Brazilian Registration Holder Services (BRH), also known as Hosting services, is an established company that has the necessary documentation - licensing, authorization, social contract, Technical Responsible - and all legal prerogatives to function as a company, only that it does not market any product, only represents products an international company in Brazil.
Foreign companies that do not have physical, fiscal, tax and / or administrative ties with Brazil can rent a Brazilian Registration Holder (BRH). In carrying out this process, the product of this company is regulated and marketed in Brazil, according to the norms of the certifying body or regulatory agency, such as the Brazilian Health Regulatory Agency - ANVISA.
The function of the Brazilian Registration Holder (BRH) is to save the time and cost of a company and product legalization process in Brazil. It acts as a facilitator, bringing various benefits and safety to the company that wants to market its products in Brazil without going through the regulatory procedures, such as obtaining the Local Operation License and the Operation Permits.
BRH offers several benefits to the foreign company, such as not dealing with physical space and its structural costs, it is not necessary to hire employees, easy communication with the regulatory agency in Brazil, bureaucratic barriers linked to the creation of a company, reducing the regularization time of your products and, above all, offers great security for your company.
The Brazilian Registration Holder acts as a representative of the foreign company. Therefore, those who continue with all decision making are the international company, since BRH does not market products.
If an international company hypothetically used a distributor instead of BRH, it would be stuck to the distributor, since BRH would be responsible for its product in Brazil. Thus, if the foreign company wanted to increase or decrease the quantity of exported products, change distributors, or make any kind of change in the existing process, it could only do so if the distributor representing it agreed. Making the company manufacturer hostage distributor company.
So, the great difference of the Brazilian Registration Holder is to maintain total control over the trade of products in the hands of the foreign company, since its interest is in the representation of the company and not in the commercialization of products.
For a foreign company there are three ways for it to market its product in Brazil. The first would be using a Brazilian Registration Holder, the second option would be to open a company in the country and the third would be to register the product in the name of a distributor.
As we have seen, the third option is the least used, after all, does not guarantee security to the foreign company. Therefore, we will focus on the two viable possibilities.
Several criteria can be used to make the decision between BRH and the incorporation of a new company in Brazil. Some of them are: size of the company, type of product, quantity of products, length of stay in Brazil, if the product has already passed market tests, if the export reason would be market study, what investment the company wants to do and the time you want to spend, among others.
That is, both are viable and secure options, but it all depends on what the foreign company is looking for at that moment.
Stone Okamont offers Brazilian Registration Holder Services (BRH) to foreign companies wishing to use this service in Brazil.
Using Stone Hollow's BRH offers a number of advantages, such as expertise in a number of regulatory areas, specialized teams, availability of service in different languages, and obtaining the Local Operating License and Operation Permits.
Get in touch and find out how Stone Okamont can help your business succeed!