Often we come across statements about the complex business environment in Brazil—questions about the difficulties of starting a business, the slowness of the judiciary, and the legal aspects of tax, labor, and business. Most of the time such statements have a real basis, but it is undeniable the enormous advances Brazil has made in the last 10 years.
With over 200 million inhabitants, Brazil is an incredible consumer market, with enormous natural resources and, undeniably, the economic power of Latin America. For those who wish to do global business, the Brazilian economy can never be disregarded. In 2014, Brazil was the fifth country to receive the largest volume of investments in the world, according to Unctad.
In addition to that, investments from Brazil are highlighted in many of places around the world. Brazilians are among the most important investors in the state of Florida, in
There are seven steps ahead for the Brazilian business environment in the next 10 years.
In 2007, Brazil changed one of
In 2016, Brazil increased the company income allowed to choose Simples within the tax law system by 33 percent. Before the income allowed was $3.6 million BRL (Brazilian income) in addition to $3.6 million BRL (foreign income). Now it is at $4.8 million BRL (Brazilian income) in addition to $4.8 million BRL (foreign income). As a result, Brazil stimulates the exportation of goods and services.
Until 2012 there wasn’t a limited liability solo partnership in Brazil. Whoever wanted to do business alone had an unlimited liability per loss and was unsuccessful in their business, having a limited liability partnership with just two or more partners. However, in 2012, the business law was changed and created a business organization Empresa Individual de Responsabilidade Limitada (EIRELI), a limited liability solo partnership.
Electronic Judicial Procedure
Nowadays many Brazilian courts use an electronic judicial procedure, so it is possible to follow in real time any judicial procedure around the country. This is cheaper for a company to defend its interests in Brazil. We can’t forget that Brazil is a continental country.
New Process Civil Code
In 2015, Brazil actualized its Procedure Civil Code. The new code made the judicial procedure faster, cheaper, and more effective. Thus, old Brazilian problems were solved or reduced.
In 2017, a new outsourcing law came into effect, modernizing a controversial issue of Brazilian labor legislation. It is currently allowed to outsource any activities and no longer just some activities as before.
In 2017, Brazil modernized its employment law and solved chronic problems. In this way, Brazil made it cheaper to hire