Doing Business in Brazil

Running head: DOING BUSINESS IN BRAZIL 1

Doing Business in Brazil

Michelle Groat

Grantham University

DOING BUSINESS IN BRAZIL 2

When doing business in a foreign country there are many things to think about and one of the major areas is the different Human Resources Management (HRM) systems. My husband works for a security company, AT-RISK International, and they will be opening an office in Brazil in order to officially work the Summer Olympics of 2014. I have decided to take a look at their requirements to include the start-up of the business, the labor laws surrounding employees’ rights and the different culture issues that AT-RISK need to be aware of, in order to run a successful business in Brazil.

According to businessvibes.com, “Brazil has the sixth largest economy in the world with an average annual GDP growth rate of over 5 percent.” (Things to Consider When starting Business in Brazil, 2012) Brazil is becoming quite the enticing place for many companies to expand their businesses or to open new ones; unfortunately it is not a very easy place to start a business. Because of the length, approximately 119 days and complexity, 13 different procedures, of their bureaucratic system, the World Bank has ranked Brazil 126 out of 183 businesses polled in ease of opening a business. Brazil tends to favor local businesses, so the bureaucratic red tape is very difficult to get through. Brazil does not frown on foreign businesses, but they certainly don’t make it easy.

The Brazilian labor and employment laws were created in 1943 and “are directed by the Consolidacao das Leis do Trabalho (CLT) in conjunction with the Federal Constitution of 1988.” (Wang, 2012) The CLT covers everything you need to know regarding employee relations. “There are four major sources of labor and employment rights in Brazil: (i) the Federal...