In our most recent interview, Carlos Zoéga discussed the exciting, new service offered by his law practice. Carlos will now offer a full-service business consultancy that allows foreign investors the opportunity to perform thorough due-diligence investigations on Brazilian businesses.
This new consultancy service, Carlos told me, “examines all the non-legal aspects of investing in a Brazilian company. For example, we can now help foreign investors evaluate the financial records of the company. We can also prepare the necessary reports to provide the investor with a clear understanding of the risks and returns their investments should command.”
Carlos is offering this consultancy service to his clients, whether they are interested in investing in Brazil–today one of the top two BRIC economies–or investors who seek an investor’s visa in Brazil through investment.
Carlos assists foreigners wishing to living permanently in Brazil to obtain a permanent resident status through an investor’s visa. In our interviews on this subject, Questions about Brazil’s Investor Visa? Ask Dr. Zoéga. and More Questions about Brazil’s Investor Visa? Ask Dr. Zoéga. we learned that foreign nationals who invest R150,000 in a Brazilian business can obtain the right to live permanently in Brazil. Those articles described how to go about setting up your own business from scratch. But not all clients wanted to build up a business from the ground up.
In fact, several clients asked if Carlos wouldn’t be willing to try and connect them up with already-existing Brazilian businesses so that they could act as partners or investors. Carlos explained that “in many cases, my clients tell me that they would prefer to become a partner of a business that is already running, that is already successful, that is already making profits, than to start from zero in a new country, in a completely different cultural and economic environment.”
Some of these clients have special areas of expertise that they can offer Brazilian businesses. Others just want to make an investment and be silent partners. Investing in a Brazilian business, however, can be almost as complicated for an uninformed foreign investor as starting a Brazilian business from scratch. That’s why Carlos is now offering a specialized business consultancy in addition to his legal services. Those who wish to invest in an already-existing business can make sure that the business is profitable, honest, and following Brazil tax and other guidelines. The first step is “due diligence in researching the prospective company in order to understand exactly what the situation is regarding its debts, especially labor and tax debts.”
Through this consultancy, prospective investors can assess whether a Brazilian company is worth investing in, how much of a return they should receive on investments, and assess its track record.
Carlos added that he is now equipped to offer his consultancy service to both individuals and businesses as well. In fact, his services are available to any investor, whether they want to live in Brazil or not. In addition to assessing the value of partnerships with individual companies, Carlos can also help to set up holding companies that control partnerships in a variety of Brazilian companies in order to diversify investments among different industries or markets.
Once clients have decided that a partner business is a good investment, Carlos can also negotiate “the percentage of the shares that will be sold against the amount that will be invested, including the preparation of all legal documents involved.” So, for those individuals and businesses who want to come to Brazil and invest in an already-existing and profitable business, Zoéga Coelho & Advogados now offers a way to do it in a way that is fully informed and with proper due diligence.
Dr. Carlos is Senior Partner at ZOÉGA COELHO & ADVOGADOS Rua Adolfo Melo, n.38, sala 202 – Centro 88015-090 Florianópolis/SC – Brasil Telefone: (55 48) 3223-4729 Fax: (55 48) 3322-0483