WITH THE EXPERTS Webinar by Amicorp Group Fabio Rabelo Hanno de - - PowerPoint PPT Presentation

Webinar by Amicorp Group

WITH THE EXPERTS

Fabio Rabelo Hanno de Vriend

JOIN US FOR A WEBINAR

Managing Director Brazil Amicorp Group Global Head Outsourcing Services Amicorp Group Jase Choenni Sales Director Amicorp Group Caio Fernando Country Sales Manager Brazil Amicorp Group

Important considerations when establishing a business in BRAZIL What are the opportunities worth considering and how to capitalize these What are the challenges to take into account

WE WILL ADDRESS

TOPICS

IMPORTANT CONSIDERATIONS WHEN ESTABLISHING A BUSINESS IN BRAZIL

DOING BUSINESS IN BRAZIL

Area: 8,515,770 sq. Km. 5th largest Population: 212 million. 6th largest Economy: $1.85 trillion. 9th largest Year of Independence: 1822 Proclamation of the Republic: 1889 Year of Current Constitution: 1988 Language: Portuguese Religion: 70% Roman Catholic; 30% Protestant 26 states and the Federal District; 5570 cities Member of the BRICS (25% of the global economy) Home to several natural wonders

BASIC FACTS

COUNTRY OVERVIEW

THE EXECUTIVE

The President is both the head-of-state and the head of the government. President and Vice-President are elected jointly by democratic vote for a four-year term (Re- election for a 2nd term in a row is allowed)

THE LEGISLATIVE

National Congress is made up

• f two houses. Both can initiate

legislation and they share the power to review the national

• budget. Senate: has a total of 81
• members. Three for each state

and the Federal District. Chamber of Deputies: comprises 513 representatives from 26 states and the Federal District

THE JUDICIARY

Comprises the Supreme Court, the Superior Court, five regional federal appeals courts, labour courts, electoral courts, military courts, and state

• courts. For the Supreme Court

there are 11 “ministers” named by the presidente and approved by the Senate Brazil uses Civil Law the system

POLITICAL AND ADMINISTRATIVE

COUNTRY OVERVIEW

The economy is diversified and well positioned globally Strategic location and access to other markets in Latin America Respect for private property Well-established democracy free press Rich mineral and energy resources Vast agriculture land Enormous internal market Qualified labor Solid institutions No major natural hazards

WHY TO INVEST IN BRAZIL

COUNTRY OVERVIEW

The most common types of legal entities used by local and foreign investors are:

• Private Limited-Liability Company (Sociedade Limitada)
• Corporation (Sociedade por Ações)

In general they can be wholly foreign-owned (Except for some activities where some limitations apply) There are no legal minimum capital requirements (Except in the case of financial institutions and certain other legal entities). Also, there are no maximum capital limitation. The foreign quota holder must be legally represented by a citizen domiciled in Brazil A foreigner can be eligible for a management position if they hold a permanent visa and are domiciled in Brazil Other forms in which business can be conducted include: (i) Individual Limited Liability Company; (ii) Mixed- capital companies; (iii) Partnerships; (iv) Joint Ventures; (v) Branches of a foreign company

TYPES OF BUSINESS ENTITIES

COUNTRY OVERVIEW

The Brazilian tax system is highly complex. It includes multiple taxes at federal, state and municipal levels each with its own specificities There are three tax regimes for Business with significant differences and implications:

• Simple (“Simples Nacional”)
• Deemed Profit (“Lucro Pressumido”)
• Classic System-Earnings before tax (“Lucro real”)

Tax incentives are available (At Federal, State and Municipal levels) Double taxation treaties are in place with many countries Inflow and outflow of funds must be registered with the Brazilian Central Bank Invoices must be issued through official channels

TAX SYSTEM AND CONSIDERATIONS

COUNTRY OVERVIEW

Brazil was recovering from the 2015-16 recession posting positive GDP growth from 2017 to 2019 Although unemployment was still high before COVID, the country was having positive net Jobs creation since 2018. Inflation rates have been in control and in a descendent trajectory allowing the Central Bank to cut the oficial interest rates. Trade balance has been positive since 2015 A series of measures are being taken to reduce the public defic including privatization, reduction of certain public expenses and tax reform (Pension reform already approved in 2019) Brazil was the world´s forth destination of FDI in 2019 with $75 billion The country holds a strong position in International Reserves (+$340 billion)

MACRO ECONOMIC UPDATE

COUNTRY OVERVIEW

WHAT ARE THE OPPORTUNITIES WORTH CONSIDERING AND HOW TO CAPITALIZE ON THESE

DOING BUSINESS IN BRAZIL

Agriculture is historically one of the principal bases of Brazil´s economy Brazil is the world´s largest exporter of coffee, soybeans, beef and crop-based etanol Brazil is breaking successive records of production in recent years thanks to its favourable soil, weather and investments in technology With the world growing population and the consequent need for food supply Brazil is well positioned to generate a number of business opportunities in this sector

AGRICULTURE

BUSINESS SECTORS HIGHLIGHTS:

The oil and gas industry accounts for 13% of the Brazilian GDP Brazil is the 10th largest global oil producer and the largest in Latin America The potential of the pre-salt layer is enormous and only a fraction has been utilized so far. A number of measures has been implemented to improve the legislation, reduce tax and attract investments.

OIL AND GAS

BUSINESS SECTORS HIGHLIGHTS:

Opportunities exist in multiple áreas including home equity, microcredit, fintechs and among the unbanked population.

