I'm going to attempt and find out (actually confirm my existing beliefs) the answers to a couple questions that have been asked over the weekend that I'm not 100% on while I'm out and about. It's only 9 am here at the moment. I believe you folks turned your clocks back sunday morning?
Anyway, here is another tidbit of information that a foreign investor must be aware of if interested in investing, or purchasing, a brazilian business.
When purchasing a brazilian business, if the new owner continues the same activity as previous ownership in the same location, the new owner is responsible for ALL legal as well as fiscal activities that occurred BEFORE he purchased the business!!
This is one of those brazilian laws that doesn't seem to make a lot of sense, but I understand why they did it when they did. A lot of people were accruing debt then just "selling" their business to their wife, brother, mother, etc and neglecting the previous debt. This law was paramount in the decision for me and one of my partners in NOT purchasing a large beach bar/restaurant here in Aracaju...although I did end up brokering the sale to a guy from Holland. And yes, I fully informed him of everything I had learned and even advised him that we didn't think the purchase was prudent.
But it was for him.
