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flag Brazil Brazil: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labor | Social Partners

 

Setting Up a Company

La Sociedade a responsabilidade limitada is a limited liability company .
Number of partners: 2 partners minimum.
Capital (max/min): No minimum capital.
Shareholders and liability: Their liability is limited to the amount of capital contributed. They are also jointly liable for the company's commitments within the limit of the capital remaining to be paid up.
La Sociedade anonima is a public limited company.
Number of partners: 2 partners minimum.
Capital (max/min): No minimum capital.
NB: 10% minimum of the issue price of the subscribed shares must be paid up in cash.
Shareholders and liability: The partners' liability is limited to the amount of capital contributed.
The general partnership.
Number of partners: 2 partners minimum.
Capital (max/min): No minimum capital.
Shareholders and liability: The partners' liability is limited to the amount of capital contributed.
The limited joint-stock partnership.
Number of partners: 2 partners minimum. There are two types of partners, the active partners and the silent partners.
Capital (max/min): No minimum capital.
Shareholders and liability: The liability of the active partners is unlimited. The liability of the silent partners is limited to the amount of capital contributed as long as they do not participate in the management of the company.
The Competent Organization
All necessary information is on the SEBRAE website. It is also possible to make an application for registration by Internet. It is advisable to call on a lawyer for assistance.
Search a Company or a Financial Report
DNRC, Registro Mercantil
 
Setting Up a Company Brazil Latin America & Caribbean
Procedures (number) 13.0 9.0
Time (days) 119.0 53.0

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Brazil.
Register of commerce
Civil Register of legal entities

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The Active Population in Figures

201120122013
Labor force 104,700,000107,100,000107,300,000

Source: CIA - The world factbook

 
200920102011
Total activity rate -70.70%69.90%
Men activity rate 81.90%81.00%80.90%
Women activity rate 60.10%59.40%59.60%

Source: UN - United Nations

 
Employed Persons, by Occupation (% of Total Labor Force)
Fishing and agriculture 20.8%
Mining sector 0.3%
Industry 13.4%
Water, gas and electricity 0.4%
Construction 7.1%

Source: IPEA Data

 
For Further Statistics
IPEA Data
For Further Information About the Labor Market
Ministry of social providence
ILO, International Labor Organization

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Working Conditions

Legal Weekly Duration
44 hours
Although the norm in Brazilian and foreign companies is 5 weekly working days of 8 hours.
Retirement Age
In the civil service, the minimum retirement age is 55 for women and 60 for men. In the private sector, men have to have contributed for 35 years to the retirement scheme and women for 30 years. If the number of years of contributions is lower than these figures but over 15 years, it is also possible to retire at 65 for men and 60 for women. Without these conditions, there is a minimum retirement pension accessible to everyone over 65.
Working Contracts
Legal measures govern work contracts; collective agreements and individual negotiation complete them.
The formality of work contracts and constraints of dismissal are very rigid, while hiring conditions are rather flexible.
The two types of contract which are mainly used are fixed term and open ended. A variation on the fixed term contract is a contract with no hierarchical relation for carrying out a particular task.
Labor Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labor

Minimum Wage
BRL 545 per month (source: ILO, 2011).
Average Wage
Gross average monthly wage of men: BRL 1,204 (source: ILO, 2009);
Gross average monthly wage of women: BRL 870 (source: ILO, 2009).
Social contributions
Social Security Contributions Paid By Employers: 36.8% of the gross salary: 28.8% for social security and 8% for pension fund.
Social Security Contributions Paid By Employees: 8%-11% of the gross salary.

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Social Partners

Social Dialogue and Involvement of Social Partners
Labour unions, especially in sectors such as metalworking and banking, tend to be well-organized and aggressive in defending wages and working conditions. Unions in various sectors engage in industry-wide collective bargaining negotiations mandated by federal regulation. Strikes occur periodically, particularly amongst public sector unions.

The Labour Code prohibits having too many unions for a single profession and in each region. Although the law has not created a central institution representing the unions, four groups have tried to provide this, but without legitimacy: the Unitarian Workers Group (CUT), the General Confederation of Workers (CGT) and the Força Sindical (FS). Some industrial and mining sectors have powerful unions. However, the unions are more or less absent from the rural areas where the great landowners still hold sway.

Unions
Unitarian Workers Group
CGT Brazil
Força Sindical
Unionization Rate
The Ministry of Labour estimates that there are 15,000 labour unions in Brazil, but these figures are considered inexact. Labour unions account for approximately 19% of the official workforce according to the Brazilian Institute of Geography and Statistics (IBGE).
Union dues are obligatory for all workers in the formal sector and are set at one working day's income per year.
Labor Regulation Bodies
Ministry of Labor

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Last Updates: February 2015