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An expert guide to registering your business in Brazil

Grow your team in Brazil
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Brazil: Your entryway to thriving in South America

Brazil is an excellent choice for businesses looking to expand. With a strong economy, welcoming foreign investment, and an easy Cadastro Nacional da Pessoa Jurídica (CNPJ) registration process, it’s straightforward to get started. Add to that cost-effective operations and business-friendly policies, and you’ve got a growth-ready environment. Brazil’s vibrant market offers endless opportunities, making it the perfect place to scale your business and drive success in South America.

The business benefits of registering your company in Brazil

Brazil presents a unique blend of growth potential and operational ease, making it ideal for businesses seeking to expand in South America. Here’s why:

  • Maximize returns with cost-efficient operations and competitive labor markets.
  • Simplify company setup through Brazil’s streamlined CNPJ registration process.
  • Leverage government incentives designed to attract foreign investments and boost innovation-driven industries.
  • Tap into a diverse and expanding consumer base in one of the largest economies in Latin America.
  • Access modern infrastructure and economic zones that are primed for business growth.
  • Navigate compliance smoothly with transparent and business-friendly regulations.

Brazil offers an environment primed for business growth, providing everything you need to scale efficiently in one of the world’s most dynamic markets.

Next, we’ll break down your options—standard company registration, business licensing, and Employer of Record (EOR)—so you can choose the path that best fits your goals.

What are the options for setting up a business in Brazil?

In Brazil, businesses have two main options for establishing a presence in 2025, each tailored to different operational needs and strategic goals:

  1. Standard company registration through the Board of Trade (Junta Comercial)

This option involves registering a legal entity with the Junta Comercial, granting businesses full control over operations and finances. However, it requires managing compliance and fulfilling legal obligations independently.

  1. Employer of Record (EOR)

An EOR allows companies to hire employees in Brazil without the need to establish a legal entity. The EOR manages compliance, employment contracts, and administrative tasks, offering a faster and simpler way to expand a workforce in Brazil.

Aspect

Junta Comercial Registration

Employer of Record (EOR)

Purpose

Set up a legal entity for complete control of operations.

Quickly hire in Brazil without needing a local entity.

Control

Full authority over operations and finances.

Delegate admin tasks while maintaining team oversight.

Compliance

Requires managing taxes, corporate governance, and legal requirements.

Compliance is fully handled by the EOR.

Setup Time

Takes longer due to documentation and legal procedures.

Fast and efficient for immediate workforce needs.

Cost

Includes registration fees, operational expenses, and compliance costs.

Service fees to the EOR, often cost-effective for short-term operations.

Scalability

Perfect for businesses planning for long-term growth.

Ideal for testing the market or rapid team expansion.

Up next, we’ll dive into how an EOR streamlines onboarding and ensures compliance for businesses entering Brazil.

How an EOR simplifies business registration in Brazil

Entering Brazil’s market can be challenging due to complex regulations and the need for a local entity. An Employer of Record (EOR) streamlines this process, allowing you to hire talent and operate in Brazil without the administrative burden of establishing a legal entity.

Here’s how an EOR supports your business in Brazil:

  1. Bypass entity registration and begin operations immediately.
  2. Delegate payroll, tax filings, and documentation, allowing you to focus on growth.
  3. Ensure compliance with local labor laws, reducing risks and operational complexity.
  4. Save on setup and operational costs by avoiding the expenses of maintaining a legal entity.
  5. Scale your workforce quickly without committing to long-term infrastructure.
  6. Access Brazil’s diverse talent pool without navigating complex local hiring processes.
  7. Offer competitive benefits while the EOR handles compliance and legal complexities.

An EOR bridges your path to the Brazilian market, enabling fast, efficient expansion without the complexities of local regulations and infrastructure. While you drive growth, the EOR handles the operational details, simplifying your journey.

Next, we’ll guide you through the step-by-step process of registering a company in Brazil, so you can navigate every stage with confidence.

Step-by-step guide to registering a company in Brazil

Brazil offers a clear setup process, eliminating the guesswork from your expansion. In this section, we provide a roadmap to guide you through the steps for a smooth and compliant business registration.

Step 1: Choose the right business entity

Setting up a local entity in Brazil involves several considerations. For a simpler and faster alternative, an Employer of Record (EOR) can help you bypass the complexity entirely.

An EOR acts as your legal employer, handling everything from onboarding and payroll to tax compliance and labor law adherence. This allows you to focus on scaling your business while offloading administrative burdens.

If you decide to establish a local entity, choosing the correct business structure is essential, as it determines your responsibilities, tax obligations, and operational flexibility.

Common business entities in Brazil:

  • Limited Liability Company (Sociedade Limitada or LTDA): Ideal for small to medium-sized businesses, offering limited liability to partners.
  • Corporation (Sociedade Anônima or SA): Suitable for larger enterprises planning to raise capital through public or private offerings.
  • Branch Office: Best for foreign companies seeking to operate in Brazil without forming a separate legal entity.

Step 2: Reserve your company name

Select a unique company name that meets the Board of Trade (Junta Comercial) guidelines. Use their online database to verify the availability of your chosen name.

Step 3: Prepare and submit the required documents to the Junta Comercial

Once you’ve selected your business entity and secured your company name, gather the necessary documents for submission.

