Brazil can be an attractive country for those considering expanding into countries other than their own. It is one of the worlds largest economies, offering a dynamic market with a growing middle class and numerous investment opportunities. In order to run your business smoothly, it is important to familiarize yourself with the laws in Brazil. In particular, you should know what tax identification numbers are used. Lets check it out.
Two basic company identification numbers in Brazil
Brazil has two basic numbers related to the tax system – CNPJ, which stands for Cadastro Nacional da Pessoa Jurídica, and CPF – Cadastro de Pessoas Físicas. The former stands for the national register of legal entities, while the latter is the register of natural persons. Once a company is registered, it will receive an identification number, which has 14 digits (CNPJ) or 11 digits (CPF). Of course, these numbers are not random – the first 8 denote the unique number of the entity, the next 4 are the designation of the companys head office (0001) or branch office (0002 or more). The last 2 characters are a check number, which allows the reliability of the whole identification number to be checked.
Obligation to register a company for tax purposes
The registration of a foreign company in one of the registries listed is necessary to perform basic activities, such as opening a bank account or using investment funds. The obligation to register with the CNPJ in Brazil applies to all companies. It is also required by a foreign company that holds assets subject to registration in a public registry. To obtain a CNPJ number, you must appoint your legal representative and then use the State Board of Commerce. The next step is to contact the Federal Revenue Bureau, which assigns the CNPJ number and registers it with the Brazilian Central Bank. The whole procedure allows for a smooth registration process with the local municipality and obtaining the required licences to do business.
Verification of the CNPJ number – reducing the risk of fraud
Registering an entity with the CNPJ in Brazil is also necessary to reduce the chances of fraud. With the development of technology, it is much easier to detect similar irregularities. In Brazil, the most common method of fraud is the creation of false entities and the use of fake or cloned websites. This means that the fake company uses the CNPJ number of another entity for which it is trying to obtain a loan or complete a banking transaction. Another method is to create a false website that imitates the original one, but does not provide the services for which potential customers have information. Government agencies allow the CNPJ number to be verified online, which allows the status of an entity to be checked – the first step in verifying the reliability of a company operating in Brazil.
Support from a specialized tax office
The process of registering a company in Brazil can seem complicated, especially for those who are unfamiliar with the realities of life in the country. However, the whole process can be simplified by using companies specializing in tax advice, such as INTERTAX. This is a tax office with a lot of experience, whose staff will find the best solution to your needs. For more information on the CNPJ number in Brazil, visit the INTERTAX website at: https://polishtax.com/what-is-cnpj-in-brazil/. This way, you can be sure that your business will comply with the requirements of the tax authorities and that you will not be exposed to penalties or other additional costs for doing business in this country.
