The Brazilian REDESIM was created to simplify and streamline the process of registering companies in Brazil. It integrated the previously separate registration processes at the municipal, state, and federal levels into a single online system. This unified system reduces bureaucracy, saves entrepreneurs time and money, and increases transparency and efficiency for both businesses and government agencies.

1. The Brazilian REDESIM:
Efficiency, Trustworthiness and
Speed of Corporate Registers
• Mr. Rubens Branco da Silva
• Member of Rio de Janeiro Board of Trade

2. 1
INTRODUCTION: BRAZILIAN FEDERATIVE ORGANIZATION IN
TERMS OF REGISTRATION AND LEGALIZATION OF COMPANIES
 Brazil (officially the Federal Republic of Brazil) is constituted by the
union of 26 states and the Federal District, which are divided in
5.570 Municipalities;
 The concentration of Municipalities per state is not uniform 
varies from 15 in Roraima to 853 in Minas Gerais.
 That said, the entrepreneurs used to face a relevant number of
obstacles to proceed with the registration of a company at any of
those Municipalities, once local rules and peculiarities ended up
establishing a wide range of requirements without guaranteeing
the success of the respective constitution  result: a great
waste of time and money for the entrepreneur.
The Brazilian REDESIM

3. 2
INTRODUCTION: BRAZILIAN FEDERATIVE ORGANIZATION IN
TERMS OF REGISTRATION AND LEGALIZATION OF COMPANIES
UNCOUNTABLE OBSTACLES FOR
THE ENTREPRENEUR TO
ESTABLISH A COMPANY IN BRAZIL
5.570
MUNICIPALITIES
26 STATES
+
FEDERAL
DISTRICT
The Brazilian REDESIM

4. I - CONSTITUTIONAL AMENDMENT # 42/2003
3
 For a long time, the entrepreneurs have expected and demanded for
agility in the procedures regarding company opening, modification
and termination, in addition to cost reduction.
 As such, Constitutional Amendment # 42/2003 has added the item
XXII to the article 37 of the Constitution of the Federative Republic of
Brazil (CRFB/88), which determined that tax administrations should
operate in an integrated manner, sharing records and tax information,
as provided by law or agreement.
The Brazilian REDESIM

5. 4
II - DEFINITION AND OBJECTIVE
 “REDESIM”  National Network for the Simplification of
Registration and Legalization of Companies and Business.
 REDESIM was introduced in Brazilian legal system by
Federal Law # 11.598/07.
 Main objective: reduction of time and costs/expenses for
establishing a company in Brazilian territory.
The Brazilian REDESIM

6. 5
The Brazilian REDESIM
III - PREMISES
 Enables both the online access to information and the
guidance for the opening, modification or termination of a
business;
 Integrates all agencies/departments in a single
process/register;
 Brings transparency to the process;
 Grants permits and licenses quickly.

7. 6
IV - PREVIOUS PROCEDURES ACCORDING TO BRAZILIAN
LEGISLATION
 Initially, the entrepreneur had to register the company at both
State Board of Trade and Brazilian Federal Revenue Service.
 After the successfully conclusion of the registers above, the
entrepreneur had to proceed to the registration of the company
in the totality of the competent agencies of the Municipality,
according to the activities that would be developed by the entity.
The Brazilian REDESIM

8. 7
V - DISADVANTAGES OF PREVIOUS PROCEDURES
i. Increased investments regarding time and money spent for
legalizing the company at both state and federal levels;
ii. Only after registering the company at both State Board of
Trade and Brazilian Federal Revenue Service the entrepreneur
would be authorized to submit the respective constitution to
Municipal analysis regarding the possibility of developing
determined activities locally;
iii. Commonly, those activities were restricted or even not
allowed to be developed by the Municipality, and the
entrepreneur would only find that out after going through
those procedures before State Board of Trade and Brazilian
Federal Revenue Service  WASTE OF TIME AND MONEY!
The Brazilian REDESIM
 Some inconvenients ended disqualifying those previous
procedures as a proper method for constituting a company in
Brazil:

