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Corporate representation in Brazil

The alignment is important!

Brazilians take place great value to a contact person who is located in their market. This is very important in the area of investment goods; not to be imagined in the field of production and consumer goods. This has firstly a cultural and secondly a practical background.

The cultural background is that business negotiations with Brazilian companies are often based on personal relationships. Price, quality and terms are extremely important, but without a good personal relationship with the entrepreneur or the management, the chance of a successful business deal is nearly impossible.

Secondly, a local contact person provides a certain safety factor against Brazilian companies, especially if it should come to any unforeseen problems or requirements.

Based on this, there are three options available for foreign companies for representation in Brazil:

Branch / Subsidiary

One of the most cost-intensive options is the establishment of a branch or subsidiary in Brazil. However, the foundation of a company also offers a lot of advantages, such as the protection of business secrets, information and documents, as well as their own influence and control on personnel, finance and corporate strategy.
The establishment of an own sales and service offices is one of the most preferred options, which many companies choose. An own production has to be precisely weighted according to the product in terms of cost, import and marketing, etc.

The opening of a branch or subsidiary in Brazil differs fundamentally not much of what you know, but you will face during the process with many problems. Differences in culture, language and bureaucracy are just some of the challenges.

Among others, we advise you in business and tax matters and support you with a well-planned strategy to establish your product on the Brazilian market. In addition, you will receive support from us regarding contract design, as well as selecting the right location, rental agreements and the selection of staff, etc.

Distributors / Representatives

Depending on your product or service, it's certainly a good option to cooperate together with distributors or representatives which would be probably the cheapest option for your business. Often there are long-established structures about you or your Brazilian partner can take back with regard to your product or service.
Due to the not inconsiderable effort, especially in the initial period, it is not uncommon that many of Representatives for the first 6 to 12 months to demand a cost participation („Ajuda de custos").
Brazil offers a variety of interested, very capable, Distributors and Representatives, which are usually specialize in certain industries.

Depending on the product, we work together with you to develop a promising sales strategy. We also support you in finding, interviewing and selection of the right partner in Brazil, as well as negotiations and contract matters.

Joint-venture Partnerships

There are different reasons why companies decide to a joint venture. For example, entrepreneurial risk is divided among several companies, capital requirements are reduced and the resources of individual partners such as market knowledge, market positioning, specialist knowledge or production facilities can be optimally utilized. The strengths of the company are bundled, whereby synergy effects where arise and products and services can benefit due to competitive advantages.

However, such a joint venture also may offer some disadvantages, so that such a partnership should be weighed carefully. The partners should make clear and unambiguous arrangements, which must be defined precisely by contract.

VALIA Consulting advises and supports you in the selection of your Brazilian partner. We also assist you to choose the right law office, which has the appropriate experience in order to clarify the legal and bureaucratic aspects.

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