Holding Company Glossary: Key Brazilian Terms
A working glossary for a Brazilian holding company: SLU, LTDA, quotas, CNAE, DBE and MAT, the terms that come up when registering one via REDESIM.
A holding company in Brazil is registered through the same REDESIM flow as any other company, but the terms that describe it, its structure and its registration steps are specific enough to warrant their own glossary.
Holding
A company created to hold assets, such as real estate, shares in other companies or financial investments, under a single legal entity instead of each owner holding them directly. A holding does not run day-to-day operations; its CNAE reflects an equity-participation or asset-holding activity.
SLU (Sociedade Limitada Unipessoal)
A limited liability company with a single titular. An SLU is one of the two structures used to register a Brazilian holding, and it separates the titular’s personal assets from what the company owns.
LTDA (Sociedade Limitada)
A limited liability company with two or more partners. It is the second structure used for a Brazilian holding, offering the same asset separation as an SLU, but for multiple partners instead of one.
EI (Empresário Individual)
A simplified structure available for other kinds of businesses, but not suited to a holding: an EI does not separate the owner’s personal assets from what the company owns, which defeats the purpose of setting up a holding in the first place.
Quotas
The ownership units of an SLU or LTDA. Transferring quotas to another person, such as an heir, changes who owns the holding without transferring each underlying asset individually, which is one of the reasons holdings are used for succession planning.
CNAE
The activity code registered for the holding, distinct from the code used by an operating company. A holding’s CNAE reflects equity participation or asset holding rather than sales or services.
Contrato social
The founding document of an SLU or LTDA, listing partners, quotas and governance rules. It is filed with the Junta Comercial as part of registering the holding.
DBE (Declaração de Beneficiário Efetivo)
A REDESIM registration step that identifies every partner in the entity, including foreign partners, before the registration can proceed to the Junta Comercial.
MAT (Módulo de Administração Tributária)
The REDESIM step, in force since December 1, 2025, that defines the tax regime of the new entity. The CNPJ is issued once the MAT step is complete, within a legal deadline of up to 90 days.
Junta Comercial
The state Commercial Board where the holding’s contrato social is filed as part of the REDESIM registration sequence, after the DBE step.
For the decision between the two structures above, see Holding Company in Brazil: LTDA or SLU, When It Pays Off; for how a foreign investor completes this registration, see Brazil Family Holding: gov.br Basics for Investors.
Frequently asked questions
What legal structure does a Brazilian holding use? An SLU, for a single owner, or an LTDA, for two or more partners. Both separate personal assets from what the holding owns; an EI does not offer that separation, which rules it out for a holding.
What is the difference between quotas and shares? Quotas are the ownership units of an SLU or LTDA, the structures used for a holding. Shares (ações) belong to a Sociedade Anônima (S.A.), a different legal structure not typically used for a holding of this kind.
How long does it take to get a CNPJ for a holding? Up to 90 days from the completion of the MAT step, which has been in force since December 1, 2025, as part of the REDESIM registration flow.
Does a foreign partner need anything extra to join a Brazilian holding? Yes, every partner, resident or not, needs an individual taxpayer number (CPF), required at the DBE step before the CNPJ can be issued.