In recent years, Brazil has stood out as one of the most promising destinations for foreign investments. With a growing economy and a vast consumer market, entrepreneurs from around the world are keeping a close eye on the opportunities the country offers. However, when entering the Brazilian market, it is crucial for these entrepreneurs to be aware of an important legislation that can significantly impact their businesses: the General Data Protection Law (LGPD in Brazil).

LGPD: What is it and why is it important?

The LGPD, inspired by the General Data Protection Regulation of the European Union (GDPR), is the Brazilian law that regulates the collection, processing, and storage of personal data. It came into effect in September 2020 and aims to ensure the privacy and security of Brazilian citizens’ data.

What is a KPI and why is it essential for your company?

For foreign entrepreneurs, the LGPD is important for several reasons

The General Data Protection Law (LGPD) in Brazil is crucial for foreign entrepreneurs for several reasons, primarily related to the protection of individuals’ privacy and the security of personal information. Here are some reasons why LGPD is important for these entrepreneurs, along with examples of websites that illustrate compliance with this legislation:

Extraterritorial application

The LGPD applies not only to Brazilian companies but also to foreign companies that process personal data of Brazilian residents. This means that even if you do not have a physical presence in Brazil, you will still be subject to the law if you collect data from Brazilian customers.

Digital Accounting: What it is, how it works and advantages

Significant penalties

Significant penalties are foreseen for non-compliance with its provisions. Fines can reach up to 2% of the company’s annual revenue, with a maximum limit of 50 million reais per violation. Foreign entrepreneurs are not exempt from these penalties and may face serious financial consequences for LGPD violations.

How can your company optimize import processes?

Consent requirements

The LGPD requires companies to obtain explicit consent from individuals to collect and process their personal data. International entrepreneurs must ensure that their consent-gathering processes comply with the standards established by the law.

Accounting and Business Intelligence: The importance of accounting reports in decision making

Security measures

Security measures must be implemented to protect the personal data they collect and process. This includes implementing data security policies, encrypting sensitive information, and appointing a Data Protection Officer (DPO).

Tax Planning for IT Companies: Understand the importance

International data transfer

If you plan to transfer personal data outside of Brazil, it is necessary to be aware of the specific rules governing this transfer. LGPD allows the transfer of personal data to countries that provide an adequate level of data protection or with the consent of data subjects. Compliance with LGPD not only meets legal requirements but also strengthens consumer trust, mitigates financial risks, and enhances competitiveness in the Brazilian business landscape.

Brazilian CPOM: What Your Business Needs to Know


For foreign entrepreneurs looking to enter the Brazilian market, compliance with LGPD is an essential part of their business plans. Ignoring or neglecting the obligations imposed by this law can result in serious financial consequences and damage to the company’s reputation.

Therefore, it is crucial to seek specialized legal guidance and allocate time and resources to understand and implement LGPD requirements. Compliance not only helps avoid penalties but also demonstrates a commitment to the privacy and data security of Brazilian customers, which can be a crucial factor for the success of your business in Brazil.

If you want to rely on experienced advice, capable of providing the best strategies for your company to improve financial performance, get to know CLM Controller’s solutions now.

Deixe um comentário

O seu endereço de e-mail não será publicado. Campos obrigatórios são marcados com *

19 − dezoito =

Ao continuar, você concorda que este site usa cookies apenas para fins estatísticos e funções que aprimoram sua navegação, sem rastreamento pessoal.