Complete guide to doing business in Brazil in 2025, for growing startups and entrepreneurs

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Brazil expansion overview Why expand business operations to Brazil? Challenges of doing business in Brazil How to set up a business in Brazil? Which cities and areas in Brazil are best for businesses? Business etiquette and culture in Brazil Tips for doing business in Brazil Grow your business in Brazil with Wise Business

Considering launching a business in Brazil, or expanding your UK business there?

The country has lots to offer to foreign entrepreneurs, including a huge economy and market, skilled workers and start-up friendly cities. However, just like with launching in any foreign market, you’re likely to face a number of challenges as a new arrival.

In this comprehensive guide, we’ll cover all the essentials you need to know about doing business in Brazil.

We’ll explore the benefits, opportunities and obstacles, along with business etiquette and corporate culture in Brazil. Plus, we’ll look at some of the most business-friendly cities and regions in Brazil.

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Brazil expansion overview

Research is key to success when expanding to Brazil, to understand local culture, business etiquette and regulatory requirements.

Consideration	Description
Opportunities/benefits	Large economy and market, skilled workers, government support, opportunities in e-commerce and fintech, agribusiness and wellness
Challenges	Complex tax and bureaucratic systems, language barrier, low trading volumes and high trade costs
Most attractive cities and regions for foreign entrepreneurs	São Paulo, Rio de Janeiro, Belo Horizonte

Why expand business operations to Brazil?

There are lots of reasons why UK businesses choose to expand their operations to Brazil.

This includes an enormous market and potential customer base, along with a skilled workforce, government support for startups and opportunities across multiple industries.

We’ll explore these benefits and opportunities in more detail below.

A large economy and consumer market

Brazil has one of the largest economies in Latin America, and the 10th largest in the world. It has a GDP of $2.13 trillion USD and growing, with estimated growth of 2% in 2025.¹

It also has a massive population of over 212.8 million,² with a growing middle class - this means more customers with increasing purchasing power.

Looking beyond the country’s borders, there are even more potential opportunities for businesses. Brazil is a member of MERCOSUR, also known as the Southern Common Market. It’s a major South American trading bloc offering bilateral trade and tax treaties between nations. For businesses, this could open up access to a potential market of nearly 300 million customers across the region.³

As well as regional trading opportunities, MERCOSUR also has major agreements in place with other trading blocs - including a 2024 deal with the EU.⁴

Access to a skilled workforce

If you’re looking to hire top talent, particularly across tech-related sectors, you’ll have a rich and diverse talent pool to choose from in Brazil.

Of the 739,000 tech graduates the Latin American (LATAM) region produces every year, around 475,000 of them were educated in Brazil. Unsurprisingly then, the country has the largest tech talent pool in LATAM, including around 500,000 software developers.⁵

Government schemes and support

The Brazilian Government has a number of initiatives in place to support both home-grown and foreign-owned startups and established businesses.

This includes SEBRAE, the Macro and Small Business Support Service, and PEIEX (Programa de Qualificação para Exportação). The latter is a program aiming to help companies prepare for and engage in international trade and exporting activities.

Brazil also has an Investor Visa suitable for entrepreneurs, where you may be eligible for permanent residency if you invest at least 500,000 BRL (approx. £66,900 GBP) in a new or existing business in Brazil, or 1 million BRL (£133,800 GBP) in a startup that creates jobs or fosters innovation.⁶

Opportunities in e-commerce, wellness, agribusiness and manufacturing

There are a number of opportunities for both startups and established businesses in Brazil, particularly in e-commerce, where revenue is expected to reach $45 billion or more in 2025.⁷

Due to the complex tax and financial systems present in Brazil, there is clear demand for digital payments solutions and personal finance apps to simplify matters for both consumers and other businesses.

Agribusiness presents another key opportunity, as it makes up nearly 21% of the country’s GDP. And a growing sector is health and wellness, a sector for which Brazil is one of the largest global markets.⁷

Manufacturing businesses can also do well in Brazil. The country is abundant in natural resources and raw materials, making it the ideal base camp for companies concerned about supply chain issues, shortages and import tariffs in other parts of the world.

💡 Read our international expansion checklist

Challenges of doing business in Brazil

While Brazil may present many exciting opportunities for UK entrepreneurs and growing startups, it also has its challenges.

It’s good to be aware of these from the outset, so you know what to expect and can prepare accordingly.

Here, we’ll take a look at a few of the most common challenges UK startups face when launching in Brazil.

Complex regulatory and tax environment - and risk of corruption

While Brazil is known for its well-regulated economy, it’s also a complicated and bureaucracy-heavy market - one which can be particularly complex for foreign businesses to navigate.

