Brazil Laws

Countries differ in laws as well as in the interpretation of laws. If Great Point is to enter Brazil, they will need to thoroughly understand the local legal issues prior to actually establishing business. Legal systems are split into two groups: common law and statutory law. Common laws are hard to interpret because the laws are created based on similar situations in the past that caused for the law to be written in the first place, therefore new situations that may arise could cause conflict if the law can be interpreted differently. Statutory laws are a more stable legal system that includes a set of laws that must be followed exactly. These laws actually make it easier for firms to enter a new country because the company knows what can and cannot not be performed.

Despite Brazil’s economic growth, Brazil’s bureaucratic government has hindered the rate at which laws and regulations are reformed. The World Bank’s latest annual global report stated that Brazil is “126th out of 183 countries” when it comes to the ease of starting a business. Several hurdles such as required permits, property registration, high taxes and corruption are only a few issues that foreign investors must overcome in order to establish a dominant presence in Brazil. Developing a well-built strategy is

For example, when starting business with-in Brazil, a company can expect to spend up to 67% of their revenue on taxes. The tax rate is extremely unpredictable and disputes over the taxation occur constantly. An article found within “The Economist” reads, “tax disputes are as Brazilian as string bikinis or samba”. The World Bank claims that Brazil has the most complicated corporate tax code of any nation. Between 1998-2012 the three levels of government: federal, state and municipal issued over 300,000 tax rules, each displaying complicated wording and many featuring contradictions towards other