Administrative Procedures of Paraná 1

INVESTOR SUPPORT SERVICE

GUIDE OF ADMINISTRATIVE PROCEDURES OF THE STATE OF PARANÁ

Brazil4Business | GUIDE OF ADMINISTRATIVE PROCEDURES

INVESTOR SUPPORT SERVICE GUIDE OF ADMINISTRATIVE PROCEDURES

OF THE STATE OF PARANÁ

Service Category: Preliminary Studies

Administrative Procedures of Paraná 5

1. Administrative procedures for opening foreign

companies

This guide aims to provide a summary of administrative

procedures for opening foreign companies in the state of

Paraná, having as target public investors who want to join the

state economy. Opening a business in Brazil requires special

attention because as will be seen in the following topics, a

number of previous and subsequent demands are made by

government regulators, and it is necessary to adapt partners to

the most appropriate company, the tax regime more favorable

and other rites that companies will be subject to the following country, once installed in our country.

It is important to remember that each sector requires a specific treatment; previously the entrepreneur

should seek advice from appropriate professionals in order to resolve all questions that may arise

during the process of opening a foreign company in Paraná.

INTRODUCTION 1

Administrative Procedures of Paraná 6

2. Types of business partnerships in Brazil

Anonymous Society SA: It is a company , a legal entity made up

of two or more shareholders. The corporation is characterized by

having the capital divided into shares subscribed or acquired . The

S.As may have traded or closed, that is, may have their shares

traded on the Stock Exchange or trade its shares to domestic

investors. The corporation is handled by the Special Law.

Limited (LTDA): It is a society in which two or more individuals or

legal entities conventional start a business and each will be

responsible narrowly by its share in the capital and jointly liable to pay up the capital.

The profit sharing is done through management fees and calculated based on the share of each partner. It may not

contribute to the capital through the provision of services, but is allowed to disburse assets subject to monetary

terms.

The individual limited company (EIRELI): The individual limited liability company is one consisting of a single

person holding the entire share capital, fully paid, which may not be less than 100 (one hundred) times the highest

minimum wage in force in the country. The holder does not respond with their property personal for the debts of

the company.

INDIVIDUAL ENTREPRENEUR (MEI): The individual limited liability company is one consisting of a single person

holding the entire share capital, fully paid, which may not be less than 100 (one hundred) times the highest

minimum wage in force in the country. The holder does not respond with their property personal for the debts of

the company.

2.1 Tax Regimes

Real Profit: is the tax regime in which the company determines the outcome in the form that best suit their

economic activity, that is , it takes into account factors such as seasonality of sales , production and cash flow. On

taxable income, can determine the outcome in two ways, one, quarterly and annual another, so it is necessary to

consider how the company intends to operate. Taxes are always the same in general, which are: income tax,

social contribution (on taxable income), CPP, PIS and COFINS (of revenue) and are calculated using criteria

established by the public administration (RFB), and aliquots vary from sector to sector (framework of the activity).

NATIONAL PROCEDURES 2

Administrative Procedures of Paraná 7

Real Annual Profit: The Company calculates the result on a yearly basis,

but payment of taxes is made on a monthly basis and is taken as criterion of

the presumed income, in other words, on an estimated billing. Thus, at year-

end is made to calculate the result that means checking whether or not

profit. In having occurred pay taxes the most, it generates credit in favor of

the taxpayer (company), on the other hand, having been paying taxes

unless if cash-which was already anticipated and collect the difference

missing.

Real Quarterly Profit: Real quarterly Profit income clears up the results every quarter, so will be 4 calculations

result in the year, thus the company will have to collect every three months the taxes that will focus on sales and

on income. This modality should take into account the seasonality of the company's profit. The taxable income

allows to be non-cumulative PIS and COFINS, this implies that these taxes paid in earlier cases may be offset in

determination / collection later.

For example: On import of certain goods, the company collects nationalization in the amount of R $ 10,000.00 to R $ 14,500.00

PIS and COFINS, therefore, in revenue the company can offset this amount already paid.

Presumed Profit: The Presumed Profit is only allowed to calculate a quarterly basis, without the annual

calculation option. This tax option, the entrepreneur should carefully consider whether this scheme fits your

activity, because as the name implies, the determination shall be a deemed income.

For example: In trade, the company earned $ 1.000,000,00 the quarter will have a percentage of profit "presumed" of 8%, that

is, the government assumes that the company had R $ 80,000.00 profit, and the profit will be the basis for calculating the IPRJ

and social contribution with its respective rates, regardless whether or not profit indeed.

Therefore it is essential to study and develop an efficient tax planning, so that it is in harmony with the activity of

the company. It should also be remembered that the presumed profit regime, PIS and COFINS are subject to

cumulative basis, in other words, the supplier pays, your company pays and everyone pays.

