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Brazil business and legal glossary: the Portuguese terms and acronyms in every deal

Last verified: 2026-10-27 · Status: Stable

Brazilian documents are dense with acronyms: CNPJ and CPF for tax IDs, Ltda. and S.A. for companies, ICMS, ISS, PIS, COFINS and now IBS and CBS for indirect taxes, FGTS for the severance fund, SCE-IED for Central Bank reporting. This glossary gives each term in plain English with the statute that defines it, so you can read a term sheet, a payroll slip or a tax notice without guessing.

USD figures use the Banco Central do Brasil PTAX selling rate of R$5.3346 per US dollar for 27 October 2026, the rate published on the day this page was verified. Conversions are for orientation only; the rate on the day of each FX contract will differ.

Key facts

Micro enterprise (ME) annual revenue ceiling	360000 BRLLC 123 art. 3 I, as of 2026-10-27 · in force
Small enterprise (EPP) annual revenue ceiling	4800000 BRLLC 123 art. 3 II, wording of LC 155, as of 2026-10-27 · in force
Foreign company owned subsidiary may use Simples Nacional	No textLC 123 art. 3 § 4 I and II, as of 2026-10-27 · in force
FGTS deposit	8 % of payLei nº 8.036 art. 15, as of 2026-10-27 · in force

The rule

1. CNPJ is the national legal entity registry number. Every entity domiciled in Brazil, and each of its establishments, must register before starting activities; foreign entities listed in Annex I items XVI and XVII (such as foreign shareholders) must also register. CPF is the individual taxpayer number; a CNPJ representative without a valid CPF blocks the registration.Instrução Normativa RFB nº 2.119 of 6 December 2022, Art. 4, caput and § 2; art. 21 item I, 2022-12-06 official text · verified 2026-10-27

2. Sociedade limitada (Ltda.): a company whose capital is divided into quotas; each quotaholder's liability is limited to its quotas, but all are jointly liable until capital is fully paid in. It may have one or more members.Lei nº 10.406 (Civil Code), § 1 included by Lei nº 13.874 of 20 September 2019, Art. 1.052, caput and § 1, 2019-09-20 official text · verified 2026-10-27

3. Sociedade anônima (S.A.) or companhia: a corporation whose capital is divided into shares; each shareholder's liability is limited to the issue price of the shares subscribed or acquired.Lei nº 6.404 of 15 December 1976 (Corporations Law), Art. 1, 1976-12-15 official text · verified 2026-10-27

4. Microempresa (ME) and empresa de pequeno porte (EPP): micro enterprises have annual gross revenue up to R$360,000 and small enterprises above R$360,000 up to R$4,800,000; they may use the simplified Simples Nacional regime. A company with a legal entity in its capital, or a branch of a foreign company, can never qualify.
Example: A start up owned by two Brazilian individuals with R$3,000,000 of revenue can be an EPP; the same start up with a foreign parent cannot. / R$360,000 is about US$67,484; R$4,800,000 about US$899,786.Lei Complementar nº 123 of 14 December 2006, item II as worded by Lei Complementar nº 155 of 2016, Art. 3, items I and II and § 4 items I and II, 2006-12-14 official text · verified 2026-10-27

5. Juros sobre capital próprio (JCP), interest on net equity: a payment to partners or shareholders calculated on equity accounts and limited to the pro rata daily variation of the long term interest rate (TJLP), deductible for companies taxed on actual profit, and conditional on current or accumulated profits.Lei nº 9.249 of 26 December 1995, Art. 9, caput and § 1, 1995-12-26 official text · verified 2026-10-27

6. Redesim is the national network that simplifies company registration and licensing; federal bodies must take part and state and municipal bodies may join by agreement.Lei nº 11.598 of 3 December 2007, Art. 2, 2007-12-03 official text · verified 2026-10-27

7. FGTS is the employee's severance guarantee fund: the employer deposits 8 percent of monthly pay, including the 13th salary, into an account in the employee's name by the 20th of each month.
Example: R$10,000 salary: R$800 FGTS deposit. / About US$149.96 on US$1,874.55.Lei nº 8.036 of 11 May 1990, Art. 15, 1990-05-11 official text · verified 2026-10-27

