Tips for starting a business from scratch in Brazil
Table of Contents
With greater stability in the financial market and the wide variety offered in different sectors, this seems the right time to undertake in the country. The market potential in the country has once again become a global bet, which makes it increasingly suitable for new businesses that seek to have a positive return in their first year. However, the current scenario of the Brazilian market requires attention to certain details and planning to ensure success.
While the market is positive about new business, it is essential to prepare for certain specific business scenarios early on. Thinking about it, the showmetech prepared a list with some essential plans before opening a new company in the country:
Market research: There is no market if there is no demand. So study well the market you plan to enter, know your competition, find out who your audience is and, finally, adjust your ability to meet the demands of this audience. There are companies specialized in doing this type of research, but if you want to carry out it yourself, it is imperative to have some key questions in mind and seek an answer to them, this can change a lot according to your business segment but some common questions are :
- What are other entrepreneurs missing in their business format and how can you not make that mistake?
- What drives someone to choose their product and what would set you apart from your company?
- What is the current trend within your market?
Another way to continue with your research is to look for answers in surveys already carried out by other companies, such as, for example, WGSN, an international trend forecasting company with a website where you can register to have access to your entire database.
Business plan: Create a solid marketing strategy. In it, add your business idea, your objective, target market, target audience, create a persona (a type of ideal customer for your company), add the competitor analysis information that you were able to collect in your market research, add marketing strategies, projections and operational plan. Be thorough in your research, as this thorough work will give you an advantage when looking for funding and possible partnerships.
Initiatives such as Sebrae (Brazilian Support Service for Micro and Small Businesses) offer several courses that can help you in this and several other steps, but it is also possible to access your manual online if you are looking for a role model.
Legal Structure: Discover the right legal structure for your business. There are many options when opening your business, one of the most popular for companies with more than one small and medium-sized partner to Limited society (known by the popular name Ltda.), in this model the personal assets of shareholders are legally separated from the legal entity, which allows them to protect their individual assets even if the company ends up in financial problems.
For large businesses, the most common is the Anonymous society, which in addition to offering a separation between personal and legal assets, in which the partners (shareholders) have responsibilities with different weights according to the number of shares they own.
For solo businesses the two most popular choices are: Sole Trader, which allows the opening of the company with any initial value, but the personal assets of the entrepreneur do not have legal separation, and the Sole proprietorship limited liability company, which in addition to all the benefits of Sole Trader it also separates assets between individuals and companies.
Each structure has different legal and tax implications, so it's a good idea to consult a professional before deciding.
Registration and licenses: Register your company with the competent body. The first step is to create a Articles of Incorporation, a type of document that contains all the legal information of all the partners of the future company. Then you need to register with the Board of Trade and get um National Register of Legal Entities (CNPJ) for tax purposes. The next step is to get a Business license, a license that allows your company to carry out its activities legally. Once activities begin, it will be necessary to State registration, which formally registers your company in the ICMS (Tax on Circulation of Goods and Services). You will also need a .br domain registration to start a business in the country.
If you need more information, please contact Board of Trade in your region, who will be able to give you more information.
