Have their own business in the dream of many Brazilians, but only think of the steps to start a business, some have begun to have nightmares. To help future entrepreneurs who do not know where to start and encourage those who are afraid, the onlyinbrazil.com created the guide “How to start a business? Step by step to take the ideas of the paper. ”
We have prepared a guide to untangle the process of opening your business
Know the characteristics of a successful entrepreneur, learn how to make efficient planning, see all the steps to register your company, learn how to choose the name and location of your business and read important tips that will untangle this process.
With the right information, persistence, and organization, you will see that it will be easier than you think to open and regulate your business!
How much it costs to start a business?
According to a survey by FIRJAN, the average cost of starting a business is R $ 2,038 and may vary by up to 274% between the different municipalities of the country.
However, indirect costs that weigh in the pocket entrepreneur. Are expenses such as rent, retirement commercially and fees of the counter, which are supported by the business before starting its activities. Important to remember that the business point should already be mounted from the beginning of the registration process. This is necessary because the zoning of the city can prevent the exercise of certain activities in certain places and oversight of regulatory agencies, such as fire and health surveillance is done during the registration process, to finally have a business license.
Register Company: Documents Required
The formalization of your business is the first step for the start of its business activities, but you must be careful to correctly perform all registrations, licenses, and permits needed. Even after having in hand the CNPJ, the National Register of Legal Entities, and be registered with Social Security, there are many licenses, municipal and state records and permits you will need to work legally.
The lack of any of these documents may delay or even prevent the opening of your business. Remember that for each field of activity and form of constitution chosen to open your business, you will need separate licenses. The laws of the city and state where your business will be installed may also require specific entries. Therefore, it is important to consult an accountant who knows the local law.
To help you in this important business step, we gather in this guide the main documents required to start a business.
1 – Elaborating or social contract
Basically, the development of the social contract will define the equity shares of each of the partners of the project to define what are the activities of the company and its operation (tax model, the involvement of partners, etc.). The next step is to verify that the name and the company’s corporate purpose are available for the document to be drawn up, which, in turn, should be recognized notarized and signed by a lawyer.
One tip is to evaluate, since that time, if your company may fall within the National Simple , which is an excellent way to reduce tax rates and simplify their payment from the Treasury organs.
2 – Registration with commercial board
The first is the registration with the Commercial Registry or the Registry of Legal Entities of their status. It is from this record that his company will officially exist. It should be done before obtaining the CNPJ and, despite not provide authorization for your company start work, it is an essential requirement to continue in her legalization process. Remember that you need to previously perform a query of the chosen company name to see if there is already another company registered with it.
2 – Permit location and operation
The main document needs to obtain in the city is the business license, it is the final authorization that allows you to open the doors of your business. To get it, you need to check in the prefecture of your city that meets all the conditions required by law to exercise the activity of your company. The conditions may differ according to the county, state, and area of activity.
Before the request and even carry the inscription on the trade board, you should do prior consultation in the prefecture of your city to see if the business activity that you choose can be exercised where you want to open your business.
3 – State Registration
Most states have an agreement with the IRS that allows you to get the state registration on the Internet along with your CNPJ through a single registration. In some cases, the state registration must be obtained before the business license. This description is mandatory for companies that provide communications and energy services, in addition to companies in the sectors of trade, industry and intermunicipal and interstate transport services. It is from it that you get your entry in the ICMS (Tax on Goods and Services).
4 – License and registration in state and municipal regulatory bodies
Authorisations for inspection bodies are essential requirements to get your business license. They are variable and depend on the area of activity, place of installation and even the size of your company. Some business activities require authorization by the armed forces – as is the case of companies that work with explosives, weapons and chemicals controlled artifacts. Among the most commonly required applications and licenses, are the following:
- environmental license: Gained municipal and state environmental agencies and IBAMA. It is usually required of undertakings engaged in industrial activity, metallurgical, mechanical, textile, chemical, footwear, agricultural activity.
- health license: Gained Municipal, State, and Federal agencies for health monitoring. It is required primarily for companies operating in the food industry, pharmaceuticals, and cosmetics.
