In the last couple of decades, Brazil has established a notable number of laws, regulatory agencies, and conditions that increases the presence of the Government in many economic areas.
Recently, in the year 2021, a new Complementary Law 182/2021 (“Legal Framework for Startups“) was adopted, with the aim of improving the Brazilian business environment.
The Complementary Law No. 182/2021, enters into force, for the following objectives:
- To recognize innovative entrepreneurship as a vector of economic, social, and environmental improvement
- To motivate the creation of legally safer environments;
- To grant considerable contractual freedom and favors investments; and
In addition, it modernizes the Brazilian business environment in light of developing business models.
The main points of the new Complementary Law in Brazil
Amongst the primary points of the new Brazil law, the most important are stated below:
- Startups may receive investments from people or legal entities that may or may not result in equity participation in the startup.
- Agencies with competence in sector regulation, may partake in experimental regulatory environment programs where they can set aside norms of their competence so that inventive companies can test innovative business models and technologies under the regulator’s supervision.
- Startups may receive resources through companies that have duties to invest in research, development, and invention that arise from grants made by regulatory agencies.
- A special type of bidding that encourages the Public Administration to hire creative solutions with or without technological risk was introduced.
- The law ratifies forms of investments to raise funds without internalization as part of the corporate capital.
The Legal Framework for Startups in Brazil came into force in 2021 and was celebrated as an appropriate move toward a more secure legal environment that encourages investment in innovative entrepreneurship in Brazil.
Brazil’s startup growth shows potential in a range of sectors, and now, this new legislation is making it better.
With the right strategy and the right firm (Damalion) by your side, entering the Brazilian market can be a huge success for anyone. Contact your Damalion expert now for your business services in Brazil.
