Starting a business in Brazil
Plan Basics
Overview
Purchasing Products
All Amway Business Owners purchase products directly from Amway. Also Clients can purchase products directly from Amway.
Bonus Payment
Bonuses will be paid directly to all Amway Business Owners (ABO) who have earned the bonus. Bonus payments will be paid by check unless direct deposit is requested. Since January 1, 2009, an ABO must generate 150 personal points in a month in order to receive a bonus. This applies to any bonuses (personal, group differential, leadership, etc.). This new requirement is a monthly requirement meaning that an ABO must generate 150 personal points every month that he is receiving a bonus to be eligible to keep it. This requirement has been waived for Foreign ABOs with a Number two business in Latin America. The assumption is that these ABOs are fulfilling requirements in their Home Market. This requirement has been waived for Foreign ABOs with a Number two business in Latin America. The assumption is that these ABOs are fulfilling requirements in their Home Market.
PV/BV Transfers
PV/BV transfers are not available.
Rebate allowed
If a Client purchases through Amway (0800-72 26 929), the Amway Experience Center or www.amway.com.br, a rebate will be allowed.
Consolidated Line of Sponsorship
Amway Latin America is integrated by 12 affiliates:
Argentina
Brazil
Colombia
Costa Rica
Chile
El Salvador
Honduras
Guatemala
Mexico
Panama
Uruguay
Venezuela
As of September 2007, Latin America began operating as a Consolidated Line of Sponsorship (consolidated market) where Amway Business Owners (ABOs) are able to personally sponsor from and to any market within the Latin America Region without the need to establish as second business. The consolidation of the Latin American line of sponsorship means very important opportunities for ABOs. Some of the benefits are:
-Cross border sponsoring allows for personal sponsoring in all markets
-ABOs can place orders in any market different from their home country, only to be shipped to local addresses within the affiliate where the order is placed. In this case ABO must follow all the countries laws and regulations.
Combined volume from all markets allows an ABO to reach the 21% level more quickly
-Regional Business Kit
-Regional SIP Program
-Regional Bonus Statement
Performance Schedule
PV Performance Bonus
10000 21%
7000 18%
4000 15%
1,800 12%
600 9%
Retail Margin
Retail margin or mark up suggested for Amway products is up to 42%.
how to start
Starter Kit Purchasing
In order to buy a Business Starter Kit and become a new Amway Business Owner (ABO), the prospect must be at least 18 years old and contact an Amway Business Owner for purchase of the Starter Business Kit. The new Amway Business Owner must complete, sign and submit the Registration Form (original) by post mail. (He/she may also fax the Registration Form before sending the original so he/she can buy products immediately).
This process can also be completed using the Internet site www.amway.com.br where the applicant, together with the sponsor, completes the Registration Form. The new Amway Business owner is immediately registered at that moment and can buy products on-line. The Business Starter Kit will be automatically included in the order. The Registration Form must be printed and signed by the applicant and submitted to Amway Brazil until 90 days.
Cost of Starter Kit
The Starter Kit includes briefcase, literature and costs R$ 56,00 (around US$28,00) by 2013, January.
Sponsoring
In order to register a new Amway Business Owner (ABO), the sponsoring ABO must ensure that all ABOs registered are provided with an official Amway Business Starter Kit (without substitution or alteration of the contents) and the ABO Contracts are completed, signed and submitted to Amway’s local affiliate.
Business Type
In addition to the Amway Business Owners, Amway Latin America established one additional alternative to have access to the Amway Products and Services called Client.
To become a Client the person can registered by internet, the 0800 number or in the Amway Experience Center by providing his/her name, telephone number, e-mail address, name of the ABO who is registering him/she. In case the person has not been referred and does not know an Amway Business Owner, Amway will assign one based on a data base of retailers of the affiliate. There is no cost to become a Client.
A sponsor is required to be registered as a Client and the person can choose if he/she wants to be contacted by the sponsor. Legal entities can become Clients.
Establish a Second Business
International Sponsoring
International sponsoring is always an option and an excellent means of expanding your business while avoiding many of the costs and complexities associated with establishing a second business. Please note: For those markets where foreigners are able to establish a second business, they must be the international sponsor of their second business in another country.
Amway Business Owner Registration Requirements
Please check the following websites for visa information:
www.vistobrasil.com.br
or
www.dpf.gov.br/servicos/estrangeiro
Please check the following website for information on taxpayer registry (CPF)
www.receita.fazenda.gov.br/GuiaContribuinte/cpf/default.htm
ABOs are required to have a Brazilian address, but an office is not necessary
ABOs are responsible for complying with any local business, commercial and/or trade authority licensing issues.
