Provisional Measure (PM) 1.040/2021, which facilitates the opening of companies in Brazil, was approved by President Jair Bolsonaro (no party). The PM’s text was edited in March, came into force at the start of August, and is now set.
The highlights of the new law are the automatic issuance of of licenses and operating permits for medium-risk activities, making human evaluation unnecessary. The federal classification becomes valid when municipalities, districts or states do not have their own legislation and consequently do not send the risk classification.
The PM will bring a change through the amendment of the Law of Corporations, where the protection of minority investors will be increased. The text also created the so-called plural vote, which gives the founding partners the right to manage the company even without having the largest shareholding in the institution. The Federal Government justified this by saying that this will prevent institutions from starting from capital abroad, with the objective of maintaining control of shares through this mechanism, which is currently barred in Brazil.
The Chief Minister of the General Secretariat of the Presidency, Luiz Ramos, published on a social network that “the goal of the President of the Republic is to place Brazil among the 50 best countries in the world to do business”, in addition to highlighting that it will be easier to open companies,as well as export and import in the country.
The Ministry of Economy forecasts an impact between 4.3% and 8.6% on the Brazilian GDP, without adding the time needed for this estimate to happen. The ministry added that the measure will add around R$3.5 to R$10 billion.
Written by Marcos Ferreira, content assistant at Drummond Advisors