INVESTING IN BRAZIL - Holding Companies

 

 

A holding company is a legal entity used for tax, succession and asset planning,  asset protection, and for other business purposes.

 It may be established under a corporate or a limited liability company structure.

 Its purpose may be to concentrate one’s real estate and other properties under its umbrella, on a tax saving planning procedure, including – but not limited to – facilitating the transfer of properties upon the death of any of its partners.

 It may also be an investor in other companies in Brazil and abroad, as partner or shareholder, or as an investor in  the securities exchange market and in other kinds of financial investments.

 It will be deemed to be a pure holding company if its articles of incorporation or bylaws should be limited to holding its own properties for its own use or for lease to third parties and/or  to participate in other companies as partner or shareholder, as well as in  the securities exchange market and in other kinds of financial investments.

 Otherwise, it will be a mixed holding company if its corporate objects include other operational areas such as the rendering of services, industrial production and sale of its products or merely a commercial sales company.

 Any existing company may be converted into a holding company by decision of their partners or shareholders, provided that this is so done pursuant to the requirements spelled out under its articles of incorporation or bylaws.

 To sum up, whoever should establish a holding company is allowed to adjust its corporate structure to the needs of the founder.