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Obtaining a Financial License in Brazil

Obtaining a Financial License in Brazil

A company that will be involved in dealing with financial resources and the custody of assets is considered, in a broad sense, a financial company that will need to obtain a financial license in Brazil.

Banks, securities and/or foreign exchange brokers are just some of the examples of regulated businesses. For these types of companies, and for other entities, the process of company formation in Brazil will also include a licensing phase.

Our team highlights the manner in which banking and financial services are regulated in this jurisdiction. Upon request, were can provide more details and complete solutions on the steps needed to open a company in Brazil.

What types of activities require a financial license in Brazil?

Broadly speaking, all financial institutions need to be properly licensed in order to offer services to Brazilian or international clients.

The financial sector includes both banking and non-banking businesses. The following list includes some of the most important activities for which companies need to obtain a financial license in Brazil:

  • banks;
  • investment companies;
  • securities dealers, foreign exchange brokers;
  • leasing companies;
  • fintech companies;
  • direct credit companies;
  • payment institutions;
  • e-money issuers;
  • crypto companies;
  • securities consultants and analysts;
  • investment advisors, securities portfolio managers, etc.

Please note that the list above is not an exhaustive one. The term “bank” is used to include commercial, investment, and savings banks. All of these types of entities require a financial license in Brazil.

Our agents can give you more information about the specific requirements to set up any of the types of businesses listed above and can assist you with company registration in Brazil.

What entities regulate the Brazilian financial sector?

Because the financial sector includes a wide range of services, there are several state bodies involved in regulating businesses in this industry. They cover different areas of interest and provide licenses accordingly.

Among some of the most important regulators we can mention the following:

What are the main licensing requirements and steps?

The requirements a company has to meet to obtain a financial license in Brazil depend on the exact sector or industry in which it will activate. The list of steps briefly presented below by our team refers to the Central Bank’s licensing process:

  1. Complete the steps for company formation in Brazil;
  2. Fill-in the application form (as per the model provided by the regulator);
  3. Gather the needed documentation concerning the business and its specific activities in Brazil. These include but are not limited to a detailed business plan, statements on the origins of the funds, statements made by the company’s controlling shareholders, the most recent Articles of Association for the company, and others;
  4. Submit the application to the regulator and await its response. The Bank may request additional information, if it is required for a particular submission.

Our team can give you information about the steps required to open a branch in Brazil for a foreign financial institution.

Brazil financial sector insights

According to the Central Bank of Brazil, the number of financial institutions by type was the following in December 2023:

  • 19 commercial banks;
  • 4 development banks and 1 savings bank;
  • 10 investment banks;
  • 17 leasing companies;
  • 26 micro-financing institutions;
  • 65 consumer finance companies;
  • 116 platform lending companies;
  • 115 payment institutions.

If you would like to know more about the requirements for opening a financial business in Brazil, please contact our team.