- Inspection of compliance with safety standards: It is held by the fire department, and virtually all companies are subject.
In addition to the registration and municipal and state permits, some activities require you to order federal agencies such as the ministry of tourism, the Ministry of Agriculture, Livestock and Supply, federal police, among others.
It is essential that you consult an accountant who is the best person to guide you in all licenses and registrations that your company will need according to their field of activity and other characteristics.
Tips for starting a business
No more boss and open the project itself is a fairly recurring thought among Brazilians. Many take this idea of paper and can finally put the dream into practice. What happens, however, it is that despite good intentions and initiative, lack of planning, in good quantity of cases, end up leaving these hostages entrepreneurs a new boss: the banks.
numbers of premature closures of companies could be the much smaller if entrepreneurs take certain precautions before opening. So we made a list of things that every entrepreneur should take into consideration when mounting the business.
Consider the feasibility of the idea
A revolutionary product that promises to heat a home in a few seconds can be a success in the south, but certainly will be a failure in the northeast. Before investing, the entrepreneur should make a thorough study of the market. In addition to identifying future customers and their needs, presenting real solutions to them, the entrepreneur must know the services and prices of the competition. Thus, it will be able to develop its differential to stand out in the market.
Define or initial capital
Complement the initial capital of the company with banks of resources may be the extinction of the company ruling. In the first months, profitability may not be high enough to offset these debts, generating interest, and this will make it difficult enough to stay on budget.
When calculating the initial capital, take into account all the essential resources to start the activities, ranging from the purchase of goods and machines, even spending the decor of the store. Keep a working capital for the costs of the first month is also a good way to avoid future headaches.
Meet business costs
Many budding entrepreneurs, lack of market knowledge, can not see all the expenses that have during their activities. Spending as the 13th employee and the FGTS should be taken into consideration when hiring, for example. Therefore, it is recommended the formation of a contingency reserve for the entrepreneur is not caught off guard.
Another major expense to take into consideration is the tax burden to fall on the business. Remember that small business owners can benefit from the National Simple.
Separate personal finance and business finance
Despite being a fairly simple idea, many novice entrepreneurs find it difficult to separate one with the other. Take money out of cash to buy clothes or pay the company’s stock products with personal credit card, are terrible examples of how to handle finances. To avoid this “mixed salad”, it is important to set a salary (management fees) to the partners according to the company’s profitability.
Remember that the pro-labor exists only when the member works at the company. Where this is not the case, and the partner acts only as an investor, a distribution of profits to be made. But it is very important to remember that not all profit should be distributed among the members of a party must be reinvested in the company for it to develop and grow.
I’m ready to have an enterprise?
Every entrepreneur should ask yourself if you’re ready to become a leader. In addition to study and know much every aspect of your new business, you should be aware that now is the most responsible for the decision making of the place where he works.
It is recommended that training courses are carried out in various areas such as administration, marketing, and even a coaching business. You will be largely responsible for the success or failure of the company, so avoid spending important decisions to others.
Mistakes you should not make the time to open your business!
Lack of planning
The main problem that first-time entrepreneurs face is the lack of planning. It is a matter very broad, encompassing nearly every aspect of the company. Anyone in charge of a business need to know what your target audience and what it will do to achieve it. This should be one of the first goals of those who want to become an entrepreneur.
For example: at what point put a self-service restaurant? What kind of advertising use to achieve an ideal audience? How not to be dependent on only one supplier? These are some examples of questions that should be done at the initial stage of opening a business.
The corporate financial planning is also important because it is what will define how much credit you need: the initial and monthly expenses, personnel costs and suppliers and the expected profit margin. At this point, it is important to note that almost all companies, even the success, take a few years to begin to be profitable.
Financial planning in hand, the administration occurs without improvisations or setbacks. Just as you follow your plan, adjusting it as necessary in order to use the money wisely and taking note of each transaction.
