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Brazil — Business: Accounting

Brazilian companies must keep books under Brazilian accounting standards, which have been aligned with IFRS since 2010, and file digital bookkeeping/tax records through SPED (ECD, ECF). Financial statements are prepared in Portuguese. Independent audit by a CVM-registered auditor is mandatory only for 'large' companies — those with prior-year total assets over R$240 million or gross revenue over R$300 million — under Law 11.638/2007's 'sociedade de grande porte' rule, which applies even to limitadas, not just corporations (S.A.).

VerifiedCommunity sourceKreston Global financial reporting guide and Brazilian Corporations Law (Lei 11.638/2007) mandatory-audit threshold coverageLast reviewed: 2026-08-31

Why this matters

Misjudging the audit threshold (it's R$240M assets / R$300M revenue, not R$1 million) can lead a company to either skip a legally required audit or pay for one it doesn't need.

Key facts

  • Brazilian accounting standards (CPC/Brazilian GAAP) have been aligned with IFRS since January 1, 2010
  • Financial statements must be prepared in Portuguese and in Brazilian reais
  • Independent audit by a CVM-registered auditor is mandatory for 'large' companies: prior-year total assets over R$240 million OR gross revenue over R$300 million (Law 11.638/2007) — this applies to limitadas as well as S.A. corporations
  • Companies file digital bookkeeping and tax records through SPED: ECD (digital bookkeeping) and ECF (fiscal/corporate income tax bookkeeping)
  • A registered Brazilian accountant (contador), regulated by the CFC (Conselho Federal de Contabilidade), is generally required to prepare and sign statutory books

Steps

  1. Obtain a CNPJ — Register the company with the Junta Comercial to get a NIRE, then obtain a CNPJ from the Receita Federal. This is required before opening a bank account or operating.
  2. Engage a registered contador — Hire a Brazilian accountant registered with the CFC to maintain statutory bookkeeping and prepare financial statements in accordance with Brazilian standards.
  3. File ECD and ECF via SPED — Submit digital bookkeeping (ECD) and the fiscal bookkeeping/corporate tax return (ECF) through the SPED system on their annual deadlines.
  4. Arrange an independent audit if the company meets the large-company threshold — If prior-year total assets exceed R$240 million or gross revenue exceeds R$300 million, engage a CVM-registered independent auditor as required by Law 11.638/2007.

Costs

  • Contador (accountant) monthly retainer: varies by company size and transaction volume
  • Independent audit fees (large companies only): varies by auditing firm and company size

Timelines

  • ECD (digital bookkeeping) filing deadline: last business day of June, following the fiscal year
  • ECF (fiscal bookkeeping / corporate tax return) filing deadline: last business day of July, following the fiscal year

Required documents

  • CNPJ
  • Statutory accounting books maintained by a CFC-registered contador
  • ECD and ECF filings via SPED
  • Independent audit report (only if the large-company threshold is met)

Common mistakes

  • Assuming the audit threshold is a low fixed amount (it is R$240M assets / R$300M revenue, not R$1 million)
  • Missing ECD/ECF SPED filing deadlines
  • Using a non-CFC-registered bookkeeper for statutory accounts

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