Brazilian Registration Holder Services (BRH), also known as Hosting Services or Product Hosting, is an established company in possession of all necessary documentation – licensing, authorization, articles of incorporation, Technical Responsible – and all legal prerogatives to operate as a company, albeit not engaged in the direct commercialization of any products. Instead, it exclusively represents international companies' products within Brazil.
Foreign companies lacking physical, fiscal, tax, and/or administrative ties to Brazil can engage a Brazilian Registration Holder (BRH). Through this process, the products of the foreign company are regulated and marketed in Brazil in accordance with the certification body's norms or regulatory agency, such as the National Health Surveillance Agency (Agência Nacional de Vigilância Sanitária - ANVISA).
The Brazilian Registration Holder's (BRH) role is to save time and costs associated with the process of legalizing a company and its products in Brazil. It acts as a facilitator, offering numerous benefits and security to companies seeking to market their products in Brazil without undergoing regulatory procedures, such as obtaining a Operating License and Company Authorization.
BRH offers various benefits to foreign companies, including avoiding physical space and its structural costs, not requiring employee hires, facilitating communication with regulatory agencies in Brazil, bypassing numerous bureaucratic barriers related to company creation, reducing product regularization time, and most importantly, providing significant security to the company.
The Brazilian Registration Holder acts as a representative of the foreign company. As such, all decision-making authority remains with the international company, as BRH does not engage in product commercialization.
Hypothetically, if an international company were to use a distributor instead of BRH, it would be bound by the distributor, who would assume responsibility for the product in Brazil. Consequently, if the foreign company wanted to adjust the quantity of exported products, change distributors, or make any alterations to the existing process, it could only do so with the distributor's consent. This would essentially make the manufacturing company dependent on the distributing company.
The standout feature of the Brazilian Registration Holder is that it allows the foreign company to retain complete control over product trade, as the holder's interest lies in representing the company, not commercializing products.
For a foreign company, there are three ways to market its product in Brazil. The first is by utilizing a Brazilian Registration Holder, the second option is to establish a company in the country, and the third is to register the product under the name of a distributor.
As seen, the third option is the least utilized, as it doesn't provide security for the foreign company. Therefore, we'll focus on the two viable possibilities.
Several criteria can be used to decide between BRH and incorporating a new company in Brazil. Some of these include company size, product type, quantity of products, duration of stay in Brazil, whether the product has undergone market testing, whether exportation is for market research, the investment the company wishes to make, and the time it intends to spend, among others.
In other words, both options are viable and secure, but the choice depends on what the foreign company seeks at that moment.
Stone Okamont offers Brazilian Registration Hosting Services (BRH) to foreign companies looking to utilize this service in Brazil.
Utilizing Stone Okamont's BRH offers several advantages, such as expertise in various regulatory areas, specialized teams available in different languages, as well as obtaining the Local Operating License and Company Authorization.
Request a quote here.