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Starting a Business in Brazil : Guide

Staff Reporter | 11:54 PM |

Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Brazil. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.This information was collected from World Bank: Doing Business 
No.ProcedureTime to CompleteAssociated Costs
1Check company name with State Commercial Registry Office1 dayno charge
2Pay registration fees1 daysee following procedures
3Register with the commercial board of the state where the main office is located and obtain identification number (NIRE)1 dayR$75 registration + R$50 (expediting fee)
4Register for federal and state tax (Secretaria da Receita Federal do Ministério da Fazenda, SRF/MF) to obtain the CNPJ number and state tax number , which also registers employees with the National Institute of Social Security (Instituto Nacional da SegurBetween 15 to 25 (including inspection visit)no charge
* 5Receive state tax inspection1 day (simultaneous with procedure 4)no charge
6Register with the Municipal Taxpayers’ Registry (Secretaria Municipal de Finanças) of the City of São Paulo5 daysno charge
* 7Pay TFE to the Municipal Taxpayers’ Registry1 day (simultaneous with previous procedure)R$ 425.46 (for retailing business), may vary in accordance with the company’s activities
8Apply and obtain digital certification (token) for the use of e-invoice2 daysThe cost may vary from R$ 450.00 to R$ 600.00
9Apply to the municipality for an operations permit (auto de licença de funcionamento)90 daysno charge
* 10Register the employees in the social integration program (Programa de Integração Social, PIS)1 day, (simultaneous with procedure 10)no charge
* 11Open a special fund for unemployment (FGTS) account in bank1 day, (simultaneous with procedure 10)no charge
* 12Notify the Ministry of Labor (Cadastro Geral de empregados e desempregados, CAGED)1 day,(simultaneous with procedure 10)no charge
* 13Registration with the Patronal Union and with the Employees Union.5 days, (simultaneous with procedure 10)Annual fee to be paid depending on the Union.
* Takes place simultaneously with another procedure.