The establishment of foreign branches is subject to a specific approval regime, which requires the publication of an executive decree issued by the Federal government authorizing the incorporation of the branch upon the evaluation if that is good for Brazilian national interests.
"Art. 1.134. The foreign company, whatever its purpose, cannot, without authorization from the Executive Branch, operate in the country, even through subordinate establishments, and may, however, except in the cases expressed by law, be a shareholder of a Brazilian corporation. [...]
Article 1.135. In order to grant authorization, the Executive Power is entitled to establish convenient conditions for the defense of national interests.
Single paragraph. Once the conditions are accepted, the Executive Power will issue an authorization decree, which will include the amount of capital allocated to operations in the country, and the company will be responsible for promoting the publication of the acts referred to in art. 1.131 and in § 1 of art. 1.134.[...]" (Civil Code (Law No. 10406 of 10 January 2002), last amended by Law No. 14,179 of 2021, Articles 1134 and 1135 [google translation])
Civil Code (Law No. 10406 of 10 January 2002), last amended by Law No. 14,179 of 2021, Articles 1134 and 1135
[<a href="http://www.planalto.gov.br/ccivil_03/Leis/2002/L10406.htm">Code</a>],[<a href="https://www.gov.br/produtividade-e-comercio-exterior/pt-br/images/REPOSITORIO/SEMPE/DREI/MANUAIS/Traduo-Ingls---EMPRESA-ESTRANGEIRA-NO-BRASIL-16-04.pdf">Other</a>]