- ACRE STATE TRADE BOARD
ADDRESS: AV. ANTÔNIO DA ROCHA VIANA, 1.569
NEIGHBORHOOD: ISAURA PARENTE – RIO BRANCO / AC CEP: 69.918-308
TELEPHONES: (68) 3223-3836 / 3322-2265 / 3224-0744 /3224-3441
HOURS OF OPERATION: 8:00 AM TO 14:00 PM
LEGAL NATURE: AUTHORITY - LAW No. 944, OF 27/6/1990 - BOARD OF COMMERCIALS OF THE STATE OF ALAGOAS
ADDRESS: AV.FERNANDES LIMA, 1.681
NEIGHBORHOOD: FAROL /MACEIÓ – AL CEP: 57057-450
PHONE: (82) 3315-9903
FAX: (82) 3315-9907
HOURS OF OPERATION: 8:00 AM TO 13:30 PM
FOUNDATION: LAW No. 28, OF 26/5/1893
LEGAL NATURE: DIRECT MANAGEMENT - COMMERCIAL BOARD OF THE STATE OF BAHIA
ADDRESS: AV. UNITED STATES, No. 558, ED. CITIBANK, GROUND FLOOR AND 1st FLOOR, COMÉRCIO-SALVADOR/BA. CEO: 40.010-020
TELEPHONES: PROTOCOL: (71) 3326-8077 TECHNICAL ACCESSORIES: (71) 3326-8060
HOURS OF OPERATION: 8:30 AM TO 17:30 PM
FOUNDATION: LAW 556, OF 25/06/1850
LEGAL NATURE: AUTARCHY – DELEGATED LAW No. 01, OF 16/10/1968 - BOARD OF COMMERCIAL, INDUSTRIAL AND SERVICES OF THE FEDERAL DISTRICTADDRESS: SAUS QUADRA 02 LOT 1/A - UNDERGROUND
NEIGHBORHOOD: ASA SUL – BRASÍLIA / DF CEP: 70070-020
PRESENTIAL SERVICE ONLY BY APPOINTMENT MADE THROUGH THE WEBSITE
FOUNDATION: LAW No. 4.048, OF 29/12/1961 / LAW No. 4.726, OF 13/7/1965 (ARTS. 8 and 9)/ LAW No. 8.934, OF 18/11/1994 (ARTS. 5 and 6)/ LAW No. 6.315, OF 27/6/2019
LEGAL NATURE: AUTHORICAL ENTITY WITH LEGAL PERSONALITY UNDER PUBLIC LAW, WITH HEADQUARTERS AND JURISDICTION IN THE FEDERAL DISTRICT
DIRECT ADMINISTRATION - FEDERAL DISTRICT GOVERNMENT - TRADE BOARD OF THE STATE OF PARANÁ
ADDRESS: RUA BARÃO DO SERRO AZUL, No. 316
NEIGHBORHOOD: CENTRO – CURITIBA / PR CEP: 80020-180
PHONE: (41) 3310-3460 /3310-3410 FAX: (41) 3310-3488
OPENING HOURS: 9:00 to 17:00
FOUNDATION: LAW No. 7.039, OF 23/10/1978
LEGAL NATURE: AUTHORITY - LAW No. 7.039, OF 23/10/1978 - TRADE BOARD OF THE STATE OF SANTA CATARINA
ADDRESS: AV. RIO BRANCO No. 387
NEIGHBORHOOD: CENTER, FLORIANÓPOLIS / SC CEP: 88 015-201
PHONE: (48) 3665-5999
HOURS OF OPERATION: 10:00 AM TO 19:00 PM (INDOOR) / 10:00 AM TO 18:00 PM (EXTERNAL)
FOUNDATION: LAW No. 68, OF 16/5/1893
LEGAL NATURE: AUTHORITY - LAW No. 4.285, OF 7/4/1969 - COMMERCIAL BOARD OF THE STATE OF CEARÁ
ADDRESS: RUA 25 DE MARÇO, 300 – LEFT. WITH COSTA BARROS
NEIGHBORHOOD: CENTRO – FORTALEZA / CE CEP: 60060-120
PHONE: (85) 3108-2900
HOURS OF OPERATION: 8:00 AM TO 17:00 PM (INDOOR) 8:30 AM TO 16:30 PM (EXTERNAL)
FOUNDATION: DECREE No. 6.384, OF 30/11/1876
LEGAL NATURE: AUTHORITY - LAW No. 9.781, OF 29/11/1973 - COMMERCIAL BOARD OF THE STATE OF AMAPÁ
ADDRESS: AV. FAB, No. 1610
NEIGHBORHOOD: CENTRAL – MACAPÁ / AP CEP: 68900-073