Simple: This tax regime, are micro and small companies, and the determination as its name says, is simple, that

is, the calculation is monthly and will be based only on the monthly turnover of the company. It is worth noting that

not all companies can opt for simple, as there is an annual turnover limit to be verified on the legislation, and it is

worth remembering that the tax rate in this system is unique because it consolidates all taxes on a single rate only.

Administrative Procedures of Paraná 8

2.2 Brazil’s Main Taxes

2.1.1. IPI- TAXES OVER INDUSTRIALIZED PRODUCTS

Listing ‘’TIPI’’ determinates the applicable rates based on the NCM code (Mercosur Common Nomenclature) of the

product.

2.1.2. ICMS- TAXES ON CIRCULATION OF GOODS AND SERVICES

Regulation of each State of the Federation determinates the rates that apply to each product, goods of transport

and telecommunications services.

2.1.3. COFINS – CONTRIBUTION TO FUNDING OF SOCIAL SECURITY

Rates applied vary according to the tax option (taxable income or presumed income) carried out annually by the

taxpayer for calculation and payment of income tax and social contribution on net income.

2.1.4. PIS – SOCIAL INTEGRATION PROGRAM

Rates applied, as COFINS, vary according to the tax option (taxable income or presumed income) carried out

annually by the taxpayer for calculation and payment of income tax and social contribution on net income.

2.1.5. ISS – TAXES ON SERVICES

The Regulation of each municipality of the Federation determinates the list of services and the rates applicable to

each type of specified services except transportation and telecommunications that are reached by the ICMS.

2.1.6. SUMMARY OF TAXES AND CONTRIBUTIONS CALCULATED ON REVENUES FROM SALES AND

SERVICES RENDERED BY ACTIVITY:

(I) INDUSTRIAL ACTIVITIES

Revenues earned by industrial activity are achieved by IPI, ICMS, COFINS, and PIS.

(II) TRADE ACTIVITIES

Revenues earned by trade activity are achieved by ICMS, COFINS and PIS.

(III) SERVICE ACTIVITIES

Revenues earned by service activity are achieved by ISS, COFINS e PIS.

Administrative Procedures of Paraná 9

2.2 Other taxes that impact business:

2.2.1 IMPORT TAXES

In industrial and trade activities, in addition to taxes dues on revenues (IPI, ICMS, CONFINS, and PIS), which

depending on the tax option can be fully offset in the output, the imported products are taxed at import taxes

whose applicable tax rates are determinate based on NCM product code.

2.2.2. CONTRIBUTION ON ECONOMIC DOMAN INTERVENTIAON (CIDE)

In service activities including copyright, in addition to taxes on income (ISS, COFINS, and PIS), which depending

on the tax option may be partly offset in the delivery of service, the imported services are taxed by CIDE-

Contribution on Intervention of Economic Domain shoes average rate is 10% on the value of the service or

copyright imported.

2.2.3. TAX ON CREDIT, EXCHANGE AND INSURANCE OR RELATED TO SECURITIES – IOF

The IOF shall be calculated on the value of financial transactions and the applicable rates take into account the

terms and nature of the financial transaction.

2.4 Opening foreign companies in Brazil

According to the DREI in IN 7th December 5, 2013 (DEPARTMENT OF BUSINESS REGISTRATION AND

INTEGRATION) it is necessary that society, which aims to settle in Brazil obey the rite contained in the above

mentioned regulation rules, which basically are:

1. Protocol request for application installation and operating the federal government (executive

branch) through the DREI, directing the said application to the Chief Minister of Department of

Micro and Small business, should the application be accompanied by the following documents:

1.1 Deliberation Act on the branch facility, branch, agency or establishment in Brazil;

1.2 Primitive Social Contract (Act that gave birth to branch);

1.3 List with names of partners or shareholders, elucidating the professions of each, place of

residence and number of shares or stocks of each;

1.4 Deliberation Act indicating the representative of the company in Brazil accompanied by power

of attorney that gives you powers, which shows the conditions that give him the authorization

and full power to deal with matters concerning the company, its management, as well as

which may be cited by society and demanded by the authorities in Brazil;

1.5 Declaratory act of the representative, claiming that accepts the conditions granted by the

Federal Government regarding the installation and operation of that company;

1.6 Last balance;

1.7 Guide collection (paid) service.

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It is also necessary that appears in the deliberative act of the company's installation activities that society

wishes to pursue in the country as well as the social capital in national currency.

After all the rite of formalities legally required in IN 7th of December 5, 2013, the company must wait for

the time that is established and determined according to the competent authority, and when demand is existing.

