President Jair Bolsonaro sanctioned, on September 20, the Provisional Measure of Economic Freedom. The PM was presented in order to reduce bureaucracy and facilitate the opening of companies, especially micro and small.
The new law eases labor rules and exempts time registration for companies with up to 20 employees, prohibits assets from companies in the same group from being used to pay off debts, eliminates permits for activities considered of low risk and separates shareholders’ assets from corporate debts.
In the opinion of partner Raphael Zaroni, “the approval of the Provisional Measure presented by the federal government should foster entrepreneurship in the country through the decrease in the bureaucracy of public services. With this, the expectation is for the economy to grow, by facilitating the opening of companies and, consequently, by increasing the number of jobs.”
The president vetoed four points from the original text. Among them, the item that made testing new products or services more flexible. The president gave the justification that the point “would allow the use of human guinea pigs without any protocol of protection, which violates the Constitution and also international treaties.” The president also vetoed the item that allowed the creation of a new tax regime.
The extinction of the Sovereign Fund and the Digital Bookkeeping System of Tax, Social Security and Labor Obligations (e-Social), the validation of digitized public documents with the same legal and evidential value as the original document, the issuance of an electronic work card and the the creation of the figure of regulatory abuse, to prevent the Government to edit rules that affect the exploitation of economic activity or harm competition, are some of the news.