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Brazil’s Emergence as a Global Business Power
Brazil, Latin America’s largest economy and ninth largest economy in the world, is rightfully emerging as a business powerhouse. The country has averaged better than 4% growth for the past five years, for several reasons:
- As global companies seek to expand into low-cost, high-growth areas, the world’s center of economic growth is shifting from developed to developing countries like Brazil.
- Among developing countries, Brazil is known to be one of the most business-friendly
- As the hosting country of the 2014 World Cup and the 2016 Olympics, phenomenal investments are expanded across Brazil.
- Demographics, especially a growing, urbanized population of young professionals favor development.
- For North American companies in particular, Brazil’s time zone compatibility offers advantages over Asian and African companies.
- Brazil’s bountiful natural resources are another source of attractive growth.
However, global expansion always entails significant complexity, risk, and country-by-country knowledge. Brazil is no exception. It is a heavily regulated country with restrictive taxation requirements that pose obstacles to businesses. Regulatory reform is under way, but organizing new investment and production can be cumbersome and costly to companies operating without skilled guidance.
About ABeam Brazil
A record for global excellence
ABeam Consulting Americas has earned its global reputation as a leader in helping companies around the world enter new markets efficiently by developing deep expertise in each country’ s business-related structure, culture, and environment. In Asia, for example, in country after country, ABeam has smoothed the way for its clients by focusing on each country’ s statutory and legal requirements, reporting, and language, developing local data and training local users.
For example, for one multinational company, ABeam is designing and delivering a global template for its 44 divisions in the United States, China, Southeast Asia, Australia, India, South America, and Europe. They are consolidating separate instances and versions of SAP into a single global instance of SAP. Among the core SAP modules involved CRM, BI, Solution Manager, Netweaver, GRC, and J-Sox compliance. ABeam Americas is also responsible for the design and delivery of global training and change management.
Partnering for Brazil-specific excellence
Focusing on clients’ Brazil needs specific to Brazil, ABeam recognizes the value of strategic partnering, and has been working with selected partners that add skills and experience to our Brazililan engagements.
Companies entering the Brazilian market face immediate challenges in understand key aspects of doing business there. ABeam Consulting Americas to advise their customers on the most critical aspects:
・Entering the Market ・Taxes ・Labor Laws ・International Trade
・Funding Sources ・Investment Incentives ・Business Structure
ABeam Consulting Americas has more than 100 certified SAP consultants. We have implemented and/or localized SAP for more than 20 clients throughout Brazil and Latin America. ABeam’s global template rollout experience is also in high demand by companies rolling out SAP in all parts of the globe. By mobilizing local bilingual (English and Portuguese) resources to project teams anywhere in the world, ABeam can provide a highly efficient implementation experience for companies in Brazil as well as outsourced managed service and local AMS for our Brazil clients.
SAP Tax Localization in Brazil
Brazil’s complex income tax system is administered by federal, state, and municipal level laws and regulations. In addition to the income tax, there are other taxes such as the state-level VAT (ICMS), import/export tax (II) , the federal level VAT (IPI), and the municipal level services tax (ISS). There are approximately 50 distinct taxes in effect with different calculations depending on geographic region and separate tax rules according to industry segment.
ABeam Consulting developed a strong expertise on this vital subject and has advised and implemented SAP along with third-party tax solutions for companies operating in Brazil. Tax localization focuses on import/export and SPED (Sistema Public De Escrituracao Digital), including Nota Fiscal (NF-e) and Conhecimento de Transporte (CT-e).
Mergers and Acquisitions
Within Brazil, foreign investment is not subject to government approvals or authorizations, and there are no requirements regarding minimum investment or local participation in capital except in very limited cases. Given Brazil’s growth and the ease in which a company can expand into the country, the demand for local experience for mergers and acquisition is high.
ABeam’s merger and acquisition practice can provide local bilingual expertise for process, system, business, tax and human resource due diligence and post-merger integration.
Contact ABeam to find out more about our recent work in Brazil, which includes SAP implementations, SAP localizations of global template roll outs, acquisition due diligence, and post-merger integration work.