Rich Culture and Resources Are Factors You’d Love When You Set Up Business In Brazil
Brazil is a country with regional economic power and an abundance of mineral, agricultural and energy resources which have led to the development of an extensive industrial base, a diverse economy, infrastructure, lower inflation, and a strong currency regime. Here are some of the factors why investors want to set up business in Brazil:
- strong industrial, business and consumer base,
- a European-oriented culture and business practices,
- political stability,
- a solid democracy
- an enormous potential that lies within
If you wish to set up business in Brazil, here are some other benefits that you stand to gain:
The Dynamic Growth Opportunities
Investors are attracted and enticed to set up business in Brazil thanks to the massive growing consumer market. Being the sixth largest economy in the world and one of the top 10 fastest growing economies in the world, and being the largest economy in Latin America means Brazil is home to whole host of potential opportunities the investors who are keen to make their mark in the region.
As of 2015, Brazil recorded an annual GDP growth of 6% and with 52% of the population being middle-class and rising family incomes, there is certainly a demand for foreign company products and services which are steadily and rapidly increasing.
Renewable Energy Programs
Brazil has one of the largest renewable energy programs in the world, producing 25% of the world’s ethanol. The country has been adding new biomass and wind power plants and currently produces 70% of the total wind energy in all of Latin America.
Free Trade Zones and Tax Exemptions
In Brazil, there are Five Free Trade Zones which offer foreign companies tax exemptions or a reduction and flexible trading laws if they run their business within these zones.
Being a member of Mercosur, Brazil consequently enjoys a reduction in tariffs, less restriction, and greater government protection. They can freely trade with member countries such as Argentina, Venezuela, Bolivia, and Uruguay. On top of that, Brazilian LLC companies enjoy the benefits of 28 international double taxation treaties. Further, this helps in minimizing their withholding tax.
Investors in Brazil can safely buy stocks directly if they wanted to from BM&FBOVESPA, which is Brazil’s main stock exchange, and not have to suffer the local capital gains tax.
It’s not just the people of Brazil that are welcoming towards foreigners, the government is too. The government of Brazil encourages foreign investment into the country. They do this by providing several incentives to investors and allowing investors to have 100% ownership of the land and property.
Brazil is a low-risk country with regards to natural catastrophic disasters like earthquakes, volcanos and hurricanes. This is is something to consider when you’re planning to set up business in Brazil or in any other nation.