Cost to Start Business in Brazil

Detailed cost analysis and financial planning guide for starting your business in Brazil, including all registration fees, permits, ongoing expenses, and tax obligations.

Financial planning and cost analysis for starting a business in Brazil

Cost Comparison by Business Type

Compare setup costs, monthly expenses, and annual investment required for different business structures in Brazil.

MEI (Microempreendedor Individual)

Individual entrepreneurs with revenue up to R$ 81,000/year

Initial Setup Costs

Registration:FREE
CNPJ:FREE
Permits:R$ 0-300
Total Setup:R$ 0-300

Monthly Expenses

Taxes:R$ 71.60-76.60
Accounting:Optional (R$ 50-150)
Monthly Total:R$ 71.60-226.60
First Year Total:R$ 859-2,719

ME (Microempresa)

Small businesses with revenue up to R$ 360,000/year

Initial Setup Costs

Registration:R$ 200-500
CNPJ:FREE
Permits:R$ 500-1,500
Total Setup:R$ 700-2,000

Monthly Expenses

Taxes:R$ 150-800
Accounting:R$ 100-500
Monthly Total:R$ 250-1,300
First Year Total:R$ 3,700-17,600

LTDA (Sociedade Limitada)

Limited liability companies with multiple partners

Initial Setup Costs

Registration:R$ 800-1,500
CNPJ:FREE
Permits:R$ 1,000-3,000
Total Setup:R$ 1,800-4,500

Monthly Expenses

Taxes:R$ 300-2,000+
Accounting:R$ 200-800
Monthly Total:R$ 500-2,800+
First Year Total:R$ 7,800-38,100+

SA (Sociedade Anônima)

Corporations suitable for large businesses and investments

Initial Setup Costs

Registration:R$ 2,000-5,000
CNPJ:FREE
Permits:R$ 2,000-5,000+
Total Setup:R$ 4,000-10,000+

Monthly Expenses

Taxes:R$ 1,000-5,000+
Accounting:R$ 500-2,000+
Monthly Total:R$ 1,500-7,000+
First Year Total:R$ 22,000-94,000+

Detailed Cost Breakdown

Understanding all components of business formation and ongoing expenses

Initial Setup Costs

Name reservation
Reserve company name at Commercial Registry
R$ 50-100
Articles of incorporation
Legal document preparation and notarization
R$ 300-800
Commercial registry filing
Junta Comercial registration fees
R$ 200-500
CNPJ registration
Federal Revenue Service tax ID registration
FREE
State registration (ICMS)
State tax authority registration
R$ 50-200
Municipal registration (ISS)
Municipal tax and permit registration
R$ 50-300
Basic permits (Alvará)
Municipal operating permit
R$ 200-800
Professional assistance
Lawyer and accountant fees for setup
R$ 800-3,000

Ongoing Monthly Expenses

Monthly accounting
Professional bookkeeping and tax compliance
R$ 100-800
Federal taxes (varies by regime)
Income tax, PIS, COFINS, CSLL
R$ 0-2,000+
State taxes (ICMS)
Goods and services circulation tax
R$ 0-1,000+
Municipal taxes (ISS)
Services tax (varies by municipality)
R$ 0-500+
Annual declarations
Annual tax and regulatory filings
R$ 200-1,000
Permit renewals
Annual permit and license renewals
R$ 100-500
Legal compliance
Ongoing legal and regulatory compliance
R$ 200-1,000

Factors Affecting Business Costs

Various factors influence the total cost of starting and maintaining a business in Brazil.

Business Type & Size

High Impact

MEI has minimal costs, while larger companies require more investment and ongoing expenses.

Industry Sector

Medium Impact

Healthcare, food, and manufacturing require additional permits and compliance costs.

Location (State/City)

Medium Impact

Tax rates and permit costs vary significantly between municipalities and states.

Tax Regime Selection

High Impact

Simples Nacional offers lower rates for eligible businesses compared to other regimes.

Professional Services

Medium Impact

Lawyer and accountant fees vary by region and complexity of business structure.

Number of Partners

Low Impact

Multiple partners may increase documentation and legal costs slightly.

Cost-Saving Tips

Smart strategies to minimize your business formation and operational costs while maintaining full legal compliance.

Choose MEI if eligible to minimize setup and ongoing costs
Select Simples Nacional tax regime for simplified taxation
Use government online portals to reduce service fees
Compare professional service providers for competitive rates
Consider shared office spaces to reduce initial location costs
Start with basic permits and add specialized ones as needed
Plan for annual expenses to avoid cash flow surprises
Maintain proper records to avoid penalties and additional costs

Investment Summary

Minimum Investment (MEI)

R$ 300-1,000
First year total cost

Average Investment (LTDA)

R$ 10,000-25,000
First year total cost

Professional Assistance

R$ 1,500-5,000
Complete setup service

Related Services

Explore our business formation services

Steps to Formalize a Company

Complete step-by-step company formation process and requirements.

How to obtain a CNPJ

FREE CNPJ registration process and tax regime selection guidance.

How to Get a Business Permit

Complete guide to all permits and licenses with cost breakdown.

Need Help with Business Cost Planning?

Get personalized cost analysis and financial planning for your specific business needs.