System Glitch Slows Company Formation in São Paulo

Gone are the days when it took weeks, if not months, to form a company in Brazil. In São Paulo, for example, starting a company can now be done in days - well, at least until recently.

According to the Board of Trade in São Paulo (JUCESP), a glitch in their system has caused delays for some entrepreneurs. While the government is aware of the problem, after four months, it still hasn’t been able fix it.

Instead, filers must report the error by opening a support ticket. The Board of Trade then manually approves each new entity. Unfortunately, these additional steps add more time to the entire formation process. It’s a stark reminder of the bureaucratic challenges that still arise despite technological advancements.

For US investors, the delays can be particularly discouraging as even minor hold ups can significantly impact their business plans. Also, they’re used to practices in the US, where forming an entity can take just days or even hours.

Despite these setbacks, there are steps that entrepreneurs can take to mitigate the impact. These include staying informed about the status of JUCESP filings, maintaining regular contact with the Board of Trade, and seeking assistance from a lawyer or accountant.

An alternative approach would be to form the entity in another state, such as Rio de Janeiro. However, this option may not be feasible for all businesses, particularly those requiring a local presence in São Paulo.

Ultimately, until the glitch is fixed, entrepreneurs will need to exercise patience and flexibility in their corporate planning.