8. Décimo terceiro salário (13th salary, also called gratificação de Natal): an extra month's pay, half advanced between February and November and the balance by 20 December.Lei nº 4.749 of 12 August 1965, Art. 1 and art. 2, 1965-08-12 official text · verified 2026-10-27

9. IBS (imposto sobre bens e serviços) and CBS (contribuição sobre bens e serviços) are the two halves of the new dual VAT: IBS shared by states and municipalities and CBS federal. The selective tax (imposto seletivo, IS) falls on goods and services harmful to health or the environment.Constituição Federal, as amended by Emenda Constitucional nº 132 of 20 December 2023, Art. 156-A; art. 195 item V; art. 153 item VIII, 2023-12-20 official text · verified 2026-10-27

10. SCE-IED is the Central Bank's electronic declaratory system for foreign direct investment; the receiving company and the non resident investor are identified in it and receive an SCE-IED code before the first reportable transfer.Resolução BCB nº 278 of 31 December 2022, as amended by Resolução BCB nº 348 of 17 October 2023, Art. 34, item III and § 1, 2023-10-17 official text · verified 2026-10-27

11. Decêndio is a ten day period of the month; several federal withholding deadlines are set by reference to it.Lei nº 11.196 of 21 November 2005, Art. 70, item I, letters b and e, 2005-11-21 official text · verified 2026-10-27

