A branch office is a reasonable option when global companies wish to expand their business in Brazil. The objective of a Branch Office is to promote operation and generate revenue in Brazil on behalf of the foreign parent company.
Opening local branches is beneficial for foreign companies that need to establish a candid presence in Brazil, without incorporating an extra and independent entity.
Opening a Branch in Brazil
The establishment of branches in Brazil is considered to be complicated, besides some limitations on foreign capital, there is also the need for attaining prior authorization from the Brazilian Government to open one. But now, the Brazilian government has stimulated the opening of branches of foreign companies in Brazil.
To simplify the procedures of the installation of branches in Brazil, the federal government enables foreign companies to request the opening of branches through the gov.br website.
The Normative Rule No. 77/2020 of National Department of Corporate Registry and Integration (Departamento De Registro Empresarial e Integração), which came into force on April 1, 2020, also enables changes to the parent’s company’s contract or bylaws to be requested online. The new instruction assembled the rules for the operation of branches of foreign companies in the country, rescinding the prior regulations regarding the topic.
Through the gov.br website the foreign company can fill in the application for the installation of the Branch in Brazil. The following documents are required:
- Special license for the branch,
- the parent company’s Articles of Incorporation,
- list of shareholders,
- proof of registration in its country of origin
- financial information and
- Act of deliberation on the authorization of the representative in Brazil, accompanied by a power of attorney that assigns him/her to accept the conditions under which authorization is given and complete powers to deal with any problems and resolve them.
This measure has been deemed a huge step for enhancing the process of starting new companies in Brazil and, as a result, attracting foreign investors.
When you establish a branch in Brazil, you enjoy the comfort of being able to offer a product or service already solidified elsewhere.
If you want to register your branch in Brazil, contact your Damalion expert now.
