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October 18, 2013

The Waiting Time to Start a Business in Brazil May Be Shortened From Six Months to Five Days

09.16.2013 | 5:57pm
Felipe Rau/ Estadão
The Department of Micro and Small Enterprise of the Presidency presented on Monday, the 16th, strategies that it plans to adopt in order to improve Brazil's position in the Entrepreneurial Category of  the World Bank ranking. With these measures, the wait time to start companies in the country may be shortened from six months to five days, estimated the justice advisor of the Department of Micro and Small Enterprise (SMPE), José Levi, at a public hearing of the House of Representatives in Legislature Rio de Janeiro. In the latest list released by the World Bank, Brazil ranked 120th among 150 countries.

“The time it takes to start a business is one of the criteria used by the World Bank in order to determine the ranking. The goal of the registry is to reduce this period of more than six months to five days,” said Levi, who represented the Minister Guilherme Afif Domingos at the public hearing of the special commission that analyzes the Project of Complementary Law No. 237/2012. The project updates the National Status of Micro and Small Businesses.

According to Levi, the first step will be the adoption of a single registry for micro and small enterprises based on the National Register of Legal Entities (CNPJ).  "Whoever wants to start a business will be able to go to one place. Today, the entrepreneur has to spend a lot of shoe leather to start a business. Our intention is to create a single service booth in the trade chambers," he said. Levi mentioned that it was with this idea in mind that the trade chambers became part of the SMPE when the department was created.

Until these booths are in place, the entrepreneur will fill a form to evaluate whether the business will require prior inspection. If no inspection is necessary, the registration will be done immediately. "Preliminary experiments at the ministry in the state of São Paulo showed that 90 % of projects are low risk and do not require prior inspection. They can and must gain authorization and permits to operate immediately. The other 10 % would not receive immediate permits thus creating the average time of five days. "
According to Levi, the form will be available on a web portal, which already has approved resources and should be in the air by the middle of next year. At the moment, the SMPE is negotiating a contract with the Federal Service of Data Processing (Serpro).

The booths will also service the closing of companies as part of its reviewed procedures. "Whoever wants to close, will simply need to report the location of the books of the company and the person responsible for them. In the case of a fiscal inspection the company will be reactivated,” explained Levi.
Another proposal of the department to benefit micro and small business is the restriction of special taxes on cigarettes, beverages, ammunition, fuel, cement and ice cream- which are products that have large supply chains. “When the Tax on Circulation of Goods and Services (ICMS) is still necessary for small and micro enterprises, the idea is to provide a means for immediate repayment ,” said Levi . 

(With Agency Brazil)




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