Frequently Asked Questions

In Brazil, all financial transactions with foreign currencies shall be converted into the local currency, the Brazilian Real (BRL). This means that any foreign capital entering the country has to go through an exchange operation. This process allows the Central Bank to statistically manage foreign direct investments in the country. In addition, this registration is imperative for future remittances, such as the payment of dividends. It is crucial that foreign companies make an in-depth analysis before entering the Brazilian market, considering hedging strategies to protect their investments against exchange rate fluctuations. NewCo Latam has a business cell specializing in the capitalization of companies in Brazil, making it a valuable partner for foreign companies wishing to establish themselves in the country.

The equity contribution is characterized by adding values directly to the company’s net equity, strengthening and giving robustness to the company’s balance sheet in Brazil. This mode is often used to enable local credit to be taken out and even to take part in government bidding processes. However, it is important to note that the equity contribution is subject to a 0.38% IOF tax when the exchange transaction is closed for capitalization. In addition, the process of returning this capital to the members, known as de-capitalization, can be more time-consuming, taking up to 90 days to complete. 

A loan is a type of financing that stands out because it does not incur the 0.38% IOF tax on the transaction, unlike an equity contribution. This type of loan is recorded as an active debt in the company’s balance sheet, which means that in the future, depending on the strategy adopted, the company can choose to convert this debt into an equity. What’s more, one of the great advantages is that it’s easy to send funds abroad. If cash is available, the company can simply close the exchange operations to pay off the debt, making the process faster. 

The two most common options for capitalizing companies in Brazil are Loan and Equity contribution. Loans are made between companies in the same economic group or with external investors, facilitating the transfer of funds from one entity to another. Equity, on the other hand, represents a direct injection of funds into the company, often in exchange for a shareholding interest. Each option has its advantages and particularities, and the choice is based on the company’s strategy and needs. 

Yes, rest assured, we take care of all the bureaucratic aspects of a personnel department: payroll, hiring and dismissal process, tax management and mandatory benefits, among others.

It is the registration system created by the Federal Government to facilitate tax, social security, and labor information relating to employees. Knowing the definition and how it operates is extremely important, and at NewCo Latam we are prepared to help with this issue. 

We rely on tax specialists and automated solutions to help you and your company. Each company has a set of taxes, typical of its specialty,   to comply with, what we call tax obligations. Each one has a specific form and deadlines for submitting the form and proof of payment.  Tax management is extremely important and we take care of the details for you. 

In Brazil, invoices are issued electronically. The Electronic Invoice (NF-e) is the digital version of the Invoice. It was implemented in Brazilian legislation with the SINIEF Readjustment 07/05 of October 2005, and has since then replaced the paper invoice (model 1 or 1 A). It’s a simple and secure process, but for this you will need to issue a legal entity digital certificate, which allows you to access and issue an NF-e; don’t worry, we will help you with issuing the digital certificate and issuing invoices. 

Yes, every company in BRAZIL needs an accountant to keep their accounts up to date. Only a MEI (Individual Micro Entrepreneur) does not need an accountant; all other companies are required by law to have this type of service.  But do not worry, we can take care of this for you, we work with reliable accounting professionals. 

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Yes, you can. Besides being resident and domiciled in Brazil, you shall hold a permanent residence visa. This will enable you to take steps to establish your business in the country and even be the company’s legal administrator.

The legal representative’s role is to represent the company before the Brazilian IRS and society.  They can be Brazilian or foreign (as long as they are resident and domiciled in Brazil or hold a permanent residence visa). We can advise you on the role of the legal representative, as we rely on a specialized team for this.   

Yes, Brazil allows foreign investors, individuals or companies, with residence and domicile abroad, to be members or owners of a Brazilian company, even if they do not hold a permanent resident visa in the country. To do this, they just need to grant powers to a legal representative resident in Brazil.  

In order to open a company correctly, it is necessary to go through some preliminary steps, understand the investor’s business, decide on the best tax and corporate regime, check and prepare all the necessary documentation, licenses and permits. This depends a lot on each type of business and location, but from our experience we can say that the whole process can take between 15 and 30 days.  

Yes, we can help. The tax system in Brazil is really complex, especially for foreign investors.  At NewCo.  Latam we know that choosing the right tax regime for your company’s line of business is essential and can help make your project a success.  With this in mind, we carry out a detailed tax study, in line with the company’s activity and strategy, providing the necessary guidance and recommendations so that the decision is as assertive as possible. 

In order to open a company in Brazil an entrepreneur has to go through a few preliminary stages, such as: analyses of the best tax and corporate regime, decision on where to start a business, preparation of the legal documentation and the opening process itself. For foreign investors, this can be very complex, as they are not familiar with local legislation and everything can seem bureaucratic and complicated. 

We, at NewCo. Latam, have this local knowledge, we provide all the necessary advice and we take care of the process from end to end so that you can focus on your project and leave the legal and bureaucratic part to us.

Send us an email to and one of our experts will answer your questions in a customized way. 

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