Forming a company requires an investment of time and, most importantly, money. But defining how much money is always the big question.

It’s difficult to put a number on how much to invest because each entity type in Brazil has a different minimum investment amount. Plus, it varies depending on the company’s business activities and where the company is located, among other factors.

While there’s no one-size-fits-all model to follow, there are a few basic guidelines to help you through the process.

First, you must determine the company’s capital. This is the initial contribution an investor will make to the entity. In Brazil, capital is divided into two forms: (1) subscrição, which is a promise to put assets or money in the company; and (2) integralização, the actual transfer to the entity.

A limitada has no minimum amount for its formation. So you can start with US$100 or US$10,000 - it’s up to you. However, for an S/A, at least 10% of the amount you set must be deposited in the Bank of Brazil at the time of incorporation. And finally, if you choose an EIRELI, then you must start with approximately US$17,900.

In addition to the company’s capital, you’ll have filing fees, notary office fees, and translation fees. And don’t forget your legal and accounting fees. But these expenses are separate from the minimum investment you’ll be making in the Brazilian entity itself.

Now it’s your turn to make some decisions.