The Law No. 12441, of July 11, 2011, created the Individual Limited Liability Company – in Portuguese, the abbreviation is EIRELI. EIRELI was created aiming to limit the responsibility of the individual entrepreneur through the existence of a legal entity with its own assets. All of its capital will be centered in a single individual, so that all capital must be paid in since the incorporation of the company.
However, there are limitations to the creation of an EIRELI. Among them, is the minimum capital for purposes of incorporation that shall be 100 (one hundred) times the minimum wage established by the Brazilian Government. In this case, currently, an EIRELI can only be incorporated with a capital of not less than R$ 54,500.00 (fifty-four thousand five hundred reais). Thus, this measure eventually excludes most of the individual entrepreneurs who intends to adopt this new mechanism.
EIRELI can also arise from the concentration of the shares in the corporate capital of another type of company, which creates an alternative to the need to reestablish the plurality of members within 180 (one hundred and eighty) days in order to avoid the company's liquidation.
Corporate name shall contain the initials "EIRELI" after the corporate name of the Company. The legislation imposed on the Limited Liability companies (Limitadas) shall apply to EIRELI, where applicable. The law will be in force in 180 (one hundred and eighty) days after the date of its publication.
The law firm Barbosa, Raimundo, Gontijo, Câmara e Horta Advogados remains available for any further information about it.
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