Reaching the global markets is the need of the hour. While you search for new markets, you need to narrow down your searches based upon high GDP growth and positive customer behavior. Seeing this, Brazil is considered as a great option.
Since 2007, Brazil has been adding 19 millionaires per year in the world. Well, the credit goes to stellar GDP growth and high consumption rate, the huge customer market is ideal for entrepreneurs to explore the endless possibilities.
What makes Brazil a lucrative global market?
With 22.7% of the economically active population becoming entrepreneurs, Brazil has emerged as a new progressive global market. If data is to be believed, between 2001 and 2009 Brazil witnessed a hike in the number of owners of micro and small enterprises and self-employed. It increased from 20.2 million to 22.9 million during the said time period.
The point to ponder here is that around 19 million of this total operates their independent businesses without any huge manpower. That simply indicates that Brazil is the hub for sole entrepreneurs.
How easy is it to start a business in Brazil?
Though data shows that Brazil is the right place for your next business expansion it always comes with some hurdles. The major ones are:
Long approval process
While you can start a new business in the US in just 4 days; it takes nearly 120 days to do the same in Brazil. Some policies are a little stringent and take time to get approved. On the same note, you need to fulfill around 15 legal procedures if you seek to start a new business in Brazil.
If you are planning to open a business in Brazil then be ready to have a good investment plan as a back-up. While you can open a new company in Columbia at $670, in Brazil, it costs $1125. So, plan accordingly.
Locals ‘affinity towards local businesses
A great ratio of Brazilian customers prefer buying from a local source. This is a global trend. That is why any international business should have a local presence. Also, Brazil has a high corruption rate that forces customers to stick to local resources.
How you can overcome all these hurdles?
Though the hurdles seem quite huge at first, the good news is you can overcome them up to a great extent by using Brazil virtual phone number. Here is how it will happen –
No high-end investment in communication
The above data showed that opening a business in Brazil demands high upfront investment. While some areas demand it without any compromise, some can be managed by buying the right resource. Buying a VoIP business Phone number and setting up a second phone line is what can reduce your communication set-up cost by two-folds. As it works on cloud and uses internet connection to operate, making calls is easy and cost-effective with it.
You can buy a Brazil VoIP number at $12 and use it as a second phone line for your home business. Also, it doesn’t demand high set-up and maintenance costs and saves a fortune for you at this front.
You can easily win the heart of local customers with a local business phone number.
For example, you can call your customers located in Sao Paulo from the US with a local Brazil virtual phone number of Sao Paula (+11). You can also set-up a virtual office in Brazil way before setting up a physical office.
If legal procedures are taking longer than usual, you can utilize this time to promote your business amongst the local crowd. Telemarketing is the easiest way to introduce your business to the local crowd. This way will be aware of you before you come
What else you should know?
Apart from all these things, there are some of the key points that you should remember while thinking to operate a business in Brazil –
- All of your paperwork should be done in Portuguese. If you don’t know the language then it’s better to hire professional transcribing and translation services.
- You must obtain a CNJP number if you are planning to set a company office. It is the company’s tax ID number.
- You must hire a resident agent in Brazil to conduct a hassle-free interface with public and government agencies. The agent will also be responsible for your company’s legal operation and tax payments.
- Brazil is a socialist nation. That simply indicates that you need to pay more than the salary to your employees. Community lunch, travel allowances, and 13th salary are some of the benefits that your employees should be endowed as per government policies.
Yes, Brazil is a great place to open up a new business despite high investment and economic muddle. All you need is to plan diligently and take the right resources on the board. Buying a virtual business phone number, hiring a translator, and understanding the market are some of the key steps that you should take before commencing the journey.