Quick answer — Brazilian LTDA at a glance. A Brazilian LTDA (limited company) or single-member SLU needs a CNPJ (company tax number), shareholders with a CPF or foreign CNPJ, an administrator resident in Brazil and, for foreign shareholders, a Brazilian attorney-in-fact. Under the standard regimes, corporate income taxes total about 34%. The simplified Simples Nacional regime is generally not available when a shareholder lives abroad. Foreign capital must be registered with the Central Bank.
Brazil is Latin America's largest economy, with a vibrant tech scene in São Paulo and Florianópolis and a digital nomad visa for remote workers. For founders who want to sell into the Brazilian market or build a team there, a local company is often unavoidable.
It is also one of the most complex tax systems in the world. Corporate taxes are high under the standard regimes, the small-business Simples Nacional regime is generally closed to companies with shareholders abroad, and Brazil is in the middle of a major consumption tax reform. Dividends have long been exempt, but recent legislation introduced withholding on high dividend payments from 2026. Local advisers are essential.
It does not suit nomads on the digital nomad visa who serve foreign clients, or founders seeking a simple, low-tax company. It is not designed for locally employed expats or retirees.
Comparing Latin American options? See our guide to open a company in Latin America.
If you are comparing destinations, see the Colombia SAS for nomad visa holders and the Uruguay SAS for foreign income.
An LTDA or SLU must be managed by an administrator who lives in Brazil and holds a permanent visa or is Brazilian. Foreign shareholders also need a Brazilian attorney-in-fact to receive legal notices.
Foreigners on a temporary visa become Brazilian tax residents after 183 days in Brazil within 12 months; permanent visa holders become resident immediately. Brazilians leaving the country should file a definitive departure declaration (saída definitiva).
Foreign investment must be registered with the Central Bank to allow repatriation of dividends and capital.
Brazil has extensive digital filing obligations, electronic invoicing and monthly tax returns. Expect an accountant to manage a significant reporting workload.
Amounts are indicative.
Under the standard regimes, company profits pay about 34% in IRPJ and CSLL, plus consumption taxes on revenue. Without access to Simples Nacional, Brazil is a high-cost option for small foreign-owned companies, justified mainly by access to the Brazilian market.
The Brazil Business Bank Comparison Guide compares the main banks for foreign-owned companies — get it when you start your Brazilian setup with Heavnn.
Yes. Foreigners can own an LTDA or SLU, but the company needs an administrator resident in Brazil and a Brazilian attorney-in-fact for foreign shareholders.
Under the standard regimes, IRPJ (15% plus a 10% surcharge on profits above BRL 240,000 a year) and CSLL (9%) combine to about 34%.
Generally no. Companies with a shareholder resident abroad are excluded from Simples Nacional.
Dividends were long exempt. Legislation introduced withholding on high monthly dividend payments from 2026; check the current thresholds.
Yes. It allows remote workers employed by or contracting with foreign companies to stay in Brazil; it does not authorise working for Brazilian companies.
Brazil is a big market and a complex tax system. Heavnn helps you decide whether a local company is worth it.
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This guide is general information, not tax or legal advice. Rates and fees are indicative as of October 2026.
