Appointing a proxy is the first step for a foreign-owned company. It will fulfill the role of manager, director and/or legal representative of the company, assuming the legal and fiscal responsibilities of the business.
Corporate planning covers matters related to legal matters and corporate purpose, rights and duties of the partners’ business and capital value corresponding to legal and tax aspects. This planning, along with a definition of the company’s partnership, made with lawyers and accountants, makes it possible to choose a more appropriate legal structure.
A careful analysis is necessary in order to define the company’s sector and classify it according to the National Classification of Economic Activities (CNAE), considering that it affects the company’s tax regime. Further on, when making the identification number necessary for the company’s legal operation, the National Registry of Legal Entities (CNPJ), it is necessary to list the CNAE’s of the activities that the business offers.
The company name will be registered at the state’s board of trade and will be on the CNPJ and other official documents, such as contracts, for example. This name cannot be the same as one already registered on the state’s board of trade.
Starting activities under the most appropriate tax regime brings opportunities to reduce costs, so it´s needed to make a careful analysis that considers the sector, company size, corporate structure and estimates of revenues, expenses and profit margin.
The building location must meet the rules for the activity type. Is recommended to avoid any inconvenience that may result from a wrong choice.
To operate, a company also needs a number of registrations, permits, and licenses. Check some examples:
• Registration with the Board of Trade or relevant agency;
• CNPJ, INSS and FGTS registrations;
• State and local registration and business license;