9. i. Wide different numbers and types of procedures;
ii. Long time taken to constitute a company;
iii. Overspending on travels and certified copies;
iv. Fragile documentation;
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V - DISADVANTAGES - IN SUMMARY
The Brazilian REDESIM

10. v. Excessive bureaucracy;
vi. Difficulties on monitoring the constitution process;
vii. Divergent entries.
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The Brazilian REDESIM
V - DISADVANTAGES - IN SUMMARY

11. 10
 Considering those cited disadvantages, the entrepreneurs had
remained for a long time expecting and demanding for agility in
the procedures regarding company constitution, modification
and termination, in addition to cost reduction.
 As such, Constitutional Amendment # 42/2003 added the item
XXII to the article 37 of the Constitution of the
Federative Republic of Brazil (CRFB/88), which determined that
tax administrations should operate in an integrated manner,
sharing records and tax information, as provided by law or
agreement.
VI - CONSTITUTIONAL AMENDMENT # 42/2003
The Brazilian REDESIM

12. 11
 Additionally, the Constitutional Amendment # 42/2003
reinforced that provision including item IV in the sole
paragraph of article 146 of the CRFB/88, as it follows:
VI - CONSTITUTIONAL AMENDMENT # 42/2003
The Brazilian REDESIM
“Article 146, CRFB/88:
(...)
IV – the collection, the supervising and the
exaction may be shared by federal agencies, being
adopted a single national register of taxpayers."

13. 12
VII – THE FOLLOWING LEGISLATION
The Brazilian REDESIM
 Based on the innovations brought by the Constitutional
Amendment 42/2003, Complementary Law # 123/2006 and
Ordinary Law # 11.598/2007 were issued.
 Complementary Law # 123/06 reaffirmed the idea
of ​​integration and simplification introduced by the
Constitutional Amendment 42/2003.
 Law # 11.598/2007 instituted the REDESIM.

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 General orientation
 Economic classification
 Prior research
 Collection of electronic information
 Tax registration
 Permits and licenses grants
 In summary, the REDESIM embraces:
The Brazilian REDESIM
VIII - BRAZILIAN FEDERAL LAW # 11.598/2007

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IX - CHANGES INTRODUCED BY BRAZILIAN FEDERAL LAW #
11.598/2007
i. Firstly, the entrepreneur proceeds to a previous online viability
consultation (through Integrated Registration System – REGIN)
which embraces a validation of company’s name and location,
before the respective State Board of Trade and the Municipality;
ii. After that, the applicant will receive a feedback informing about
the possibility of the constitution of the correspondent company,
including those name and location desired;
iii. Only after receiving the positive feedback that the entrepreneur
will be able to go to the respective State Board of Trade and pay
the charges for opening and registering the company;
 Nowadays, those are the steps that must be followed by the
entrepreneurs who intend to establish a company in
Brazilian territory:
The Brazilian REDESIM

16. 15
IX - CHANGES INTRODUCED BY BRAZILIAN FEDERAL LAW #
11.598/2007
iv. The integrality of levels of public administration must be
involved with the procedures that embraces the opening and
legalization of a company, as it follows:
a) Brazilian Federal Revenue Service;
b) State Treasury Office;
c) State Board of Trade;
d) Municipal Treasury Office
The Brazilian REDESIM

17. 16
IX - CHANGES INTRODUCED BY BRAZILIAN FEDERAL LAW #
11.598/2007
iv. (cont.)
e) Urban Development and Environment Secretariat (Land Use
Department - SEDUR) ;
f) Municipal Environment Secretariat (Environmental Licensing
Department – SEMMAM);
g) Health Secretariat (Health Surveillance Division).
The Brazilian REDESIM

