Several Brazilian friends have expressed concern about the climate of political, legal and economic instability in Brazil. They want to invest safely to maximize their income and business.
Recently, a client, owner of a startup in Brazil, spoke about his plan to open a company in the USA and be able to navigate the market in the largest economy in the world. His company serves American multinationals in Brazil, and the idea was to serve these companies directly in their country.
After a meeting, we advised that a Limited Liability Company (LLC) was created. We provided all legal support, and the company was created. This client had a great investment plan in the US in search of security for his business. His plan (and dream) came true.
We live in a world without borders, full of opportunities.
When people ponder global investment, two key destinations come to mind: the USA and Brazil. Both offer unique advantages, but the USA consistently becomes more attractive for a variety of reasons. This article is not a criticism of Brazil as an investment destination. In fact, I will write an article about some advantages for those who invest in Brazil, aimed at North Americans. Each location has its advantages and challenges. I want to demonstrate some reasons why Brazilians should consider opening businesses and investing in the USA.
Here’s 5 reasons why USA may offer a better return on your investments than Brazil.
The USA is home to the largest economy in the world, which grows and constantly proves to be resilient. It has a diversified economic structure, having substantial strengths not only in technology and finance but also in healthcare and consumer goods. This diversification can mitigate risk and provide for steady economic performance.
Brazil has traveled far in the direction of development but is likely to be vulnerable to economic volatility. This may be caused by its political instability, reliance on exports of commodities, and surprise economic policies. Inflation and exchange rate volatility also complicate the investment landscape.
As far as the USA is concerned, it also provides a robust legal system that safeguards the interests of investors. The regulatory environment is quite transparent, and contracts and property rights are strongly enforced. This commitment to the rule of law guarantees security for both domestic and foreign investors, with very low levels of corruption.
In Brazil, even with improvements, regulatory space may be cumbersome and tough. Bureaucracy, red tape, and occasional legal ambiguities may become barriers to doing business. Efforts to curb corruption have been observed, but this is one of the concerns when investors seek a predictable and stable legal framework.
The USA boasts the world’s largest and most liquid capital markets, led by the New York Stock Exchange and NASDAQ. That can be put in a wider access to capital and unparalleled choices in potential investment. In addition, with venture capital institutions and programs in place, the United States can provide an amiable environment for innovation and entrepreneurship, ensuring that startups and fast-growing companies find the capital they need to become successful.
Brazil’s capital markets are emerging but less developed than the United States, which has more obstacles in raising capital, most notably for SMEs. The startup scene is taking shape but is still too far behind that of the USA in terms of depth and breadth.
USA is one of the leading countries in innovation and infrastructure development. The USA can claim to have world-class research institutions, a highly skilled workforce, and all technological novelties characteristic of a leader in various industries. Its infrastructure supports efficient business operations, from transportation networks to telecommunications.
Although Brazil has been concentrating on improving infrastructure, it still lags behind in some regions with the most important infrastructure that could affect business operation and logistics. And though, Brazilians are making improvements to their technology adoption, they are still far behind in innovation and technological integration compared to the USA.
The USA offers a quality standard of living with good healthcare, education, and living standards. This will further help to attract talented and diverse working populations to the country, which would basically sum up to bring dynamism and productivity in business. Besides, the US maintains a commitment to innovation and education through a large pool of skilled professionals.
Brazil is indeed witnessing the growth of its middle class and amelioration of quality-of-life indicators. At the same time, education and health still pose an availability of very skilled labor to the economy. Socioeconomic disparities and regional differences can act as further disadvantages to the general business environment.
Yet, of the two opportunities presented by the USA and Brazil, some advantages of investing in the USA are clear. The USA offers interesting advantages for investors due to economic stability, transparent legal framework, ease of access to capital, great infrastructure, and high-quality lifestyle. Even if Brazil is an emerging market and has potential, yet risks and problems are higher for the investors therein. The USA is therefore best for those seeking security, growth, and innovation in any field. Investing in the USA ensures that you get more for your money and offers a much more stable and secure business environment. For the experienced and novice investor alike, the USA is great soil to ensure success and growth.
Utah is an excellent destination for Brazilian investors due to its strong economic growth, business-friendly environment, and skilled workforce. The state offers a thriving tech industry, low taxes, and a high quality of life, making it an attractive place to start or expand a business. Additionally, Utah’s strategic location in the U.S. and its stable real estate market provide solid opportunities for returns on investment. For Brazilians looking to invest abroad, Utah presents a promising combination of stability, growth, and potential.
Sumsion Business Law, located in Provo, Utah, has more than 35 years of experience bridging international and American business interests through legal leadership and commercial diplomacy. With a diverse and talented team of more than 40 professionals, including a lawyer from Brazil, Sumsion Business Law is focused on quality, results and punctuality.
Our legal team helps ensure that all money transfers follow legal paths in compliance with all regulations and restrictions on capital flow. Our guidance offers solutions for obtaining foreign investments in a legal and appropriate manner, complying with Brazilian and American legislation. We also offer immigration legal support.
* Fabio Nascimento has 20 years of experience as a business lawyer in Brazil. He is pursuing a PhD in law at Universidad Complutense de Madrid, and has a Master’s degree in comparative law at Brigham Young University. BAR admissions (Brazil): Sao Paulo, Parana and Santa Catarina. Fabio is working as a foreign advisor at Sumsion Business Law. fabio@businesslawutah.com
