Carnival in Brazil is Back

Carnival is finally back! After two years of cancelled or toned-down celebrations due to the COVID-19 pandemic, Brazil’s biggest party is now in full swing. But while some businesses thrive, others come to a halt. Banks, government offices, and even private companies all close for the national holiday.

It's not just the holiday itself. The week before and after Carnival (yes, we know the correct, Portuguese spelling of the word is Carnaval) can be painfully slow as Brazilians gear up for and then wind down from the festivities. During Carnival, basically nothing else happens in Brazil.

If you’re running a business, Carnival can be a challenge as it can delay corporate transactions and legal proceedings. Courts, notary offices, and trade boards are all closed. For example, you can’t file an amendment to your company’s Articles of Incorporation if the trade board is closed. Similarly, you can’t get a copy of a deed for a real estate deal if the notary office is closed.

Despite the challenges, Carnival is a huge economic boon for Brazil. Billions of dollars pour in each year as millions of people celebrate, including foreign travelers. For airlines, hotels, restaurants, and bars, the holiday means visitors spend lavishly on transportation, food, drink, and accommodations.

Carnival is a vital economic event for Brazil, and its return in 2023 is welcome. But if you own or operate a company in Brazil, be prepared for a slowdown in operations during this time. Business will take some time to resume, so plan accordingly.