ADMINISTRATIVE MANAGEMENT OF SUBSIDIARIES IN BRAZIL

Alehsi & Partners supports international companies to establish and manage a subsidiary in Brazil. We provide local competence and experience, offering our clients the necessary strategic advice and operational support before, during, and after the opening of a Brazilian subsidiary.

 

Strategic advice

As we are familiar with the particularities of the Brazilian market, we can support with local knowledge and recommendations to allow strategic decisions that are essential for the success of your business.

 

We carry out special projects to find the right condition to start and/or run a business in Brazil. In this context, we organize meetings and visits with providers of specialized services, such as:

 

  • International experienced law firms and accounting offices;

  • Market research companies;

  • Industrial brokers;

  • Service providers who are specialized in obtaining licenses and registration of products and brands.

  • Logistic companies, importers and distributors.

 

Administrative management of subsidiaries
Besides the assumption of legal responsibility and the strategic advice for the establishment, we offer operational support to manage the subsidiary, such as:

 

Cash Management

  • Open a bank account;

  • Register the company with the central bank (BACEN);

  • Management of bank account;

  • Bank reconciliation and financial reporting;

  • Foreign exchange transactions;

  • Preparation of reports and financial controls established by the head office; 

  • Monitor fiscal and administrative matters following current legislation.
     

Human Resources Administration

  • Admission and registration of employees;

  • Payment of salaries and social charges;

  • Control of expenses;

  • Benefits management: ensuring and complying with legal requirements, e.g., control of vacation and health insurance.

Closing down a subsidiary

Sometimes, an adverse situation leads the headquarters to decide to leave the market and liquidate its subsidiary. In these cases, we support our client with administrative services and the necessary mandates during the downsizing process until the company is ready to close.

The following legal positions are mandatory for the liquidation of a subsidiary and must be defined in the statutes and recorded in the commercial register:​

  • The attorney authorized by the foreign shareholder, who by resolution submits the dissolution of the subsidiary to the local tax authority;

  • The liquidator, appointed by the shareholders, is authorized to settle the company's liabilities, convert the company's assets into cash, and close the company at the government authorities. Besides, he must keep the company's books for at least five years and represent the company before the Federal Revenue Service and the Ministry of Labor.

 

 

Benefits of this modus operandi for the foreign company:

 

  • Focus on the core business, while we ensure the back office to run properly, that means the administrative and bureaucratic part;

  • Reduction of payroll costs by outsourcing operational activities;

  • Dedication of resources to the commercial area, focusing on strategic decisions that allow the subsidiary to maintain or obtain a competitive advantage in the market;

  • Low financial investments in infrastructure;

  • Increased productivity and quality of the services themselves.