Open a business in Brazil is easy with GM Venture. We all know that Brazil is a hot zone for investment. The country has over 200 million inhabitants and is the eighth largest economy in the world that offers investment opportunities for foreign companies.
We bring attention to the state of Sao Paulo and find out if it is the ideal place to open a business in Brazil.
The state of Sao Paulo plays a key role in the Brazilian economy, developing more than 31% of Brazil’s gross domestic product. Robust and diverse, the economy of Sao Paulo, has the largest industrial park in the country and a labour market characterized by the high qualification of its labour.
Find out the six reasons why you should open a business in Brazil – Sao Paulo.
- Economic development – Recognized as the largest economic and industrial hub in the southern hemisphere, Sao Paulo’s economic data stand out in the Brazilian economy. On its own, its domestic GDP exceeds the volumes of entire countries such as Chile, Belgium, South Africa and Singapore.
- Consumer market – With 45 million inhabitants, Sao Paulo is the most populous and richest state in Brazil. It is the fourth-largest consumer market in Latin America behind Brazil as a whole, Mexico and Colombia. The greatest strength of the Brazilian consumer market is within Sao Paulo.
- Infrastructure – Sao Paulo is the most modern Brazilian highways and the country’s main airports, as well as the Port of Santos, the largest container terminal in Latin America, responsible for 28.8% of the Brazilian commercial chain. The transport network is complete with railways, waterways and ducts.
- Human capital – The state accounts for 25% of the total number of higher education institutions in Brazil. The three public universities of Sao Paulo are among the best in the country.
- Funding sources – The projects in Sao Paulo have access to a number of financing programs offered by public agencies aimed at promoting development, such as Desenvolve SP which offers lines of credit with competitive rates and interest rates.
- Policies – To reduce production costs and stimulate economic growth, the Sao Paulo government offers numerous tax incentives to benefit different production sectors. Here are a few below:
Investe SP – State incentive programme covering various sectors such as aerospace and defence, agricultural industry, food, automotive products, machinery and equipment, real estate market, research and development, oil and natural gas, health, science and financial services.
Sao Paulo Inova – Sao Paulo government funding program for companies with innovation projects, including startups.
Pitch Gov. SP 2.0 – Search for innovative solutions for public administration issues, with improvements to services to citizens.
Juro Zero Inovao (Zero Innovation Interests) – Program to expand the competitiveness of the State, offering the best financing conditions for projects with high innovation potential, startups and SMEs.
The Sao Paulo industry is based on a technological base, generating high value-added products, with a focus on Information and Communication Technology (ICT), Oil and Natural Gas, Green Economy, Aeronautics and Automotive.
If you want to find out where to invest in the State of Sao Paulo, below you can discover five main strategic sectors with strong economic potential. This way, you will understand if opening a business in Brazil is for you.
Agriculture – Sao Paulo is the world’s largest producer of orange and sugar cane, also distinguishing itself in the production of beef and other agricultural products.
Manufacturing Industry – Sao Paulo, accounts for 57% of the value of industrial transformation and 49% of Brazil’s employees (about 288 thousand employees) play a leading role in generating new technologies.
Green Economy – Sao Paulo is the largest market in the country’s green economy. More than 142 thousand companies operate in the green sector in Sao Paulo, employing 1.6 million people, with a focus on the biofuels and renewable energy sectors.
Food – Sao Paulo is one of the world’s leading industrial food producers, accounting for about 35.5% of Brazil’s industrial food production. Also, it is a reference point in the trade and supply of services in this area.
Other services – In addition to hosting 34% of national equipment and service providers, Sao Paulo has five refineries representing 42.7% of the country’s capacity and huge mining potential.
A leader in the field and with excellent research and skilled workforce structure, Sao Paulo is home to 38% of bioscience companies and 71% of the pharmaceutical industry throughout Brazil, as well as 53% of the total number of people working in the same sector. The equipment, devices and sanitary materials sector is also of great importance in the state, with 59% of the national industry concentrated here.
Besides, Brazil’s largest information and communication technology (ICT) hub is present in the state of Sao Paulo. 41% of the national equipment industry is concentrated here, as well as a wide range of services for computers, tablets and smartphones.
Open a business in Brazil can be very complicated without the necessary support. GM Venture, thanks to its knowledge and experience on more than 50 cases, can help you with the bureaucratic issues of the Brazilian system. Your investment will be started quickly and managed by a professional who with a common interest can turn it into another very successful story.