Open a company in Brazil: why is an important market for foreign SMEs?

May 20, 2019

Open a company in Brazil means being able to significantly increase the business of foreign companies in a very receptive market that has numbers equal to a continent, this is a differential for the present and future of foreign companies. A country as large as a continent that can represent an endless panorama of opportunities for all companies, even for SMEs.

aprire una società in brasile-1

Investing in Brazil – the land of great opportunities also for SMEs

Brazil has come out of a great political-economic crisis from 2015/2016 ending in a big recession. After this its economy picked up again, growing at a sustainable GDB cruising speed.  Actually, Brazil also has a very low inflation and a lower interest rate, almost a historical record.

Why is investing in Brazil a valid option?

Let’s consider the case of Italy for example.  Brazil is important for Italian companies because behind Enel, which has become the leading energy operator in terms of distribution and the leader in the renewable energy sector, there are many small and medium companies operating in the energy sector. Or behind FIAT, which announced the biggest investments since the 70s, there are about 80 companies operating in the automotive sector, so for Italian companies, it is a very important context.

Today we are in 972 presences of Italian companies that have invested in Brazil and are present with subsidiaries or local branches. This data comes from a census that GM Venture made on behalf of the Italian Embassy. It is a politically favorable moment because it is a country very culturally close to Italy and at this moment the Bolsonaro government has stimulated exchanges by declaring that the USA, Israel and Italy are priority countries.

Italy exports machinery while Brazil is a country of commodities, it thrives on industry and therefore it is the perfect match.

Fonte: Freepik

It is consequently not a question of relocation but of investments because, for example, in the energy sector, Enel is supplying energy to Brazilian families. It is a business that adds a new country (Brazil) and further investment returns to the group holding. In the case of Fiat al the supply chain of small and medium enterprises that usually provide goods and services to FIAT have a newfound opportunity to open their local activities in Brazil and start a production. This generates wealth for Italian companies, or in general for foreign companies, that following a big company they can benefit from a new large market opening up.

Brazil offers incredible opportunities to foreign entrepreneurs to grow and stand out, hence the reason why we find around a thousand Italian branches here in Brazil.

Although open a company in Brazil is an excellent idea, starting operations directly within the territory can be difficult due to complex legal requirements and paperwork. GM Venture can help you in all these aspects so that your company focuses on its core business.

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