Brazil is considered one of the most favorable countries for direct overseas investments, and the foreign companies established in the country are subject to the same legal treatment as national companies.

This type of activity is ruled by laws 4.131/62 and 4.390/64. These laws state that direct overseas investment may be any overseas capital destined to productive activities in Brazil. Laws that prohibit or restrain foreign investment in the Brazilian territory apply only to some segments and areas, such as the press, education and nuclear power, as well as the border areas.

An overseas investor should register the sum to be invested in Brazil with the Central Bank (BC), without onus, by means of the Direct External Investment Electronic Declaration Record, for the effects of the future profit remittance and national statistics. However, sending profits is not restricted, provided there is proof of legal sources of capital and the situation is regularized with Federal Revenue of Brazil. The transfers should also be declared to the Central Bank (BC), by means of the Electronic Declaration of Financial Operations Record. Investments involving transfers of technology and royalties should also be recorded with the National Industrial Property Institute (INPI) and the BC.

The Brazilian legislation also has clear rules that ensure the resolution of conflicts in a legal environment. Contractual disputes, for example, may be resolved by arbitration, in accordance with Law 9.307/96 (Brazilian Arbitration law). The law ensures that commercial disputes are done in a manner similar to a judicial process. Instead of being administered by the state, the dispute is managed by an Arbitration Chamber, whose arbitration performs the role of a judge – however, it is chosen by the parties, in common agreement.

Another advantage is that Brazil is a signatory to the New York Convention, of June 10 1958, that recognizes and supports overseas arbitration decisions. On the other hand, in order for an overseas arbitration decision to be recognized in Brazil, it should be ratified by the Supreme Federal Tribunal (STF).

In Brazil, law 9.279/96 protects industrial property, including patents, trade names and other intangible goods [records}. The country is a signatory of the Berne Convention, the Treaty for Patent Cooperation (PCT), the Paris Convention and the Intellectual Property Rights applied to the Commerce Agreement (TRIPS). To regulate and stimulate industrial property rights, the federal government has also maintained, since 1970, the National Intellectual Property Institute (INPI).