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Brazil is the largest economy in Latin America and has the largest population. This economic powerhouse is a great jurisdiction to employ local staff to assist with your business activities. In addition, local Brazilians are often tri-lingual; Portuguese, Spanish and English, which is extremely advantageous when conducting business in an International environment. However, before hiring staff in Brazil, it is important to understand the somewhat complicated employer requirements.
Watch the short yet informative presentation below and stay compliant when hiring staff in Brazil.
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Key Considerations: Employment
Find below, some of the key considerations that should be taken into account before contracting staff in Brazil
Yes – 90 days
Is there an employee
probation period?
Yes
Do staff need a local
employment
contract?
Yes
Can expatriate staff
be hired?
30 days after 12
months of work
Vacation
entitlement
Max employer
contribution is 85%
Total cost of
employment
Employers - they
must also pay
employee’s social
security
Who manages
withholding tax?
• Christmas Bonus
• Medical Insurance
• Life Insurance
• Savings fund
Employee benefits
4. Forming a Legal Entity in Brazil
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In Brazil, there are (3) main types of legal entities:
Limited Liability Company (LTDA), Closed Joint Stock Company, Open Joint Stock Company
and the General Partnership Company
Advantages:
• Greater control of your employees
• Better knowledge of local market,
laws and regulation
• Viewed more positively than a
PEO solution
Disadvantages:
• High set-up/ongoing costs
• Administration involved in
managing a local company
• Accounting and tax obligations
5. Professional Employer Organization
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Advantages:
• You can operate without forming
and maintaining a local entity
• Limited legal responsibility
• Cost-effective way to convert
international contractors into
employees
Disadvantages:
• The PEO becomes a co-employer
• Loss of control
• Costs involved with PEO services
• Compromised company culture
International PEO is a method to employ staff without having your own company
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contact@bizlatinhub.com
Are you looking to hire staff?
As you are now aware, you have two
options to hire staff:
a) Through a Local Legal Entity or
b) Through a PEO solution
Need assistance hiring employees?
Partner with Biz Latin Hub to learn how we can
support you and your business in Latin America
7. Doing Business in Brazil?
Learn More Here!
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What You Need to
Know to Get a
Brazilian Investor Visa
and Permanent
Residency
Key Considerations
when Opening a
Company in Brazil?
Company
Formation in Brazil:
An Overview of the
Sociedad Limitada
(SRL)