Brazil Cuts in Half Time to Open a Company. Now Is 20 Days

    Brazil by Terry Gillian

    Brazil by Terry Gillian Brazil has reduced to 20.3 days the time required for establishing companies in the country, at least according to a survey conducted by the Brazilian Secretariat for Trade and Services at the Brazilian Ministry of Development, Industry and Foreign Trade.

    The study was conducted from January until June this year, and followed the legalization process of 246,586 companies – about 97% of all the enterprises established during the period.

    In 2005, it took 39.5 days to establish a company in the country. The reduction, according to a press release issued by the Ministry, is the result of a series of measures implemented by the federal government, such as an investment of approximately 5 million Brazilian reais (US$ 2.7 million).

    The money was used among other things to implement a computer systems and integration between the systems of the Commercial Registries.

    The government has also reduced the number of regulations required for mercantile registration, from 99 to 30, put in place the Centrais Fácil (Easy Centers), and created about 500 advanced service points of the Commercial Registry.

    Brazil is becoming one of the most attractive markets in terms of receiving foreign investment, according to data supplied by the Brazilian Central Bank.

    The ease in establishing enterprises is an important aspect for large investors to make decisions of injecting or not injecting funds into countries, hence the efforts of the Brazilian government for reducing the time required.

    The result of the survey on the time required for companies in Brazil to be established and become operational, taking into account the national average, is 20.3 days, being 1.8 days the time spent at the Commercial Registries (mercantile registration).

    The remaining 18.5 days are spent in other organizations in the federal, state, and municipal levels, which participate in the process of legalizing companies.

    Anba

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    • Show Comments (5)

    • Donald

      Actual startup can take less time
      A company can be actually started and working in much less time. True – it would take an accountant the extra time to legalize everything with all the Federal institutions. Also True – it takes much longer to shut down a company.

    • ch.c.

      ooops…typing mistake….
      in 2005 (not 2006) you needed 180 days….NOT 39,5 !

    • ch.c.

      Dead wrong ! sorry !
      Please just look at the rankings of “doing business” !
      In 2006 you needed 180 days….NOT 39,5.

      We all know how brazilians LOVE to cheat, hide and lie.
      This is in your genes.

    • Ric

      Untold Story
      Is that it takes longer to shut a business down that to start it, what with the RF, Caixa, Trabalho, INSS, and local and state Receita, not to mention sometimes the sindicato. PIS/PASEP.

    • Simpleton

      And There You Have It Folks
      “The remaining 18.5 days are spent in other organizations in the federal, state, and municipal levels, which participate in the process of legalizing companies.” Which is guaranteed to cost you $ for $ the same as your investment amount!

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