How Torus Used Employer of Record to Build After-Sales in Brazil Without a Subsidiary
Key Points
- Companies selling industrial equipment in Brazil don’t need a local subsidiary to offer professional after-sales support — a Bonded Warehouse, an Employer of Record (EOR), and B2B fulfillment cover the full operation.
- Torus Technology Group built a complete after-sales unit in Brazil — spare parts inventory, local engineers, and a sales/admin manager — without opening a Brazilian entity.
- The model gives international manufacturers full LATAM coverage while keeping operational costs predictable and compliance risks contained.
- Clients such as AMBEV received faster technical response and guaranteed parts availability — directly improving contract retention.
Index
- The problem industrial manufacturers face in Brazil
- The model: EOR + B2B fulfillment
- How Torus built its after-sales unit in Brazil
- Results: LATAM coverage without a subsidiary
- Who this model works for
- Frequently Asked Questions
The Problem Industrial Manufacturers Face in Brazil
Setting up employer of record Brazil arrangements is rarely the first thing a European industrial manufacturer considers when entering the Brazilian market. The typical entry point is a major client — a brewery, a food processor, a packaging plant — that sources equipment abroad and needs technical support on the ground.
The equipment lands. The installation goes well. Then come the after-sales demands: spare parts that need to be on-site within 48 hours, engineers who can troubleshoot a production line without flying in from Europe, a local contact who handles service contracts and administrative follow-up.
At that point, two options seem obvious. Either open a Brazilian subsidiary — which means months of bureaucracy, ongoing compliance costs, and a permanent legal entity to maintain — or do nothing and risk losing the client relationship to a competitor with local presence. Neither is particularly attractive for a mid-sized industrial manufacturer whose core business is making equipment, not running South American operations.
There is a third option. And it’s the one Torus Technology Group used to serve clients like AMBEV across Brazil and the rest of Latin America.
The Model: EOR + B2B Fulfillment
The combination that makes a local after-sales unit possible without a subsidiary has three components.
Spare parts import & Bonded Warehouse storage
A local operator (Novatrade, acting as Importer of Record) handles customs clearance and stores the manufacturer’s spare parts in a Bonded Warehouse in Brazil. This regime keeps parts under customs suspension — taxes are only triggered when parts are dispatched to a client — making it the most cost-efficient structure for industrial spare parts inventory. Parts are available for same-day or next-day dispatch without the manufacturer holding a CNPJ or managing Brazilian customs operations.
Local team via Employer of Record
Engineers and support staff are hired under Brazilian employment law through an EOR — meaning they are legally employed by the EOR entity, not by the foreign manufacturer. The manufacturer directs the work; the EOR handles contracts, payroll, benefits, and compliance.
Sales & administrative management
A local sales and admin manager, also hired through EOR, handles service contracts, client communication, invoicing coordination, and relationship management in Portuguese — functions that are difficult to run effectively from abroad.
The three components together form a functioning supply chain and after-sales structure — including a Bonded Warehouse for parts storage — that looks, to the client, like a local operation, because operationally it is one. The difference is that the foreign manufacturer never needs to incorporate in Brazil.
How Torus Built Its After-Sales Unit in Brazil
Torus, a UK manufacturer of industrial measurement and production line equipment, supplies automated systems to high-volume clients across the food, beverage, and packaging sectors — including major Brazilian manufacturers such as AMBEV.
The challenge was straightforward: AMBEV and similar clients don’t need Torus to manage the import of their main equipment. Companies of that scale have their own import operations. What they do need is reliable access to spare parts and qualified engineers when a line goes down. Downtime in beverage production is measured in thousands of reais per hour — no procurement manager wants to wait three weeks for a part to clear customs from the UK.
Torus partnered with Novatrade to build the structure from the ground up. The setup covered three areas:
- Bonded Warehouse + B2B fulfillment — Novatrade imports and stores Torus spare parts in a Bonded Warehouse in Brazil, managing customs clearance under IOR. The bonded regime suspends import taxes until the moment a part is dispatched to a client site — reducing upfront fiscal exposure and enabling fast last-mile delivery across the country.
- Local engineering team — A team of engineers was recruited and hired through Novatrade’s Employer of Record service, giving Torus qualified technical staff on Brazilian soil without the overhead of a subsidiary.
- Sales and administrative management — One local manager, also via EOR, handles service contract negotiations, client relationships, and day-to-day administrative coordination in Portuguese.
