Licence to run a small scale manufacturing business in brazil?
Last activity 24 January 2016 by travelr64
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Hi there all that might read this
Dose any one know if you need to have a licence of any type, to start and run a small scale manufacturing business in Brazil
I have identified something really simple, that is missing for the Brazilian market that I could manufacture and sell
Hi spanishpete,
Do you need a license to operate a business in Brazil? Oh and HOW YOU NEED a license, in fact not just one but several licenses. If you thought that the permanency process was complicated, you have no idea how much more complicated it is to open any kind of business in this country.
First of all you need to apply for a CNPJ (Cadastro Nacional de Pessoa Juridica), this most often requires the assistance of a lawyer, an accountant, or BOTH. The CNPJ is not only your federal license, but also your business' tax number.
Then you're going to in most cases require a state license (Inscrição Estadual - IE), pretty much the same as the above, but only on the state level.
Next you'll need an Alvará de Funcionamento (business license) from the municipality where you are operating your enterprise. It will set out the purpose of the business and all of the restrictions and conditions. You will also need to be careful of the location where you operate, in most cities there are zoning restrictions.
Then if you're going to have any employees other than yourself, you're going to need to find out what you need to do in order to deduct income taxes, INSS and FGTS contributions, and the like from your employees.
While in most other civilized and developed nations the process of starting up a business, from application to the day you actually go into operation is anywhere from 30 - 60 days; here in Brazil on average that is 120 days. You're going to need a heavy dose of PATIENCE in dealing with that great big scary bureaucratic machine you're about to face off with!!!
Good luck to you!
Cheers,
James Expat-blog Experts Team
Hi there James,
and thanks very much for your help yet again,
its nothing like England here, it seams the state is here to stop you from doing most things,
Good old Socialism, and power to the people,
but its not going to stop me,
cheers mate
I will let you know how I get on
maybe your are lucky and do not fall under Environment regulation, if not another layer of requirements will apply.
If "business model" / product is "simple", dont forget to protect it using IP laws.
Hi there, I will have to look up this IP law
but one thing I know, about the product that I have in mind, is that England is a awash with them, and I cant understand why someone's not making them here, but in saying that Ive identified meany things that are not made here that could be, and would sell quite well, and these are all simple things,, I know there will be demand, for them
Iam an engineer, and look at everything with an engineer's mind
well, if your "business models" assume it will exist a demand, then go for it.
Might not be produced ( or imported ) yet due to existing patent/copyright to that product family ( see nice classe ) and do a preliminary search at gov agency http://www.inpi.gov.br/portal/
Hello Etienne,
This sounds like a multi-level marketing scheme (MLM) which is something that we certainly do not welcome on Expat-blog. At any rate our public forums are not intended for advertising of any kind. For that reason your posting has been removed pending full review by Expat-blog moderators.
If your business is not an MLM then you should be advertising it here by placing a (free) ad in our JOBS section if you're looking for employees or in CLASSIFIEDS if you're looking for business partners. You can access those sections by clicking their respective tabs in the green banner at the top of this page.
Regards,
James
Expat-blog Experts Team
Hi James
the last but one entry on this blog,
I don't really understand, what's been going on in the entry
I would like to say,,,,,,,,,,, I did not ask the question about Licence, looking for money of partner
I just asked the question because I was so surprised about all these licence's you need just to breath, here
the more I live here in Brazil, the more I think I understand, why the county is so far behind the western part of the world
when it should be a world leaded, I feel in time it would be.
But to honest, Im glade its not,
ok anyway I hope you understand what I said in be begging
that I just wanted to know about the licencing law
many thanks Peter
Hi spanishpete,
Yes I certainly understand. I agree, it is the mountains of senseless bureaucracy that keeps this country from being launched into the "First World". Sadly, this bureaucracy was brought to these shores by the Portuguese colonizers and over the 5 and a half centuries has become so intertwined in the day-to-day life of every Brazilian man, woman and child that nothing is ever going to end it now.
Everything here is about TAXES, nothing else. The Brazilians are the most heavily taxed society on earth and the government is taxing them more and more with each passing day. They've nearly reached the breaking point where the half of the population that is working and paying the taxes just to support the other half that is content not to work and to live on government handouts are simply going to stop working. Then Brazil as we know it will collapse.
The country's economy is in shambles, a corrupt government rocked by scandal upon scandal, foreign investment drying up completely because absurd bureaucracy and convoluted tax laws, currency controls, etc., etc., etc. Nobody wants to invest here anymore since the future is just too uncertain in every respect, and I can't blame them.
