Brazil sanctions national Legal Framework for Startups

On Tuesday, June 1, President Jair Bolsonaro, sanctioned the Law Complementary 182/2021, establishing the Legal Framework of Startups and Innovative Entrepreneurship. The measure aims to foster the creation of innovative companies.

According to the law, startups are business or corporate organizations acting in innovation applied to the business model or the products and services offered.

 Requirements:

 -       companies must have annual gross revenue of up to BRL 16 million;

-       up to ten years of enrollment in Brazil‘s National Register of Legal Entities ;

-       declare that they use the innovative business model in their activities based on the existing legislation “Inova Simples”

The new legislation also defines the following aspects:

  -       provision for the figure of the angel investor, who is not considered a partner or has any management or voting rights in the company’s administration, and is not liable for any of the company’s obligations, being remunerated by its investments;

-       creation of the regulatory sandbox, which is a differentiated regime where the company can launch new experimental products and services with less bureaucracy and more flexibility in its model;

-       constitution of a special modality of bidding public administration — in which the public administration may hire individuals or legal entities to test innovative solutions developed by them or to be developed, with or without technological risk;

 -       companies that are obligated to invest in research, development and innovation, arising from grants or delegations signed through regulatory agencies, are authorized to fulfill their commitments with funding in startups.

For more information, please contact NBSO Porto Alegre.

Source: Agência Brasil