Brazil

Operating a business

Different types of companies	Number of partners/shareholders	Maximum and/or minimum capital	Liabilities	Registration fees
La Sociedade a responsabilidade limitada is a limited liability company .	2 partners maximum.	No minimum capital.	Their liability is limited to the amount of capital contributed. They are also jointly liable for the company's commitments within the limit of the capital remaining to be paid up.
La Sociedade anonima is a public limited company.	2 partners maximum.	No minimum capital. NB: 10% minimum of the issue price of the subscribed shares must be paid up in cash.	The partners' liability is limited to the amount of capital contributed.
The general partnership.	n.c.	No minimum capital.	Their liability is joint and indefinite.
The limited joint-stock partnership.	There are two types of partners, the active partners and the silent partners.	No minimum capital.	The liability of the active partners is unlimited. The liability of the silent partners is limited to the amount of capital contributed as long as they do not participate in the management of the company.

Business setup procedures: The Articles of Association (Contracto social for an SARL or Estatuto social for an SA) must be drawn up in Portuguese by a lawyer. Company registration is carried out either at the Register of Commerce (Junta Comercial), or at the Civil Register of legal entities (Registro Civil das Pessoas Judicias) according to the nature of the company. A study is carried out to see if the name of the future company already exists. Then you have to register at the local agency of the Cadastro Nacional de Pessoas Juridicas (CNPJ); then, once you have proof of registration, at the municipal authorities of the company's location.
The competent organization: All necessary information is on the SEBRAE website. It is also possible to make an application for registration by Internet. It is advisable to call on a lawyer for assistance.

Legal weekly duration: 44 hours
Although the norm in Brazilian and foreign companies is 5 weekly working days of 8 hours.
Retirement age: In the civil service, the minimum retirement age is 55 for women and 60 for men. In the private sector, men have to have contributed for 35 years to the retirement scheme and women for 30 years. If the number of years of contributions is lower than these figures but over 15 years, it is also possible to retire at 65 for men and 60 for women. Without these conditions, there is a minimum retirement pension accessible to everyone over 65.
Working contracts: Legal measures govern work contracts; collective agreements and individual negotiation complete them.
The formality of work contracts and constraints of dismissal are very rigid, while hiring conditions are rather flexible.
The two types of contract which are mainly used are fixed term and open ended. A variation on the fixed term contract is a contract with no hierarchical relation for carrying out a particular task.

Minimum wage: 415 BRL monthly (247 USD) in 2008. The payment of an annual bonus in the form of a 13th month is obligatory. A transport allowance is also imposed.
Average wage: 915 BRL in 2004.
Social contributions: Social security contributions paid by employers: 28.5% minimum.
Social security contributions paid by employees: 7.5-11%

Bargaining power: The Labor Code prohibits having too many unions for a single profession and in each region. Although the law has not created a central institution, either, representing the unions, four groups have tried to provide this but without legitimacy; they are: the Unitarian Workers Group (CUT), the General Confederation of Workers (CGT), the Força Sindical (FS), and the Democratic Social Union (SDS). Some industrial and mining sectors have powerful unions, and President Lula came from there. However, the unions are more or less absent from the rural areas where the great landowners still hold sway.
Unions: Unitarian Workers Group
CGT Brazil
Força Sindical
Democratic Social Union
Unionization rate: Union dues are obligatory for all workers in the formal sector, and are set at one working day's income per year.
Labor regulation bodies: Ministry of Labor