A foreign company interested in doing business in the country can choose to open an SPV company in Brazil as needed to meet certain business goals or projects. The Special Purpose Vehicle (SPV) is a company opened for a particular purpose, usually for securing assets and, overall, for minimizing the parent company’s financial risk.
Our Brazil company formation experts can advise foreign investors on the suitable uses of a Brazilian SPV, the tax and accounting considerations, as well as the particularities they need to be mindful of when choosing this jurisdiction.
Our team specializes in the formation of all types of legal entities, and we also assist foreign entities interested in entering the market in other ways, such as the option to open a branch in Brazil.
SPVs in Brazil are investment funds or securitization companies. Investment funds like FIDCs (Fundo de Investimento em Direitos Creditórios), FIIs (Fundo de Investimento Imobiliário) are owned by investors through interest (cotas) issued by the fund, organized in the legal form of joint ownership without legal personality. SPVs must adhere to relevant regulatory requirements set by the CVM (Comissão de Valores Mobiliários), which is the Brazilian Securities and Exchange Commission.
It’s uncommon for SPVs in Brazil to face insolvency issues. If an SPV company goes bankrupt, investors in their securities, especially in real estate and agriculture, are usually not affected. Brazilian law keeps the assets that support these securities separate from the company’s general assets.
Our Brazilian company formation agents can help you open an SPV company.
The special purpose vehicle is most commonly incorporated as a limited liability company, a separate legal entity from its founder(s), which has two or more partners that can be individuals or other companies.
Some of the characteristics of the LLC are the following:
In order to open an SPV company in Brazil, a foreign organization or foreign founder will follow the usual requirements applicable to the incorporation of an LLC:
Organizations that choose to open a SPV company in Brazil can rely on our assistance throughout the company formation process. As needed, one of our agents can provide representation via a power of attorney in order to handle certain aspects of the incorporation or mandatory submissions. You can reach out to us at any time for more information about company incorporation in Brazil.
SPVs in Brazil are generally established specifically to conduct securitization transactions. This is a financial process where various financial assets, such as loans, mortgages, or receivables, are pooled together and packaged into securities that are then sold to investors.
A securitization transaction typically involves several parties, each playing a specific role in the process:
Each party in a securitization transaction has distinct responsibilities and interests. Our specialists in company incorporation in Brazil can explain more about securitization.
Once it is registered and operational, the special purpose vehicle will need to comply with the tax and filing requirements:
Opening an SPV company in Brazil can offer several advantages, such as:
We can help you open a company in Brazil, based on your specific business goals and needs.
Entrepreneurs can invest in the country through Brazilian SPVs, especially considering these economic trends and factors:
Our team specializing in company formation in Brazil can provide details on the tax and filing obligations, and the requirements to which a special purpose vehicle can be subject to. The SPV can be used for multiple purposes, as part of a cohesive business strategy. We can also offer assistance if you wish to open a branch in Brazil.
Contact us for more information on how to open a SPV company in Brazil.