PHONE: (96) 2101-8656 / 2101-8653
HOURS OF OPERATION: 7:30 AM TO 13:30 PM
FOUNDATION: DECREE No. 005 OF 9/5/1973
LEGAL NATURE: AUTHORITY - DECREE No. 314, OF 18/12/1991 - BOARD OF COMMERCIAL OF THE STATE OF TOCANTINS
ADDRESS: QUADRA 103 SUL, RUA SO 07, LOT 12
NEIGHBORHOOD: SOUTH MASTER PLAN – PALMAS / TO CEP: 77015-030
PHONE: (63) 3218-4805 (INFORMATION)
HOURS OF OPERATION: 08:00 AM TO 14:00 PM
FOUNDATION: LAW No. 007, OF 23/1/1989
LEGAL NATURE: AUTHORITY - COMMERCIAL BOARD OF THE STATE OF AMAZONAS
ADDRESS: RUA CUIABA, No. 543
NEIGHBORHOOD: NOSSA DAS GRAÇAS – MANAUS /AM CEP: 69053-490
WHATSAPP: (92) 98621-4945
HOURS OF OPERATION: 8:00 AM TO 14:00 PM
FOUNDATION: LAW No. 29, OF 14/12/1891 - BOARD OF COMMERCIALS OF THE STATE OF ESPÍRITO SANTO
ADDRESS: Av. Nossa Senhora da Penha, nº 1915
NEIGHBORHOOD: santa LÚCIA – Vitória / ES CEP: 29056-933
PHONE: (27) 3636-9300
FAX: (27) 3636-9302
HOURS OF OPERATION: 9:00 AM TO 18:00 PM (indoor) 9:30 AM TO 17:30 PM (outdoor)
FOUNDATION: LAW No. 537, OF 10/11/1908
LEGAL NATURE: AUTHORITY - LAW No. 2.297, OF 19/7/1967 - COMMERCIAL BOARD OF THE STATE OF GOIÁS
ADDRESS: RUA 259, CORNER AND RUA 260. QUADRA 85-A, LOT 5 TO 8
NEIGHBORHOOD: UNIVERSITARY SECTOR – GOIÂNIA / GO CEP: 74610-240
PHONE: (62) 3252-9200/9220
HOURS OF OPERATION: 8:00 am to 12:00 pm – 14:00 pm to 18:00 pm
FOUNDATION: LAW No. 213, OF 12/07/1900
LEGAL NATURE: AUTHORITY - LAW No. 7.351, OF 30/6/1971 - COMMERCIAL BOARD OF THE STATE OF MARANHÃO
ADDRESS: PRAÇA JOÃO LISBOA, Nº 328
NEIGHBORHOOD: Center – São Luís / MA CEP: 65010-310
PHONE: (98) 2106-8522/ 8507
FAX: (98) 2106-8532 / 2406-8533
HOURS OF OPERATION: 8:30 AM TO 15:00 PM (INDOOR) / 9:00 AM TO 16:00 PM (EXTERNAL)
FOUNDATION: DECREE No. 864, OF 31/03/1851
LEGAL NATURE: AUTHORITY - LAW No. 3.161, OF 26/7/1971 - COMMERCIAL BOARD OF THE STATE OF MATO GROSSO
ADDRESS: AV. HISTORIAN RUBENS DE MENDONÇA No. 3949
NEIGHBORHOOD: ADMINISTRATIVE POLITICAL CENTER – Cuiabá / MT CEP: 78055-500
PHONE: (65) 3613 9545 / 3013 9525
FAX: (65) 3613 9595
HOURS OF OPERATION: 13:00 PM TO 18:00 PM (EXTERNAL PUBLIC) / ADVANCED UNIT OF GAGA-TIME (CUIABÁ – PRAINHA): 08:00 AM TO 18:00 PM
FOUNDATION: LAW No. 38, OF 20/06/1893
LEGAL NATURE: AUTARCHY – LAW No. 2.858, OF 9/10/1968 (COMMERCIAL BOARD) - COMMERCIAL BOARD OF THE STATE OF MATO GROSSO DO SUL
ADDRESS: RUA DR. ARTHUR JORGE, No. 1376
NEIGHBORHOOD: CENTRO – CAMPO GRANDE / MS CEP: 79.010-210
PHONE: (67) 3316-4429 / 3316-4400 FAX: (67) 3316-4454
HOURS OF OPERATION: 7:30 AM TO 13:15 PM
FOUNDATION: DECREE-LAW No. 09, OF 1/01/1979
LEGAL NATURE: AUTHORITY - TRADE BOARD OF THE STATE OF MINAS GERAIS
ADDRESS: RUA SERGIPE No. 64