FINANCIAL SECTOR

Brazil has a sophisticated and well regulated financial sector The banking system is well capitalized, profitable and resilient to shocks However:

• The system are concentrated
• Credit to GDP is still low
• Spreads are high
• Short-term floating or indexed securities and derivatives are the predominant asset classes

BUSINESS SECTORS HIGHLIGHTS:

Brazil has a Strong ICT sector accounting for almost 11% of the GDP Investments in ICT have been in excess of US$100 billion in recent years The banking sector, agribusiness, energy, education and heathcare have been making massive investments in ICT to increase productivity; Areas of opportunity for investments include: 5G, optical fiber, cloud computing, IOT, smart connected cities, software development and services.

INFORMATION TECHNOLOGY AND COMMUNICATIONS

BUSINESS SECTORS HIGHLIGHTS:

The manufacture industry accounts for about 20% of the GDP and reflects the level of diversification and sophistication of the Brazilian economy. Brazil has been a major world supplier of automobiles, producing nearly two million vehicles per year. Other major manufactures include eletrical machinery, paints, soaps, medicines, chemicals, aircrafts, steel, food products and paper. The country has also been a major producer in textile, cloting and footwear industry since the early 19th century. There are opportunities related to the deployment of environmentally friendly processes, workforce development and industry 4.0 (automation, 3D printing, Artificial Intlligence and Internet of things)

MANUFACTURING

BUSINESS SECTORS HIGHLIGHTS:

A huge internal Market fuled by the expansion of credit has driven up retail sales in recente years. Supermarkets accounts for the majority of Brazilian retail industry. Superstores, clothing, eletronics, pet shops, appliances specialists, drugstores and garden centers have presented an increse in sales at a high rate. The new wave for internet shoppers is representing opportunities for small and large players to advance into the internet retailing

RETAIL

BUSINESS SECTORS HIGHLIGHTS:

WHAT ARE THE CHALLENGES TO TAKE INTO ACCOUNT

DOING BUSINESS IN BRAZIL

Brazil is ranked 124 out of 190 countries in the World Bank´s 2020 Doing Business ranking It is expensive: “Custo Brazil” is a widely used term refered to the extra costs that come along. Compliance and regulatory requirements Highly complex tax system Excessive bureaucracy involved Some grey zones on laws Lack of adequate infrastructure High social and regional inequalities Covid impact

CHALLENGES

BUSINESS ENVIRONMENT

HOW AMICORP CAN HELP

DOING BUSINESS IN BRAZIL

AMICORP

Known as a leading global service provider, Amicorp Group offers multi-level and business critical solutions to global corporates, international advisory groups, financial institutions, investment firms and family offices. We provide personalized service, and we tailor our

• fferings to the needs of our clients.

SPECIALISTS

700+

COUNTRIES

30+

ENTITIES

10,000+

OFFICES

40+

ABOUT

OFFICES

GLOBAL

Amicorp has the international experience and local know-how to help you grow your business. With our abundant experience in doing business in over 30 countries and associations in at least another 40, we can help expanding companies in creating an instant global reach. We take care of all the 'non-core' work on an ongoing basis so you can focus

• n

the core activities of your business. We have the flexibility to create tailor-made solution to meet specific needs

HOW AMICORP CAN HELP

BRAZIL

SERVICES PROVIDED

Incorporation and corporate secretarial services Human Resource solutions Accounting and reporting services Compliance and data privacy & protection services

GLOBAL EXPANSION SERVICES

SETUP & MAINTENANCE

Incorporation of legal entities Bank account opening Corporate secretarial services Company governance Local directors Registered office Legal support Office space, IT, hosting and mail

Incorporation and corporate secretarial services

GLOBAL EXPANSION SERVICES

Global Human Resource Solutions

HR SOLUTIONS

HR advisory support HR governance Recruitment Employee agreement Payroll Employee benefits & mobility Employee Stock Option Plan (ESOP) administration

GLOBAL EXPANSION SERVICES

Accounting and reporting services

ACCOUNTING & REPORTING

Hands-on local controller Cash flow and working capital IFRS and local accounting Tax planning and tax return work Regulatory filings Credit Insurance Regular reporting to regulator, tax authorities, shareholders and group management

GLOBAL EXPANSION SERVICES

Consultancy on data privacy and protection (GDPR) Local & global compliance Assurance services (FATCA, CRS, BEPS, ESR, Etc.) Organizational services Training and development

Compliance and data privacy & protection services

COMPLIANCE & DATA PROTECTION

GLOBAL EXPANSION SERVICES

• Help identify the best

structure

• Local Directors
• Setup of the bank

account

• Full support in the

incorporation process to obtain all the licenses and drafting the necessary articles of incorporation and PoA´s in coordination with local service providers

• General Accounting
• ERP Systems setup
• Electronic invoicing
• Financial Statements
• Accounts payable &

receivable

• Tax Compliance
• Audit
• Financial and tax Advisory in

coordination with local service providers

• Temporary

workforce

• Payroll
• Administration of

benefits

• Hiring/Termination

processes

• Insurance policies

consolidation

Company Set-up Finance/ tax/account . HR &Payroll Compliance

• Consultancy
• Compliance

Services

• Assurance

Services

• Training

SERVICES AVAILABLE EXAMPLES

AMICORP

OUR EXPERTS

Jase Choenni Sales Director Amicorp Group

j.choenni@amicorp.com +31 6 21 71 37 85 +34 93 208 2581 h.devriend@amicorp.com

Hanno de Vriend Global Head Outsourcing Services Amicorp Group

f.rabelo@amicorp.com +55 11 3049 3454

Fabio Rabelo Managing Director Brazil Amicorp Group

CONTACT

Caio Fernando Country Sales Manager Brazil Amicorp Group

c.fernando@amicorp.com +55 (11) 3049 3053

THANK YOU