Are You Expanding Business to Brazil? Here’s How to Avoid Costly Scams

Expanding your business to Brazil can be a lucrative move, but what if you fall victim to a scam? Business fraud is a real concern, especially for foreign investors unfamiliar with local regulations and market practices. In this article, we’ll uncover the three most common scams that international companies face when entering Brazil—and how to avoid losing money and credibility in the process.

1. Fake Business Partners and Shell Companies

One of the most deceptive scams occurs when foreign businesses engage with fake local partners or shell companies. These entities appear legitimate, offering attractive deals and promising fast-track market entry. However, once money changes hands, they disappears—leaving you with no legal recourse.

How to Avoid It:

Conduct a thorough due diligence process before signing any contracts.
Verify company registration through Brazil’s Receita Federal and Junta Comercial databases.
Hire local legal and business consultants to perform background checks.
Visit the business location in person to confirm its legitimacy.

👉 Benefit: Brazil Visa Hub connects you with verified local partners, ensuring you engage only with legitimate, trustworthy businesses.

2. Real Estate and Lease Fraud

Whether setting up an office, factory, or retail store, real estate fraud is another prevalent issue. Foreign investors often pay hefty deposits for properties that don’t exist or have legal disputes.

How to Avoid It:

Work with a trusted real estate lawyer to review contracts and property ownership records.
Avoid paying large sums upfront before verifying legal documentation.
Use government databases like SPU (Secretaria de Patrimônio da União) to confirm ownership.
Visit the property or hire a professional to inspect it before signing anything.

👉 Benefit: Brazil Visa Hub helps foreign investors secure legitimate properties, handling all legal due diligence for a seamless expansion.

3. Import and Customs Fraud

Many businesses importing equipment or products into Brazil fall victim to inflated fees, fake customs agents, or bribery schemes. Unscrupulous brokers may demand unofficial payments, causing delays or even legal trouble.

How to Avoid It:

Work only with licensed customs brokers registered with Receita Federal.
Get multiple quotes and verify import duties through Brazil’s Siscomex system.
Never agree to pay “under-the-table” fees to expedite processing.
Partner with local experts to navigate Brazil’s complex customs regulations.

👉 Benefit: Brazil Visa Hub provides customs compliance support, ensuring your goods enter Brazil legally and efficiently—without hidden costs.

The Smart Way to Expanding business to brazil: Work with Trusted Experts

Expanding to a new country is always a challenge, but working with the right experts minimizes risks and maximizes success.

Why Choose Brazil Visa Hub?

✅ Fraud Prevention: We verify local partners, properties, and contracts.

✅ Regulatory Compliance: Our team ensures your business follows Brazilian laws.

✅ Seamless Expansion: From visas to legal support, we handle the hard work for you.

Final Thought

Don’t let scams derail your Brazil expansion. Protect your investment and ensure a smooth market entry by partnering with experts who understand the terrain.

Ready to expand safely?

Contact Brazil Visa Hub today for a risk-free consultation!