Credit with very high-interest rates
In the business world, from the owner of a small bakery next great entrepreneur Donald Trump, they know the truth: it is almost impossible to start a business without credit. With it, the entrepreneur will be able to make the initial investments, buy the first inputs and have a cash flow before the business generate real profits. It is also the credit that allows the entrepreneur to make the business leverage.
Today, in Brazil, it is much easier to get credit than it was ten, fifteen years ago. However, care is needed.very high-interest rates and very expensive plots can make snowballs impossible to pay in the future, even if the company is successful. You need to research the best rates and borrow only what is necessary.
Starting a business in Brazil takes on average 53 days. It is one of the world’s longest processes! Only the tax bureaucracy consumes 2,600 hours per year on average, according to World Bank research. These figures show a truth that is on everyone’s lips: Brazil is a very bureaucratic country.
Such data place Brazil in 130th among 185 countries in the ranking that measures the ease of doing business. Unfortunately, no use complaining. To have a successful business, the entrepreneur must learn to circumvent these problems. Know the taxes to be paid, deadlines for release of permits and what the necessary certificates for your business work are indispensable prerequisites. Look for an accountant to help you with all the necessary documentation so that the process does not extend for long.
Extra tips on administration time to open your business
Do not lose control of working capital
One of the biggest villains who take small businesses into bankruptcy is the lack of working capital, which is one reservation that ensures that the activities continue in the most critical moments. And that goes even when the company has presented profit because revenue is always variable and it may be that the coming months are not as tired as the last. So, this money should always be monitored and well managed.
Focus on Cash Flow
Another point that should have special attention is the cash flow of the company because it is through it that you can know how much money comes in and out of the total transactions.
Knowing well your cash flow is possible to know where is the balance of the company and thus learn how to better manage their accounts payable and receivable, charging customers who are must and asking for more time or favorable conditions for suppliers.
Beware of stock
Many people see the stock of products as a cost, but it should be seen as an investment. It is the company’s money converted into goods and need special treatment not to generate unnecessary expenses.
By managing this investment is important to know what the demand of your market without being too pessimistic or too much optimistic. In addition, you must have a safety margin, should there be an unexpected increase in demand.
Manage with the help of an online system
Administer gathering paperwork or Excel spreadsheet is not practical and error-prone. Thus, a valuable tip management is to use a proper software for it, which can be accessed from anywhere with information stored in the cloud and constantly updated seamlessly. So the numbers are correct and help untangle once.
When it comes to starting a business, it is not uncommon to hear so that Brazil is one of the most bureaucratic countries. The finding, unfortunately, is true. According to the study G20 Entrepreneurship Barometer, conducted by EY consultancy, the Brazilian entrepreneur takes on average 119 days to open your business in the country.
The process, which is currently burdened by numerous documentary and registration requirements, is almost 6 times slower than in other G20 countries.
Even with all these obstacles, the Brazilian is still one of the most enterprising people in the world. That is why we decided to give help to the readers who want to be part of the entrepreneurial slice of the country, working out, in this post, a step by step for you to make the registration of your company. But beware: many people confuse the registration of trademarks and patents with the registration of a company. Register a company is not patent. The registration of trademarks and patents, though a little different, are both granted by the INPI – National Institute of Industrial Property – and only of interest to those who want to explore, produce and / or sell, exclusively, a brand or product, provided is entitled to it.Since the registration of a company, as you’ll soon see, well, it is another story. Let’s go then?
Development or social contract
Basically, the development of the social contract will define the equity shares of each of the partners of the project and to define what are the activities of the company and its operation (tax model, involvement of partners, etc.). The next step is to verify that the name and the corporate purpose of the company are available for the document to be drawn up, which, in turn, should be recognized notarized and signed by a lawyer.
One tip is to evaluate, since that time, if your company can fit in the National Simple, which is an excellent way to reduce tax rates and simplify their payment from the Treasury organs.
Even with all the technology available to the entrepreneur, it should still register your business in different organs, an aspect which makes it all the more costly and slow process. Basically, these records are made to the following organs:
And then you feel safer to open your business? You got any questions? Leave in the comments!