News November 22, 2019

Opening branch offices directly in the commercial registry of the parent company through the unified system, with single fee

The National Network for the Simplification of the Registration and Legalization of Companies and Businesses (Redesim), managed by the Federal Revenue Service, implemented a functionality that now permits the opening, alteration, or closing of a branch from the headquarters’ commercial registry.

Until recently, opening branches in other states was a lengthy process in which the businessperson first needed to go to the headquarters’ commercial registry and make a contractual amendment. Then, after the request was approved, this same businessperson had to go to the commercial registry of the branch’s city to make the registration.

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From now on, in addition to avoiding travel for the businessperson, a single fee is charged, in the jurisdiction of the headquarters. The new feature is aligned with the governmental directive of reducing bureaucracy and making the entrepreneur’s life easier. Redesim has more than 83% integration across the country and permits the opening of businesses in less than three days (on average) and in a few minutes, in many cases.

At the Federal Revenue Service, Redesim is a strategic project led by the General Coordination of Registry Management (Cocad) of the Subsecretariat of Collection, Registries and Service (Suara), underway since 2007.

Redesim, created by Law No. 11,598, of December 3, 2007, is composed of various bodies that are part of the process of registration and legalization of legal entities. According to the government, the significant results were only possible by virtue of the partnership established between the federal, state, and municipal bodies that compose it.

There are more than 3,000 municipalities integrated into this large network (2018 data), covering about 85% of the active legal entities in the country.

In 2018, Redesim contributed to Brazil rising 16 positions in the Doing Business index. This is an international ranking on the ease of doing business, published annually by the World Bank. This was Brazil’s best result since the ranking began to be published.

Source: Federal Revenue Service

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