Law that makes opening companies easier and modernizes the business environment is sanctioned

Among the measures is the automatic issuance of permits and licenses

On August 26, the President of the Republic sanctioned the Provisional Measure 1040, which aims to modernize, simplify and reduce bureaucracy in the Brazilian business environment in order to increase competitiveness.

The measure, now identified as Law No. 14.195/2021, represents a step towards improving the process of opening and setting up businesses and attracting foreign investments. The highlights are:

Unification of tax registrations

The Law provides that the bodies that are part of Redesim promote the unification of federal, state and municipal tax registrations in a single registration identification, corresponding to the registration number in the National Register of Legal Entities.

Automatic issuance of permits and licenses

Business licenses and permits will be issued automatically, without human analysis, for activities classified as medium risk, upon signature of a statement of awareness and responsibility of the entrepreneur, partner or legal person responsible for the company, who will sign a commitment to comply with requirements for operation and performance of activities, as well as with health, environmental and fire prevention safety standards.

Single electronic portal for exporters and importers

The single electronic portal for exporters and importers was created, through which they can send documents and information to agencies and entities of the federal public administration.

Integrated Asset Recovery System

The law also authorizes the Executive branch to create the Integrated Asset Recovery System (Sistema Integrado de Recuperação de Ativos - Sira) in order to facilitate the identification of assets and debtors of the federal government, in addition to speeding up the recovery of public or private credits.

Conversion of limited liability sole proprietorship into single-member limited liability companies

Limited liability sole proprietorships (EIRELI) will be transformed into single-member limited liability companies (SLU) regardless of any change in their articles of incorporation.

Protection of minority shareholders

Another change is the expansion of protection for minority investors through the amendment to the Corporation Law. The provision expands the shareholders' decision-making power , including minority shareholders, by extending the period for sending information to be used at meetings.

Plural voting was also instituted, which gives the founding partners the right to control the company even if they do not have majority shareholding.

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With this set of actions, the government plans to go up in the Doing Business ranking. However, Brazil still needs to advance in the labor and tax sector to overcome the complexity that deeply affects companies.

Specialized support for starting a business

Domingues e Pinho Contadores offers paralegal, accounting and tax support to guide the formation of companies. Rely on this support from the very first steps of the business. Contact: dpc@dpc.com.br.