INVOICES

We continue using the example of São Paulo. We emphasize that in Brazil is necessary to obtain authorization for the issuance of invoices, in accordance with the activity and guidance of local

tax authorities.

The company that acts in the area of industry and/or commerce can issue, in accordance with the activity area, one of the following kinds of invoices:

FISCAL BOOKS

There are also some bureaucracy obligations for the company, such as to keep certain fiscal books. Taking as example the Municipal Area of São Paulo, we have the following fiscal books for a trading company (in its simplest format):

FOREIGN INVESTMENT

The registration of foreign capital must be made with Central Bank of Brazil within thirty days counted upon the day of its origin (entrance in the country, conversion, etc.) or ninety days after customs clearance, in case they are made up of tangible assets.

Central Bank of Brazil provides the list of required information and procedures for the foreign capital registration in Circular Letter 2.997.


Investments that are not registered or to which registration is denied, are called “contaminated capital” and it will not be possible to obtain registration as reinvestment (capitalization), remittal of profits attributed to the foreign investor or repatriation.

On the other hand, the Brazilian Central Bank admits the “decontamination” of capital by means of an authorized administrative procedure.

In practice, such process is very straightforward and it could be performed through the internet (it is expected about 1 hour to complete the registration).

EMPLOYER CAN CONSULT PRIVATE INFORMATION

Under the Supreme Labor Court decision issued in February 23, Brazilian employers has the right to make consultations in the Service Protection Credit (SPC), police agencies and legal courts before hire employees. The lawsuit has been moved by Labor Public Ministry that understand such research were discriminatory.

In fact, most of the Brazilian employers make such consultation under an informal basis. Under this new decision, they may feel comfortable since it is a legal process now.

INFORMATION ABOUT BRAZILIAN COMPANIES

Information about Brazilian companies are very restricted (except for public companies).

One alternative to obtain such information is the SERASA report. This report contain information  related to account receivable/payable, shareholders, financial statements.