Legal and Regulatory Environment of

Brazil
Presented by :

Auditya Eros
Kartika Adhitama
Kezia Revina
Levana Setya Violani
Nadira Laksita
A Preview of Brazil
The largest country in both South America and the Latin American region. It is
the world's fifth largest country, both by geographical area and by population.
According to the IMF and WB, Brazil is the largest national economy in Latin
America, the world's seventh largest economy at market exchange rates and
in purchasing power parity (PPP).
The Aspects of Brazils Legal and
Regulatory Environment
Government Control
Taxation Policy
Trade Zone
Free Trade Agreement
Related Goverment Control
There are government agencies thah regulate and supervise every industry
ANATEL for telecommunications industry
ANEEL for electricity industry
CVM for securities markets and listed companies
only securities issued by companies registered with the CVM may traded
on stock exchanges and over-the-counter markets

For some sectors, government will not let foreign company to own it.
For example, in term of aviations industry, foreign ownership of Brazilian airlines
is restricted.
Related to Taxation Policy
High tariffs are imposed on many imports

Incentives tax for the Northeast and Amazon regions

Companies will experience 75% reduction of the income tax and
nonrefundable surcharges due on operating profit, for a maximum
period of ten years, for implementation, expansion, diversification and
improvement projects submitted and approved from August 24, 2000,
to December 31, 2018.
Related to Trade Zones
MANAUS Free Trade Zone (Zona Franca de Manaus ZFM)
- to atrract industry and commerce to the Amazon region
- entitled to certain tax benefits

Export Processing Zones (EPZs)
- industrial districts where companies operate with tax suspension,
currency exchange freedom
- receivable favorable income tax treatment
Related to Free-Trade Agreement
Brazil is a member of the Latin American Integration Association (ALADI), the
World Trade Organization (WTO), and the Common Market of the Southern
Cone (MERCOSUR),

Common Market of the Southern Cone (MERCOSUR)
- Certificate of Origin main requirement
- 60% of inputs must be produced inside the country
- tend to prefer doing trade only between its members countries
Challenges
Developing nation
Local labor forces
Technology and infrastructure
Financial and taxes
Facts of Starting Business in Brazil
Brazil ranked 126
th
out of 183 countries in the WBs latest annual global
report which evaluates the ease of starting a business.
It takes 13 procedures and 119 days of work to start a business in Brazil.
Construction permits has an average of 17 procedures and 49 days to finally
get authorized.

source : www.doingbusiness.org