NEIGHBORHOOD: CENTRO – Belo Horizonte / MG CEP: 30130-170
PHONE: (31) 3235-2300 FAX: (31) 3273-2357
HOURS OF OPERATION: 7:00 am to 19:00 pm (INDOOR) 9:00 am to 17:00 pm (EXTERNAL)
FOUNDATION: LAW No. 51, OF 5/7/1893
LEGAL NATURE: AUTHORITY - LAW No. 5.512, OF 2/9/1970 - TRADE BOARD OF THE STATE OF PARÁ
ADDRESS: AV. MAGALHÃES BARATA, No. 1234
NEIGHBORHOOD: SÃO BRAZ – BELÉM / PA CEP: 66060-281
PHONE: (91) 3217-5854 FAX: (91) 3217-5850 / OMBUDSMAN: (91) 3217-5808 / REGIONAL ADVISORY: (91) 3217-5826
HOURS OF OPERATION: 8:00 AM TO 16:00 PM (INDOOR) / 8:30 AM TO 13:00 PM (EXTERNAL)
FOUNDATION: DECREE No. 6.384, OF 30/11/1876 (INSTALLATION ON 30/05/1877)
LEGAL NATURE: AUTHORITY - LAW No. 4.414, OF 28/10/1972
INTEGRATED SERVICE CGC: 04825329/0001-42 / STATE REGISTRATION: 15192601-8 - BOARD OF COMMERCIAL OF THE STATE OF PARAÍBA
ADDRESS: AVENIDA PRINCESSA ISABEL, No. 755
NEIGHBORHOOD: CENTRO – JOÃO PESSOA / PB CEP: 58013-251
PHONE: (83) 3218 6139 FAX: (83) 3218 6154
OPENING HOURS: 09:00 to 16:30
FOUNDATION: LAW No. 18, OF 9/10/1893
LEGAL NATURE: AUTHORITY - LAW No. 3.461, OF 12/1/1967 - BOARD OF COMMERCIAL OF THE STATE OF PIAUÍ
ADDRESS: RUA GENERAL OZÓRIO, No. 3002
NEIGHBORHOOD: CABRAL – TERESINA / PI CEP: 64000-580
PHONE: (86) 3221-4535 / FAX: (86) 3221-6885
HOURS OF OPERATION: 7:30 AM TO 13:30 PM
FOUNDATION: LAW No. 10, OF 21/06/1892
LEGAL NATURE: AUTHORITY - LAW No. 4.541, OF 28/12/1992 - TRADE BOARD OF THE STATE OF PERNAMBUCO
ADDRESS: RUA IMPERIAL, Nº 1.600
NEIGHBORHOOD: SÃO JOSÉ – Recife / PE CEP: 50090-000
PHONE: (81) 3182-5255 / FAX: (81) 3182-5210
HOURS OF OPERATION: 8:00 AM TO 13:00 PM
FOUNDATION: LAW No. 556, OF 25/06/1850
LEGAL NATURE: AUTHORITY - LAW No. 5.792, OF 30/4/1966 - COMMERCIAL BOARD OF THE STATE OF RIO DE JANEIRO
ADDRESS: AV. RIO BRANCO, No. 10
NEIGHBORHOOD: CENTRO-RIO DE JANEIRO / RJ CEP: 20090-000
PHONE: (21) 2334-5452
HOURS OF OPERATION: 9:00 AM TO 18:00 PM (INDOOR) and 10:00 AM TO 17:00 PM (EXTERNAL)
FOUNDATION: LAW No. 556, OF 25/06/1850
LEGAL NATURE: AUTARCHY – Law No. 1.289, OF 14/4/1988 - COMMERCIAL BOARD OF THE STATE OF RIO GRANDE DO NORTE
ADDRESS: AVENIDA DUQUE DE CAXIAS, 214
NEIGHBORHOOD: RIBEIRA – NATAL / RN CEP: 59012-200
PHONE: (84) 3232-3056 FAX: (84) 3232-7414
HOURS OF OPERATION: 12:00 AM TO 18:00 PM
FOUNDATION: LAW No. 132, OF 13/9/1899
LEGAL NATURE: AUTHORITY - LAW No. 3.715, OF 10/12/1968 - COMMERCIAL BOARD OF THE STATE OF RIO GRANDE DO SUL
ADDRESS: AV. JÚLIO DE CASTILHOS, No. 120
NEIGHBORHOOD: Downtown – Porto Alegre / RS CEP: 90030-130
PHONE: (51) 3216-7575
HOURS OF OPERATION: 8:00 am to 18:00 pm (INDOOR) / 10:00 am to 16:00 pm (EXTERNAL)
