Doing Business in Brazil

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Doing Business in Brazil
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Map of Brazil
Area 8,514,876,599 sq Km land 8,459,417 sq km
water 55,460 sq km Eastern South America,
bordering the Atlantic Ocean Capital
Brasília 26 states and 5,561 cities Note
largest country in South America shares common
boundaries with every South American country
except Chile and Ecuador
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Brazil is known worldwide as the country of
Carnival and Football (Soccer). Yes, it is. But
it is a lot of more than that. Soccer and
Carnival are great business for the country and
its people. Brazil has a lot of beautiful
beaches, big cities, hold one of the 7 wonders of
the world - The Statue of Christ the Redeemer, in
Rio de Janeiro - and São Paulo is the capital of
business.
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São Paulo is the largest city in Brazil and the
world's 7th largest metropolitan area. It is also
the richest city in Brazil. The city has many
renowned landmarks, such as the Museu Paulista do
Ipiranga, the gothic Metropolitan Sé Cathedral,
the São Paulo Museum of Art (MASP), the Monument
to the flag, Niemeyer's Ibirapuera complex
Bienal, planetarium, and museums and more
recently the Espraiada bridge in the South Side.
Paulista Avenue, in Midtown is the most important
financial center in the country and South America.
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The Carnival of Brazil, properly spelled
"Carnaval" in Portuguese, is an annual festival
in Brazil held forty days before Easter. Rhythm,
participation, and costumes vary from one region
of Brazil to another. In the southeastern cities
of Rio de Janeiro and São Paulo, organized
parades led by samba schools are influenced in
aesthetics by Venice Carnival. Those official
parades are specific to be watched by the public,
although minor parades (called blocos) allowing
participation can be found in other cities.
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The northeastern cities of Salvador, Porto Seguro
and Recife have organized groups parading through
streets, and public interacts directly with them.
This carnival is heavily influenced by
African-Brazilian culture. Crowds follow the trio
elétricos floats through the city streets. Also
in northeast, Olinda carnival features unique
characteristics, part influenced by Venice
Carnival mixed with cultural pieces of local
folklore.
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Carnival is the most famous holiday in Brazil and
has become an event of huge proportions. The
country stops completely for almost a week and
festivities are intense, day and night, mainly in
coastal cities. The local tourism receives 70 of
annual visitors during this time.
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Brazil team are the most successful national
football team in the history of the World Cup,
with five championships (1958, 1962, 1970, 1994,
2002). A common quip about football is "The
English invented it, the Brazilians perfected
it.. It is the only team to have played in every
World Cup. Our football player have made a lot of
money in Europe, and always there is a lot of
team fighting for them.
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Brazil has Pele who becomes a football legend, he
is known for his accomplishments and
contributions to the game of football in addition
to being officially declared football ambassador
of the world by FIFA and a national treasure by
the Brazilian government. He is known as The
King of Football.
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The national beverage is coffee and it has been
one of the main beverages among Brazilians since
the beginning of the 19th century. Brazil is the
world leader in production of green coffee,
followed by Vietnam and Colombia. 2007 Top
green coffee producers Brazil 2,249,010 T
Vietnam 961,200 T Colombia
697,377 T World 7,742,675 T
Cachaça is Brazil's native liquor, and it is also
known as aguardente, pinga, among others. Cachaça
is distilled from sugar cane and is the main
ingredient in the national cocktail, Caipirinha.
Brazil consumes 1.5 billion liters per year, and
15 million of liters are consumed outside per
year.
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• Brazil General Profile
• Population 198,739,269 Fifth Largest
  Population in the world
• Population growth rate 1.999 (2009 est.)
• Climate moderate Tropical - humid and hot. There
  is a small variation in temperature, and it is
  comfortable in most parts of the country
• Language Portuguese (official)

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• Brazil General Profile
• Ethnic groups white 53.7, mulatto (mixed white
  and black) 38.5, black 6.2, other (includes
  Japanese, Arab, Amerindian) 0.9, unspecified
  0.7 (2000 census)
• Government type Federal Republic
• Legal System based on Roman codes

