Brazil Business

S.PAULO ENTREPRENEURS WILL SOON BE ABLE TO LAUNCH NEW BUSINESSES WITHIN 7 DAYS

It currently takes around 101 days to launch a startup in São Paulo

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São Paulo entrepreneurs will benefit from an online business registry process starting in April. The city announced a state and federal partnership which will ultimately cut startup launch time to 7 days.

The program “Entrepreneur Easy” (“Empreenda Fácil”) benefits low-risk ventures, about 80 percent of businesses in São Paulo. Low-risk businesses are those that don’t require special environmental or security authorizations.

In addition to combining different business organs under one online portal, the program facilitates inspection processes. For example, authorities will verify business information only after the startup has opened, allowing for quicker launch time. Of course, any fraudulent documents discovered over time would result in tax or criminal sanctions on the business owners.

Cutting time

The partnership represents a significant move to cut down on the cumbersome bureaucracy surrounding new business. According to the World Bank’s “Doing Business” Report, a new business takes 101 days to launch in São Paulo. Across Brazil, that average goes down to 79 days.

Other states like Acre, Ceará, Mato Grosso do Sul, Rio Grande do Sul, and Roraima are also developing the business-facilitation system, the fruit of a federal initiative called “RedeSim” launched in 2015.

But São Paulo doesn’t want to stop at cutting business launch time to one week. In fact, the city hopes to decrease the time needed to launch a new business to as little as two days by next year.