On December 14th, the Chamber of Deputies of Brazil approved the complementary bill (PLP) 146/19 better known as the “Legal Framework for Startups” and now is subject to the appreciation by the Federal Senate.

According to the bill, the startups shold have a history of up to ten years since foundation and up to 16 million reais of annual revenue.

The company also needs to declare that it has an innovative business model or that it belongs to the special regime Inova Simples, provided for in The General Law on Micro and Small Enterprises (123/06) it has the objective of establishing general rules regarding the differentiated treatment to be given to micro-enterprises (MEs) and Small Companies (EPPs) throughout the country.

The draft bill provides to implementation of a regulatory sandbox to stimulate innovation. Also provides a special bidding procedure to stimulate investment in startups. Furthermore, the draft bill provides rules will affect the working relationships.

In short, the “Legal Framework for Startups” proposes to facilitate the expansion of the startups market in the country, especially because promises simplifying bureaucracy and to create a more legally secure environment for entrepreneurs and potential investors.

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Lawyer Author of the Comment: Sheila de Souza Rodrigues

Source: Câmara dos Deputados aprova marco legal das startups

“If you want to learn more about this topic, contact the author or the managing partner, Dr. Cesar Peduti Filho.”
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