A foreign individual or a foreign company may directly invest as shareholder or as a partner of an existing company in Brazil.

This alternative, rather than establishing a new company, is convenient if the existing company in Brazil is in the same line of business of the foreign company. One of the advantages of this alternative is in the fact that the local Brazilian company is usually aware of the local costumes, laws and trade peculiarities and opportunities.

A Joint Venture Agreement (JVC) may spell out the rules that will regulate the rights and duties of each of the parts to the agreement, included but not limited to, the voting rights, the appointment of directors and executive officers, the distribution of profits, the actions that may depend upon the joint decision of the partners.

A Joint Venture Agreement filed with the Commercial Registry becomes mandatory to its subscribers and has force vis-à-vis the Joint Venture Company.

The legal requirements for a non-resident individual or company to become a shareholder or a partner in an existing company in Brazil are basically the same as required to establish a new company. The exception is that the foreign investor will be joining the existing company; its Articles of Association or Bylaws will have to be amended accordingly and the changes adopted must be reported to the required government agencies.

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