segunda-feira, 19 de novembro de 2012

At last: Individual limited liability companies in Brazil

The Law is fresh and new.  The LEI Nº 12.441, DE 11 DE JULHO DE 2011. has been published, finally bringing the Individual Limited Liability companies to the Brazilian Civil Code.

What does that mean?
It means that individual foreign investors will not need a local partner in order to start a business in Brazil anymore.

It will enable foreign investors to make use of tax benefits reserved to corporations, including the reduction of Income Tax.

It will make the acquisition of an individual investor VISA much easier to obtain.

And, enable tax plannings, enable foreign investments in rural land and reduce the overall risks of doing business in Brazil.


The law is good, but not perfect.  One should not forget that the piercing of corporate veil  occurs way too often in Brazil, specially in tax and labour procedures. Therefore, this kind of company must be used more for planning and Visa purposes than for actual business.

Also, hold your horses. The law will be valid only from January 2012 on.

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