Establishing A Business Entity In Brazil (Updated)

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The two most common types of legal entities adopted in Brazil are the limited liability company (“Limitada”) and the corporation (“S.A.”). These are the most attractive types of companies since they are the only types of companies in which you may find, at the same time, all the following advantages: (i) the liability of the equity holders is generally limited to their equity interest (subject to certain specificities described below); (ii) they can be used for any type of business (i.e., services, industry, commerce); and (iii) they do not have minimum capital requirements (sometimes they do, but by reason of the activities conducted, not by reason of their corporate type).

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