Company Types in Brazil

After an initial explanation of what is the Paralegal Department and how it works, you could better understand the importance of its function and also the level of the red tape in our country.

In the present post we will summarize the main types of companies in Brazil and what are the basic requirements to start each one of them.

Brazil has several types of companies. In order to incorporate an organization, it is necessary to choose the one that most closely approximates the type of business that will be held.

The main ones are:

  • Limited Liability company, the LTDA.

Generally composed of two partners, entrepreneurs, this type of company must begin at the State Board of Trade.

In the social contract of this company will be defined the individual participation of the members and what are each of them.

  • Sociedad Anônima, SA

It may also have more than one partner / businessman, but in this case they are called shareholders. This is because the company’s capital is distributed in shares.

There are two types: public and closed capital.

In this type the profits of the company are distributed among the shareholders.

  • Microenterprises, ME

In order to fit microenterprises, gross annual revenues can not exceed 360 thousand reais.

The company can be chosen by the simple national, being a simplified tax payment scheme.

  • Small-sized company, the EPP

For small business it is necessary that the annual turnover is between R $ 360 thousand and up to R $ 3.6 million, also being able to be opted by the simple national.

  • Individual microentrepreneur, the MEI

In this case it will be necessary to observe the annual billing, which can not exceed 60 thousand reais, and must necessarily be chosen by the simple national and can not be made up of members.

  • Individual Business Owner

They are companies with one person only as manager. Being a bit different from the other types, in this case the principle of the separation of the patrimony does not predominate. In this way, the assets of the management person and the company can mix.

The company name must be the manager’s civil name, adding a name that refers to the company’s activity.

  • Individual Limited Liability Company, EIRELI

It consists only of an individual. It differs from the Individual Company at the point where liability is limited as to the company’s debts. Which means that the owner has to separate the company’s assets from the staff.

The capital stock of this company should be 100 times higher than the Brazilian minimum wage.

  • Non-profit

They are composed of legal entities.

The characteristics of this type of company are different from the others and the main one is that they do not aim at profit when practicing their activities. The revenue that enters the company are employed for the maintenance of its activities.

  • Joint Stock Company

The Anonimas companies can resemble each other, since the capital in the two types is divided into shares, and there are two types of partners, the comandiados and the comanditarios.

It is a water company governed by the rules of the company Anonimas das comandita, and may operate under corporate name or company name, and the term limited by shares must be included in the name.

  • Simple Joint Society

Resembling the former, in this type of company is also composed of two partners, being the limited partners who have responsibility only on their quotas, and the partners who are individuals with joint and unlimited liability over the company ‘s social obligations. Therefore, only the commanded can practice acts of administration.

Business regulation

  • Some processes to follow to open a company are:
  • Social contract
  • Registration at the trade board
  • Location and operating permit
  • State registration
  • Licenses and registrations in state and municipal regulatory bodies.

Remember that starting a business requires a detailed business plan, specific knowledge and skills.

Count on us to assist you in the process of opening and running the company. Talk to one of our specialists.

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