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Brazil News Overview

• Brazil takes off!
• The Economist - November,2009
• Brazil's economy leaves recession - Brazil has
  come out of recession after its economy grew ()
• BBC News - Sept, 2009
• Investors in Developing Markets See Optimism in
  Brazil
• The New York Times June, 2009

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• Brazilian Economy Growing from 2003 to 2009
• Brazil is South America's most influential
  country, an economic giant and one of the world's
  biggest democracies.
• BBC News Country Profile
• Since 2003, Brazil has steadily improved
  macroeconomic stability - building up foreign
  reserves, reducing its debt profile, adhering to
  an inflation target, and committing to fiscal
  responsibility
• In 2008, Brazil became a net external creditor

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• Brazilian Economy Growing from 2003 to 2009
• Brazil's external debt totaled less than its
  foreign reserve holdings, and two ratings
  agencies awarded investment grade status to its
  debt. After record growth in 2007 and 2008, the
  onset of the global financial crisis hit Brazil
  in September, 2008
• Brazil was one of the first emerging markets to
  begin a recovery. Consumer and investor
  confidence revived and GDP growth returned to
  positive in the second quarter, 2009
• The Brazilian Central Bank expects growth of 5
  for 2010.

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• Brazilian Economy General Indicators

Brazil - Economic and Financial Indicators Brazil - Economic and Financial Indicators Brazil - Economic and Financial Indicators Brazil - Economic and Financial Indicators Brazil - Economic and Financial Indicators Brazil - Economic and Financial Indicators Brazil - Economic and Financial Indicators
  2003 2004 2005 2006 2007 2008
GDP (real ann. -chg) 1,1 5,7 3,2 4 6,1 5,1
Consumption (real ann. -chg) -0,3 3,9 3,9 4,5 5,8 5,7
Investment (real ann. -chg) -4,6 9,1 3,6 9,8 13,9 13,4
Agriculture (real ann. -chg) 5,8 2,3 0,3 4,5 5,2 5,7
Industry (real ann. -chg) 1,3 7,9 2,1 2,3 5,2 4,4
Services (real ann. -chg) 0,8 5,0 3,7 4,2 6,1 4,8
Manufacturing (real ann. -chg) 0,1 8,3 3,1 2,8 6,0 3,1
Retail Sales (real ann. -chg) -3,7 9,2 4,8 6,2 9,7 9,1
Unemployment () 10,9 9,6 8,3 8,4 7,4 6,8
Fiscal Balance ( of GDP) -4,6 -2,4 -3,0 -2,9 -2,2 -1,5
Source Banco Central do Brasil, Ministry of Treasure of Brazil, Institute of Geography and Statistics (IBGE). Source Banco Central do Brasil, Ministry of Treasure of Brazil, Institute of Geography and Statistics (IBGE). Source Banco Central do Brasil, Ministry of Treasure of Brazil, Institute of Geography and Statistics (IBGE). Source Banco Central do Brasil, Ministry of Treasure of Brazil, Institute of Geography and Statistics (IBGE). Source Banco Central do Brasil, Ministry of Treasure of Brazil, Institute of Geography and Statistics (IBGE).
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• Employment Market in Brazil - From 2003 to 2009
• The Brazilian workers have now more years of
  schooling than seven years ago
• Percent of the workforce with high school or
  above education (11 years of education) in 2003
  46.7
• Percent of the workforce with high school or
  above education (11 years of education) in 2009
  57.5
• Brazil's unemployment rate falls 28.75 in 7
  years
• Salary indicators went up 14.3 percent in seven
  years, reaching 1,350 reais (729 U.S. dollars)
• Brazils Labor Force - 95.21 million - Sixth
  Largest Labor Force in the World
• According to Brazils Ministry of Labor and
  Employment, on January 2010, Brazil added 181.419
  new formal jobs
• Sources
• Institute of Geography and Statistics (IBGE)

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Brazilian Economy General Indicators
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Business in Brazil Positive Points

• It is the largest country in South America
• It is the fifth largest country by geographical
  area, and the fifth most populous country in the
  world
• It is a democratic country, and all members of
  the executive and legislative branches are
  directly elected
• The climate of Brazil is tropical, and there is
  not natural disaster

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Business in Brazil Positive Points

• The Real is a current and stable currency
• It is a multicultural country
• Accounts for three fifths of industrial
  production in the South American economy and is a
  part of MERCOSUL - the Regional Trade Agreement
  of Latin America
• The exchange rate system does not generate
  pressure on the industry or inflation.

