Law of Brazil

Module 7

Business, employment and tax: companies, setting up and foreign investment, competition and consumers, labour law and the labour courts, and the tax system and its reform

Business in Brazil is governed by the Civil Code, the Corporations Law of 1976 and many special laws. The usual forms are the limited liability company (LTDA) and the corporation (S.A.). A company is registered with the Commercial Registry (Junta Comercial), obtains a CNPJ from the tax authority and needs state and municipal registrations and permits. Foreign investment is welcome, with capital registered at the Central Bank and limits in some sectors. Consumers are strongly protected, and competition is overseen by CADE. Employment rests on Articles 7 and following of the Constitution and the Consolidation of Labour Laws (CLT), with labour courts for disputes. A tax reform (Constitutional Amendment 132 of 2023) is replacing several consumption taxes with CBS, IBS and a selective tax, in a transition from 2026 to 2033. Rates and rules change often, so check current rules.

General education on the law of Brazil, using invented people and businesses. It states laws and procedures in simplified form and is not legal advice. The law and its practice change, and every case turns on its facts, the authority and the state concerned. It does not offer legal representation or a legal opinion on any case. Consult a Brazilian lawyer for any real matter.

This course was written on 6 November 2026. To the best of our knowledge, it describes the law of Brazil as it stood on that date. Laws change, and we may have missed or misunderstood something. If you notice a change, or have other information, please do not hesitate to contact us: we will review it and update the course. We do not claim to be the final source of the law.