Brazilian President Jair Bolsonaro has sent to the House of Representatives a Bill of Law seeking to create a legal framework for start-ups. The Bill of Supplementary Law has been numbered No. 249/2020 and attached to Bill of Supplementary Law No. 146/2019, which also seeks to stimulate start-ups.
Start-ups have been defined as new or recently formed companies innovating in their business model, service or product. Certain other requirements must be satisfied, such as gross annual revenue not exceeding BRL16 million in the previous fiscal year or BRL1.3 million per month if operations began less than one year prior, enrollment with the Federal Corporate Taxpayers’ Registry of up to 6 years.
The proposal enables companies obligated by law to invest in research, development and innovation to comply with such obligation by investing in start-ups, and also establishes special public procurement rules to provide innovative solutions to public entities.
Lastly, Bill of Supplementary Law No. 249/2020 also proposes to reduce the bureaucracy involved in running a corporation by allowing companies that have unnual gross revenues of less than BRL78 million to conduct their mandatory publications solely in eletronic format.
Montgomery & Associados’ dedicated start-ups team will continue to monitor the development of this Bill.