The Business Desk in association with RSM Tenon and DLA Piper have prepared a supplement about the importance and risks of making business overseas. It’s a guide for potential exporters in West Midlands and in the UK, with excellent articles that demystifying the difficulties of growing market outside the UK and also prepare companies for a better approach abroad .
It’s extremely important to highlight the regulations and legislations in potential target markets such as Brazil, China, India or US. Let’s use Brazil as an example.
Doing business in Brazil:
-To set up a branch in Brazil the foreign companies have to submit an application to the Brazilian government;
-The companies have to also empower a representative (that doesn’t need to be Brazilian, but needs to be resident in Brazil) to act on their behalf;
– With strong unions and labours laws, Brazilian employees have some benefits such as the transport to and from workplace or the right to “13th salary”, an extra month’s salary which is paid at Christmas. It’s necessary to be aware of those payroll charges that sometimes make employees cost twice the salary to the companies;
–Any inward foreign investment in either capital or loans must be registered with the Central Bank of Brazil. There are restrictions to foreign investments in sectors of economy such as communications, exploration of mineral resources and others;
-Doing business with Brazil requires a well knowledge of the local environment, including understanding the implicit and explicit costs referred as “Custo Brasil”;
-The basic federal corporate income tax rate is 15%;
-Brazil’s most common types of business entities are: Sociedade Anônima (Corporation) and Sociedade por Quotas de Responsabilidade limitada ( Limited Liability Company);
– To deal with Navigating and customs procedures is better to work with legally registered and experienced representatives, importers and exporters;
– Joining forces with a Brazilian partner can be beneficial to the company if you think selling directly to Brazilian domestic market;
-Establishing personal relationships is essential to conduct business through the country;
– São Paulo is a commercial hub in which it’s possible to find sophisticated and developed commercial environment;
– In São Paulo and South of Brazil there is a strong influence of descendants of Italian, Japanese, Portuguese and Spanish;
-Rio de Janeiro has a more laid-back.
Photos: Rob Dann