local operating entity.

Limited liability company (Ltda.)

Applies to
Corporations (S.A.) are also used
Jurisdiction
Brazil (federal)
Source
Departamento Nacional de Registro Empresarial e Integração (DREI)

Local director / representative

Whether a locally resident director, manager or representative is required.

Administrators must reside in Brazil; foreign partners must appoint a local attorney-in-fact

Applies to
Ordinary companies
Jurisdiction
Brazil (federal)
Source
Departamento Nacional de Registro Empresarial e Integração (DREI)

Registration authority

Primary authority for company or commercial registration.

State commercial registries (Juntas Comerciais)

Applies to
A CNPJ tax ID from Receita Federal is also required
Jurisdiction
Brazil (federal)
Source
Departamento Nacional de Registro Empresarial e Integração (DREI) Receita Federal do Brasil

Foreign-entity setup flow

Main approval stages for a foreign investor setting up an entity (no time estimates).

State registration → CNPJ → state and municipal tax registration → register foreign investment with the Central Bank

Applies to
Foreign shareholders themselves also need a CNPJ or CPF
Jurisdiction
Brazil (federal)
Source
Departamento Nacional de Registro Empresarial e Integração (DREI) Receita Federal do Brasil Banco Central do Brasil
Cross-check

Outward Investment and Cooperation Guide: Brazil (2025 ed.) consistent

Tax Guide for Chinese Residents Investing in Brazil (2023 ed.) consistent

Foreign ownership

Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.

100% foreign ownership allowed in most sectors

Applies to
Restrictions apply to rural land, media, border areas and some other sectors
Jurisdiction
Brazil (federal)
Source
Banco Central do Brasil ApexBrasil
Cross-check

Outward Investment and Cooperation Guide: Brazil (2025 ed.) partly consistent MOFCOM guide notes a 30% foreign cap in newspapers and broadcasting

Local registered address

Whether a local registered address or premises is required at incorporation.

A registered address in Brazil is required

Applies to
Ordinary companies
Jurisdiction
Brazil (federal)
Source
Departamento Nacional de Registro Empresarial e Integração (DREI)

Beneficial ownership register

Whether companies must keep or file ultimate beneficial owner information.

Ultimate beneficial owners must be declared in the CNPJ registration

Applies to
Applies to foreign shareholders as well
Jurisdiction
Brazil (federal)
Source
Receita Federal do Brasil

04Taxation

Headline corporate income tax

Statutory headline rate for ordinary companies, before incentives, exemptions, thresholds or special regimes. Always read with the conditions.

34% (IRPJ 15% + 10% surtax + CSLL 9%)

Applies to
The 10% surtax applies above a statutory threshold; financial institutions have different CSLL rates; presumed-profit and other regimes are available
Jurisdiction
Brazil (federal)
Source
Receita Federal do Brasil
Cross-check

Tax Guide for Chinese Residents Investing in Brazil (2023 ed.) consistent

Federal taxes and CNPJ registration consistent

Indirect tax (VAT / GST / SST)

Standard rate and type of VAT, GST or sales & service tax.

Multiple turnover taxes (ICMS, IPI, PIS/COFINS, ISS), transitioning to the dual CBS / IBS VAT from 2026

Applies to
2026 is a test year: CBS 0.9% and IBS 0.1%, offset against existing taxes; old and new systems run in parallel until 2033
Jurisdiction
Brazil (federal)
Source
Receita Federal do Brasil
Cross-check

Outward Investment and Cooperation Guide: Brazil (2025 ed.) partly consistent MOFCOM guide gives ICMS 17%–20% intrastate and 4%–12% interstate; it does not cover the CBS / IBS transition from 2026

Federal taxes and CNPJ registration consistent

Tax authority

Authority responsible for corporate tax registration and filing.

Receita Federal plus state and municipal tax authorities

Applies to
Ordinary companies
Jurisdiction
Brazil (federal)
Source
Receita Federal do Brasil

Tax treaty with China

Whether a double taxation agreement with China is in force. Rates and conditions per the treaty text.

In force

Applies to
Rates and conditions per the treaty text and STA publications
Jurisdiction
Brazil (federal)
Source
State Taxation Administration (China)

Dividend withholding tax (non-residents)

General withholding on dividends paid to foreign shareholders, before treaty relief.

