Earlier this year, state government authorities made corporate registrations in São Paulo quicker and easier by combining three filings into one. Rather than waiting a month for the company registrations to take effect, shareholders of companies in São Paulo are now starting their businesses within days.
Not to be outdone by state authorities, federal authorities have now announced a measure to speed up corporate filings as well. In this case, the change affects primarily companies that are already in existence but wish to make corporate changes. In the past, the local registries would require numerous documents proving that the company and its shareholders were in good standing with their social security, labor and other tax obligations. But not any longer.
Meet Complimentary Law 147/2014 (LCP 147/2014). This new law eliminates the need for any evidence of fiscal regularity for corporate act registrations. Filing an amendment to your company’s articles of incorporation? Filing for dissolution? No longer will you be required to present a certificate showing no debts (CND or Certidão Negativa de Débitos).
With the new law, changes to corporate acts will generally not require any evidence of fiscal regularity upon registration. No more delays; no more requests for additional information or documents. In São Paulo, the commercial registry (JUCESP) has already circulated an internal memorandum providing that the new law should have immediate effect.
While there are some exceptions (as there always are), the overall result is positive for business owners. Doing business in Brazil has once again gotten a little easier and a little bit quicker.
