Competing for Government Contracts in Brazil

Want to compete for a contract with the Brazilian government? The good news is you can. Foreign companies can participate in the bidding process just like local companies. And as of May, the process is now a bit less bureaucratic.

The bidding process starts with the Edital or publication of the bidding instructions. This is where the government agency sponsoring the contract describes the conditions and requirements. The Edital will tell you who’s eligible for the contract, and it’ll list required documents, deadlines, and any other relevant information.

In the past, a foreign company that wanted to participate in the bidding process had to appoint a legal representative in Brazil. They also had to notarize, legalize and translate all required documents to Portuguese. Just to be considered for a contract, a foreign company would need to invest a significant amount of time and money.

While the requirements remain the same, a new rule (Instrução Normativa 10/2020) from the Ministry of Economy has made things a bit easier. Now, foreign companies must register with the Sistema de Cadastramento Unificado de Fornecedores (Sicaf) where they’ll submit their documents but without notarization, legalization or formal translation.

Only if they win the contract will they be required to appoint a legal representative in Brazil, a process that requires obtaining a CNPJ or tax ID number. They’ll also then need to provide notarized and legalized documents that have been translated by a certified translator.

The change is just one more way that Brazil seeks to leverage its relationship with foreign investors.