Required documents include:

  • Articles of Association (Contrato Social) or equivalent documents
  • Proof of directors’ identification and residential address
  • Proof of the registered office address in Brazil
  • Certificate of name reservation

Submission options:

  • Online: File your application through the Junta Comercial portal.
  • In-person: Submit documents at the regional Junta Comercial office if preferred.

Step 4: Open a corporate bank account

Opening a local bank account is mandatory for business transactions, paying taxes, and meeting financial obligations.

What you’ll need to open a bank account:

  • Company registration certificate
  • Articles of Association or equivalent documents
  • Identification documents for directors and authorized signatories
  • Proof of the registered office address

If you’re working with an EOR, they can handle payroll and tax payments on your behalf, eliminating the need for a local bank account. Here’s how:

  • Pay your team in Brazilian Reais (BRL) or other currencies seamlessly.
  • Stay compliant with Brazil’s tax and payroll laws.
  • Avoid the challenges of global payroll management.

An EOR takes on all financial management responsibilities in Brazil, freeing up your resources to focus on optimizing core business functions and driving expansion.

Step 5: Register for taxes

Tax compliance is a critical part of operating legally in Brazil. Ensure your business is registered for the applicable taxes.

Key tax registrations include:

  • Corporate Tax (IRPJ): Mandatory for all registered businesses.
  • VAT (ICMS or ISS): Required if your business meets the turnover thresholds for specific sectors.
  • Payroll Taxes: Necessary if you plan to hire employees, including social security and employment-related contributions.

By following these steps, you can ensure your business is set up efficiently and operates within Brazil’s legal framework.

Next, we’ll break down the costs of company registration in Brazil, so you can plan your budget confidently.

The real cost of registering a business in Brazil

For businesses planning to establish a company in Brazil in 2025, here’s a detailed breakdown of typical costs to help you plan effectively:

1.Registration costs

  • Junta Comercial filing fees: Expect to pay BRL 1,000 to BRL 2,000, depending on the type of company and state-specific charges.
  • Legal and documentation fees: Drafting the Articles of Association and related documents can cost around BRL 3,000 to BRL 5,000.
  • Name reservation fee: Securing a unique company name costs approximately BRL 500.
  • Notary and stamp duty fees: Official documentation may require an additional BRL 1,000 to BRL 2,000.

2.Annual maintenance costs

  • Accounting and auditing services: Professional fees start at BRL 5,000 per year, depending on the company’s size and scope of operations.
  • Tax filings: Filing corporate and VAT returns typically costs between BRL 2,000 and BRL 4,000 annually, depending on complexity.
  • Registered office renewal: Maintaining a registered address can cost BRL 1,000 to BRL 2,000 annually.

3.Additional considerations

  • Banking services: Opening a corporate bank account may involve an initial setup fee, which varies by bank.
  • Compliance support: Staying up to date with local labor and tax regulations may require hiring professional consultants, adding to ongoing expenses.

An EOR can significantly reduce expansion expenses and streamline your administrative workload. By managing payroll, taxes, and compliance under one predictable fee, an EOR eliminates the need for entity setup, legal documentation, and other recurring costs.

Up next, we’ll compare the costs and benefits of traditional entity registration with the cost-effective solutions provided by an EOR in Brazil.

Cost comparison: standard registration vs. EOR

Here’s a clear comparison of the costs involved in traditional company registration versus using an Employer of Record (EOR) in Brazil:

Cost Comparison: Standard Registration vs. EOR

While traditional company registration involves higher upfront costs and ongoing management of compliance and operations, an EOR simplifies the process with predictable monthly fees that cover payroll, compliance, and administrative requirements.

Next, let’s explore how partnering with an EOR can accelerate your business expansion into Brazil.

Take the stress out of your Brazilian expansion with Multiplier

Establishing a footprint in Brazil can be seamless and hassle-free with the right partner. Multiplier’s Employer of Record (EOR) solution streamlines the process, taking care of administrative tasks so you can focus on scaling your operations and driving growth.

Why Multiplier is your trusted partner for Brazil

  • Seamless local hiring: Multiplier helps you hire top talent in Brazil without the complexity of navigating local regulations. Our HR experts ensure compliant contracts and smooth onboarding, enabling you to scale quickly and confidently.
  • Effortless payroll and compliance: Stay fully compliant with Brazilian tax laws and payroll regulations. Multiplier manages payroll, tax filings, social contributions, and reporting with precision, ensuring accuracy and reducing your operational risk.
  • Streamlined HR processes: Manage onboarding, leave, and expenses all in one place. Multiplier’s platform offers complete visibility and control, simplifying HR operations for your Brazilian workforce.
  • Compliance made simple: Brazilian labor laws and tax codes can be complex, but Multiplier handles everything—from employment contracts to payroll ensuring compliance and simplifying the process.
  • Competitive, tailored benefits: Stand out as an employer of choice by offering locally optimized benefits packages. Multiplier handles all the administrative work, ensuring your employees have the support they need.
  • Reliable, expert support: Multiplier offers expert assistance 24/5, with GDPR-compliant and SOC 2-certified security. You can trust us to safeguard your business and your employees every step of the way.

With Multiplier, your Brazilian expansion becomes hassle-free and fast. Let us manage the operational and compliance details, allowing you to enter the market quickly and scale your business seamlessly. 

Schedule a demo today to see how easily you can expand into Brazil with Multiplier’s EOR services.

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