Types of Companies in Brazil
Compare the types of companies in Brazil, from the LTDA and S.A. to partnerships and branches, and ask our specialists which one suits your business.
The available types of companies in Brazil have characteristics that allow investors to select an appropriate shareholding structure, along with other suitable features. If you want to open a company in Brazil, our team can assist you regardless of the business structure of choice.
| Quick Facts | |
|---|---|
| Main types of companies/structures | – limited liability company (LTDA), – limited liability corporation (SA), – single-member limited liability company (SLU), which replaced the EIRELI abolished in 2021 |
Foreign entities in Brazil | – branches, – subsidiaries, – representative offices |
Minimum share capital | None (the EIRELI, which required 100 minimum wages, was abolished in 2021) |
| Legal framework | – Brazilian Civil Code, – National Trade Registry Department |
| General steps in company formation in Brazil | – select business structure, – appoint representative agent, – draft documents, – obtain tax identification number, – register with local municipality |
| General required documents | – Articles of Association, – incorporation certificate, – power of attorney (if applicable), – ID documents, – legal entity brochure, – taxpayer certificate, etc. |
| Special licenses and permits | Industry-specific (healthcare, transportation, finance, construction etc.) |
| Corporate income tax rate | 15%; A surcharge of 10% applies to companies with annual taxable income over 240,000 BRL |
| Incorporation time | 8 weeks (approx.) |
| Indirect taxes (VAT) registration | VAT is implemented through various indirect taxes and registration is mandatory for all businesses. |
| Company secretary required (YES/NO) | NO |
| Minimum shareholders required | – 1 for LTDA (single-member SLU), – 2 for SA |
| Virtual office possibility (YES/NO) | YES |
| Residency requirement | No residency required for shareholders; administrators resident abroad must appoint a Brazil-resident attorney-in-fact. |
| Assistance | We assist in selecting the company type for your business needs and assist throughout the entire process of company incorporation in Brazil. |
What types of companies can I open in Brazil?
If you want to open a company in Brazil, you will choose one of the following types of business forms with legal capacity:
- -Limited Liability Company (LLC): incorporated by two or more business partners with no mandatory corporate capital;
- -Joint-Stock Company: can be private or public, and specific requirements depend on this status;
- -Individual Company with Limited Liability: incorporated by a single shareholder, with specific requirements in terms of minimum capital and other conditions for the sole investor.
In addition to the business types listed above, foreign companies may expand their activities to Brazil using a branch (subject to certain requirements).
How do I choose a suitable business form?
The selection depends on aspects such as the number of founders, the predicted size of the business (small to medium or larger), and whether or not it is planned to make it available to the public via stock exchange listing (possible in the case of a public joint-stock company in Brazil).
What are the mandatory conditions when opening a company in Brazil?
Regardless of the type of company in Brazil, the chosen legal entity will be required to have an address in Brazil and comply with the local incorporation laws and the subsequent tax and reporting requirements.
Are there any special conditions for foreign investors in Brazil?
Full foreign ownership is permitted under Brazilian law; however, a foreign investor who is not present in Brazil will be required to handle the process through an appointed representative, such as one of our experts in Brazil. A power of attorney is used for this purpose.
Must I appoint a Brazilian director for my company?
This is a condition only for the joint-stock company; however, this business form does not require a Brazilian director per se, rather a Brazilian resident representative in those cases in which all the members of the Board of Directors reside abroad.
How much does it cost to open a company in Brazil?
Our company formation packages are tailored to include the following:
- -USD 1,800 for the initial company formation operations;
- -USD 400 for bank account opening (mandatory, handled as part of the post-registration steps);
- -USD 100 per month for accounting services in Brazil;
- -USD 400 per month for company representative services provided by our team.
We can help you with Brazil company formation for any type of company mentioned above. We also invite you to watch a video about the business forms:
Must I be present in the country to open one of the types of companies in Brazil?
No. You do not need to be present in the country, nor do you need to be a Brazilian resident.
As stated, you will appoint a local representative (from our team) to handle the incorporation requirements on your behalf via a power of attorney drafted for this purpose (we also provide the document).
What documents do I need to open a company in Brazil?
Personal and legal entity-specific documents are required. For the former, you will provide your identification document and other personal information as may be required.
The articles of association/bylaws of the business will be drafted to meet the characteristics of one of the types of companies in Brazil you have chosen (be it an LLC or joint stock).
How fast can I open a company in Brazil?
While the incorporation time may vary according to the chosen type of company in Brazil, you can generally expect 10 business days for the LLC creation.
Contact us for more information on the available types of companies in Brazil, the associated costs, and mandatory incorporation steps for each business form.
Dr. Jamil Abdo, Attorney at Law · 30 October 2026Dr. Jamil Abdo is one of the partners of Abdo Advogados.