According to the World Bank, the waiting period to open a company in Brazil has dropped 20% in the last five years. Today, the process takes 119 days; in 2007, it took 152.
The bad news? In a list of 183 countries, Brazil is only worse than Equatorial Guinea (137 days), Venezuela (141), Republic of the Congo (160) and Suriname (694 days)… it almost sounds like a joke!
According to newspaper Folha, Brazil is also considerably worse than the emerging countries known as Brics, which includes India (29 days), Russia (30), China (38) and South Africa (19 days).
Back to the “good news”… the World Bank says Brazil now demands “only” 13 procedures – fewer than the 17 required five years ago – to start a business, such as a registry at the Internal Revenue Service and at the Board of Trade, as well as at the Social Security Office and an authorization by the local government. All requests to each department are made separately in most cities, which slows the process and makes it more expensive.
If the company to start business in Brazil is foreign, the necessary procedures jump to 15, because foreign businessmen must have all necessary documents to be legal in the Brazil and enroll the company at the Siscomex [Foreign Commerce Integrated System] and at the Internal Revenue Service.
How bad does Brazil fare with other countries? Here are a couple of examples…
– Opening a business in China costs seven times less than in Brazil.
– Only one legal procedure is needed to start a company in Canada or New Zealand. Authorization is given after one day in New Zealand and after five in Canada.