Brazil

Contact your central contactperson for A-Law law firm Brazil, legal counsel Elizabeth Brito

Legal Councel Elizabeth Brito speaks Portuguese, Dutch, English.

She heads A-Law law firm team of Brazilian lawyers in Brazil.

Why trade or invest in Brazil

Brazil is the 9^th largest economy in the world by GDP and the largest country in South and Latin America by size (> 8.5 million square meters) and population (>211 million in 2019). These impressive numbers make the country the 6^th recipient of foreign direct investment in the world (as of 2018, according to the United Nations Conference on Trade and Development). It is the perfect headquarter/hub for any Latin American-wide business or investment project.

Brazil has a consolidated democracy and rule of law, which was clearly demonstrated by its own initiative in curbing corruption in previous years.

The culture is also very western and open to the world, which makes for excellent opportunities and exposure to a new market.

Outside investors know the country for its rich natural resources and focus on oil and gas extraction, agriculture, the automotive industry, financial services, commerce, electricity, and the chemical industry. Topping the list of exports are soy (#1 in the world), iron (#2 in the world), sugar cane (#1 in the world), coffee (#1 in the world), meat (#1 in the world), leather and fruit.

Additionally, as of 2018, renewable energy accounted for 79% of the domestically produced electricity used in Brazil. The country’s potential is, thus, undeniable. Finding the right access channel is key.

Brazil has a generalized open stance towards foreign investments, with adjusted tax regimes for importations, several VAT incentives for imported goods and capital, and a dedicated zero-tariff in the north for certain industries (ZFM – Zona Franca de Manaus). Also, Brazil imposes little to no restrictions on the distribution of profits and their subsequent remittance abroad.  Foreign capital must be registered at the Brazilian Central Bank and can, at any time, be sent back to the country of origin without previous authorization being necessary.

Since 1995, constitutional amendment EC 6/1995 eliminated distinctions between foreign and local capital. Thus, foreign investors have a safer and ampler path of investment.

In 2019 the new government concluded a social security reform. Now, the country is on the brink of another reform to simplify the tax system and combine several of the taxes seen above in a national VAT-system. This will not only significantly diminish the needed compliance hours but will also facilitate business and investment.

Brazil also aims to join the OECD in a full membership status. Current developments involve re-alignment of Brazil’s transfer pricing legislation to put it in line with European practices.

All the above shows the dedication and commitment to the globalization standards expected of such an economy as Brazil.

Characteristics of the Brazilian Legal and Judicial System

Brazil has a formal, written constitution enacted in 1988. With its 250 articles, the constitution is the supreme law of the country, much like in the American system. It provides for rights and guarantees, competencies between federation, states, and municipalities and the power division between the three branches of state: executive, judicial and legislative.

Among other human rights, the Federal Constitution protects equality between genders and races, bans torture or other degrading treatment, guarantees the presumption of innocence and the right to a fair trial, protects free speech and preserves religious freedom.

Each state in Brazil also has its own constitution that addresses essential state organizational matters, as long as it does not contradict the Federal Constitution. In practice, however, these are less sought-after, as source of law since the Federal Carta Magna is the absolute law of the country.

The top Judicial Branch in Brazil is split between The Supreme Federal Court (Supremo Tribunal Federal), and the Superior Court of Justice (Superior Tribunal de Justiça). The first, works as the constitutional court in Brazil and the second is responsible for standardizing the jurisprudence and settling the issue of disputes coming from the lower courts. Stare Decisis is present in article 103-A of the Constitution, according to which the Supreme Federal Court may issue a special decision (Súmula Vinculante) with binding effect on the entire judicial branch (federal and state levels) and also on public administration (administrative courts, e.g.). Sumúla Vinculante requires that the same matter have been repeatedly decided in the same manner and needs to be approved by two-thirds of the Court’s 11 members.

Higher courts are considered to be the third instance, although this degree of hierarchy does not formally exist. Decisions taken at first and second instance can be reviewed by the higher courts through a special appeal.

Aside from the superior tribunals there are also Special Courts for electoral, labor and military issues in Brazil. The organization of the Brazilian judiciary is governed by the National Council of Justice​, an organ that oversees the administrative and financial performance of the courts and the way in which magistrates perform their duties.

A-Law Brazil Desk

Despite the attractiveness, Brazil – as any other emerging country – comes with its challenges. To name a few: tax, bureaucracy and language still prove to be of some difficulty for foreign parties when entering into the country’s economy. In Brazil, speaking the same language, good personal relations and creating empathy can have the same impact as offering a high bid during negotiations. Also, international companies and investors may be required to either have a local representative in Brazil or establish a subsidiary.

We can assist you to overcome such challenges through our in-house knowledge and experience, offering you the services of an expert lawyer in the team as your point of contact for Brazil. We can help you secure the right structure to make the best purchase or investment track possible.

You can count on A-Law for your trade and invetsment projects in Brazil.

Whom we work for

A-Law experienced lawyers welcome all clients in need of legal advice including legal defense with regard to the investment and trade projects in or from Brazil. Guiding foreign investors into the Brazilian corporate and bank regulations, license requests and public procurement policies may constitute a challenge on its own.

A-Law has built up this expertise as well as provided multiple legal services to Brazilian companies providing engineering, IT, construction, logistics services in other EU and non EU countries involving i.a. tax, labor, migration and IP issues.  A-Law Brazil desk has been providing legal support to clients in different areas, such as real estate issues, corporate and civil (family) law, traffic law, migration law, liability law and debts recovery (bankruptcy, administrative fines).

An in-depth approach of the different legal aspects of cross border cooperation and trade, commercial agency, distribution and franchising of a wide variety of products exported from or imported into Brazil have been assessed through A-Law dedicated team.