See how to start a business

Opening a company in Brazil involves a number of bureaucratic processes and important decisions that can have a direct impact on the success of your business. From choosing a CNAE to obtaining a business license, it is essential to be well informed.

Below, we'll go through each stage in detail, explaining the necessary documents, tax regimes and other essential points for you to start your entrepreneurial journey legally and efficiently.

Average time to start a business

The average time it takes to open a company in Brazil varies depending on the state and the type of business. In some states, the process can be completed in less than 2 days, while in others, it can take up to 5 days. This time includes stages such as formalizing the Articles of Associationto obtain the CNPJstate and municipal registration, and the release of a business license. For MEIs (Individual Microentrepreneurs)The process can be even quicker, often carried out entirely online.

The importance of the CNAE when starting a business

O CNAE (National Classification of Economic Activities) is a code that defines the economic activities that a company can carry out. The correct choice of CNAE is fundamental, as it directly affects the company's tax burden, in addition to determining whether the business can fall under the Simples NacionalThis is a simplified tax regime. The company can choose more than one CNAE, categorizing both main and secondary activities. This classification also impacts the need to obtain special licenses, such as health or environmental licenses.

How to choose your tax regime

Choosing the right tax regime is one of the most important decisions for any entrepreneur. There are three main options in Brazil:

1. Simples NacionalThis system is aimed at micro and small companies with annual turnover of up to R$ 4.8 million. It unifies several taxes into a single monthly bill, simplifying the company's tax management.
2. Presumed Profit: Suitable for companies with turnover of up to R$ 78 million a year, this regime is based on a presumption of profit on gross revenue. It is recommended for companies that are able to forecast their profits on a stable basis.
3. Real ProfitUsed by companies with a turnover of more than R$ 78 million a year or which operate in specific sectors, such as finance. Taxation is calculated on the company's actual profit, which can be advantageous for businesses with smaller profit margins.

The correct choice of tax regime can avoid an unnecessarily high tax burden and guarantee the company's long-term financial health.

Read also: When to migrate from Simples Nacional to Lucro Presumido?

Documents required to open a business

To open a company in Brazil, you will need some essential documents. These include:

• ID and CPF of the partners;
• Proof of residence of the partners;
• Articles of Association registered with the state's Board of Trade;
• CNPJ applicationobtained from the Receita Federal website;
• Proof of business addressThis is important for the issuance of the operating license.

Depending on the company's economic activity, it may be necessary to obtain special licenses, such as a health license (for companies in the food or health sector) or an environmental license (for businesses that have an impact on the environment).

Starting a business online

The digitalization of the process of starting a business in Brazil has made life easier for entrepreneurs. The Redesim, which integrates various bodies responsible for registering companies, allows much of the process to be done online, such as registering with the Board of Trade and obtaining the CNPJ. To MEIsThe process is completely online and can be completed in a few hours. For larger companies, however, the time can vary due to the need for additional approvals, such as specific licenses.

The importance of the social contract

O Articles of Association is the document that formalizes the creation of the company, establishing the rules of operation, the responsibilities of the partners, the share capital and the division of profits. It is compulsory for most companies (except MEIs) and must be registered with the Board of Trade of the state where the company will be based. A well-drafted articles of association avoids future conflicts between the partners and ensures that all aspects of the company are clear from the outset.

Operating permits and special licenses

O Operating license is the document that authorizes a company to operate legally. It is issued by the town hall and proves that the business meets the municipality's zoning and safety requirements. The time it takes to obtain the permit can vary, but it usually takes up to 30 days.

In addition to a license, some companies need special permits to operate. For example:

• Health license: Required for companies operating in the food, pharmaceutical or health sectors.
• Environmental licenseRequired for companies that may have an environmental impact, such as industries.
• Fire Department Safety CertificateEssential to ensure that the company complies with fire safety regulations.

Depending on the line of business, it may be necessary to obtain permits issued by federal, state or municipal bodies.

What to do after starting a business

After completing the opening process, the entrepreneur needs to pay attention to some important obligations, such as:

• Issue invoices according to the law;
• Keeping the accounts up to date to avoid tax problems;
• Complying with labor obligationsif there are registered employees;
• Renewing licenses and permits within the deadlines stipulated by the competent bodies.

Efficient company management is crucial to guaranteeing the fiscal and legal regularity of the business, as well as avoiding fines and sanctions.

Explanatory video

To make it even easier to understand, check out the video by Beatriz Oliveira e Ricardo MoraesIn this video, CLM Controller's experts explain every step of the process of starting a business in detail. In the video, they cover everything from choosing a CNAE to obtaining special licenses, including valuable tips on the tax regime and the documents required.