Improving Brazil’s Business Environment
On 30th March 2021, two legislative measures were published in Brazil. The first, Law 14,129/2021 (“The Law”) implements the Brazilian Digital Government Policy (“DGP”), while the second, Provisional Measure 1,040/2021 (“The Measure”) aims to improve the business environment in Brazil, with the objective of improving its position in the World Bank’s “Doing Business” ranking. While they are distinct acts, there is a strong common theme to both: reducing bureaucracy in both the public administration and the private sector.
The Law provides for the principles, rules and instruments for the implementation of the DGP. It aims to improve the efficiency of public administration through digitalising records and using technology to make public services more widely accessible to the population, including those on low incomes or residing in rural and isolated areas.
The Measure sets forth legislative changes to promote and foster the creation and development of businesses in Brazil. Brazil is currently ranked 124 in the world on the World Bank’s “Doing Business” rankings[1]. This Measure directly addresses some of the issues currently faced by those wishing to start or grow businesses in Brazil, in accordance with the recommendations of the World Bank, and with the aim of improving that ranking.
By Ted Rhodes and Valerio Salgado