Weather you are considering starting a business or investing in a business in Brazil, it is important that you understand the commercial laws of the country. While you might have a reasonable understanding of commercial law in other countries, such as the United States, the laws of business differ in Brazil. Commercial law, also known as business law, deals with a wide range of topics that concern the operations of the business in terms of their relationships with other businesses, as well as their relationships with customers. This spectrum includes:
- Operations and Management – The way you operate and run your business should adhere to the commercial laws of Brazil. Recovering credit through collection, for instance, is key for the operation of a business.
- Bookkeeping, Financing and Accounting – Brazilian laws will dictate whether or not your methods of budgeting and bookkeeping are accurate. Also, before paying taxes, you must fully understand the taxation system in Brazil. If you make mistakes on your taxes, you will be penalized under Brazilian commercial law.
- Contracts – If you intentionally break a contract with another business or a customer, you will be penalized under Brazilian law.
- Bankruptcy – You will need to file for bankruptcy in a specific way based on the laws in Brazil.
- Marketing, Sales and Commerce – Much like in the US, your business will be penalized for false marketing or unfair sales.
- Buying and Selling Business Entities – The way you buy and sell parts of your business will need to adhere to the laws set forth in Brazil.
All of these factors will be regarded under the commercial law in Brazil, and if you break any of the laws, you could face harsh penalties.
Commercial Laws in Brazil are Different for Foreigners
In addition to understanding the full range of commercial laws in Brazil, you’ll need to understand how those laws apply to you if you are doing business from a foreign country. For example, taxation laws are different for companies founded in Brazil than for those founded in the United States operating in Brazil. Since breaking these laws could result in a penalty, it is important to find out which of the commercial laws will vary for people outside Brazil.
By breaking business laws in Brazil, you could ruin the future of your business and even your own personal future. Penalties can be harsh, and even if you are not thrown in prison, your business may either be banned or face enough fines to be put under. If you are seriously considering opening a part of your existing business in Brazil, or even starting a new business there, think about speaking with a certified commercial law attorney in Brazil. It could ultimately be the difference between success and failure for your business.