Have you ever wondered “how to invest in Brazil?”. GM Venture offers full support to companies that want to invest in Brazilian territory.
Complex and ever-changing laws create numerous challenges for foreign investors who want to do business in Brazil. That’s why a local expert like GM Venture can help you efficiently manage your tax and accounting consulting activities. You need to have a reliable partner to mitigate the risks that may appear at any stage of the company’s establishment process.
Graziano Messana, the founding partner of GM Venture, talks about the presence of Italian companies in Brazil, as well as their business opportunities.
Since 2006 GM Venture, a consulting and management company operates in Brazil with a business model that facilitates the local operations of subsidiaries of foreign companies based on Brazilian soil.
The right assistance not to miss business opportunities in Brazil
Never before have foreign companies, especially small and medium enterprise (SME), so been attracted to the Brazilian market and its opportunities. Political uncertainty does not seem to affect the growth pressures that the South American country’s economy is experiencing. Thanks to the innovative business model, GM Venture takes care of the financial, administrative and accounting management of subsidiaries in Brazil, offering a one-stop-shop for foreign parent companies and thus facilitating total control of local operations.
What kind of market does Brazil offer for accounting and tax advice?
Brazil is a particular market and different from the global one, it is, therefore, essential to know all the useful information on how to invest in Brazil.
Accounting and tax consulting activities can be managed internally if the company is large. On the contrary, all small and medium-sized companies will have to rely on an external BPO (business processing outsourcing) as a consultancy company. It is essential to remember that in Brazil the role of the chartered accountant works differently. However, there are contadores in the Brazilian market, similar to the chartered accountant, but to a large extent, few experts in international issues. To explain the complexity of the accounting processes in Brazil, just think that within the so-called Big Four, two of these KPMG and PWC decided not to deal with tax and accounting consulting activities as they do in the rest of the world. According to the last world bank report, Brazil is ranked the worst country since it has the largest tax-accounting work hours.
What is GM Venture’s business model?
GM Venture was created in 2006 to help foreign companies interested in Brazil. Instead, the first projects made us realize that our role was crucial to ensure proper management to companies that want to do business in Brazil.
So, the business model has quickly turned into what is now our usual job, namely the outsourced CFO: we manage all the foreign companies’ activities that they do not consider “core business”. Besides, we are taking up the position of a legal representative who in Brazil necessarily must be employed by a resident. In a sense, we keep and process all the cash flows and report them with easy-to-read tools to the foreign entrepreneur who invests in Brazil.
Is the topic of accounting advice managed by GM Venture?
We work with three BPO companies that we have selected over time. They have different DNA and different sizes. We have particularly intensified over the years however the work with the company called Premium, the result of a spin-off by manager Jose Brito, who for years was responsible for PWC. In May 2018 we decided to acquire a significant share to integrate even more our activities with theirs. A good collaboration was born and at the same time a good synergy. The theme of accounting remains a crucial point for companies investing in Brazil.
How many people work in Sao Paulo?
The team consists of about thirty people and each maintains its offices even we do weekly staff meetings. GM Venture’s business model is expected to have substantial staff within the client companies.
How many Italian companies have partnerships with Brazil?
The presence of Italian companies in Brazil is about a thousand, most of which a major is concentrated in the state of Sao Paulo, which represents about 40% of the GDP of the entire country and has about 6 million Italian descendants. A culture in some ways very close to that of Italy. But GM Venture offers its activity for all foreign companies, even if we have a good part of our portfolio concentrated with Italian companies.
What growth perspective does GM Venture offer for Italian companies in Brazil?
Italy offers the “product”, Brazil offers the market. Many companies when entering the Latin American market must first understand how to invest in Brazil. The important thing is to document yourself first and not along the way.
As for business opportunities in Brazil, the country offers many sectors that are interesting to invest and, for example:
- Pharmaceuticals or, agribusiness, and home automation;
- Traditional companies such as cosmetics, which is worth 40 billion dollars, or real estate;
- The appliance industry, where Brazil alone accounts for 50% of all of South America;
- The renewable energy sector, where the market is growing in two lines.
Even on digital marketing, you can do good business, since Brazil is in third place, after the USA and China, as the number of users on the social networks Facebook, Instagram and YouTube.
What about counselling?
Also, for consulting, there are many business opportunities in Brazil. Italian know-how is properly rewarded if well addressed. We have managed a new start-up on behalf of TEMSI, an engineering company in Bologna with a track record of 40 years. TEMSI is currently applying all the processes put in place in Italy to Brazilian realities. The result is very satisfactory, the company manages to see first hand how external advice manages to reduce the costs of logistics and management in general, earning proportionally on the savings obtained in the company.