Brazil - Commercial Guide
Due Diligence

Provides advice on how to perform due diligence and in what areas it is necessary for a U.S. company. Includes information on the U.S. Commercial Service International Company Profile service.

Last published date: 2019-10-13

It is always advisable to conduct due diligence on potential partners before signing a contract. Negotiate from the position of your partner and give your partner clear incentives to honor the contract. As stated in the previous section, a good partner is an important ally in protecting IP rights, but permitting your partner to register your IP rights on your behalf generally is not advisable. Doing so may create a risk that your partner will list itself as the IP owner and fail to transfer the rights should the partnership end.

Closely monitor your cost structure and reduce the opportunities for potential bad actors. Projects and sales in Brazil require constant attention. Work with legal counsel familiar with Brazilian laws to create a solid contract that includes non-compete clauses and confidentiality/non-disclosure provisions.

CS Brazil can provide U.S. companies with lists of well regarded credit rating companies and law firms that can conduct credit checks on potential customers or provide important legal advice. Additionally, the CS Brazil team can offer U.S. companies detailed background information on potential partners, and conduct on site due diligence before a contract is signed through our International Company Profile service. For information, please visit Export.gov/Brazil website.