Brazil doesn't require a Brazilian partner to own a company here, foreign ownership is fully permitted in most sectors, you just need a Brazilian tax number and a local legal representative. Here's what it takes to start a business in Brazil in 2026.
1. Which business structure fits you?
Before you register anything, it helps to know what you're actually choosing between.
- MEI (Microempreendedor Individual). A solo micro-entrepreneur category with a 2026 revenue cap of R$169,200 a year. Available to foreign legal residents holding a CRNM and CPF, but not practical for non-resident founders operating remotely.
- SLU (Sociedade Limitada Unipessoal). A single-member limited company, the correct structure for a solo foreign founder. No minimum capital, limited liability, one foreign partner is enough.
- LTDA (Sociedade Limitada). Two or more partners, limited liability, no minimum capital, and Brazil's most flexible tax options. The standard choice for the majority of foreign-owned operating companies, and it converts cleanly to an S.A. later if you need to raise institutional capital.
2. Register your business
Foreign partners need a Brazilian CPF (individual taxpayer number), and the company needs a Brazilian-resident legal representative (procurador), though no Brazilian partner or co-owner is required. CNPJ (Cadastro Nacional da Pessoa Jurídica) registration itself is free through the Portal do Empreendedor, though state Junta Comercial (Commercial Registry) filing fees typically run R$100 to 400 depending on the state. Total setup costs, including notary, translation, and legal fees, generally run R$5,000 to 50,000 depending on complexity. Worth knowing: from 1 July 2026, Brazil switches to an alphanumeric CNPJ format, replacing the current 14-digit numeric structure; existing CNPJs remain valid with no re-registration needed, but any new CNPJ issued from that date forward will use the new format.
3. Check licenses and permits
Brazil doesn't issue a single national business license. What you need depends on your CNAE code, the official activity classification that also determines your tax obligations and municipal licensing requirements, so getting it right at registration matters.
4. Choose your tax regime
You select a tax regime at registration and can only change it annually, so this decision has real staying power. Simples Nacional is the simplified, most attractive regime for small foreign-owned businesses: it consolidates federal, state, and municipal taxes into one monthly DAS payment on a sliding scale of 4% to 19%, available up to R$4.8 million in annual revenue. Lucro Presumido (presumed profit) covers revenue up to R$78 million, though a new 10% surcharge now applies to the presumption percentage above R$5 million in gross revenue under Lei Complementar 224/2025. Lucro Real (actual profit) applies to any size company and is mandatory above the Lucro Presumido ceiling.
5. Understand the numbers
MEI pays a flat monthly DAS of roughly R$75 to 76, covering social security (INSS) and municipal service tax (ISS), with no separate income tax on MEI profits. Beyond MEI, Microempresa (ME) covers R$81,000 to R$360,000 in annual revenue and Empresa de Pequeno Porte (EPP) covers R$360,000 to R$4.8 million, both eligible for Simples Nacional. If you plan to hire, budget the true cost of an employee at roughly 1.5 to 1.8 times gross salary once FGTS, INSS, 13th salary, and vacation provisions are included, a meaningfully higher multiplier than in many countries covered in this series.
6. Stay compliant
Companies outside Simples Nacional file SPED Accounting and SPED Fiscal (electronic accounting and tax submissions), a DCTF (federal tax debts declaration), and an annual ECF (corporate income tax return). Simples Nacional companies file DEFIS annually and pay their consolidated DAS monthly.
Brazil business costs at a glance
| Item | Cost |
|---|---|
| SLU/LTDA minimum capital | None required |
| CNPJ registration | Free (state filing fees R$100 to 400) |
| Total setup, all-in | ~R$5,000 to 50,000 |
| MEI monthly DAS (revenue cap R$169,200/yr) | ~R$75 to 76 |
| Simples Nacional DAS (up to R$4.8M revenue) | 4% to 19% sliding scale |
| Lucro Presumido, surcharge above R$5M revenue | +10% |
Frequently asked questions
Does Brazil require a local partner for a foreign-owned company?
No. Foreign ownership is fully permitted in most sectors; you just need a Brazilian CPF and a Brazilian-resident legal representative.
What is Simples Nacional in Brazil?
A simplified tax regime available up to R$4.8 million in annual revenue that consolidates federal, state, and municipal taxes into one monthly DAS payment on a sliding scale of 4% to 19%.
How much does it cost to register a company in Brazil?
CNPJ registration itself is free. Total setup costs, including notary, translation, and legal fees, generally run R$5,000 to 50,000 depending on complexity.
What's changing about Brazil's CNPJ format in 2026?
From 1 July 2026, Brazil switches to an alphanumeric CNPJ format for newly issued numbers. Existing CNPJs remain valid with no re-registration needed.
How much does MEI cost in Brazil?
A flat monthly DAS of roughly R$75 to 76, available up to a 2026 revenue cap of R$169,200 a year.
Fees and rates above come from the Receita Federal and Portal do Empreendedor as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a Brazil-qualified contador or lawyer about your specific situation.