Initiation in a foreign territory. Europe is currently the second largest destination for Brazilian exports, accounting for 21.40% of the total. The United Kingdom is positioned as the second most important country within Europe. (Source: InvestecportalBrazil) Profile of Brazilian companies in the United Kingdom Brazilian companies may be configured in different ways, such as migrant professionals, scientists, and researchers, remote execution of projects, the incorporation of the company abroad with local representatives, or the actual establishing of a physical unit, like an office, shop or factory. The profile of Brazilian companies in the United Kingdom is composed as follows: Industry: Food, Financial Services, Design, Innovation, IT. Number of employees: 1 to 10 Annual Revenue: from £ 100,000 to £ 5,000,000.00 Control: Continuous control fixed in Brazil Return on Investment: 70% of the investment repatriated to Brazil In view of the above, we conclude that it may be easier to start or transfer a company from Brazil to the United Kingdom than within Brazil itself. Once the challenges are identified and the strategies defined, it is possible to conclude that the internationalization of Brazilian companies to the United Kingdom has a great chance of being successful. The UK remains a very desriable destination for foreign investments, even in times of Brexit.
Challenges
United Kingdom
Immigration
Work and commercial representation visas are required
Financial – Monetary difference- Investment
Stable currency; an exchange rate of BR$4.5 to £1, makes it a considerable investment for Brazilian entrepreneurs.
Business Culture/ Licences and Local Legislation
Procedures are more formal and insurance policies are required. Different licences and local laws. Strict deadlines and timetables
The absence of contacts and network
During a company’s implementation, the absence of a network of contacts and partnerships can hinder the development of the business.
Communication: visual, spoken and written
Communication, including specific corporate British jargon, is totally distinct from that in Brazil and the US. Language fluency essential.
Banking system
The Board of Trade and Inland Revenue are prepared to facilitate business investments. The banking system, after the crisis of 2008, has created new and more complex regulations.
Investment repatriation
High Brazilian taxes when returns are repatriated to Brazil
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