The Brazilian government is making concerted efforts to simplify processes like registering business licences, but the country is still ranked 7 of 79 in the TMF Group Global Business Complexity Index 2025 - with a ‘high’ complexity score of 9 out of 10.⁸

The Index highlighted the main issues as accounting and tax, legislative requirements, registrations and filings, planning and timelines, and use of technology.

There’s also the risk of corruption. Brazil has been making encouraging progress in recent years, but the country has been unable to completely shake off its reputation for unethical business practices.

This is why it’s crucial to seek specialist legal advice before launching in Brazil, so that you can implement robust policies and strategies to minimise these risks. \

Language barrier

One of the biggest obstacles UK entrepreneurs will need to overcome when starting out in Brazil is the language barrier.

It’s likely you will need to speak at least some Portuguese to get by in the business world. In some cases, you may find that clients, suppliers and customers speak no English at all.

According to the EF English Proficiency Index in 2024, Brazil ranked at just 81 out of 116 countries when it came to English proficiency.⁹ The highest proportion of English speakers are in cities like Florianópolis and Porto Alegre, followed by major business hubs like São Paulo and Rio de Janeiro.

This means you’ll need to brush up on your Portuguese language skills - or employ the services of translators - if your business is to thrive there.

Low trading volumes and high trading costs

Brazil may offer some advantages in terms of trading, through free trade blocs such as MERCOSUR. But there are drawbacks too. Statistics show that along with Argentina, Brazil is one of the most closed economies in the world, with trade accounting for under 30% of GDP.¹⁰

And trade between regions - which you’d expect to be high due to free trade under MERCOSUR - is surprisingly low at just 15%, especially when compared to the EU’s figure of 55%.¹⁰

For businesses, this could mean fewer trade opportunities, and/or more obstacles to trade.

It could also be more expensive. According to a report from the Inter-American Development Bank, logistics in Latin America - including Brazil - are costing businesses around twice as much as in OECD countries in both time and money.¹⁰

There is good news on the horizon though, as a new agreement between the EU and MERCOSUR was signed in 2024.⁴ This could open up a whole new era of profitable trade for Brazil-based businesses.

How to set up a business in Brazil?

The process of setting up an entity in Brazil generally involves the following steps:

• Market research and planning, including developing a comprehensive business plan and conducting feasibility studies
• Choosing a suitable business structure - in Brazil, you can choose from the following:¹¹
  • Sociedade Anônima (S.A.) - public corporation
  • Sociedade de Responsabilidade Limitada (Ltda. or L.L.C.) - limited liability company
  • Sociedade em Nome Coletivo (S.N.C.) - general partnership
  • Microempreendedor Individual (MEI) - a one-person business, similar to a sole proprietorship
  • Cooperativa - cooperative
  • Filial - foreign branch
  • Sociedade por Ações (SPA) - startup>* Registering your business with Junta Comercial or other relevant authority
• Registering for taxes and getting a CNPJ (tax identification number), and registering for the Social Security System (INSS)
• Getting the required licences and permits
• Establishing a physical or virtual office in your chosen state or city
• Opening a local business bank account - you can also use an international account such as Wise Business.
• Recruiting and hire employees, ensuring your follow local employment regulations
• Setting up financial and accounting systems.

You may want to work with an international business consultant and/or a global company formation provider.

A specialist with knowledge of Brazil can help you navigate the process and understand the specific requirements for establishing a business there.

Which cities and areas in Brazil are best for businesses?

The part of Brazil you choose to start your business in will largely depend on your market research, as you’ll want to go where there are the most opportunities and demand for your product or service. You may also have connections to a particular city, or already sell there.

But generally speaking, some cities and areas in Brazil are more attractive for UK-owned startups than others. Let’s take a look.

São Paulo

As well as being a vibrant financial centre and one of the world’s most populous cities, São Paulo is also forging a reputation as a thriving startup hub - especially when it comes to fintech. It’s home to 12 of Brazil’s 16 unicorns, and 63% of the country’s businesses have their headquarters there.¹²

Other attractions include:

• Well-developed and supportive startup ecosystem
• High levels of startup investment
• Broad and diverse market
• Opportunities in commerce, IT, creative sectors and services
• Home to renowned universities and a high concentration of skilled workers
• Robust infrastructure, from convention centres and technology parks to international airports.

Rio de Janeiro

Another of Brazil’s biggest cities, Rio is famous for its tourist industry - but there are also opportunities there for culture and entertainment, oil and gas, printing and publishing, and manufacturing.

