Small Brazilian Companies and Startups May Soon Have More Economic Freedom

RIO DE JANEIRO, BRAZIL – The congressional committee analyzing Provisional Measure No. 881/19, on economic freedom, approved, on Thursday, July 11th, the report by Deputy Jerônimo Goergen.

The foundation of the text sent by the government and upheld by the rapporteur exempts the requirement of a doing business permit for activities which are deemed low risk.

The text also provides that small companies and startups will not require a permit to begin testing new products and services, provided that the products do not adversely impact health or public safety and sanitation and do not use restricted materials.

The rapporteur’s text now proceeds to vote in the full Chamber of Deputies and subsequently will be voted by the Senate.

Other points approved

Electronic Employment Record Booklet: the text provides that the Employment Record Booklet (Carteira de Trabalho) will be issued by the Ministry of Economy “preferably” in electronic format. Today, the document is issued by local and regional labor offices, which were linked to the former Ministry of Labor. According to the text, the document will have as its unique identification the Natural Persons Register — CPF.

Employee registration: the period that the company has to record the employee’s pay, and the date of admission is increased from 2 to 5 days.

Work on Sundays: the text permits work on Sundays and holidays (including religious holidays), as long as the employee takes time off on one Sunday each month. Those who work on Sundays or holidays will be paid double. The employer may also offset days worked by granting off days.

Agribusiness: the report establishes that agribusiness activities, including the transport of some products, will not be restricted by time and day, as these activities depend on weather conditions.

Freight shipment: the report creates the electronic shipment document. The document should replace several documents required for freight transport and reduce red tape for truckers.

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