Starting a Business in Brazil
Brazil is a market on the rise and may be the ideal destination to grow or expand your business. If you don’t mind days full of sunshine that is. As Brazil advances towards becoming a new world superpower, business and foreign direct investment is budding. An innovative business model can successfully penetrate Brazil’s emerging market.
Moving to a new country and starting a new business are both major and exciting endeavors. Where to begin? This page intends to inform you of the necessary steps and considerations of starting a business in Brazil as a foreigner.
Reasons to Start a Business in Brazil
Key factors attributing to Brazil’s economic ascent are its strong manufacturing base, young economic workforce and wealth of raw materials and natural resources - ideal conditions for advancement. Investors are buoyed by long-term projections. With the second largest economy in the Western Hemisphere and ninth-largest in the world, Brazil offers exciting possibilities to companies seeking to expand their business or new start-ups looking for up-and-coming territories.
As Brazil rapidly expands, Foreign Direct Investment substantially increases. In 2019 the United National Conference on Trade and Development ranked Brazil the fourth-largest country in the world for Foreign Direct Investment recipient flows. The top single-country investors of Brazil are the Netherlands and the United States. The Brazilian government welcomes foreign investment and is prioritizing economic reforms to further incentivize foreign business.
Brazilian consumer confidence has soared in recent years, thanks to an emerging economy that has lifted 40 million citizens out of poverty since 2010. Economic rise led to a large expansion of the middle class with greater purchasing power. While the COVID-19 pandemic set the Brazilian economy back a few paces, sectors like e-commerce managed to flourish with revenues increasing by 47% as nearly 7.7 million Brazilians began shopping online for the first time, rounding out the number of e-commerce customers to 41 million people.