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  • Writer's pictureSOLANGE MIZRAHI

The Fundamental Role of the Legal Representative

When a foreign company decides to expand its business to Brazil, Brazilian legislation requires it to appoint a legal representative. This legal representative, also known as an attorney-in-fact or legal proxy, is a crucial piece in the puzzle of business success in Brazil.


The legal representative is responsible for acting on behalf of the foreign company, making decisions, and signing important documents. They serve as a link between the company and Brazilian authorities, facilitating all the necessary procedures to operate legally in the country.




Appointing a Proxy

Appointing a proxy in Brazil is a regulated and formal process that requires attention to detail and knowledge of Brazilian laws. Here are the key steps involved in the process:

  1. Selection of a Qualified Proxy: The first step is to select a proxy who is qualified and trustworthy. Typically, companies choose to hire law firms or consultants specialized in business law in Brazil for this role.

  2. Documentation and Specific Powers: After the selection, it is necessary to prepare the proper documentation, including a power of attorney with specific powers. This power of attorney should detail the responsibilities and powers of the proxy, ensuring they can act on behalf of the company as needed.

  3. Registration and Notarization: The power of attorney must be registered at a notary public in Brazil, and the proxy's signature must be notarized. This process ensures the authenticity of the document and the proxy's legal capacity to act.

  4. Proxy's Role: With the power of attorney in effect, the proxy is authorized to represent the foreign company in all legal matters, including opening bank accounts, hiring employees, signing contracts, and complying with tax obligations.

Benefits of Having a Legal Representative in Brazil


Having a legal representative in Brazil brings numerous benefits to foreign companies. In addition to fulfilling legal obligations, the proxy streamlines the business expansion process in the country, ensuring that the company complies with local laws and government regulations.


Moreover, the legal representative can provide valuable insights into the Brazilian market, assisting the company in making informed strategic decisions.


Conclusion

Appointing a legal representative in Brazil is a crucial step for the success of any foreign company wishing to operate in the country. Understanding the process and having a qualified proxy are essential to ensuring a smooth operation in compliance with Brazilian laws.


If your company is considering expanding its business to Brazil, do not hesitate to seek professional assistance from Maldonado Leal. Over 20 years of experience, we can help you appoint a competent legal representative and ensure sustainable growth in the Brazilian market."



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