Expert: Ken Rapoza Cruz - 6/6/2010

Question
Hi Ken,I would like to start a business unit in Brazil that can relate Indian connection. If I open an Indian cuisin Restarant in  any of this cities. 1. Aracazu, Feira-de-santana, Salvador or Maceio, Could you please figure out a tentative investment (small level, to start it with) and about other official permissions. I know portugease a little bit. I have Indian Restaurant business experience in India too.

Answer
As a foreigner, you cannot set up a busienss in Brazil unlesss you go through the government and make a substantial investment. I would say that that invetment would have to be at least R$250,000. Each state and each locale will have its own law. You would then be allowed to come into the country on a business visa or an investment visa. These laws vary between country so I cant tell you what the set up is for Indians moving to Brazil to start a business. For that, you will have to call your Brazilian consulate or Embassy in Mumbai, and after many attempts to get a hold of them, you will go there and sit with a cultural or business attache and they will explain the rules to you better than I can, and they will be right, and I can be a little bit wrong because I dont know the India-Brazil arrangement.

India is a big deal in Brazil right now because of this soap opera called En Route to India.

For an upfront investment, this too I cannot say because I have no idea what kind of restaurant you want to build: a little on on the beach in maceio? A small family diner sitting maybe 20 tables. A luxurious upscaled themed Indian restaurant with belly dancers and run by an Indian chef? So I cannot say. Just that you will have to get the following:

1) A special visa, be it a business visa or an investment visa of some type, which means  you are coming to the country with a MINIMUM invstment in the country. This minimum depends on the country you are coming from and the type of busienss you are investing in (and if Brazil state gov even wants your biz in the first place).

2) You will either have to find a restaurant to buy or build one yourself.

3) If you find one to buy, you will likely need what we call a"procurado" -- which is a legal representative representing you. He or she is YOU in Brazil. They are usually lawyers or real estate brokers.

4) You will need a CPF number to indentify you.

5) You will need a bank account here when you start making your purchase.

6) You will need insurance for the establishment.

7) You will need a permit to hire Brazilian employees and pay employee social security taxes, plus a 13th end of year bonus salary.

8) You will have to register with the government so that all of your employees are legally registered to work (in order to get tax breaks and bennies from the gov).

9) You will need to pass the health inspection before you can start serving...

All of these things will cost money and time, at least a year as you are a foreigner. So start now and start by talkign to the Embassy in Mumbai and get in touch with the India-Brazil Chamber of Commerce in India and Brazil.

Good luck: http://www.indiabrazilchamber.org/en/