The legal representation of a foreign partner is a mandatory requirement for overseas companies that hold a shareholding in Brazilian companies. This representation is essential to ensure the company complies local laws, especially regarding the reception of legal notifications, summons, and legal obligations compliance.
DH Law now also offers broad and comprehensive advisory to overseas companies that already operate or are willing to join the Brazilian market. By appointing a legal representative domiciled in Brazil, the overseas company ensures proper forwarding of all legal and regulatory communications to its investors and international partners. This allows a smooth and transparent operation in the country.
The legal representative act on behalf of foreign partners, with the following main responsibilities:
The legal representative also has the capability to manage the overseas entity’s rights in the Brazilian company, beyond full powers to represent the overseas entity in tax and administrative matters before the Federal Revenue of Brazil, as required by Normative Instruction 2119/2022.
The appointment of the legal representative is formalized through a specific mandate (called a power of attorney), which grants the necessary powers to act on behalf of the overseas company in Brazil. For the legal representative to act, foreign partners must grant a power of attorney according to specific requirements.