The government plans to issue this week a provisional measure that establishes the automatic registration of small and medium-sized businesses. It is likely to reduce the time necessary for setting up firms, with the issuance of the business registration number (CNPJ) taking one rather than seven days, the secretary of De-bureaucratization, Management and Digital Government of the Economy Ministry, Paulo Uebel, told Valor.
The same provisional measure (MP) will also take a step toward trying to reduce the longtime problem of excess of notary requirements. Now, the lawyer or accountant of these firms may declare the authenticity of documents presented in their foundation without need of notary certification.
The simplified registration will be allowed to companies classified as limited liability, individual company of limited liability or individual micro-entrepreneur, which, according to Mr. Uebel, account for 96% of the annual registration filings. He also said that fewer than 1% of filings are rejected.
Even though the average registration period is seven days, it can take up to 30 days, from the filing and considering the analysis of documentation. The idea now is to invert the process, giving automatically the registration and then verifying whether there is any problem or irregularity. In case some situation not allowed is found, the authorization is overturned.
Mr. Uebel believes this measure is important for the country to improve its position on the World Bank’s “Doing Business” ranking, which shows the countries with better business environment. Brazil is currently number 109 and the Jair Bolsonaro administration aims to reach the number 50. “The measure aims to speed up the process of starting businesses and may have big impact in Doing Business,” Mr. Uebel said. “The automatic CNPJ issuance will allow the business owner to set up immediately the business, such as leasing space, buying inputs and hiring employees,” he added.
Regarding the initiative of no longer requiring document authentication, he stressed that the goal is also to cut red tape and costs. The measure not only does away with this procedure, but also with the owner’s appearance at the Commercial Registry, leaving in charge of the accountant or lawyer the necessary procedures and the manifestation of reliability of documents. “Now the business owners will no longer need to go personally to the registries nor having to deliver original personal documents to facilitators,” he said. “We will trust the people.”
For him, the measure doesn’t reduce the security or raises the risks of frauds, because the necessary verifications will be made. And the idea is to move toward this practice in a series of other activities. “In all low-risk activities we will move toward the declaratory model, which has no irreversible impacts to society, damage to its health,” he said. “We want to identify what we can make easier. We will focus on what is complex and simplify what is simple. We will focus on what is medium and high risks,” he said.
Source: Valor InternationalRead less