Dos and don'ts of doing business in Brazil
By Roxana Mironescu
Reuniting some 40 members of the local financial and business industry, Luxembourg Brazil Business Council (LBBC) marked the New Year with a luncheon designed to outline the dos and don’ts of doing business in Brazil.
Delivering a presentation on the day, Jean-Marie De Backer, President of Luxembourg Brazilian Chamber of Commerce in Brussels and President of CMS DeBacker Law firm, informed the audience about the advantages and challenges faced by business representatives when operating in Brazil.
He described the South American state as a fantastic country to invest in, an enormous territory with important water and energy resources, the home of over 200 million people and the holder of the sixth place in the world for its GDP rate.
Brazil, a fantastic country to invest in
De Backer argued that doing business in Brazil is very easy if companies follow the rules and advised event participants to seek assistance and good advice from locally-based organisations.
He pointed out that the Brazilian middle class represents an excellent target audience for new investors, and that the number of young Brazilian entrepreneurs is continuously growing.
With more and more highly-skilled individuals, engineers and business people on the work market, Brazil has great potential that allows businesses to grow and develop.
Before starting a business in Brazil, companies were advised to contact a local lawyer, check the competition on the market and always negotiate the price.
Important steps to follow for new businesses in Brazil
Members of the local business community were also informed that certain provisions are compulsory in Brazil. For instance, all company managers must be permanent residents of the country, the minority shareholders are protected by law and severe environment regulations are in place.
As host of the business event, LBBC President Laertes Boechat also spoke before the audience, thanking participants for their presence and support and went on to describe the organisation’s plans and hopes for 2014.
‘‘The New Year is certainly pointing out new opportunities. I am noticing a vivid interest in the international community of bankers and representatives of the financial sector and the desire of engagement with Brazil,’’ Mr Boechat said.
He then pointed out that LBBC ‘‘wants to open a dialogue with the Brazilians who can actually engage in a meaningful dialogue, with the brightest minds in Europe in general and with Luxembourg in particular. Brazil must let go of the past and open the door to the news, to the true meaning of innovation.’’
‘‘For LBBC, 2014 comes with new opportunities, it is the time ‘‘to establish’’. One thing is for sure, you will hear a lot about Brazil this year,’’ concluded President Boechat.
2014 comes with new opportunities for LBBC
Luxembourg Brazil Business Council was founded in 2012, it is a member of the the Belgium-Luxembourg Chamber of Commerce in São Paulo (Belgalux) and of the Brazilian Chamber of Commerce in Brussels (Brascam).
While LBBC has successfully managed to strengthen links between Brazil and Luxembourg since its foundation, Brazil has not been completely unknown to the people of the Grand Duchy.
Back in the 1940s and 1950s, a number of Luxembourg workers headed to South America to work in the Brazilian steel industry for multinational steel company Belgo Mineira, which was co-founded by Luxembourg’s Arbed.
If you are interested in knowing more about current business possibilities and connections between Luxembourg and Brazil, please visit www.luxbrazil.lu.