The country’s capital has numerous attractions for new businesses, including the following:

• Government support for startups, and a growing startup ecosystem
• Strategic location for accessing other LATAM markets
• Large and diverse market
• A leading financial and commercial sector
• Home to leading universities and a high quality talent pool.

Belo Horizonte

Located only an hour’s flight from Rio and São Paulo is Belo Horizonte, the capital of the Minas Gerais state. It’s known as the ‘first planned modern city’ in the country, and is fast becoming a hotbed for startups to rival even São Paulo.

It’s backed by major corporations such as Google, which has invested over $200 million and employs hundreds of tech professionals there.¹²

Here are just a few of the many reasons Belo Horizonte is attractive to entrepreneurs:

• Strong innovation and start-up friendly ecosystem
• Support from development agencies such as the Minas Gerais Investment and Foreign Trade Promotion Agency (INDI) and the Minas Gerais Development Bank (BDMG)
• Incentives such as grants, tax breaks and support
• Home to several universities and tech schools, along with a vibrant and highly skilled workforce
• High levels of venture capital (VC) startup investment
• Innovation hubs, co-working spaces and networking opportunities.

Business etiquette and culture in Brazil

One of the hardest things to adjust to as a UK entrepreneur expanding to a foreign market is the difference in culture - both inside and outside of the business world.

The business etiquette and culture in Brazil is similar to the UK, although you may find it more informal and relaxed (especially when it comes to time-keeping). Building professional relationships is extremely important, with face-to-face conversations preferred over email or messages.

There are plenty of nuances to get to grips with, so it’s crucial to do your research carefully. The first important step will be to learn or improve your knowledge of Portuguese, as this is essential for doing business in Brazil.

Tips for doing business in Brazil

• Do as much research as you possibly can - into local culture and etiquette, as well as business opportunities and target customers.
• Get expert advice from specialists in the region you’re targeting - this includes legal and tax advice, and support navigating local bureaucratic processes.
• You’re likely to need a local bank account from the start
• Start learning Portuguese or improve your language skills - or make sure you hire a translator
• Familiarise yourself with company registration and legal structures in Brazil so you can choose the most appropriate one for your new business.

💡 You may also like our full guide to doing business in LATAM ✈️

Grow your business in Brazil with Wise Business

While having a corporate bank account may be an essential for starting a company overseas, you can also use Wise Business to help grow your business in Brazil.

Open a Wise Business account and you can manage your company’s finances in 40+ currencies all in one place, including GBP, EUR, USD and all other major currencies. You’ll be able to pay suppliers and staff in their own currency, as well as receiving payments in multiple currencies.

Wise payments are fast and secure (even for large amounts). Best of all, you’ll only pay low, transparent fees and always get the mid-market exchange rate.

With Wise Business, you’ll also benefit from the following features:

• Issue business debit and expense cards for you and your team
• Cashback on eligible card spending
• Generate invoices and payment links to receive money easily from customers
• Access accounting integrations, batch payments and a powerful API
• Wise Interest - which lets you earn returns on balances held in GBP, USD and EUR. Capital at risk. Growth not guaranteed. Wise Assets UK Ltd is authorised and regulated by the Financial Conduct Authority with registration number 839689. When facilitating access to Wise investment products, Wise Payments Ltd acts as an Introducer Appointed Representative of Wise Assets UK Ltd. Please be aware that we do not offer investment advice, and you may be liable for taxes on any earnings. If you’re uncertain, we urge you to seek professional advice. To find out more about the Funds, visit our website.

It’s quick and easy to open a Wise Business account in Brazil, with a fully digital application, verification and on-boarding process. Check out the requirements here.

Wise works almost everywhere, and you can also open an account in other countries such as the US and Canada - as well as the UK, of course.

Register with Wise Business🚀

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Sources used:

1. Forbes India - Top 20 largest economies in the world in 2025: GDP rankings & key insights
2. Worldometer - Brazil population
3. MERCOSUR - MERCOSUR in brief
4. European Commission - EU-Mercosur agreement
5. Remotely Talents - Tech Roles Salary Guide: Europe vs Latin America in 2025
6. Lincoln Global Partners - Entrepreneur & Start-Up Visas
7. Accountant Consulting - What Are the Most Profitable Businesses to Start in Brazil?
8. TMF Group - The Global Business Complexity Index 2025
9. EF EPI - Brazil
10. Council on Foreign Relations - Why Latin America Lost at Globalization—and How It Can Win Now
11. SKUAD - Starting a Business in Brazil
12. Globy - These 7 Brazilian Cities Are The Next Big Tech Hubs

Sources last checked on date: 30-Jul-2025