Legal entities may now own EIRELI in Brazil

[one_half]Up to now, only individuals could be owners of Individual Limited Liability Company (EIRELI) in Brazil. However, as of May 2017, legal entities may also hold EIRELIs, as provided in item 1.2 of Annex V of Normative Instruction 38/2017 of the Department of Business Registration and Integration (DREI), published on 3 March 2017, and which will enter into force on 2 May 2017.

It is worth remembering that EIRELI is a type of limited liability company that, unlike other corporate types, does not require two partners for its existence, but only one owner. In its constitution, it is necessary to pay minimum capital of 100 (one hundred) times the national minimum wage, which represents a minimum capital of R$ 93,700.00 (article 980-A of the Brazilian Civil Code – Law 10,406/2002).

This is a very positive change for the domestic and foreign corporate sector, as it expands the range of business types that companies can use for their enterprises in Brazil. In addition, those limited companies that had/have a second minority partner only to comply with the legal requirement of duplicity of partners, will be able to become EIRELIs, with the exclusion of the minority partner, thus reducing bureaucratic costs and unnecessary legal risks.

EIRELI can be used as a type of holding company in complex corporate structures, to enable corporate and succession planning.

Foreign multinationals will also be able to take advantage of the novelty in their investments in Brazil, by instituting EIRELIs owned by them or by transforming their Brazilian subsidiaries into EIRELIs, which will certainly reduce costs with solicitors, among other bureaucratic inconveniences.

The full text of this normative instruction can be accessed at: http://drei.smpe.gov.br/.

AUTHOR: Cintia BusseAutor .

Brazil: Still one of the preferable countries to where to extend IP rights?

According to the Central Bank of Brazil, for the first time in weeks, the expectative to the recovering of the economic activity is more optimistic in Brazil.

The expected revelation of the National Consumer Price Index (IPCA), on April, showed that the expected inflation for 2017 has decreased, since it changed from 4,06% to 4,04%. After six weeks of instability, the prediction to 2017 Gross Domestic Product (GDP) changed from 0,40% to 0,43%, followed by the advance of the estimated industrial production that came out from 1,26% to 1,36%.

For 2018, the forecast is a continuous growing of 2,50% to the economic activity and to the industrial production.

This scenario lead us to think that the Brazilian market shall have back the attention of the international investors and, thereafter, keep Brazil among the preferable countries to where to extend IP rights.

Source

Brazilian Patent and Trademark Office will hire more examiners

With the purpose of stimulating management and improving its operating performance, Brazilian Patent and Trademark Office (BPTO) announced the convocation of 70 new public servants.

70 new public servants will be hired, being 50 for the position of Researcher in Industrial Property and 20 for the position of Technologist in Industrial Property.

This measure is intended to strengthen and accelerate the examinations of Trademarks and Patents in Brazil.

“Even in times of economic adjustment, it is necessary to provide conditions for the productive sector to advance. The examination of trademarks and patents has to be done in a time compatible with international practices. Our management is strongly committed to the reduction of bottlenecks and the modernization of INPI, and the appointments of the authorized reserve records are another big step in this Direction” – said Marcos Pereira

In turn, the BPTO president, Luiz Otávio Pimentel, pointed out that the entry of the new employees will have a positive impact on the Institute’s services and will not generate a public deficit, since there is a forecast of an increase in revenues and there have been exonerations and retirements since the last recruitment.

“The appointment, even if reduced to the need of personnel, was necessary to equate the structural problems of the BPTO, providing the best service of the business sector and of society with regard to the acts of our legal competence. Considering the current economic constraints of the Brazilian Government, the expenses arising from the entry of these new employees will not imply an increase in the public deficit, since the entrance of the bankrupt may be absorbed by the Institute, in view of the expected increase in BPTO revenues and also the reduction Of staff caused by the exemptions and retirements since 2013, when there was the last entry of servers. Since then, there have been more than 190 exonerations and retirements” said the president of INPI.

Written by Dra. Clécia Bruna Diniz Pereira , Lawyer of Peduti Sociedade de Advogados.

Source: http://www.inpi.gov.br/noticias/ministerio-do-planejamento-autoriza-inpi-a-convocar-cadastro-de-reserva