On August 7, Normative Instruction No. 66 of the National Department of Corporate Registration and Integration (DREI) was published which amends the Registration Manuals of the Individual Entrepreneur, Limited Company, Business Corporation, Cooperative and Individual Limited Liability Company relating to the registration of acts of a branch located in a state of the Federation other than that in which the head office/headquarters of the company is located.
Previously, any changes to branch office registration data had to be filed not only with the branch office’s Registry of Commerce but also within the jurisdiction of the company’s headquarters, resulting in a lengthy and costly process. With the amendment introduced by NI (IN in Portuguese) no. 66, information relating to the branch should be sent electronically only to the Registry of Commerce of the state in which it is located, which is responsible for the reception of the data and its storage. The NI will come into effect on October 7, 2019.
Additionally, the Economic Affairs Committee (CAE in Portuguese) of the Federal Senate approved House Bill (PLC) 198/2015 which aims to facilitate the closure and registration of extinction of small businesses. As a result, those that have been inactive for at least three years will have their records canceled without charge unless they communicate their intention to continue the activity. The bill will still have to be approved in Plenary Session.
According to attorney Raphael Zaroni, founding partner of Zaroni Advogados, the new initiatives will simplify corporate acts in the country. “The measures are very positive for the market and will certainly be favorable to the business environment in Brazil”, he states.