Set up a Subsidiary in Brazil
Find out how foreign companies can set up a subsidiary in Brazil as a local legal entity and what the procedure involves. Ask our consultants for help.
Foreign companies can set up a presence in the country by establishing a subsidiary in Brazil. Subsidiaries are Brazilian legal entities opened according to domestic legislation. Our company formation consultants in Brazil explain different aspects related to opening a subsidiary in 2026.
| Quick Facts | |
|---|---|
| Applicable legislation | Brazilian law |
| Best used for | Business operations that are independent from those of the parent company. |
| Minimum share capital | No minimum capital is needed, however, certain conditions apply for the shares subscribed in cash when the subsidiary is set up as a joint-stock company. |
| Time frame for the incorporation (approx.) | 1 month or more |
| Management (Local/Foreign) | Local |
| Legal representative required | Can be appointed |
| Local bank account (YES/NO) | Yes |
| Independence from the parent company | Separate legal entity from the parent company |
| Liability of the parent company | Only to the extent of the shares it owns in the Brazilian legal entity it sets up as a subsidiary. |
| Corporate tax rate | 15% (34% including the 10% surtax and 9% CSLL) |
| Possibility of hiring local staff (YES/NO) | Yes |
| Name requirements | Must be original and must use a denomination after the chosen and approved name (according to the business form) |
| Name restrictions | The use of certain words can be prohibited, must not infringe existing registered names. |
| Memorandum and Articles of Association | Articles of Association/Bylaws drawn up and registered with the competent authorities. |
| Other documents | Identification documents for the partners, proof of capital contributions (as applicable), other documents to justify foreign capital (as needed). |
What is a subsidiary?
A subsidiary is a locally registered company wholly or partly owned by a parent foreign company.
What companies can set up a subsidiary in Brazil?
Company formation in Brazil is not conditioned by the parent company’s jurisdiction of origin or other factors.
Foreign companies may choose to expand their activities in Brazil via a subsidiary, should this be in line with their plans for growth and entering the local market.
How is a Brazilian subsidiary managed and controlled?
A share ownership percentage of 50% or more effectively ensures that the parent holding company controls its Brazilian subsidiary.
How do I set up a subsidiary in Brazil?
Because a subsidiary is a locally registered company, you follow the basic steps to open a company in Brazil, as listed below by our team:
- Decide on the type of company and ownership structure. In the case of a subsidiary, it is likely that the latter will mean that the shareholder is another legal entity;
- Provide the foreign company’s documents: the Articles of Association and others;
- Appoint a representative: the parent company names a local representative for its subsidiary. This is a natural person resident in Brazil who provides their identification documents (such as a passport copy);
- Prepare and submit the incorporation documents: once all the information is provided by the client, our team that handles company formation in Brazil gathers the documents and submits them to the authorities;
- Once the company is incorporated, we can handle the subsequent steps: bank account opening in Brazil, rental agreements for the offices, and others.
What are the costs for subsidiary creation?
When working with our local company formation experts, the costs required to open a subsidiary in Brazil can vary according to the chosen package. Some examples include:
- USD 1,800 for the general company formation package (including assistance for preparing the power of attorney for the foreign shareholder, tax number application when required, company name verification, preparing the registration documents, and electronic filing followed by tax registrations);
- Local representative services (continued after the company formation process) for USD 400 per month.
Must I be present in Brazil to open a subsidiary here?
No. You do not have to be personally present. However, it is mandatory that you provide all the required documents that will allow us to open a subsidiary, including a power of attorney, which is important and must be sent to us (we provide our clients with a draft format and additional information).
How fast can I set up a subsidiary in Brazil?
When working with our team, the general incorporation time is no more than 10 working days.
If you have further questions about how to open a subsidiary in Brazil in 2026, we kindly invite you to contact us.
Dr. Jamil Abdo, Attorney at Law · 6 October 2026Dr. Jamil Abdo is one of the partners of Abdo Advogados.