One or more individuals can open a foundation in Brazil to serve important causes that focus on education, historical and artistic heritage, environmental protection, research, sustainability, and other purposes.
In this article, our team highlights the most important aspects to be considered by those who open a foundation in Brazil. As part of our services, we can advise on the regulatory framework for foundations, in addition to our solutions for company formation in Brazil for investors.
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Key issues concerning foundations in Brazil
The Civil Code provides important information on the treatment of foundations in Brazil. One of the most important issues is that this type of establishment has a purposes related to one or more of the following areas of interest:
- social assistance;
- culture;
- religious activities;
- conservation and sustainable development promotion;
- human rights, and others.
An important issue that requires clarification in the case of those who will open a foundation in Brazil is its treatment and requirements. The broader spectrum of differences between a foundation and a non-profit organization can be outlined upon request by our team that specializes in Brazil company formation.
The main characteristics of a Brazilian foundation
Those who will open a foundation in Brazil will do so by observing the country’s governing laws for setting up organizations dedicated to certain causes that are of public interest.
Our team who can also help you open a company in Brazil lists the most important issues concerning the creation of a Brazilian foundation:
- Private foundations are the one established by individuals or other legal entities;
- The foundation’s activities are limited to those declared in its constitutive documents;
- Some organizations can qualify for important tax exemptions;
- The foundation is required to have adequate assets to fund its purposes;
- To open a foundation in Brazil, the founders will submit its incorporation documents to the Attorney General’s Office. Our team can give you more detailed information upon request.
Foundations are recognized as private legal entities under law. They are incorporated by individuals or other legal entities and declare their specific purpose (one or more of the purposes briefly outlined above by our team).
Our team can offer a step-by-step breakdown of the most important issues to consider for those who will open a foundation in Brazil. Not only can we answer questions about company incorporation in Brazil, and assist with the formation of the business, but we can also do the same in the case of non-profit entities.
Areas in which private foundations are active in Brazil
The Brazilian Institute of Geography and Statistics (known as the IBGE) published its main dataset on private foundations and non-profit associations in 2016. Although the data has not been updated, it still offers us a glimpse into the types of private foundations in the country, namely their areas of activity.
Our experts in company incorporation in Brazil break down some of the statistical data on private foundations, as it was made available by the IBGE:
- Most foundations were established with their declared purpose of promoting religion (83,053);
- The second-largest category was that of foundations involved in culture (32,268), followed by those that activated in areas of development and advocacy (30,266);
- Most salaried employees were active in the health foundations and non-profit associations (810,672 individuals);
- The total number of private foundations and non-profit associations in 2016 was 236,950.
If you would like to know more about the particular requirements when you open a foundation in Brazil that will activate in a certain sector, please do not hesitate to talk to our team.
Contact us for more information on foundations as well as other types of legal entities. We can also help investors open a branch in Brazil.