DECREE No. 738, OF 24/05/1877
LEGAL NATURE: AUTHORITY - COMMERCIAL BOARD OF THE STATE OF RONDÔNIA
ADDRESS: AV. PINHEIRO MACHADO, 326
NEIGHBORHOOD: CAIARI – Porto Velho / RO CEP: 76.801-177
PHONE: (69) 3216-8622
HOURS OF OPERATION: 8:00 AM TO 14:00 PM
FOUNDATION: DECREE No. 476-A, OF 16/9/1966
LEGAL NATURE: AUTHORITY - LAW No. 074, OF 3/12/1985 (DECREE 2.860 4/2/1986) - COMMERCIAL BOARD OF THE STATE OF RORAIMA
ADDRESS: AV. JAIME BRASIL, No. 157
NEIGHBORHOOD: CENTRO – BOA VISTA / RR CEP: 69.301-350
TELEPHONE: (95) 2121-5375 / 2121-5367 FAX: (95) 2121-5367
HOURS OF OPERATION: 7:30 AM TO 13:30 PM
FOUNDATION: DECREE No. 114, OF 20/06/1975
LEGAL NATURE: INDIRECT ADMINISTRATION - TRADE BOARD OF THE STATE OF SERGIPE
ADDRESS: RUA PROPRIÁ, No. 315
NEIGHBORHOOD: CENTRO – ARACAJU / SE CEP: 49010-020
PHONE: (79) 3234-4138
HOURS OF OPERATION: 7:00 AM TO 13:00 PM
FOUNDATION: LAW No. 245, OF 08/11/1897
LEGAL NATURE: AUTHORITY - DECREE No. 8.591, OF 28/7/1987 - BOARD OF TRADE OF THE STATE OF SÃO PAULO
ADDRESS: RUA GUAICURUS, No. 1394
NEIGHBORHOOD: LAPA – São Paulo / SP CEP: 05033-002
PHONE: (11) 3468-3050 / 3051
HOURS OF OPERATION: 8:00 AM TO 18:00 PM (INDOOR) / 9:00 AM TO 16:00 PM (EXTERNAL)
FOUNDATION: DECREE No. 596, OF 19/06/1890
LEGAL NATURE: INDIRECT ADMINISTRATION (AURTAQUIA)
Neighborhood guidelines: Research all licensing requirements and policies in the neighborhood where you plan to open your business in advance. Each municipality has different requirements and it is good to take this into account when making decisions to avoid any surprises.
Among the most common mandatory licenses are: Operating Permit and Fire Department, Sanitary and Environmental License, in addition to registration with municipal and state regulatory bodies. If you prefer, hire an accounting professional to handle this bureaucratic part for greater convenience.
Professional advice: Talk to other business owners, or make an appointment with a consultant in your field of business to get important information about commercial enterprise guidelines. This will help you navigate the complex legal and regulatory landscape you are about to enter.
You can search for professionals in Facebook groups or even LinkedIn, that way, you can connect with individuals in your area with market experience who can give you important tips.
- Networking: It's important to get involved in local business communities. This can open up opportunities for partnerships and collaborations, as well as being potential customers. To do this, visit local businesses in your neighborhood, introduce yourself, ask them out for coffee, and build connections.
