Companies in the US are accustomed to filing annual reports. For example, the State of Florida requires that legal entities file with the Department of State by May 1st of each year. The report ensures that no changes have been made to the company. And, of course, there’s a fee.

The good news is that no such annual report exists for companies in Brazil. But that doesn’t mean that maintaining a Brazilian entity is any easier. In fact, it’s arguably far more difficult.

In Brazil, even non-operating companies have various tax filings due monthly or yearly. This is in addition to any income tax declarations that must be filed. And despite not having any employees, a company still has employment related filing obligations. That’s why one of the first steps when forming a company is to get an accounting firm on board to ensure compliance.

There are also legal requirements that must be met. For example, the company’s partners should be having meetings, and the resolutions from the meetings should be filed with the state trade board. You can read more about keeping your company in good standing HERE.

A Brazilian company simply can’t be formed and then left to sit idle. The filing obligations continue even despite a lack of operations. Before you decide to form an entity, it’s important to consider the costs and, in particular, the ongoing fees and expenses.

In addition to legal counsel, consider bringing on an accounting team from the start. It’ll pay dividends in the future.