Currently, Amazon Brazil FBA is only open to local companies. Therefore, for overseas sellers, to operate in compliance with the Amazon Brazil site, they first need to register a local Brazilian company.
- Preparation materials before registration
1. Provide the required information for registration:
Currently, foreign capital can be divided into subsidiaries and branches when setting up branches in Brazil. To establish a local company in Brazil, a resident with legal status in Brazil must be the legal person (Amber can provide the legal person). If the customer can provide the local legal person, the local legal representative information is required: name, nationality, occupation, detailed address and personal identity documents (RG and CPF or CNH). When a foreign company is a shareholder, the registration documents of the holding company (articles of association/business license) are required.
2. Apply for relevant certification according to the business scope:
Product certification is the entry threshold in Brazil. In the import customs clearance link, products without certification may not be cleared. Products without certification may be seized and confiscated during the transportation stage and storage. Products without certification may not be listed on the Amazon platform. Brazil has strict certification requirements, which are divided into a compulsory certification system and a voluntary basic certification system. For products under the compulsory certification system, they must obtain a certification certificate issued by an authoritative organization recognized by Brazil before they can enter Brazil.
- Application process
The registration process for foreign-controlled Brazilian companies that our company has registered for clients mainly includes the following steps:
- Document translation and notarization at a notary office.
- Our lawyers submit the company registration application to the Brazilian Commercial Registry.
- Obtain a CNPJ number (this number is equivalent to the tax identification number of a Brazilian legal entity).
- Obtain necessary licenses and permits.
- Open a commercial bank account in the name of the company.
After all documents are notarized and translated, the company can be registered within 4-6 weeks. After the company registration is completed, it will take another 2-4 weeks to register a bank account. After completing the company registration and bank account opening, the seller can start the Brazilian e-commerce gold mining journey!
- Brazilian Taxation
In the process of localizing operations in Brazil, tax issues have become a major problem faced by overseas companies. Brazil's tax laws are complex and numerous. In addition to the federal government's tax laws, Brazil's 26 states and the Brasilia Special Region have their own tax laws. The legislative principles, tax structure and tax calculation methods of these tax laws are also different.
| Import | Tariff | 10%-35% of CIF value |
| ICMS | 18% of CIF value | |
| IPI | 0-15% of CIF value | |
| PIS and COFINS | PIS-1.65%,COFINS-9.65% | |
| Sales | ICMS | inside Saopaulo 18%,outside Saopaulo 14% of revenue |
| IRPJ | IRPJ | Revenue less than BRL78,000,000 per year--(Presumed profit):8% of revenue; More than BRL78,000,000 per year--(Actual profit):15% on income less than BRL240,000 per year; 25% on income that exceeds BRL240,000 per year of profit |
| CSLL | 9% of profit | |
| PIS and COFINS | PIS-1.65%,COFINS-7.6% of revenue |
- Tax calculation method
In Brazil, there are three main methods for calculating corporate income tax:
01.Simplified Tax Method (Simples Nacional)
The calculation of the simplified tax method includes not only corporate income tax, but also various other federal taxes, state taxes and municipal taxes. The simplified tax method is the same as the imputed profit method, which calculates the tax payable based on the company's income.
The simplified tax method has more restrictions than the imputed profit method. For example, the income of the company using this tax method cannot exceed 3.6 million reais, and it cannot be used in specific industries such as companies with foreign shareholders, finance, transportation, electricity, automobile and motorcycle importers and manufacturers, and real estate developers.
02.Actual Profit Method (Lucro Real)
Based on the company's accounting profit, deduct tax-free income and add non-deductible income tax expenses to calculate the company's taxable income.
03.Presumed Profit Method (Lucro Presumido)
The company's taxable income is calculated based on the company's sales. When selling goods, the taxable income is 8% of the company's total sales revenue. If it is a service-providing enterprise, the taxable income is 32% of the service income. There are certain restrictions on the use of the imputed profit method. For example, enterprises and financial institutions with annual income exceeding 78 million reais (more than 100 million) cannot use the imputed profit method.
Note: Overseas companies or companies with overseas shareholders can only use the actual profit method or the presumed profit method and cannot use the simplified tax calculation method.
- Brazilian local store operation process
The opening of Amazon Brazil FBA provides Chinese companies with broad market opportunities. In addition, AliExpress, Netshoes, Shein, Hurb, Booking, Dafiti, etc. are also popular e-commerce platforms in Brazil.
For cross-border sellers who are not familiar with local laws, taxes and registration procedures, setting up a local company may face many challenges.Amber Global can provide comprehensive support and services in Brazilian local company registration and taxation, and provide strong guarantees for the long-term development of enterprises in the Brazilian market.
If you want to register a Brazilian local company, please contact us.