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Open a Recruitment Company in Brazil

Open a Recruitment Company in Brazil

Investors who open a recruitment company in Brazil will offer services to many different businesses looking to hire talent in Brazil.

If you want to start a business and have decided to set up a recruitment agency in Brazil, our team can help you with all aspects concerning company formation in Brazil.

Our team can also assist foreign recruitment companies that have decided to expand their operations to South America and will open a branch in Brazil.

Types of services offered by a recruitment company in Brazil

The recruiting industry can be a suitable choice for investors looking to open a company in Brazil, given its increased size and growth and the fact that Brazilian-based companies can be interested in hiring foreign talent for many of their positions, including executives.

Recruitment activities can be niched (such as offering only IT recruitment in Brazil) or general (when the employment agency will source candidates across a wide range of industries).

A recruitment company in Brazil can offer complete recruitment process outsourcing or temporary staffing solutions. The former includes several steps that are handled by the staffing agency, including but not limited to identifying candidates, conducting the interview, and offering onboarding solutions.

How to open a recruitment company in Brazil

Starting a recruitment company means following the basic steps for company creation. Working with a local team of company incorporation agents such as our own is common. Below, we list the key steps investors need to take to open a company in Brazil:

  1. Choose the business form: In most cases, this is the limited liability company which is suitable for small to medium businesses;
  2. Select a suitable company name: This needs to be available for use and it will include an abbreviation of the business type;
  3. Prepare the company’s documents: These are the Articles of Association/Bylaws and include details about the company and its object of activity;
  4. Register the business: The company is registered with the Board of Trade. There are no minimum capital requirements for the limited liability company.

In addition to following the steps for company registration in Brazil, investors who open a new company in the recruitment industry should also consider the following costs related to their business:

  • Administrative overhead;
  • Licensed software;
  • Website and marketing costs.

Investors who open a recruitment company in Brazil will not only need to take into account the industry trends, and the initial start-up costs, but will also need to be mindful of the tax and filing requirements. Our team details these below.

Brazil company compliance

Observing the applicable legislation for company incorporation and following the rules of tax and reporting compliance is mandatory for lawfully running a business in Brazil.

If you want to open a recruitment company in Brazil, you will need to observe the following tax and reporting requirements:

  • Pay a corporate income tax of 15% (amounting to 34% including surtax);
  • Make social security contributions for your employees amounting to 8% of the wage for the severance fund, 20% of the wage to the public pension system, 8.8% for other social security taxes;
  • The withholding tax on dividend distributions to residents and non-residents is 0% (subject to conditions);
  • Companies use a tax year that is the same as the calendar year;
  • Businesses file an annual income tax return and make monthly or quarterly advance payments.

You can contact our team for more information about the general incorporation and management requirements in Brazil.