How to open a foreign company branch in Brazil in 2026

Summary

Opening a direct branch requires authorization from the Brazilian Federal Executive, a lengthy and uncommon process. For most businesses, forming a Brazilian subsidiary, such as a limitada or corporation, is faster, less expensive and provides equivalent governance options.

Direct branch vs. subsidiary

A branch is the foreign company itself operating in Brazil. A subsidiary is a Brazilian legal entity controlled by the foreign parent. A direct branch requires a federal authorization decree, while a subsidiary can usually be registered with the Commercial Registry within weeks.

In practice, more than 95% of foreign operations choose a subsidiary. Direct branches are generally reserved for specific regulated sectors.

Documents required from the foreign parent

Typical documents include the parent's organizational documents, the resolution approving the Brazilian operation, evidence of capital, a certificate of good standing, audited financial statements and a power of attorney for the resident legal representative.

Documents issued abroad generally require an apostille under the Hague Convention or consular legalization, sworn translation and registration with a Brazilian Registry of Deeds and Documents.

Realistic timelines

A limitada subsidiary may take 30 to 60 days to reach an active CNPJ registration and operational bank account. A direct branch requiring a federal decree may take 12 to 24 months and involve technical review by multiple ministries.

Frequently asked questions

Can a foreign company operate in Brazil without a branch or subsidiary?

Occasional imports or remote services may be possible without a local entity. Continuous operations involving local billing, employees or inventory generally require a Brazilian legal entity.

Who signs for the branch in Brazil?

A resident legal representative appointed through a specific power of attorney with documented authority.