Recently, Brazil’s Ministry of Economy has launched “Balcão Único”, a system to incorporate a company in Brazil in easy and quick way without having to visit several public agencies of Brazil. This is expected to reduce time and cost to start a business in Brazil. The São Paulo is the first city to have such digital system and the next will be Rio de Janeiro. To encourage Brazilian and foreign entrepreneurs who want to invest in the Brazil, the federal government intends to expand the project to the whole of Brazil.
Before the introduction of “Balcão Único”, it was required to comply with 11 procedures to open a company in in the cities of Rio de Janeiro and São Paulo. With “Balcão Único” (One Stop Shop), by filling out single electronic form, all the necessary data will be collected. It will allow following to be done as a one stop shop:
- To receive necessary responses from the City Hall;
- Company Registration;
- Obtaining the National Register of Legal Entities (CNPJ) and tax registration number;
- the taxpayer register;
- Receipt of licenses, if necessary; and
- Registration of employees to be hired through e-Social at the time of starting the company.
Implication:
With the introduction of “Balcão Único”, the incorporation process in Brazil will be less time consuming and less expensive. Being a new system, some issues and delays can still be expected at this stage.