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Why choose Brazil for Business?

• World's eighth largest economy by nominal GDP and
  the ninth largest by purchasing power parity
• Productive growth has created new labor and
  market opportunities and consolidated new
  investments
• Industrial Production in Brazil rose by 18,9 in
  December, 2009 - even after the oscillations
  during the crisis.
• OBSTACLES - Constantly Changing Legislation and
  Legal and Bureaucratic Complications

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Visa Categories

• Entry clearance requirements are dependent on
  the Citizenship of the applicant and purpose of
  visit. Citizens of most countries do need a visa
  to visit Brazil for business or work purposes
  unless provided by treaty or other reciprocity
  agreement.
• There are seven temporary visa categories.
  The most frequently used options are
• Temporary item 2 visa business visitor
• Temporary item 5 visa local employment contract
  work visa, technical visa (90 days/ 01 year)
• Permanent visa entrepreneur, manager, director,
  executive work visa

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Work Permits - Visa Statistics
TEMPORARY VISAS 2009
90 Days 12423
One Year 12028
2 Years - With Labor Contract 2578
2 Years - Without Labor Contract 13431
TOTAL 40460
VISA TYPES 2009
Permanent 2454
Temporary 40460
TOTAL 42914
ANALYSIS OF PERMANENT VISAS 2009
Investor Individual 921
Administrators, directors, managers and executives with power management 933
Others 600
TOTAL 2454
Source MTE Ministry of Labor and Employment
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Work Permits - Visa Statistics
Countries that have sent more foreigners to
Brazil in 2009
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PERMANENT VISA FOR INVESTORS (INDIVIDUALS)

• Legal basis Normative Resolution nº. 84, of
  February 10, 2009.
• The granting of authorization for obtainment
  purposes of permanent visa by foreign investor
  Individual
• Requirements
• Minimum personal amount of R150.000,00 (One
  Hundred and Fifty Thousand Reais) at a new
  Brazilian company or at an already existing
  company.
• Social Interest - Employment and income in
  Brazil, the increase in productivity, the
  assimilation of technology and the raising of
  resources for specific sectors.
• This type of visa is granted for three years -
  At the end of this period, the foreigner will
  have to renewal his status as a resident through
  the substitution of the Foreign Residents
  Identity Card (CIE) at the Federal Police
  Department.

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PERMANENT VISA FOR INVESTORS (INDIVIDUALS)

Investment by Country of Origin Investment by Country of Origin Investment by Country of Origin
Country 2008 2009
1. Italy USD 22.757.548,51 USD 22.057.414,89
2. Portugal USD 9.643.336,18 USD 11.598.023,18
3. Spain USD 13.477.569,93 USD 8.063.199,03
4. Germany USD 2.919.894,15 USD 6.930.940,29
5. China USD 8.377.329,98 USD 5.393.783,07
6. France USD 6.542.679,64 USD 4.710.841,64
7. USA USD 10.972.195,17 USD 4.525.887,54
8. Switzerland USD 1.415.005,97 USD 3.099.046,57
9. United Kingdom USD 2.820.649,59 USD 1.931.364,33
10. Holland USD 2.439.406,83 USD 1.766.360,50
(...) (...) (...)
Total Amount USD 98.391.958,77 USD 83.290.005,31
Source MTE Ministry of Labor and Employment
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We hope to see you in BrazilMuito obrigada !
Daniela Lima daniela.lima_at_emdoc.com Phone 55 11
3405 7807