In being granted the authorization for installation in the country, the company through its representative or

attorney must file the following documents at the Commercial Registry which will be established:

I - Diário Oficial da União sheet that published the authorization decree;

II - Acts alluded to in items I to VI of art. 2 of this Instruction, duly authenticated by the Department of

Business and Integration registration;

III - Document the deposit in cash, the part of the capital for operations in Brazil;

IV - Declaration of the address of the establishment, when not in the act which decided on the

installation branch, branch, agency or establishment in Brazil.

Obs: Occurs at DREI IN No. 07/13, the company from the outside, as the subsidiary in Brazil should be published

in the Official Gazette and the State in which the branch is located, and also in expressive newspaper, all

information relating to administrative acts, economic results, as the accounting balance sheet, the determination of

results, always periodically understood to be the time of the year.

SERVICES PROVIDED BY THE DEPARTMENT OF NATIONAL TRADE REGISTER

1. FOREIGN COMPANY1

1.1. Authorization to operate in Brazil 240,00

1.2. Nationalization 175,00

1.3. Amendment (subsequent amendments to the authorization) 160,00

1.4. Authorization cancellation 160,00

2. RELIANCE ON DEVELOPMENT MINISTER, INDUSTRY AND TRADE. 125,00

3. REGISTRATION INFORMATION NATIONAL COMMERCIAL ENTERPRISES - CNE

According budgets and own price list, approved by the National Department of Commercial Registry.

3.1. Information provided through reports on paper, magnetic media or CD-ROM

3.2. Continued provision of information (signed) by electronic access

3.3. Provision of information by electronic access

1 Nota: Para Protocolar um requerimento no DREI deve-se recolher previamente a taxa no valor de R$ 240,00 através de DARF (cód 6621)

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2.5 Foreign Capital in Brazil

In Brazil, as in all countries, there is a general rule for the nationalization of foreign capital in the country,

and there are a number of treatments to which, foreign capital should be submitted, starting with the monetary

authority (central bank). All foreign capital must be previously authorized by the Central Bank to enter Brazil,

through administrative pretreatment. After the approval of the agency is that the partner / foreign investor may by

exchange contract with foreign exchange specific nature refer the value to Brazil in order to pay up share capital of

the company.

Know more: www.bcb.gov.br

2.6 Enabling RADAR

Every company that wants to operate in the Brazilian international trade must be duly accredited under the

Federal Revenue of Brazil therefore subject to the rules of Instruction in place that specifically addresses the

qualification Radar/Sicomex.

Limited eligibility: Is the powers vested in the company that can operate in foreign trade limited to a

maximum of U $ 150,000.00 (US dollars) every six months, and accounted for the CIF (Cost, Insurance and

Freight) of imported goods.

Unlimited eligibility: This license will allow

the company to operate with values greater than US $

150,000.00 (US dollars) every six months, however,

must always have proof of the financial operation.

Expressed: Qualification for companies who

opt exclusively for export activity.

Know more: www.receita.fazenda.gov.br

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3.1. Paraná administrative procedures

After performing all administrative procedures nationwide should follow to state records, briefly

described below:

N° Proceedings Time Costs

1 Check the company name in the future BOARD OF TRADE / PR

Service performed by JUCEPAR / PR, diligence is done through the JUCEPAR

database.

1 Day Without Cost

2 Pay the fees and company opening fees

The cost varies according to the corporate form chosen by the partner(s) to

EIRELI and Society Entrepreneurs cost is R $ 71.30, except for stock corporation

cooperatives, foreign company branches and Consortium and Groups societies,

the cost is R $ 91.25.

1 Day Approximately

R$ 91,00.

3 Register Social Contract/status/individual entrepreneur requirement in JUCEC / EC where it will get the NIRE and CNPJ

According to the Decree n. 06 of March 11, 2013, enrollment in the National

Register of Legal Entities (CNPJ) is now performed simultaneously with

Registrar of Companies (NIRE). For now opening it is no longer necessary to

wait for the approval by NIRE to finally apply for registration with the CNPJ. All

necessary documents must necessarily be analyzed by JUCEPAR employees.

4 to 5 business days

Without Cost

4 INSS obtaining

To register a company in the Social Security Institute (INSS) is required Constitutive Act of the company and the CNPJ.

3 days Without Cost

5 Obtaining the State Registration Desk in the Paraná State Finance.

The electronic register comprises a set of services created by the IRS that allows the accountant and the partner responsible for the firm order and follows the RF / PR, requests for state registration, change of registration status and change of registration data. Since 16/08/2004, the state registration request is made via the internet and can be granted online form provided that the conditions laid down in the NPF 086/2013. Registration must be requested by the accounting officer responsible for the company.

