Brazil has reduced to 20.3 days the time required for establishing companies in the country, at least according to a survey conducted by the Brazilian Secretariat for Trade and Services at the Brazilian Ministry of Development, Industry and Foreign Trade.
The study was conducted from January until June this year, and followed the legalization process of 246,586 companies – about 97% of all the enterprises established during the period.
In 2005, it took 39.5 days to establish a company in the country. The reduction, according to a press release issued by the Ministry, is the result of a series of measures implemented by the federal government, such as an investment of approximately 5 million Brazilian reais (US$ 2.7 million).
The money was used among other things to implement a computer systems and integration between the systems of the Commercial Registries.
The government has also reduced the number of regulations required for mercantile registration, from 99 to 30, put in place the Centrais Fácil (Easy Centers), and created about 500 advanced service points of the Commercial Registry.
Brazil is becoming one of the most attractive markets in terms of receiving foreign investment, according to data supplied by the Brazilian Central Bank.
The ease in establishing enterprises is an important aspect for large investors to make decisions of injecting or not injecting funds into countries, hence the efforts of the Brazilian government for reducing the time required.
The result of the survey on the time required for companies in Brazil to be established and become operational, taking into account the national average, is 20.3 days, being 1.8 days the time spent at the Commercial Registries (mercantile registration).
The remaining 18.5 days are spent in other organizations in the federal, state, and municipal levels, which participate in the process of legalizing companies.