Opening a company in Brazil: the concrete guide for Italian investors

Mar 10, 2020

Economic relations between Brazil and Italy are in a very positive phase, therefore opening a company in Brazil may be the right choice.

Read the article to discover all the steps to reduce risk and maximize results in a complex market like Brazil. Learn how to invest in Brazil through a structured approach and enter this market at its best.

Market pre-assessment

A market assessment allows you to have a holistic view of the niche, helping to understand the quantitative and qualitative aspects that allow for better decision-making. Therefore, before entering the market of your interest, predict demand, analyze the value chain, risks and costs, check the availability of resources, check barriers to entry and competition.


Market choice and access method

Based on the market assessment, you have to perform the internal analysis to see if your company uses methods such as SWOT analysis, to look for the best access method, which can be either through acquisition, joint venture, merger, or more.

Preparation for entry into the Brazilian market and subsequent implementation

If your investment preferences are about acquisitions, identify your target profile, prioritizing goals through the long list, shortlist, and classification. After this phase, it is necessary to carry out preliminary due diligence, a detailed evaluation, contract negotiation and a tax structure.

For Greenfield, the first step is to develop the business plan, select the location and product, build a financial model, an operational plan, an incentive of the tax structure and, finally, the preparation of a roadmap to follow. You must implement the business plan first, then planning and operational design, procurement, acquisition or construction of the real estate, staffing, planning and launching control, and finally the creation of the site.

Everything you need to know to start a business in Brazil

aprire un azienda in Brasile-2

1 – The Brazilian tax system is different from the Italian one: this does not mean that it is only a disadvantage imports are affected by four taxes. Three of which are fully recoverable if you open a commercial branch in Brazil.

2- Brazil has a working system similar to that of Italy, but very often is worse. Care must be taken not to generate workplace lawsuits. However, the legislation is clear for agency and distribution agreements and knowing it can offer business opportunities.

3 – With the volatility of the exchange rate between the Euro and Real, you have to protect the exchange risk through various modes also available to SMEs.

4 – As in Italy, an administrative department can be expensive for an SME. That’s why it’s a good idea to develop in-house business areas and outsource non-strategic assets to specialized companies like GM Venture.

5 – Since Brazil is a continental-sized country, it is appropriate to manage logistics well and have its import license to obtain legal benefits without taking unnecessary risks.

In conclusion, it’s good to have a solid knowledge of the country before opening a company in Brazil. If you are wondering how to invest in Brazil, you can count on a partner like GM Venture: specialist in the Brazilian market will support you at all stages for a successful business.

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