Sadly, there isn't even a faint light at the end of the tunnel that this situation is going to change any time soon.
Cheers,
James
BOA TARDE, sou a esposa de Haseeb e gostaria que voce me esclarecesse se e possivel meu marido tirar seu CNPJ estando a pouco tempo no Brasil. meu marido ja esteve no escritorio e falou com o contador, ele ja possui a licenca da prefeitura para abrir um comercio aqui na minha cidade, porem o contador falou que para gerar o numero do CNPJ necessita de titulo eleitoral ou declaracao de imposto de renda, mas como ele esta a menos de um ano no pais como ele pode gerar estes documentos. nao sabemos o que fazer agora. estao dizendo que nao e possivel tirar o CNPJ dessa forma. ah desculpa os erros de portugues mas nao sei encontrar os acentos neste teclado.
The CNPJ process is extremely complex and bureaucratic. You need both a lawyer and an accountant who are experienced in business start-up to look after getting the CNPJ for you.
Also, this is the Anglophone version of the Brazil forum, you should post in ENGLISH ONLY here. While I am fluent in Portuguese our other members may not be. If you wish to post in the Portuguese version of the forum click the flag icon in the green banner at the top of the page and select Portuguese from the drop-down menu. Your cooperation is appreciated by all.
Cheers,
James Expat-blog Experts Team
Hi James
i m Hasib wife would you clarify me whether it is possible my husband take your CNPJ being a bit long in Brazil. My husband was already in the office and spoke to the counter, he already has the city of license to open a trade here in my city, however the counter said that to generate the CNPJ number needs to electoral title or declaration of income tax, but as he is less than one year in the country as it can generate these documents. we do not know what to do now. station saying can not you get the CNPJ this way.
He does not need a Titulo Eleitoral (Voter's Card) or Income tax declaration to get a CNPJ. He only needs his CPF and his Cédula de Identidade Estrangeiro showing his RNE number and permanent status.
It still will require a lawyer and accountant for him to go through the CNPJ application. It is extremely complex.
Cheers,
James Expat-blog Experts Team
It is not necessary to have a lawyer to apply for the CNPJ. We did this when establishing a non-profit in Brazil back in 2010. We did have an accountant, but to be honest I don't remember exactly what part she played in the process. She did however, after some time prove herself to be very dishonest, as she tried to cheat us out of quite a bit of money when tax time came around.
One thing you are going to find out, is that in Brazil, almost every professional person you deal with is going to look at you as a bottomless moneybag. They will cheat. lie and steal from you until you have nothing left.
As an example, I was interested in doing a documentary of a local story involving the massacre of thousands of innocent civilians back in the 1930s by the Ceará military. A friend led me to a professor at the local Federal University who could help me with some things and I was anxious to get his help. After about an hour of conversation, the professor had it all worked out for me. He had the actors, the props, the cameras, and about everything else I did not need from him. Bottom line . . . I only needed to come up with US$10 million. LOL yeah !
Another example, is when we were trying to establish our ONG, I was having some trouble coming up with the format for the bylaws. After a while I did figure out that the search term needed to be "modelo" instead of "exemplo" and I found the format rather easily. But, in the process I had been introduced to an attorney who was supposedly Christian and interested in helping us get our project going. He offered to write up the bylaws for us for only R$ 2,000. A bit high for something that only needed to be downloaded for free and the correct names inserted in the proper places, which I guarantee was exactly what he was going to have his low paid secretary do, probably at a cost of less than R$50.
Anyway, it's better if you have a good friend who is Brazilian, that you are able to trust, who can deal with accountants and lawyers to help you get set up. In fact, it might even be better to have them set the business up in their name, believe it or not. That seems to be a common method in Brazil for a gringo to get a business going. And with the business I have done in Brazil, I guarantee things will go much smoother that way.
Good luck on your venture
C.A. Cooper
"In fact, it might even be better to have them set the business up in their name, believe it or not."
Thats just plain stupid advice, in any jurisdiction on this planet.
Nope, in fact it's the only way one can get the investment visa in Brazil. To have a business set up prior to obtaining the visa. And no way you can do that without a bank account in the business name. A foreigner cannot open a bank account in Brazil without a permanent visa. Check it out. Sort of a catch 22. There are a large number of foreigners in Brazil that have businesses in a friend or associate's name.
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