ONLINE BUSINESS IN BRAZIL - Essay Example

It would also provide a map that would guide the customers during their stay in the country. Referred to as the Federal Republic of Brazil, the country has been cited as the largest economy in Latin America and seventh in the world and is the fifth largest country globally by mass and population (Engel, 2011). This online business proposal has been guided by the fact that the South American country has been ranked fifth as an Internet market globally and the top in Latin America due to increased broadband penetration, improved cyber-security and a rise in the number of holders of credit cards (US Commercial Service, 2011).

Therefore, the cost of setting up an e-commerce business in the country would be considerably low. The choice of the country was informed by the various games being held and many significant more to be held in the country which would provide an increased demand for online bookings of various services from all over the world. These games include the 2014 soccer World Cup, the 2012 Olympics, the 2011 World Military Games, the 2011/12 Pan-American Maccabi Games and the 2013 soccer Confederations Cup.

Human resource The business entity would have to consider it employees on the aspect of having them as expatriates or residents. Residents of Brazil would have their taxation based on their worldwide earnings whereas foreigners would be exclusively taxed on their Brazilian source income. However, foreigners seeking to live and work in the country could become tax residents based on their visa types: permanent visa holders qualify as residents from the arrival date; temporary visa holders with employment contracts would be categorized as residents from the date of arrival while those without qualify as residents on their 184th day since arrival.

Though the government of Brazil would not tax dividends of non-residents, 15% would be taxed for each of the following: interest, royalties and technical and administrative services. Other services would attract 25% tax (Alves, 2010). The Brazilian Labor Code, the Brazilian Federal Constitution and Collective Labor Agreements govern employment and labor relations. Engel (2011) appreciates the abundance of unskilled and semi-skilled labor force, implying that the business’ success in areas requiring skilled labor would have to source from abroad.

Culture and religion Portuguese is the official language with minimal local dialect in use. The business community in the country would use English. In the business community, handshakes symbolize etiquette while pecks among women and brief embrace among men would be used in informal settings. Politeness dictates use of title and surname when addressing someone for the first time. Social classes remain prevalent in Brazil determined by economic status. The cultural principles in Brazil call for commitment, trust and nurturing in negotiations which take long (Deari, Kimmel & Lopez, 2008).

The firm should cushion itself against delays in supplies, a norm which has become acceptable in the country. People speaking in foreign languages could fall victim of public deceit. Roman Catholicism is the predominant religion with Catholic holidays being observed though the law respects freedom of religion (Alves, 2010). This explains the thriving Umbanda religion which combines Catholicism and African religious worship and Candomble which propagates African spiritualism. Legal consideration Protecting the intellectual property rights in Brazil has been considered as a private right hence the need for private counsel and advisors that would advise on the best ways to go about it.

The National Institute of Industrial Property reinforces the intellectual property concept and keeps at par with the international community on