Government’s measures seek to reduce bureaucracy of opening companies in Brazil


documentos empilhados
Provisional Measure 1,040 aims to facilitate the opening of business in Brazil

With the Provisional Measure recently signed aiming the improvement of business environment in Brazil, the country has the prospect of increasing its position related to opening companies’ aspects in the World Bank's Doing Business ranking. Among other initiatives implemented by the government, it can help to attract the attention of national and foreign entrepreneurs, bringing a more favorable scenario to our economy.

The document, at first, brought changes that can benefit new companies. Provisional Measure’s proposal is to facilitate the opening of businesses in Brazil through tax registrations’ unification, for example, which would save time and money to entrepreneurs. With that in mind, in January, in the same way that Provisional Measure, Brazilian Ministry of Economy launched “Balcão Único” system, primarily implemented in the cities of São Paulo and Rio de Janeiro.


Even though the system is not yet suitable for more complex articles of association or other company’s acts, it is the result of Special Secretariats of the Federal Revenue and Bureaucratization, Management and Digital Government of the Ministry of Economy union, aiming to minimize difficulties and bureaucracy currently existent in opening companies in Brazil.


Prior to the existence of Balcão Único, the process of constituting companies necessarily went through many different steps, with different analysis from different agencies at municipal, state and federal levels. Despite the possibility of all these services being found on the integrating portal “REDESIM”, each of these steps required a certain amount of time to fill in data and analyze each of the forms before each respective agency. With “Balcão Único” facilitation, entrepreneur can register only before the Tax Authorities which is already valid for federal, state and municipal spheres.


Another Provisional Measure’s improvement is the automatic issuance of operating permits and licenses for medium risk activities, as already happens with companies which have low risk activities. This way, the feasibility analyses would be eliminated and the business name, for an example, would be checked in a matter of seconds.


These measures can be crucial to minimize negative effects brought about by Covid-19 pandemic, aiming Brazilian economy’s resumption.