Financing: Determine the best method to fund your business. This can involve non-public savings, grants, loans and even venture capital. At this initial moment for your company, it is essential to keep the economic balance in mind and work so that it is always in balance, so avoid unnecessary expenses and be consistent with your choices.
And to monitor all financial aspects of the company, make use of tools such as Management Click where it is possible to manage issuance of invoices and bills, contracts, inventory control and more. Free tools like Trello e Slack they are also a good option for organizing and communicating with all your employees.
Taxation: Do your homework on federal, local, and national taxation. Complying with tax guidelines is paramount to avoiding criminal problems. If you are not comfortable with this part of the business, hire an accounting professional to help you.
Labor guidelines: Know the labor laws and regulations, the rights of workers. Work practices are regulated and the last thing you want is legal complications.
Area: Research your area of interest and choose a suitable location for your new venture. When making this choice, keep in mind the proximity to suppliers, target audience, accessibility and the commercial environment itself (whether it will need renovations, adjustments, values, etc.).
Patience and stability: Undertaking in Brazil is something extremely bureaucratic and with gradual growth. Persistence and patience are vital traits for this endeavor.
Each company is unique and has different needs, the purpose of this list is to guide entrepreneurs at the beginning of their mission to transform an idea into a concrete company. We recommend scheduling a consultation with professionals in your field and local professionals to get more accurate advice on your business situation and the current scenario.
Brazil is currently an opportune location for new businesses, but it is always worth weighing the opportunities and challenges before starting a journey as an entrepreneur in the country.
Business opportunities in Brazil
Natural resources: The country is rich in natural resources, which strengthens practices such as mining and agriculture, and allows for many possibilities in renewable energy industries, mining and more.
Middle class development: The big tree of the middle-class population in the country led to an increase in consumer capital and increased demand for various sectors and services.
Tourism: The country is a popular destination for travel, which enables and expands the demand for businesses centered in the tourism area such as hospitality, travel agencies and industries focused on tours and entertainment in general.
Agribusiness: Due to its wealth of natural resources, the country is a major importer of various products such as red meat, soybeans, coffee, chicken and more. This strengthens agribusiness, one of the strengths of the country's economy, and opens up greater opportunities within the field.
Business challenges in Brazil
Bureaucracy: Dealing with bureaucratic issues is a job that requires time and patience. Navigating these issues can be a difficult task, even when working with a professional in the field, as it requires a lot of decision-making and is a time-consuming process.
- Infrastructure: The country has been making structural improvements to attract new markets, but even so, this can prove to be a challenge in certain regions in sectors such as logistics and transport.
Tax complexity: The country's tax system is a complex system with several federal, state and municipal taxes. Therefore, complying with tax guidelines can be difficult work and requires a lot of research, study and knowledge of the area.
Financial Volatility: The economic system has gone through several periods of volatility, from inflation to recessions. The balance sheet is something to consider.
- Political instability: Corruption and political uncertainty can end up having a negative impact on the economy that can reverberate to a company's financial situation, especially new ones.
Labor price: Prices for labor, employee benefits, social security contributions and spending can be high, so do some rigorous financial planning before starting your business.
Security: The areas most affected by criminal actions vary widely across the country, but security concerns affect the vast majority of businesses, so do your research and add security spending to your planning.
Among opportunities and challenges, many entrepreneurs have already found success in the economic market in the country, the most important thing is to do a thorough research and planning of the market, public and location, in addition to networking with local businesses and adapting your business idea to reality. of the results. Whether this is your first business or you're moving across industries, it's always a good idea to take the time to speak with a consultant to come up with a plan tailored to your business.
In conclusion, starting a business in Brazil is not an easy task, it takes a lot of dedication, persistence and patience, in addition to a lot of research to base all your commercial movements in a strategic and personalized way. Another important issue is to create meaningful connections with all your surroundings, creating a community and cultivating relationships both with customers, as well as with other businesses and residents of the neighborhood, as well as businesses with the same values, as this can develop into meaningful partnerships in the future.
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