Page 10 - Doing Business in Brazil Eng

A business partnership in the form of a joint venture guarantees optimal results not only for the
European business that wishes to enter the Brazilian market, but also for the Brazilian business
that pursues partnership with a foreign business. A joint venture can take many forms in practice.
The most frequent form is the case whereby two companies, the foreign wishing to enter the
market and the national wishing to offer its services or distribute the products of the supplier in
the Brazilian market found a company in which both companies participate as
partners/shareholders.
Apart from the basic article of incorporation, compiling an agreement between partners/
shareholders (shareholders’ agreement) which stipulates additional commitments and rights for the
parties is always advisable.
This agreement has the advantage that the parties can anticipate cases that could not be included
in the article of incorporation for various reasons.
The joint venture solution offers advantages for each party. The parties are free to agree on any
shareholding percentage in the new company that is being founded. In this way, the foreign
supplier can require bigger shareholding in the capital, which confers control on him, but also the
security of decision-making as far as the course of the is concerned in case the national partner
does not stick to the joint strategy.
Respectively, the national partner is better covered as far as the representation or distribution
contract is concerned, since they have rights as a company partner, while both parties share a
mutual spirit of cooperation for the achievement of a common goal, perceiving the company as a
shared instrument towards achieving their goals.
As Production Agreements (Production agreements) means the joint production agreements,
whereby the parties agree to jointly produce certain products, or specialization agreements
(unilateral or reciprocal), whereby the parties agree unilaterally or reciprocally to cease
production of a product and to purchase it from the other party.
As commercial intermediaries (Trade Intermediary Services) means the conclusion of marketing
agreements relating to cooperation between companies / competitors in the selling, distribution or
promotion of their products / services.
As a Technology Transfer (Technology transfer) means the transfer of technology, i.e. any
mechanism by which technology, in the broadest sense, is removed from the body-donor to
recipient institution which is a business. The ways in which technology transfer is implemented are
many.
Features mentioned mechanisms such as design and production, applying ideas, production
methodologies, using expertise even with recruitment of qualified human resources from a
company up to the licensing of patent rights.

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