By Robert Eugene Di Paolo
Patience and persistence are essential in Brazil’s business environment
If you’ve ever wondered “what’s it really like to do business in Brazil?”, you’re not alone. Brazil often fascinates foreign entrepreneurs and investors – especially those from the United States – with its vast market, cultural vibrancy, and emerging opportunities. But let’s be honest: doing business in Brazil can also be complicated, confusing, and frustrating if you’re not prepared.
According to the World Bank, Brazil still ranks relatively low when it comes to the ease of starting a business — with entrepreneurs facing dozens of bureaucratic steps and long processing times. Yet, despite these hurdles, many investors continue to find success and satisfaction operating in the Brazilian market. Why? Because the rewards, once you learn how to navigate the system and culture, can be significant.
The Brazilian Way of Doing Business
Let’s start with what might surprise you most: Brazilians don’t rush into deals. While American business culture tends to “cut to the chase,” Brazilians prefer to build relationships first. Business in Brazil is as much about trust and personal connection as it is about numbers and contracts.
If you’re coming from a fast-paced environment like New York or Los Angeles, you’ll need to adapt. Forget diving straight into negotiations on the first meeting. Instead, expect – and embrace – small talk, chit-chat, and sometimes long coffee breaks that have little to do with the deal itself. Think of it as part of the process — the “relationship foreplay” that builds the foundation for long-term partnerships.
Bureaucracy: The Price of Entry
Now for the less romantic side – bureaucracy. Starting a company in Brazil involves multiple government agencies, countless forms, and what can feel like an endless list of approvals. The World Bank estimates it can take around 150 days to legally launch a new business, with about 17 procedural steps along the way.But don’t be discouraged. In Brazil, things eventually get done — just at a slower pace. Patience, persistence, and local guidance are your best allies. Partnering with an experienced contador (accountant) or advogado (lawyer) who knows the system can save you time and sanity.
Understanding Brazil’s Legal System
Here’s another crucial piece of the puzzle: Brazil’s legal foundation is based on the Napoleonic Code, inherited from Portuguese influence, not on the Anglo-American Common Law. That means the Brazilian system relies heavily on written laws and codes – not on judicial precedent.
In the U.S., lawyers often rely on past cases and creative interpretations to guide decisions. In Brazil, by contrast, the letter of the law reigns supreme. If the Civil Code says you must do “X,” there’s little room to argue that doing “Y” should suffice, even if the result is the same. For foreign investors, understanding and respecting this rigidity is essential to avoid costly mistakes.
Trust and personal connection are fundamental in Brazilian business culture
Opportunities Behind the Obstacles
Despite the challenges, Brazil offers vast potential. It’s the largest economy in Latin America, rich in natural resources, and boasts a dynamic consumer market of more than 200 million people. From agriculture and energy to fintech, e-commerce, and creative industries, Brazil’s diversity offers opportunities for nearly every sector.
The key is to approach the Brazilian market with strategic patience and cultural awareness. Learn to value relationships, hire local expertise, and understand the legal and bureaucratic landscape. Once you do, you’ll find that doing business in Brazil is not only possible – it can be deeply rewarding.
Final Thoughts
Doing business in Brazil is a unique experience – one part challenge, one part adventure. The blend of opportunity, complexity, and warmth you’ll find here reflects the very essence of Brazilian life. Enter with respect for the culture, readiness to adapt, and a good sense of humor, and you might just discover that Brazil isn’t just a place to do business – it’s a place to grow.
* Robert Eugene Di Paolo is the co-founding managing director of the Fidelis Grupo Legal de Consultoria Ltda., a legal business consulting group specializing in assisting non- Brazilians who want to do business or invest in Brazil.
FAQ – Doing Business in Brazil
Why is doing business in Brazil considered difficult?
Brazil’s complex bureaucracy, multi-layered tax system, and numerous regulations make starting and operating a business time-consuming. But with proper planning and local guidance, it’s manageable.
How long does it take to open a company in Brazil?
On average, it takes about 150 days and involves around 17 bureaucratic steps, though timelines can vary by region and type of business.
Do Brazilians prefer personal relationships before business?
Yes. Building trust and personal rapport is essential. Business discussions often come only after a foundation of friendship and familiarity is established.
Is the legal system in Brazil similar to that of the United States?
No. Brazil follows the Napoleonic Civil Code system, while the U.S. uses Common Law. This affects how contracts are interpreted and disputes are resolved.
What are the best sectors for foreign investment in Brazil today?
Top opportunities include renewable energy, agribusiness, e-commerce, fintech, and tourism – industries driven by Brazil’s growing middle class and innovation ecosystem.
