Brazil Market Entry: Your First 90 Days After Incorporation

The day a Brazilian subsidiary receives its tax ID is when the real work starts. The first three months decide whether the entity runs smoothly or spends its first year correcting registrations, chasing late filings and explaining numbers to headquarters. This guide sets out what should happen in the first 90 days after incorporation for a foreign-owned company that is about to hire, invoice and report to its group.

Days 1 to 30: make the company operational

• Registrations: complete municipal registration (and state registration if the company sells goods), operating licenses and any sector permits.
• Digital certificates and access: issue the company’s e-CNPJ certificate, define who holds it, and grant the accountant an electronic power of attorney limited to the services needed.
• Bank account and capital: open the account, receive the capital through a foreign exchange contract carrying the SCE-IED code, and check the Central Bank record (see opening a corporate bank account).
• Tax regime: decide between Lucro Real and Lucro Presumido before the first tax payment of the year, which locks in the choice.
• Accountant and contract: sign a written contract with a registered accounting firm, with the detailed scope and the monthly calendar (see how to choose an accounting firm).
• Chart of accounts and policies: agree the mapping to the group chart and the accounting policies before the first entries.

Days 31 to 60: first transactions, first obligations

• Invoicing: issue the first electronic invoices with the correct tax codes; check that the ERP and the accounting system receive them.
• First hires: register the company as an employer in eSocial, identify the applicable collective agreement, run the admission steps and the first payroll (see hiring your first employee).
• Intercompany agreements: sign the agreements for services, cost recharges or loans with the group before the first charge is booked.
• First monthly close: close the first month, reconcile the bank account and the capital, and record pre-operating costs.
• First tax payments and returns: payroll taxes and FGTS on the 20th; DCTFWeb and federal taxes by the last business day; state and municipal taxes on their own dates (see monthly tax compliance in Brazil).

Days 61 to 90: control and reporting

• First reporting package to headquarters in the group format, with the bridge from Brazilian accounts and explanations of the main items.
• Federal tax situation check: confirm that no pending items appear in the Federal Revenue’s report and that a tax clearance certificate can be issued (see tax clearance certificates).
• Approval workflow: confirm who approves payments, tax positions and intercompany charges, and with what limits.
• Calendar for the year: load the monthly dates and the annual cycle (approval of accounts, ECD, ECF, Central Bank declarations) into a shared calendar.
• Review meeting: headquarters, local management and the accountant review the first quarter and fix what did not work.

Common mistakes in the first 90 days

1. Paying the first tax of the year without deciding the tax regime, which then cannot be changed until the following year.
2. Invoicing before the state or municipal registration is complete, or with the wrong tax codes.
3. Hiring before checking the collective agreement and registering the company in eSocial.
4. Booking intercompany charges without signed agreements, which weakens their tax deductibility.
5. Leaving the capital contribution without its Central Bank record, which later blocks remittances.
6. Agreeing only “accounting” with the provider, without the group reporting deliverables.

A full checklist by area is in Brazilian subsidiary setup: accounting, tax and payroll checklist.

How Solidy can help

Solidy already serves subsidiaries of multinational companies in Brazil. We can coordinate the first 90 days with headquarters: registrations, tax regime, accounting set-up, first payroll, first close and the first reporting package. Talk to our market entry team or see our accounting service.