Since Sept 20, 2019 a fresh start is overlaying on how to do business in our country whereby the Federal Administration is committed to overcome for once and for all the intervention rancidity which regrettably has reigned in Brazil for many decades.
The purpose is to get foreign direct investment to take off again and flourish in all sectors, not only pursuing infrastructure or agribusiness opportunities which are so vital and well known worldwide.
Law nº 13.874 has been enacted and published at that same very day mentioned above, with the authority to easier even more the labor day-to-day management, where entrepreneurship has conquered a safe and thriving status by the way, and certain provisions of the Civil Code enforceable since Jan 11, 2003 touching mostly the regulation on contracts which has been revisited in order to decrease the burden on investors but without neglecting legal safety.
A nice example of what has turned to be valid and binding on the negotiating parties is that they can convene freely the constructing rules, the fulfilment of gaps and the alignment of businesses by means diverse from what is provided by the applicable law.
The Economic Freedom Act seeks to stimulate business enhancement by establishing free-market economic conditions, granting relief to private ventures from State regulatory power and the main beneficiaries will be mid-small sized companies and low-risk activities with their articles of incorporation and tax payer ID to be granted in maximum 2 (two)days after filing in case standard wording is adopted by the shareholders. If the Companies’ Registry does not perform that way the articles of incorporation shall be considered filed and approved by force of law.
In short, please see the sixteen main improvements hopping that they will encourage investors to choose Brazil if compared with other low-wage sites, having in mind that Labor, Social Security and Tax Reforms are on board:
Source: Ministry of Economy by its
INTERNATIONAL ECONOMIC AFFAIRS SECRETARIAT
Aug 19, 2019
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