Term	Portuguese	Plain English meaning	Legal anchor
ADCT	Ato das Disposições Constitucionais Transitórias	Transitional provisions of the Constitution; holds the 2026 to 2033 VAT transition	Constitution, ADCT arts. 125 to 133
ANPD	Agência Nacional de Proteção de Dados	Data protection agency	Lei nº 13.709 art. 55-A
Apostila	Apostila de Haia	Apostille replacing consular legalization of foreign public documents	Decreto nº 8.660
BCB	Banco Central do Brasil	Central bank; authorizes banks and runs FX reporting	Lei nº 4.595 art. 8; LC 179
CADE	Conselho Administrativo de Defesa Econômica	Competition authority	Lei nº 12.529 art. 4
CBS	Contribuição sobre Bens e Serviços	Federal half of the dual VAT	Constitution art. 195 V
CGU	Controladoria-Geral da União	Comptroller General; handles foreign bribery cases	Lei nº 12.846 art. 9
CLT	Consolidação das Leis do Trabalho	Consolidated labor code	Decreto-Lei nº 5.452
CMN	Conselho Monetário Nacional	National Monetary Council	Lei nº 9.069 art. 8
CNPJ	Cadastro Nacional da Pessoa Jurídica	Legal entity tax registry number	IN RFB nº 2.119 art. 4
COAF	Conselho de Controle de Atividades Financeiras	Financial intelligence unit	Lei nº 9.613 art. 14
COFINS and PIS	Contribuição para o Financiamento da Seguridade Social; Programa de Integração Social	Federal contributions on revenue, replaced by CBS from 2027	MP 2.158-35 art. 18; ADCT art. 126
CPF	Cadastro de Pessoas Físicas	Individual taxpayer number	IN RFB nº 2.119 art. 21
CVM	Comissão de Valores Mobiliários	Securities regulator	Lei nº 6.385 art. 5
DCTFWeb	Declaração de Débitos e Créditos Tributários Federais	Monthly federal tax return	IN RFB nº 2.237 art. 6
Decêndio	Decêndio	Ten day period used for withholding deadlines	Lei nº 11.196 art. 70
DREI	Departamento Nacional de Registro Empresarial e Integração	Federal body setting company registry rules	Lei nº 8.934 art. 4
e-BEF	Formulário Digital de Beneficiários Finais	Beneficial owner filing	IN RFB nº 2.119 art. 55-A
ECD	Escrituração Contábil Digital	Digital accounting books, due end of June	IN RFB nº 2.003 art. 5
ECF	Escrituração Contábil Fiscal	Digital tax accounting return, due end of July	IN RFB nº 2.004 art. 3
EPP and ME	Empresa de pequeno porte; microempresa	Small and micro enterprise	LC 123 art. 3
FGTS	Fundo de Garantia do Tempo de Serviço	Severance guarantee fund, 8 percent of pay	Lei nº 8.036 art. 15
IBS	Imposto sobre Bens e Serviços	State and municipal half of the dual VAT	Constitution art. 156-A
ICMS	Imposto sobre Circulação de Mercadorias e Serviços	State tax on goods and some services, extinct from 2033	Constitution art. 155 II; ADCT art. 129
INPI	Instituto Nacional da Propriedade Industrial	Patent and trademark office	Lei nº 5.648 art. 2
IOF	Imposto sobre Operações Financeiras	Federal tax on credit, FX, insurance and securities	Constitution art. 153 V
IPCA	Índice Nacional de Preços ao Consumidor Amplo	Official consumer price index for the inflation target	Resolução CMN nº 5.141 art. 1
IPI	Imposto sobre Produtos Industrializados	Federal tax on manufactured goods, zero from 2027 outside the Manaus Free Zone	Constitution art. 153 IV; ADCT art. 126 III
IS	Imposto Seletivo	Selective tax on harmful goods and services	Constitution art. 153 VIII
ISS	Imposto sobre Serviços	Municipal tax on services, extinct from 2033	Constitution art. 156 III; ADCT art. 129
JCP	Juros sobre capital próprio	Interest on net equity, deductible payment to shareholders	Lei nº 9.249 art. 9
Junta Comercial	Junta Comercial	State commercial registry	Lei nº 8.934 art. 3 II
LGPD	Lei Geral de Proteção de Dados	General Data Protection Law	Lei nº 13.709
Ltda.	Sociedade limitada	Limited liability company with quotas	Civil Code art. 1.052
Procurador	Procurador	Attorney in fact; required in Brazil for a foreign entity's CNPJ	IN RFB nº 2.119 art. 6 § 1
PTAX	Taxa PTAX	Central Bank reference exchange rate	Banco Central do Brasil
Redesim	Rede Nacional para a Simplificação do Registro e da Legalização de Empresas e Negócios	Integrated company registration network	Lei nº 11.598 art. 2
S.A.	Sociedade anônima	Corporation with shares	Lei nº 6.404 art. 1
SCE-IED	Sistema de Prestação de Informações de Capital Estrangeiro de Investimento Estrangeiro Direto	Central Bank FDI reporting system	Resolução BCB nº 278
Selic	Taxa Selic	Central Bank policy rate, set by its monetary policy committee (Copom)	Banco Central do Brasil; monetary policy under Lei Complementar nº 179 art. 2
Simples Nacional	Simples Nacional	Simplified tax regime for ME and EPP, closed to foreign owned companies	LC 123 art. 3 § 4
Décimo terceiro	Décimo terceiro salário	13th month salary	Lei nº 4.749 arts. 1 and 2

Glossary of Brazilian business and legal terms. Legal anchors are the official texts cited on this page and elsewhere in the Brazil guide.

Worked example

Reading a payslip and a tax notice: an employee on R$10,000 a month shows FGTS of R$800 (8 percent, deposited by the employer) and income tax withheld by the last business day of the second decêndio of the next month. The company's DCTFWeb for that month is due on the last business day of the following month. R$10,000 is about US$1,874.55 and R$800 about US$149.96.

Step by step

1. When a document cites a law, look for the number and article: Lei, Lei Complementar, Decreto, Instrução Normativa (IN RFB) or Resolução (BCB or CMN), each linked on this guide's pages.
2. Check whether a figure is set in reais or dollars: SCE-IED triggers are in US dollars, most tax thresholds in reais.
3. Use the who regulates what page to identify which authority issues the rule.

Common traps

Confusing quotas and shares. A Ltda. has quotas (Civil Code art. 1.052); only an S.A. has shares (Lei nº 6.404 art. 1).
Assuming ME or EPP status for a subsidiary. A legal entity shareholder bars it (LC 123 art. 3 § 4 I).
Thinking JCP is a dividend. It is interest on equity, capped by the TJLP and deductible under actual profit (Lei nº 9.249 art. 9).
Reading ICMS and ISS as permanent. Both are extinguished from 2033 (ADCT art. 129).

Sources

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