LGPD Compliance in Brazil: Why Foreign Companies Need a Local Data Protection Strategy

Most international companies arriving in Brazil know they need a CNPJ, a bank account and a local team. Far fewer realize that, from the very first day of operation, they are also handling personal data under one of the strictest privacy frameworks in the world. Brazil’s General Data Protection Law (LGPD — Lei No. 13,709/2018) has been in force since 2020, and the National Data Protection Authority (ANPD) has been progressively enforcing it with inspections and administrative proceedings.

For foreign investors, the LGPD is not only a legal obligation. It is a commercial requirement: Brazilian customers, partners and public bodies increasingly demand proof of data protection maturity before signing contracts — especially public tenders, which now commonly include data protection clauses.

A Law That Applies to Foreign Operations Too

It is worth emphasizing one point that many international headquarters miss: the LGPD’s reach is not limited to companies with a Brazilian office. Article 3 of the law extends its application to processing whose purpose is offering goods or services to individuals located in Brazil, or to processing of data of individuals located in Brazilian territory — even when the processing entity is established abroad. A foreign company selling directly to Brazilian consumers, operating a .br website or running marketing campaigns aimed at the Brazilian market can therefore be subject to the law before it even sets up a local entity.

The Brazilian Context: A Privacy Framework With Real Teeth

The LGPD establishes the rules for processing personal data in Brazil, covering collection, storage, use, sharing and deletion. Its principles — legality, purpose, transparency, security and accountability — apply to any organization processing data in Brazilian territory, regardless of where the company’s headquarters are located.

The enforcement regime gives the law its weight. Under the ANPD’s Sanctioning Regulation (Resolution CD/ANPD No. 1, of October 28, 2021), the authority can apply warnings, fines of up to 2% of the company’s revenue in Brazil limited to R$ 50 million per infraction, partial or total suspension of processing activities, and public disclosure of the infraction. The authority also regulates security incident communication (Resolution CD/ANPD No. 15, of April 24, 2024), meaning that a breach affecting Brazilian data subjects must be assessed and, where relevant, reported through the proper channels.

The DPO Question: What the Law Actually Requires

A central requirement of the LGPD is found in Article 41: the data controller must indicate a data protection officer (encarregado), whose name and contact information must be disclosed clearly and objectively. Brazilian legislation requires the DPO to be resident in Brazil, which creates a specific challenge for foreign groups: they need a qualified person established locally, with command of Portuguese, to interface with the ANPD and with data subjects.

The ANPD has provided proportionality rules. Resolution CD/ANPD No. 2, of January 27, 2022 (as amended by Resolution CD/ANPD No. 15, of April 24, 2024) establishes that small processing agents are not obliged to indicate a DPO, although even for them the indication is considered a good governance practice under Article 52, paragraph 1, item IX of the LGPD. For medium and large companies — which is the reality of most international groups operating in Brazil — the DPO indication and the full governance structure are expected.

Risks Foreign Companies Often Underestimate

The most common failures are structural. Foreign groups frequently process Brazilian customer, employee and supplier data from systems located abroad, without mapping the flows, validating the legal basis or adapting privacy notices to Portuguese. Another frequent gap is the absence of a local channel for data subject requests: under the LGPD, individuals can demand access, correction, deletion and portability of their data, and the company must respond. There are also contractual risks: partners and customers increasingly require data protection clauses, DPAs and evidence of compliance programs, and public tenders routinely require LGPD maturity.

Good Practices for International Groups

Companies that manage the LGPD well follow a recognizable pattern. They maintain a record of processing activities mapped to their Brazilian operations, updated as new products and tools are adopted. They keep a privacy notice in Portuguese that is actually used, not merely published — covering what is collected, why, for how long and with whom it is shared. They operate a local channel for data subject requests with defined response workflows and documented deadlines. They conduct data protection impact assessments for high-risk processing, especially where sensitive data, large-scale processing, surveillance or automated decisions are involved. And they keep a resident DPO or engage an outsourced DPO service that provides the required local presence, command of Portuguese and familiarity with the ANPD’s expectations. They also train local teams, because most incidents start with human error, not technology.

How PCREPS Provides the Local Structure You Need

This is where the PCREPS model fits naturally. Our DPO services allow foreign companies to meet the Article 41 requirement with a resident professional who understands the ANPD’s expectations, without the group needing to hire and manage a full local privacy team. Combined with our legal representation for foreign investors, administration of subsidiaries and registered office address, we provide the operational backbone that lets your privacy program function on the ground: receiving notices, coordinating with the ANPD when necessary, and keeping your local structure aligned with the compliance calendar. We coordinate with specialized law firms and advisors in our network when deeper legal analysis is needed — we are your local partner for structure and operation, not a substitute for specialized legal counsel.

Contact PCREPS for a Discovery Call and understand how to build your LGPD compliance structure in Brazil with a trusted local partner.