Non-Compete Agreement in Brazil

Legally Limit Competition & Protect Your Business Before, During and After the Deal

Doing business in Brazil without non-compete protection? That can be fatal to your market position.

When you share trade secrets, pricing, client lists, or strategic plans with someone in Brazil — be it a contractor, employee, distributor or co-founder — you’re opening a door that must be legally controlled. Without a proper non-compete, you may be left completely unprotected.

Real risks foreign clients face:

Is Non-Compete Enforceable in Brazil?

Yes — but Brazilian law imposes strict requirements.
Under Law No. 9.279/96 (Industrial Property Law), parties can contractually restrict competition, especially in commercial or civil contexts.

However, enforceability depends on factors shaped by jurisprudence and case law, including:

We build your agreement in line with these standards — to make it not only strong, but enforceable.

When Should Non-Compete Be Used?

A non-compete should be present at every stage of the business relationship:

When planned from the start, a non-compete is more defensible and often prevents disputes before they begin.

Penalty Clause: Your Legal Leverage

Under Brazilian civil law, we strongly recommend including a cláusula penal — a fixed monetary penalty for breach.

This:

We tailor the penalty to be proportional, strategic and judicially acceptable.

What We Do

At Martin Law, we protect your business with non-compete solutions that work:

Who Needs a Non-Compete Agreement in Brazil?

Key Clauses We Include

Why Choose Martin Law

Frequently Asked Questions

Yes — if they meet legal standards of reasonableness, duration, territory, and compensation (when needed).

Only in employment contracts. In civil or commercial relationships, it’s not mandatory but helps enforceability.

Yes. Civil non-compete clauses are widely used and more flexible than labor clauses.

Generally up to 24 months. Courts accept shorter periods more readily — the longer the period, the stronger the justification needed.

Yes — and it’s highly recommended. We include a cláusula penal to enable fast judicial enforcement.

Yes — if non-compete is included early, in the NDA or preliminary agreement. Timing matters.

Do you need help drafting a valid non-compete in Brazil?

Martin Law can help you! Contact us today by clicking here.
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