“What Torus needed was not a company in Brazil — it was a functioning operation in Brazil”, says Cyprien, CEO of Novatrade Brasil. “The EOR and fulfillment model gives them exactly that: a local team, local stock, local contracts — with none of the compliance burden of maintaining a subsidiary.”
Results: LATAM Coverage Without a Subsidiary
The structure Torus built in Brazil didn’t stop at the border. Because the operation runs through Novatrade rather than through a local entity, it can extend its reach across Latin America without requiring additional incorporations in each country. Brazil becomes the operational hub for the entire region.
Bonded Warehouse
Spare parts stored under customs suspension in Brazil — taxes triggered only at dispatch, reducing upfront fiscal exposure on the full inventory.
Local engineering
Qualified engineers on the ground, managed by Torus, contracted through EOR — no CNPJ, no Brazilian payroll entity.
LATAM coverage
Brazil as the operational hub for the entire Latin American region, without subsidiary structures in each country.
Contract growth
Stronger after-sales capability translated directly into expanded service contracts with existing clients.
For clients like AMBEV, the practical result is a Torus service experience that is indistinguishable from dealing with a local company. Parts are in the warehouse. Engineers speak Portuguese. Contracts are managed locally. The fact that Torus has no Brazilian subsidiary is invisible to the end client — which is precisely the point.
Who This Model Works For
The EOR plus fulfillment approach isn’t the right fit for every company. It works best for manufacturers with a specific profile: equipment or components with recurring spare parts demand, clients who require on-site technical support, and a business that wants a permanent operational presence in Brazil without the long-term commitment of a subsidiary.
| Company profile | Suitable? |
|---|---|
| Industrial equipment manufacturer with recurring spare parts demand in Brazil | Yes |
| Company selling to large Brazilian manufacturers who handle their own imports | Yes |
| Business needing local engineers or technical staff without opening a CNPJ | Yes |
| Manufacturer wanting LATAM coverage with Brazil as the operational hub | Yes |
| Company with very low after-sales volume and no recurring parts demand | Not ideal |
| Business that needs to issue Brazilian invoices (NF-e) independently | Requires local entity |
If your company sells into Brazil but the after-sales side is the operational gap — not the initial import — this is the model worth examining. Novatrade’s local establishment service covers both the EOR structure and the operational setup that makes it run.
Frequently Asked Questions
What is an Employer of Record in Brazil?
An Employer of Record (EOR) in Brazil is a local entity that formally employs workers on behalf of a foreign company. The EOR handles all Brazilian employment obligations — CLT contracts, payroll, social security (INSS), FGTS, and benefits — while the foreign company directs the day-to-day work. It allows international manufacturers to have a local team in Brazil without incorporating a subsidiary.
Can a foreign company provide after-sales support in Brazil without a local entity?
Yes. The standard model combines an Importer of Record (IOR) for spare parts warehousing and distribution, and an Employer of Record (EOR) for local staff. The foreign company operates through these two structures without holding a CNPJ or maintaining a Brazilian legal entity. Operational decisions remain with the foreign manufacturer; legal and compliance obligations sit with the local service provider.
When is an EOR better than opening a subsidiary in Brazil?
An EOR is preferable when the goal is operational presence — a local team, local support, local contracts — without the overhead of a permanent legal structure. Opening a Brazilian subsidiary typically takes three to six months, requires ongoing accounting, tax filings, and directorship obligations, and is difficult to wind down. An EOR can be operational in weeks and scaled up or down based on actual demand.
How does spare parts distribution work in Brazil without a local company?
A local logistics provider acts as the Importer of Record, handling customs clearance and storing parts in a Bonded Warehouse in Brazil. The bonded regime means import taxes are suspended until a part is actually dispatched to a client — which keeps the upfront cost of building a spare parts inventory manageable. When a client needs a part, the provider dispatches from local stock. The foreign manufacturer never appears as the Brazilian importer — the IOR absorbs all customs and fiscal obligations associated with the import operation.
Conclusion
Torus Technology Group’s experience shows what the EOR plus fulfillment model looks like in practice: a complete after-sales unit in Brazil — engineers, spare parts, client management — without a single Brazilian incorporation. For industrial manufacturers with active clients in Brazil, the question is rarely whether to have local presence. It’s whether that presence needs to come with a subsidiary.
In most cases, it doesn’t. If you’re evaluating how to structure after-sales operations in Brazil without opening a local entity, Novatrade’s local establishment service covers the full setup — from EOR contracts to spare parts logistics.
