segunda-feira, 19 de novembro de 2012

Time frame to incorporate in Brazil and Royalties

I will, from time to time, reproduce here some interesting emails I have exchanged with foreign investors, just as I often do at my Portuguese blog.

Today, I got a message from an Australian technology company that plans to invest in Brazil. Here are the main excerpts:

Dear Mr. Adler,

I hope everything is going well for you. We are a  Science company willing to explore businesses in Brazil. Could you please guide on this issue?

Where could I get information of setting up a subsidiary in Brazil? Time, cost, minimum numbers of employee, do I need a lawyer to do that, and royalties are my main queries.

Thanks in advance for your support. I can speak, read and talk Portuguese; thus if it is more easy to reply in Portuguese please do so.


Dear Sir,

Thank you for your contact.

You may check my work and profile at

In order to set up a subsidiary company in Brazil, you will need a lawyer.  I have a post describing the documents you must prepare (please see  List of documents for setting up a company in Brazil)

I would estimate the total cost in about 5.000 USD, including legal fees. Your company would take 3 months to be fully operational.

There are no minimum capital requirements, nor the need to hire employees. However, you must have a local Director who is either a Brazilian or a foreigner with a permanent Visa.

If you invest at least 150.000 Brazilian reais as an Individual, you may be eligible for a permanent investor's visa. If your company invests at least 600.000 USD your company will have the right to acquire a permanent Visa for one Director.

Brazil does protect intellectual property. However, payment of royalties to companies abroad is subject to a taxation of 25%. Nonetheless, there are ways to reduce this rate. For instance, establishing the local subsidiary as the owner of the intellectual property and remitting profits abroad, instead of royalties.

I have some friend from Australia and am very fond of the country. It would be a pleasure to help you.

My skype is adlermartins.

With warm regards,

Adler Martins
 鹰 (my Chinese name)

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