Starting a business in Brazil is a task seen as a challenge, as it is quite complex and with procedures that may surprise those who are not adequately prepared for this process.

Therefore, among the first measures to be taken by investors and foreign business managers should be the search for local partners to support the fulfillment of all the necessary steps. When opening a business in Brazil, the investor is faced with a large volume of requirements.

This year, with Provisional Measure No. 1,040/2021, the government plans to increase 20 positions in the Doing Business ranking. The set of legal changes arrives to facilitate the opening and installation of companies, among other actions to modernize the process.

This MP facilitates the opening and installation of businesses and attracting foreign investments. The initiative eliminates some procedures:

· elimination of prior location feasibility research;

· elimination of pre-search for business name;

· unification of tax registrations;

· exclusion of the ban on archiving similar business names;

· Prohibition for the request for notarization of signature;

· Revocation of the provision of inactivation due to lack of registration.

Opening a branch of a foreign company OR opening a Brazilian company with foreign capital

First of all, it is essential to assess whether the best path is to open a branch or a foreign company with foreign capital.

It is necessary to take into account the objectives and analyze each case in its particularities, but it is known that legalizing a branch of a foreign company is a procedure that involves more formalities. This process is more bureaucratic and brings a series of extra requirements from the process of obtaining the authorization to operate.

Opening a company with foreign capital is usually quicker, as this type of resource can enter Brazil freely, with only a few exceptions and restrictions. There is a ban on foreign participation in: activities related to nuclear energy, postal and telegraph services, the aerospace sector, among others.