Insights
Doing Business in Brazil Without Setting Up a Company
Insights · By Chen ChunJie · Updated 24 October 2026
You can sell to Brazilian customers, work with local partners and even employ people in Brazil without opening a Brazilian company. What you cannot do without a local entity is invoice locally with a Brazilian tax invoice, import goods in your own name or run a licensed activity. Most companies test the market with the options below first.
Last reviewed in October 2026 against the CLT, Law 6,019/1974, Constitutional Amendment 141/2026 and official eSocial, INSS and FGTS sources. General information, not legal or tax advice.
Five ways to operate in Brazil without your own company
| Option | What it lets you do | Watch out for |
|---|---|---|
| Sell cross-border from abroad | Contract with and invoice Brazilian customers from your home company | Brazilian payers may have to withhold taxes on imported services, which affects pricing |
| Distributor or reseller | A Brazilian company buys, imports and resells your product | Exclusivity and termination terms; you depend on the partner’s reach |
| Commercial representative | A local agent finds customers and earns commission | Representatives registered under Law 4,886/1965 have statutory protections, including termination indemnity |
| Employer of record | Employ people in Brazil on CLT contracts. See Employer of Record in Brazil | Permanent-establishment risk if employees sign contracts for you |
| Independent contractors (PJ) | Engage Brazilian businesses for defined projects. See On-Demand Talent | Full-time, directed work can be reclassified as employment |
Hiring people without a Brazilian company
If you need people on the ground, for sales, customer success or engineering, an employer of record can employ them for you under Brazilian law. The employee gets a CLT contract, benefits and payroll in reais; you get the person working on your business without a subsidiary. Read how to hire employees in Brazil for the full process.
Keep revenue-generating roles away from signing contracts or binding your company in Brazil. That is the activity most likely to create a taxable presence (a permanent establishment). Confirm the position with your tax adviser.
When you need your own Brazilian company
- You want to issue Brazilian tax invoices (notas fiscais) to local customers
- You will import goods, hold inventory or sign leases in Brazil
- Your activity needs a licence or local registration
- The team grows beyond what a service arrangement comfortably covers
The usual vehicle is a limitada (Ltda.), which needs a resident administrator, a registered address, CNPJ and tax registrations and a local accountant. Plan for several weeks to a few months, depending on the state and the activity.
A sensible order of steps
- Validate demand by selling cross-border or through a partner.
- Hire your first one or two people through an employer of record.
- Open your own company when local invoicing, imports or team size justify it.
- Move employees from the EOR to your company through an agreed transfer.
Questions about operating in Brazil without a company
Can a foreign company do business in Brazil without registering?
It can sell cross-border and work through local partners. Operating locally, for example issuing Brazilian invoices or importing in its own name, requires a Brazilian entity or an authorized branch.
Can I hire employees in Brazil without opening a company?
Yes, through an employer of record. See Employer of Record in Brazil.
Does hiring through an EOR create a permanent establishment?
It depends on the employee’s activities. Roles that negotiate or sign contracts for your company carry the most risk.
How long does it take to open a company in Brazil?
Typically several weeks to a few months, depending on the state, the activity and how quickly documents are legalized.
Need people in Brazil before you incorporate?
NNRoad can employ your first hires in Brazil and run payroll and compliance until you are ready for your own company.
Related
Every way to hire without your own entity, compared.
What a Brazilian hire costs each month.