On September 20, the Brazilian President Jair Bolsonaro sanctioned Law no. 13,874 (“Law of Economic Freedom”), which main purpose is to simplify bureaucratic procedures for the development of economic activities in Brazil. The main points of this new law are:
- The possibility of forming limited liability companies with only one partner;
- Limitation of the responsibility of quotaholders of investment fund;
- Creation of more specific rules for lifting the corporate veil of Brazilian entities;
- Waiver of permits and licenses for companies that develop low risk activities;
- Tacit approval/emission of permits and licenses by public agencies that fail to meet the deadlines set for their review/emission;
- Digital documents will have the same validity as paper documents;
- Flexibilization of the employee electronic timecard control and implementation of the digital work card;
- Creation of deadlines for the automatic filling of corporate acts; and
- Possibility of companies to complain to regulatory authorities if they exceed legal limits when imposing requirements for the release of activities.
The Law of Economic Freedom is in force since last Friday, September 20, 2019.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.