Expanding Your Business to Brazil: A Practical Guide for International Companies

Brazil is one of the world’s largest economies and a strategic destination for companies seeking sustainable, long-term growth. With strong domestic demand, a central role in global supply chains, and direct access to Latin America, the country continues to attract international businesses across multiple sectors.

At the same time, expanding into Brazil requires thoughtful planning. Regulatory complexity, labor rules, and operational requirements can create friction for companies unfamiliar with the local environment.

This guide explains why companies expand to Brazil, the most common challenges they face, and how to enter the market in a practical and efficient way.

Brazil’s economic diversity creates opportunities across a wide range of sectors. Agribusiness and food production remain pillars of the economy, supported by strong exports and continuous innovation in sustainability and productivity.

Energy and natural resources also play a central role. Brazil’s diversified energy matrix, combined with oil, gas, and mining, attracts companies involved in infrastructure, engineering, and energy transition projects.

Manufacturing and industrial goods benefit from the size of the internal market, which drives demand for local production, technical services, and after-sales support. At the same time, technology and digital services continue to grow rapidly, with Brazil emerging as a regional hub for software development, fintech, and digital platforms.

Healthcare and life sciences are also expanding, driven by population growth, private investment, and demand for innovation across medical devices, pharmaceuticals, diagnostics, and digital health solutions.

Despite its potential, Brazil presents operational and regulatory challenges for foreign companies. Labor laws are complex, payroll rules are strict, and compliance requires ongoing local expertise.

Taxation and reporting obligations can be demanding, while establishing a local legal entity often involves lengthy timelines, bureaucracy, and fixed costs. In parallel, recruiting and managing local teams remotely can be difficult without an on-the-ground presence.

Without the right structure, these challenges may slow down expansion, increase risk, and divert leadership focus away from growth.

International companies typically choose between two main approaches when entering Brazil.

Opening a local legal entity provides full operational control, but it also requires significant time, upfront investment, and ongoing accounting, tax, and legal management. This model is usually best suited for companies with clear long-term plans and a committed local footprint.

An alternative approach is hiring through an Employer of Record (EOR). With an EOR, employees are legally hired under Brazilian labor law, while payroll, benefits, taxes, and compliance are managed locally. The company retains full control over daily operations, strategy, and performance, without the burden of entity setup.

This model allows companies to enter the market faster, reduce risk, and maintain flexibility as the business evolves.

Why companies choose EOR when expanding to Brazil

Many international companies choose the EOR model because it enables a faster and more controlled entry into Brazil. It removes the immediate need for a local entity, simplifies compliance, and reduces upfront investment.

EOR also offers flexibility. Companies can start with a small local team, validate the market, and scale operations gradually, aligning structure with real business demand rather than assumptions.