How to Start a Bakery in Brazil
Currently, the sector of bakeries is the country's second largest food distribution channel and one of the six major industries. In Brazil there are around 64 000 small and medium-sized bakeries. In this article you will learn how to start this business in Brazil.
Padaria, Portuguese for bakery, is characterized by selling bread, sweets, confectionery, snacks, drinks, cigarettes etc. In Brazil, the bakeries usually have space for selling convenience products, where you can find not only find food and beverages but also cleaning and personal hygiene products. It is rare for someone to enter a bakery just to buy bread, so they end up having coffee, buying margarine, cheese, ham and whatever else is missing in the refrigerator. Bakeries also have a snack bar where customers can sit and choose from the drinks and dishes offered on the menu.
In Brazil, bakeries have grown substantially over the past few years showing growth of 12% in revenue across the country. This sector has annual revenue of more than BRL 70 billion. According to the Brazilian Association of Bakeries products freshly baked in the bakery such as cakes, bread and snacks and the food offered with the menu service are the main factors contributing to this growth. However, the annual consumption of bread in Brazil is 34 kilograms per inhabitant, which is very little compared to the recommended amount by the World Health Organization of 60 kg per inhabitant.
Company registration in Brazil
It is important to mention that a Padaria is a company, and thus must be duly registered as such.
Registering with the state’s Board of Trade
Any person - or partners, if it´s a liability company wanting to establish a company in Brazil must first register the company’s activities with the Junta Comercial, which is Portuguese for Board of Trade in the state in which the company will establish itself. In order to do this, the following documents and procedures must be followed:
- Verify that the company’s name is not already in use, since two companies with the same name cannot exist in the same state
- DARF, Documento de Arrecadação da Receita Federal which is Portuguese for Collection Document of the Federal Revenue, is a payment slip used to pay fees to the Federal Revenue. The code that should be used is 6621, which is for the registration of a business
- Capa de processo, which is a document that requires that the Board of Trade files the act
- Ficha de Cadastro Nacional, the National Registration Form, informing the identification of the company (name, location, legal nature), equity and economic activities
- Articles of association also known as Estatuto Social da Empresa
- If the company is a micro or small business, the owner must present a Declaração de Enquadramento, stating that the business fits the definition of a micro or small business
- Notarized copy of identification document and CPF of the owner or of the partners. In case there is a legal entity that is a partner in the new business, a notarized copy of the CNPJ must also be provided
- Copy of proof of residence of the holder or of the partners
- Declaração de Desimpedimento dos sócios, a statement informing that any partner is not convicted or under effects of conviction, to become an administrator of a company
When the registration of the company is completed by the state’s Board of Trade, a NIRE, Company Registration Identification Number, is issued.
Registering for a CNPJ
After receiving the NIRE, you need to register the company as a taxpayer, which means getting a CNPJ.
By means of an agreement between the Federal Revenue Service and most states’ Board of Trade, the process for applying or changing a CNPJ can be done through most state’s Board of Trade, which can accelerate the process. A network - REDESIM, National Network for Simplification of Registration and Legalization of Business - has been established to simplify the process.
To start the process, the applicant, who is responsible for the legal entity, must download software called PGD to generate the required forms from the Federal Revenue Service’s website. It is necessary to complete the DBE, Basic Entry Form. Once this is complete, the applicant must download the software application named ReceitaNet, available here.
Through ReceitaNet, the DBE, along with the Ficha Cadastral de Pessoa Jurídica which is Portuguese for Registration Form for Corporate Entities, are sent to the state’s Board of Trade. The Board of Trade will check all the documentation and once verification is complete they will send it to the Federal Revenue Service office where the CNPJ number will be issued.
Applying for a Business License
With a registered CNPJ number, the applicant must then contact the municipality or state government to obtain a Licença de Funcionamento, Portuguese for Business License. This license allows the operation of commercial activities. This is done at the Treasury Department in each state. The necessary documentation for obtaining a business license is:
- Prior consultation of address made by the local authority, since each municipality has different laws concerning where specific activities can be carried out
- Application for a business license
- Statement of responsibility
- Articles of association registered with the Board of Trade
- CNPJ card
- Documento de Arrecadação Avulso, DAR, a document, similar to the DARF, for the payment of administrative fees to the government
Registry of the INSS
After receiving the Business License, the company is able to start trading. Regardless of whether the company employs people, it is required to register with the INSS, The Brazilian Social Security institution. Despite being just the initial partners, the company must be registered with Social Security and pay the corresponding taxes. Thus, the company representative must contact a Social Security Agency to request the registration of the company and the people responsible for it. The deadline for registration is 30 days from when trading commenced.
Authorization to print invoices
The company must apply for authorization to print invoices and authentication of tax books. This is done at the local administration of each city. Companies that perform activities relating to industry and commerce should contact the Department of Treasury of each state.
Further information on how to register for this authorization can be found in this article.
Fire security measures
All facilities must be compliant with the fire department requirements regarding prevention, adoption of security measures and fire fighting actions. Each state has its own firefighters’ department responsible for supervising all companies.
Sanitary License
As bakeries are shops that predominantly sell food products, the Alvará Sanitário, which is Portuguese for Sanitary License, is required in order to operate legally. Some bakeries in Brazil also sell cleaning products such as laundry soap and detergent. Brazilian law states that the sale of cleaning products is only permitted in the same building as the sale of food if both goods are displayed in separate locations and if the premises are inspected by an agent from the official sanitary authority.
In Brazil, sanitary laws are enforced by ANVISA - the National Health Surveillance Agency - at federal level, through SNVS, the National System of Health Surveillance. But, the inspection of premises that manage food is done at a state level, through Centro de Vigilância Sanitária de São Paulo, which is Portuguese for Health Surveillance Center of São Paulo, for the state of São Paulo for example.
Necessary documentation to obtain a Sanitary License
- The following documents are required in order to obtain a Sanitary License for legal entities and individuals:Requerimento de Inspeção Sanitária, which is Portuguese for Application for Sanitary Inspection
- Copy of Articles of Association
- Copy of CNPJ - for legal entities - or copy of RG and CPF - for individuals
ANVISA Requirements for Bakeries
ANVISA requires that every bakery that is responsible for food handling activities, must have participated in the training courses given by the agency on the following topics:
- Food contaminants
- Foodborne illness
- Hygienic food handling
- Good handling practices in food services
This may be the responsibility of the owner of the bakery or a trained employee working effectively in the bakery, who must supervise the production process. There is no need to name the responsible person for food handling activity in the articles of incorporation of the company, but it needs to be appointed with ANVISA.
Bakeries must be kept in perfect conditions of order and hygiene, in terms of personnel and equipment. The minimum necessary facilities to run a bakery are:
- Exclusive area for receiving and storage of goods. It must have pallets and shelves with a minimum height of 25 cm from the floor
- Exclusive area for food production and manipulation
- Exclusive area for cleaning and storing the kitchen utensils
- Toilets for staff, separated by gender
- Locker room separated by gender, where individual lockers and showers are available
- Exclusive sinks in strategic positions so that employees are hygienic
- Toilets for clients, separated by gender
- All areas and facilities must be light-colored and be covered with waterproof material
- The place must have an uniform lighting and good ventilation