Doing business by a foreigner includes but is not limited to selling products, receiving bonuses and sponsoring
Visa Requirements
Please check the following websites for visa requirements and information:
www.vistobrasil.com.br
or
www.dpf.gov.br/servicos/estrangeiro
A CPF number must be used on the application. You cannot use a passport number.
It is not necessary to have citizenship to start a second business.
Formation and Registration of Your Business
Any foreign ABO can have a business in Brazil as an International Sponsor (as outlined in the Business Reference Guide) or as a Local Sponsor.
As in other countries, it is necessary to define the kind of ABO business is desired:
-A Single Person ABO (we recommend this option), or
-A legal Entity ABO ( LLC)
Single Person ABO
– Buy a local starter kit, to be sponsored (payment in local currency)
– Buy starters kits to sponsor people
Legal Entity ABO (LLC)
An ABO can choose to be an owner of a legal entity ABO (LLC). In this case, it is necessary to open a Brazilian LLC company. The Registration form must be submitted and processed in the name of the ABO. The ABO can then request the transfer of ownership to an LLC. Please note the sole purpose of the LLC must be the operation of the Amway business. No other business activity can be conducted through the LLC.
We strongly emphasize that this option should be chosen in case of receiving high amount of bonuses, due to very complex/high Brazilian tax rate and rules.
It is also essential that Brazilian LLC company is a long-lasting company, counting with economic support, constant administration and permanent sponsoring thus not to be consider as a deceit company.
It will be necessary to have a Resident person with power of attorney to represent foreign owner of LLC. The attorney will be also the legal Representative of Foreign Owner face to Federal Revenue Secretary (SRF). Same person can be named Administrator of LLC and its’ legal representative.
Contact a lawyer office to prepare:
-Articles of association or Bylaws
-Registration with the board of Trade
-Enrollment with the Corporate Taxpayers registry (CNPJ)
-Registration with the Central Bank of Brazil
Contact an accounting or lawyer office to register:
-The revenue service of the State Government in order to obtain the state establishment license and the state tax ID (Inscrição Estadual);
-The Municipal office of the City Hall in order to obtain the local establishment license and the local tax ID (CCM);
-The National Institute of Social Security (INSS);
-The Unemployment Guarantee Fund (FGTS), a social security body.
To obtain the CPF, please go to the following site:
www.receita.fazenda.gov.br/GuiaContribuinte/cpf/default.htm
The affiliate cannot provide support in this area, however, the affiliate can provide the names of accountants and lawyers to assist the IBO.
To open an Amway Business the only capital required is the starter kit cost (approximately R$ 56,00 – +US$28,00). For LLC it is necessary to check with an attorney or an accountant.
As with your primary business, your second business must be renewed each year with the affiliate.
It is necessary to open a Bank Account in order to receive bonus from Amway. Besides CPF or CNPJ that is mandatory, others documents must be confirmed with Bank Office.
Submit your paperwork to:
Amway do Brasil Ltda
Rua Julio Diniz, 56, 6º andar, Vl. Olímpia – S. Paulo – SP
Cep: 04547-090 – Departamento de Cadastro
Required Documents for Registration
Please check the following websites for visa information:
www.dpf.gov.br/web/servicos/tabvisto2110.htm
Please check the following website for information on taxpayer registry (CPF):
www.receita.fazenda.gov.br/GuiaContribuinte/cpf/default.htm
Cost and Bonus Payment
Costs to open a LCC
-Lawyer office – fee around US$ 2.000,00
-Accounting office – fee about US$ 1.000,00
-Tax, books, notarization of documents and others government charges, about US$ 250,00 ( collected separately)
Costs to maintain a LLC
Accounting office cost are around US$ 200,00 per month and one additional payment of same amount in December of each year.
Bonus Payment
Bonus payments are made through deposit in a local bank account. The ABO should provide bank data, bank account number, swift bank number and bank ABA code, a remittance request letter for Amway and an authorization to Amway to deduct, from the total payment, the amount for the broker’s fee.
Amway will provide necessary documents to release the remittance. The cost is approximately US$80,00 per operation, paid by foreign ABO.
Click the link below to display additional details on how to start a multiple business in this market.
how to order
Ordering
Amway Business Owners (ABO) and Clients can order Amway products from Amway Brazil by:
Order Entry, phone 0800 72 26 929
Following the next steps:
– Provide your ABO, Associate or Client Number to place an order.