10% withholding tax on dividends paid abroad from 2026

Applies to
Under Law 15.270/2025; transitional relief for profits approved by end-2025, with open questions for non-residents
Jurisdiction
Brazil (federal)
Source
Receita Federal do Brasil
Cross-check

Tax Guide for Chinese Residents Investing in Brazil (2023 ed.) differs Tax guide (2023 ed.) says dividends bear no withholding; it predates the 2025 income tax reform — verify with Receita Federal

Federal taxes and CNPJ registration consistent

05Banking & Payments

Exchange controls

Whether general exchange controls or cross-border fund rules apply.

Foreign direct investment and profit remittances must be registered with the Central Bank

Applies to
Exchange control is strict: foreign companies generally cannot hold FX accounts and must convert to reais; transactions go through authorised institutions
Jurisdiction
Brazil (federal)
Source
Banco Central do Brasil
Cross-check

Tax Guide for Chinese Residents Investing in Brazil (2023 ed.) consistent

Foreign direct investment registration and FX consistent

Banking & financial regulator

Primary regulator for banking and foreign exchange.

Banco Central do Brasil

Applies to
Securities are supervised separately by the CVM
Jurisdiction
Brazil (federal)
Source
Banco Central do Brasil

06Employment

Labour & work permit authority

Authority for labour rules and foreign employee work permits.

Ministry of Labour and Employment (MTE)

Applies to
Ordinary companies
Jurisdiction
Brazil (federal)
Source
Ministério do Trabalho e Emprego (MTE)

Foreign employee work permit

Main permit types needed for foreign employees to work legally.

Residence authorisation for work

Applies to
Approval is needed before the visa
Jurisdiction
Brazil (federal)
Source
Ministério do Trabalho e Emprego (MTE)
Cross-check

Outward Investment and Cooperation Guide: Brazil (2025 ed.) consistent

Social security contributions

Main employer social security schemes for local and foreign employees.

INSS contributions and the FGTS severance fund

Applies to
Employer contributions are significant
Jurisdiction
Brazil (federal)
Source
Instituto Nacional do Seguro Social (INSS)

07Trade & Customs

Main free trade agreements

Main regional and bilateral trade agreements relevant to Chinese exporters (not exhaustive).

Mercosur and others

Applies to
Ordinary companies
Jurisdiction
Brazil (federal)
Source
ApexBrasil

Customs authority

Authority for import/export clearance and tariffs.

Receita Federal (customs)

Applies to
Importers need RADAR enablement in Siscomex
Jurisdiction
Brazil (federal)
Source
Receita Federal do Brasil

08Investment & Manufacturing

Investment authority / agency

Body responsible for approving, registering or promoting foreign investment.

ApexBrasil

Applies to
Promotion agency, not an approval body
Jurisdiction
Brazil (federal)
Source
ApexBrasil

Free zone / SEZ regime

Whether free zones or special economic zones operate under rules different from the mainland.

Manaus Free Trade Zone (ZFM) and others

Applies to
Tax incentives require meeting production process rules
Jurisdiction
Brazil (federal)
Source
SUFRAMA

09Digital & IP

Personal data protection law

Main law and regulator governing collection, use and cross-border transfer of personal data.

General Data Protection Law (LGPD)

Applies to
Overseen by the ANPD
Jurisdiction
Brazil (federal)
Source
Autoridade Nacional de Proteção de Dados (ANPD)

IP office

Authority for trademark and patent filing and registration.

INPI

Applies to
Trademark rights are territorial; register locally or designate via the Madrid System (check WIPO membership)
Jurisdiction
Brazil (federal)
Source
Instituto Nacional da Propriedade Industrial (INPI)

10Compliance & Risk

New York Convention party

Whether the country is party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which affects enforcing foreign arbitral awards locally.

Yes

Applies to
Foreign arbitral awards can be enforced under the Convention, subject to its limited refusal grounds
Jurisdiction
Brazil (federal)
Source
UNCITRAL

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11Step-by-Step

Main setup steps in Brazil

  1. 1State registration
  2. 2CNPJ
  3. 3state and municipal tax registration
  4. 4register foreign investment with the Central Bank

Foreign shareholders themselves also need a CNPJ or CPF

General checklist (setting up a subsidiary)
  1. Decide model and jurisdiction
  2. Confirm licences
  3. Prepare documents
  4. Incorporate
  5. Register for tax
  6. Open bank account
  7. Obtain operating licences
  8. Start operations

Steps follow the setup-procedure fact on this page, without times or fees; rely on the official sources.

12Official Resources

Chinese official resources

Country materials from MOFCOM, the State Taxation Administration and China's overseas commercial offices

Official guides are long Chinese-language PDFs updated on the publishers' schedules. Our structured facts cite local authorities as primary sources; use these guides to cross-check.

Local authorities