Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Check company name with State Commercial Registry Office | 1 day | no charge |
| 2 | Pay registration fees | 1 day | see following procedures |
| 3 | Register with the commercial board of the state where the main office is located and obtain identification number (NIRE) | 1 day | R$75 registration + R$50 (expediting fee) |
| 4 | Register for federal and state tax (Secretaria da Receita Federal do Ministério da Fazenda, SRF/MF) to obtain the CNPJ number and state tax number , which also registers employees with the National Institute of Social Security (Instituto Nacional da Segur | Between 15 to 25 (including inspection visit) | no charge |
| * 5 | Receive state tax inspection | 1 day (simultaneous with procedure 4) | no charge |
| 6 | Register with the Municipal Taxpayers’ Registry (Secretaria Municipal de Finanças) of the City of São Paulo | 5 days | no charge |
| * 7 | Pay TFE to the Municipal Taxpayers’ Registry | 1 day (simultaneous with previous procedure) | R$ 425.46 (for retailing business), may vary in accordance with the company’s activities |
| 8 | Apply and obtain digital certification (token) for the use of e-invoice | 2 days | The cost may vary from R$ 450.00 to R$ 600.00 |
| 9 | Apply to the municipality for an operations permit (auto de licença de funcionamento) | 90 days | no charge |
| * 10 | Register the employees in the social integration program (Programa de Integração Social, PIS) | 1 day, (simultaneous with procedure 10) | no charge |
| * 11 | Open a special fund for unemployment (FGTS) account in bank | 1 day, (simultaneous with procedure 10) | no charge |
| * 12 | Notify the Ministry of Labor (Cadastro Geral de empregados e desempregados, CAGED) | 1 day,(simultaneous with procedure 10) | no charge |
| * 13 | Registration with the Patronal Union and with the Employees Union. | 5 days, (simultaneous with procedure 10) | Annual fee to be paid depending on the Union. |
* Takes place simultaneously with another procedure.