18. 17
IX - CHANGES INTRODUCED BY BRAZILIAN FEDERAL LAW #
11.598/2007
v. The REDESIM is administered by a Management Committee
composed of several Federal, State and Municipal agencies,
which are responsible for the process in terms of register and
legalization of entrepreneurs and companies in general;
vi. The Brazilian Ministry of Development, Industry and
International Commerce is responsible for the appointment of
the members that will occupy the following main positions of
the Committee aforementioned (Ordinance MDIC # 125/2009):
a) Services and Trade Secretariat of Brazilian Ministry of
Development, Industry and International Commerce;
b) National Department of Business Registration (DNRC now
DREI);
The Brazilian REDESIM

19. 18
IX - CHANGES INTRODUCED BY BRAZILIAN FEDERAL LAW #
11.598/2007
iv. (cont.)
c) Brazilian Federal Revenue Service Secretariat;
d) Management Secretariat of the Ministry of Planning and
Budget;
e) National Institute of Social Security (INSS);
f) National Association of the Presidents of Brazilian Boards
of Trade;
The Brazilian REDESIM

20. 19
IX - CHANGES INTRODUCED BY BRAZILIAN FEDERAL LAW #
11.598/2007
iv. (cont.)
g) National Council of Treasury Policy (Confaz);
h) Brazilian Association of State Capital Cities’ Financial
Secretariats;
i) General Entities Representing Brazilian Municipalities;
j) Micro and Small Companies’ Permanent Forum.
The Brazilian REDESIM

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X – MAIN ADVANTAGES FOR ENTREPRENEURS
 Both delivery and archiving of companies´ registration
process are centralized at the respective State Board of
Trade  No need of delivering the same documents at
different agencies or departments;
 Online process  reduction of time,costs/expenses
spent by the entrepreneur on the matter of company
constitution.
The Brazilian REDESIM

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XI – MAIN ADVANTAGES FOR PUBLIC AGENCIES
 Online process reduces the flow of taxpayers at Federal,
State and Municipal agencies;
 All the aforementioned federative levels will be aware of
the registration of a company;
 Public agencies´partner institutions will receive the same
information, which will be permanently updated, related
to a company once constituted (e. g. partners, economic
activities, address, etc.).
The Brazilian REDESIM

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XII – GENERAL ADVANTAGES
i. Reduction of bureaucracy and time for company
constitution;
ii. Concentration of general orientation and
documentation in one place;
iii. Agility in the constitution process;
iv. Lower cost to the taxpayer;
The Brazilian REDESIM

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XII – GENERAL ADVANTAGES
v. Complete information for supervision;
vi. Unified and synchronized registration;
vii. Management and monitoring of the process;
viii. Efficiency and transparency.
The Brazilian REDESIM

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XIII – CONCLUSIONS
1) The REDESIM, introduced in Brazilian legal system by
Federal Law # 11.598/07, is an integrated system that
allows the registration, modification, legalization and
extinction of companies in the totality of Brazilian
Boards of Trade, providing the simplification of the
respective required procedures and reducing the
bureaucracy to the minimum;
The Brazilian REDESIM

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XIII – CONCLUSIONS
2) The REDESIM aims the integration of the procedures
needed in all levels (Federal, State and Municipal),
concentrating the presentation of documents in a
predetermined moment and allowing the entrepreneur
to monitor (online) the progress of the respective
process;
The Brazilian REDESIM

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XIII – CONCLUSIONS
3) The REDESIM does not prevent the entrepreneur from
obtaining information or orientation apart from the
internet. Consequently, in case the entrepreneur wishes,
he/she can go in person to the competent agency or
department and require information related to
registration, modification and/or extinction of legal
entities or entrepreneurs.
The Brazilian REDESIM

28. 27
If
applicable,
the
Municipality
performs
inspections
and grants
Business
Licenses
The entrepreneur
proceeds with the
feasibility
consultation
The respective
State Board of
Trade analyses
both the name and
the social object
The Municipality
proceeds with the
analysis of the
address viability
(REGIN) and the
procedures for
licenses
concession
After the
registration before
the respective State
Board of Trade and
Tax Registration(all
at Board of Trade),
the Municipality is
informed about the
company opening.
The Brazilian REDESIM