Table of Contents
Over the last few years, business in Brazil has experienced astoundingly rapid growth. Currently considered the ninth-largest economy in the world and the largest in Latin America, Brazil has indeed become a very popular destination for companies looking for greater business development.
If you are interested in doing business in Brazil, contact us for more information.
Benefits of doing business in Brazil
If you want to start operations within the country’s borders, you should keep in mind all the benefits, as well as its challenges, when expanding your business in Brazil. While it doesn’t suit everyone, the potential benefits are enormous.
Economic growth
Brazil belongs to the BRICS economies —Brazil, Russia, India, China, and South Africa— which combined had an average growth rate of around 8% annually from 2008 to 2017, in comparison with the world’s growth rate of about 1%.
After facing an economic contraction during the 2015-2016 recession, Brazil’s economy is expected to grow and strengthen in 2020 with a forecasted GDP growth boost of 2.4 percent. This economic recovery shows its substantial presence as an emerging power and the benefits of doing business in Brazil.
Wide consumer base
As the most populous country in Latin America and the world’s fifth most populated nation, doing business in Brazil means reaching a wide and diverse consumer market. The population is now more than 207 million people with more growth expected.
When starting a business in Brazil, you will find widely varied commercial opportunities —with a high demand for services and goods— as there is a reasonably large middle-class population living in urban areas.
Business alliances (exports and imports)
If you are looking for strategic international trade, doing business in Brazil grants you easy access to other Latin American countries through the Southern Common Market, known as MERCOSUR. With this trade agreement, you can take advantage of business arrangements with countries like Paraguay, Argentina, and Uruguay.
Also, the European Union (EU) has currently negotiated a bilateral association agreement with the members of MERCOSUR, creating an attractive commercial opportunity. Brazil has many large ports that can facilitate easy trade with North America, Africa and Europe.
Business opportunities
When it to business opportunities, Brazil stands out in many sectors, especially as the country is rich in natural resources. For example, in terms of agricultural production, Brazil is the biggest producer of sugar, coffee, and orange juice. It produces around 31% of the world’s agricultural output of soybeans. Also, this nation has one of the largest deposits of iron ore worldwide.
Legal issues for business in Brazil
Brazil is known for its complex legal system and its high taxes and contributions levied by the state, federal, and municipal governments. There are multiple taxes on corporate income, exports, financial transactions, rural property, labor relations, goods and services, import duties, and more. This creates some challenges in taxes for import duties can range from 10% to 35%.
Cultural and language difference
The official language in Brazil is Portuguese, although professional workers will have learnt English in university and be at least reasonably competent. Moreover, as Brazil is a wide nation, you can encounter some issues when understanding the culture of each region —as each Brazilian city or town has its own cultural traditions and customs.
If you want to operate successfully in Brazil, it is advisable to partner with International PEO experts who understand and comprehend exactly how to do business in this Latin American country, helping you with the complex tax system as well as with labor laws.
Serviap Global can help you hire top talent
At Serviap Global, our services include international PEO / EOR services, independent contractor hiring, and global talent acquisition for companies seeking top talent to hire directly.
We assist clients with global hiring in more than 100 countries worldwide, having started out in Latin America in 2010. Over more than a decade of operations, we have earned a reputation as experts in helping companies recruit talent in emerging markets.
If you are looking for an EOR in Brazil or elswehere, contact us to find out more about how we can help you.
