Planning to do business abroad requires knowledge of the regulations in the destination country. Tax regulations are particularly important. Each country has its own methods of identification for tax purposes, as well as to be applied differently. One popular country is Brazil. It is a frequent tourist destination for many people from all over the world. Therefore, by operating a business in Brazil, one can hope to increase revenue from the sale of goods and services.
CPF and CNPJ registries
The first significant point about Brazilian tax laws is to get acquainted with the registries relating to individuals and companies. There are two main registries in this country, referred to by the acronyms CPF and CNPJ. The former is the Cadastro de Pessoas Físicas, or registry of individuals. Business people will be more interested in the CNPJ, or Cadastro Nacional da Pessoa Jurídica, the national registry of legal persons. What is CNPJ in Brazil? It is only after obtaining this number that a company can be assigned an individual identification number, which is necessary to conduct its business.
Specifics of identification numbers
Identification numbers vary from one registry to another, and the easiest way to distinguish them is to check the number of digits. The CNPJ number is longer and consists of 14 digits, while the CPF is only 11 digits. Note that both numbers are also maintained in the form of digital certificates, which have a limited validity – from one year to three years. They can be stored on a mobile device, on a computer in the form of a token designed to store information.
Basic company information
Once we know what is CNPJ in Brazil, it is worth remembering that it is not random. Just by knowing the number, we have access to basic information about registered entities. The CNPJ number has 14 digits, which are divided into 3 parts. The first 8 digits determine the registration number, which is unique for each entity. Next 4 digits are the designation of the company’s head office or branch. In the first case, the code 0001 is used, in the second case, 0002 or larger numbers denoting further branches are used. The last 2 digits of the CNPJ number are check numbers by which the validity of the whole identification number is checked.
Benefits of getting a CNPJ number
To obtain a CNPJ number, a company must be registered with the State Board of Commerce. This means appointing a legal representative who takes care of the registration of the company. Subsequently, a CNPJ number can already be obtained from the Federal Revenue Bureau. This number is then registered with the Brazilian Central Bank, which allows the registration process to be carried out in the local municipality and the licences required to operate the business to be obtained. This allows the company to freely use the services available in Brazil, in addition to reducing the possibility of tax fraud.
Working with an accounting office
The process of obtaining a CNPJ number may seem complicated. It can be simplified by using the services of an accounting office. There are many companies on the market offering assistance in this area, as well as extensive advice and consultation on tax matters. This allows you to be sure that your business will always be run in accordance with the regulations. The company will not be exposed to problems that could result in reduced revenue from the sale of goods or services in Brazil.