– Confirm that the product code number is correct when you are ordering; you can verify this number in the price list.
– Have handy the address where you wish Amway Brazil to deliver your order. This address has to be within the country of Brazil.
– Hours of Operation: 09:00 am to 07:00 pm. Monday through Friday
09:00 am to 03:00 pm. Saturday
Internet Orders
You can also order products through our web site: www.amway.com.br
Amway Experience Center – SP
Rua Augusta, 2295 – São Paulo/SP
Phone: (55-11) 3081-6400
Hours of Operation: 09:00 am to 08:00 pm. Monday through Friday
09:00 am to 03:30 pm. Saturday
Amway Experience Center – RJ
Rua Buenos Aires, 60 – Rio de Janeiro/RJ
Phone: (55-21) 3203-6200
Hours of Operation: 09:00 am to 08:00 pm. Monday through Friday
09:00 am to 03:30 pm. Saturday
Amway Experience Center – PE
Av. Conselheiro Aguiar, 2360 – Boa Viagem – Recife – PE
CEP: 51020-020
Phone: (55-81) 3033-3252
Hours of Operation: 09:00 am to 09:00 pm. Monday through Friday
09:00 am to 06:00 pm. Saturday
Payment Methods
Order Entry and Internet Orders
-Credit Card (Master, VISA, America Express and Diners)
-Post-paid Slip bank
Amway Experience Center
-Credit Card (Master, VISA, American Express and Diners)
-Debit Card
-Cash
-Cheque
-Post-paid Slip bank
Returns/Refunds
Starter Kit returns will be accepted 90 days from date of purchase.
If the Amway Business Owner is not satisfied with our product purchased for personal use, he may return the product with the invoice to the place (Product Selection Center /warehouse) where he bought it within 90 days from date of purchase together with the PDM form properly filled – available for download at Amway.com.br
If the Client is not satisfied with our product, he/she can return it to the Amway Business Owner that sold it to him/her or to Amway do Brasil office within 90 days from date of purchase.
how to manage
Access Information
-Amway Magazine
–www.amway.com.br
-Information Services
Phone: 0800 72 26 929
Monday through Friday
9:00 a.m. to 7:00 p.m.
Saturday
9:00 a.m. to 4:00 p.m.
-E-mail: falecom@amway.com.br
PIN numbers can be obtained by:
Calling 0800 72 26 929
It can be sent to you by e-mail (upon request)
You will need your Amway Business Owner number to receive the information
New Amway Business Owners are assigned a PIN number
Receive Bonus Payment
Beginning January 1, 2009, an ABO must generate 150 personal points in a month in order to receive a bonus. This applies to any bonuses (personal, group differential, leadership, etc.). This new requirement is a monthly requirement meaning that an ABO must generate 150 personal points every month that he is receiving a bonus to be eligible to keep it.
This requirement has been waived for Foreign ABOs with a Number two business in Latin America. The assumption is that these ABOs are fulfilling requirements in their Home Market.
ABOs, who have earned a bonus, may receive the payment via bank, electronic transfers by registering the bank account.
The ABO must send a data modification informing their bank account number data:
-Bank
-Branch
-Account Type
-Account Number
The bank account could be any bank and the titular account name has to be the Amway Business Owner’s name.
If the ABO does not provide a bank account, a check is generated automatically and submitted by post mail to the ABO’s mailing address.
Also the ABO can choose that all the bonus payments earnings will stay in A/R forward so that amount can be use for future purchases.
Renew
Cost/Timing:
September 1 – R$25,00
October 1 – R$35,00
November 1 – December 31 – R$40,00
Late Renewal Cost:
R$50,00 Brazilian Real
January 1 – August 31
Renewal Methods
-With product order or separately
-Order Toll free line: 0800 72 26 929
-Website: www.amway.com.br
Payment Methods
-Cash (only at PSC)
-Bank transfer
-Slip Bank
-Credit Card
-Debit
-Automatic Renew (Asking through 0800)
contact
Amway do Brasil Ltda.
Address: R. Julio Diniz, 56
6º, 7º e 8º andar CEP 04547-090
Vila Olímpia
São Paulo – SP
Brazil
Tel: 0800 722 6929
Fax: 55-11-5696-3377
www.amway.com.br (Public & Distributor Website)
falecom@amway.com.br (Email)
Open November 1991