This month, the new procedures created by the Department of Business Registration and Integration (Drei) came into effect to reduce bureaucracy for entrepreneurs and clarify rules, such as those involving the Individual Limited Liability Company (Eireli) – a type created a few years ago that allows the company’s share capital to be separated from the personal assets of its holder.
A new feature is that this type of company may have a legal entity as its holder, including a foreign one.
This measure will allow the formation of holding companies by means of an Eireli. According to attorney Renan Luiz da Silva, administrator of the regional office of the Board of Trade (Junta Comercial), located at the São Paulo Commercial Association (Associação Comercial de São Paulo), this may be considered an advance for business practice.
However, one must be alert to its implications. “We cannot forget that the Eireli was created to curb the use of the front-man partner (sócio laranja), and changes always open loopholes for possible irregularities,” says Silva.
How it works – For legal purposes, the Eireli is considered a legal entity separate from its holder. As a result, its debts and obligations do not reach the personal assets of its holder. It is also worth noting that the formation of an Eireli requires certain requirements, such as the amount of capital, which must be at least 100 times the minimum wage. Read more on the Sebrae website.
Seven years ago, this legal figure was created through Law 12,441, but it was never specified what type of person, natural or legal, could be its holder. At the time, the National Department of Commercial Registration (DNRC), which would become the Drei, interpreted that only a natural person, and a Brazilian one, could form such a company.
Questions? Get in touch with Lassori.
Source: (Dia a Dia Tributário)
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