Xiaoxiao Q&A: 

Fan Question: How can Chinese enterprises invest in Brazil? How can they handle funds to ensure security and compliance?

Answer from Fang Kuo, Founder of Anjun Logistics: 

I can provide a reference solution for you. If you intend to do long-term business in Brazil, I suggest that when establishing a company, you should first engage in Overseas Direct Investment (ODI), which involves registering for foreign investment with the National Development and Reform Commission (NDRC). Subsequently, funds can enter Brazil through ODI, followed by establishing a company in Brazil. When funds are withdrawn, it may require legal representatives and shareholder representatives. If the company's account has insufficient funds initially, you can engage law firms and accounting firms to serve as temporary legal representatives.

However, Brazil has a regulation that when investing 600,000 Brazilian Reais, which is equivalent to about 1 million RMB, you can obtain an executive visa. This visa is essentially equivalent to a permanent residency permit, allowing you to reside in Brazil long-term without changing nationality, hold a Brazilian bank account, and act as a legal representative or shareholder representative of a Brazilian company. In this case, your identity is established. For example, if you invest 3 million, your company can have three individuals act as your legal representatives or shareholder representatives in Brazil.

Brazil's definition of permanent residency does not specify a minimum duration of stay, so it is relatively free and open. Compared to Southeast Asia, I believe Brazil has very good policies for foreign investment.

It is not feasible to have goods arrive in Brazil without funds. I consider this to carry significant risks. It's better to follow the flow of funds. After goods arrive, transfer funds to Brazil through ODI, and then purchase goods through a local company in Brazil. This way, there is both goods and fund flow, as well as customs clearance data. Even if there are disputes regarding prices or customs, at least it is not illegal; you can return the goods if necessary, ensuring their safety.

In addition, when investing in Brazil, it's important to contact a good legal team and tax team to help with analysis. Even if you're only investing a few hundred thousand or a million, when you encounter problems, it's helpful to listen to the opinions of these experts.

Brazil hasn't had a war in hundreds of years. There may be small-scale riots or clashes with the underworld, but no major conflicts. There are risks, but with proper precautions, they can be avoided. For example, last year in Brazil, my fleet was robbed 7 times, and in March of this year, it was robbed twice, totaling 9 times. However, starting from March, we installed thousands of cameras in many locations and took many preventive measures, so we haven't been robbed since then. Our security is also provided by retired Brazilian soldiers. When others realize there's no opportunity, they won't act recklessly. So, it's essential to have deterrent power to ensure safety; if it's too weak, it's not safe.

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