7 days Without Cost

STATE PROCEDURES 3

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Obs: Additionally, we inform that the Board of Trade must be paid the fees for foreign company,

without prejudice to the emoluments of DREI (Business Registration Department).

6 Registration at City Hall

Registration is done at City Hall where the company is established. The City of Curitiba registers your company and issue the business license on average 5 working days.

5 days

Without Cost

7 Digital certificate of achievement

The digital certificate must be requested and purchased from an agent

authorized to market. It requires clear that the digital certificate varies in price

according to their purpose.

10 days

Between R$215,00 to

R$300,00

8 Register employees with the Social Integration Program (PIS)

The employer must register employees with the Social Integration Program (PIS / PASEP). The registration of PIS / PASEP is to identify the employee in order to establish a fund with guarantee (FGTS) account to apply for unemployment insurance, and be entered in the National Register of Social Information (National Register of Social Information). To register the employee, the employer must fill in a form of PIS / PASEP record (Document Worker Registration, DCT), to be delivered to Federal Savings Bank in charge of the FGTS account. http://www.caixa.gov.br/pj/pj_comercial/mp/pis/cadastro_nis_internet.asp If the employee already has a record PIS / PASEP, the employer must only inform the CEF of the new working relationship. The employer will have of receiving the SIP request within 15 days. Currently, Brazil is in transition to implement a federal program called e-social. More information on the site:www.esocial.gov.br

5 to 10 days

(this can be done in

conjunction with other

procedures)

Without Cost

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4. Fiscal Incentives

The Competitive Paraná Program is a set of tax benefits

offered by the state government to attract investment and promote

the expansion of industries already installed in Paraná. Provided

by law, it provides installment of incremental ICMS and deferral of

ICMS electricity and natural gas, depending on the investment.

The Paraná Development Agency is the institution responsible for

advising companies if you have questions or need guidance as

well as being the gateway to all program application protocols

within the government. The benefits are defined technically and take into account the State's priorities

as the type of investment, job creation, economic impact, environment and degree of innovation. The

more poor and needy for a region, the greater the incentives granted by the State of Paraná.

Know More: http://www.paranadesenvolvimento.pr.gov.br/modules/apd-in/

FISCAL INCENTIVES 4

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Why invest in Paraná?

SOLID ECONOMIC GROWTH AND NATIONAL AVERAGE ABOVE: The state since 2010 has shown growth rates above the

national average, which places it among the leading

economies of Brazil, being the 5th largest Gross Domestic

Product – GDP and the 3rd largest in values added

Manufacturing Industry.

STRATEGIC LOCATION FOR NATIONAL AND INTERNATIONAL TRADE; The state’s localization in addition to a well-developed infrastructure ensures easier access to the South, Southeast and West regions of Brazil beyond the countries of South America and Mercosur. ONE OF THE LARGEST INDUSTRIAL HUB OF BRAZIL; The two major state industrial areas are concentrated in

the metropolitan region of Curitiba, the state capital, and

the cities of Londrina and Maringa, but are also distributed

in various regions of the state, totaling 46,000 industries

that generate 820,000 jobs and are accounted for 30% of

the state GDP.

RENEWABLE ENERGY IN ABUNDANCE; Paraná has the largest hydroelectric plant in the world in

power generation in addition to your development project

includes new technologies for generating renewable and

clean energy, such as projects that use biomass, wind,

photovoltaic and others.

QUALIFIED HAND WORK; 4th largest professional manpower offered in Brazil,

highlighting the qualifications made possible by the various

higher education institutions (195 universities), national

reference research institutes, as well as strong

performances in technical training offered by institutions

such as the Technological University of Paraná and Senai.

Providing general information on Brazil and

Brazilian Industry

Provision of information on administrative

procedures to settle in Brazil

Support in obtaining licenses and documents

required

Contact Facilitation to define incentives

Availability of contact partners (suppliers, service

providers, potential partners)

Support in supplier selection

Others

CIN Network

Coordinated nationally by the National Confederation of Industry (CNI), and created with support of the Brazilian Export Promotion Agency (APEX), the Brazilian Network of International Business

centers (CIN Network) supports foreign investors in several ways:

Contact

CNI - Confederação Nacional da Indústria SBN

SBN - Quadra 01 - Bloco C - Ed. Roberto Simonsen

Brasília - DF - CEP 70040-903

+55 (61) 3317-9000

www.cni.org.br/brazil4business

CIN-Paraná - Centro Internacional de Negócios do Estado do Paraná

Rua Cândido de Abreu, 200. Curitiba- PR – CEP 80530-902

+55 (41) 3271-9100

http://www.portaldaindustria.com.br/brazil4business/pt/pr/why/ http://www.fiepr.org.br/cinpr/ E-mail: Brazil4Business@fiepr.org.br

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