What’s With the Despachante?

It’s common for law firms in Brazil to hire outside service companies to provide paralegal services. These companies, known as despachantes, serve various purposes. Some have relationships with notary offices and government agencies, which helps move things along more quickly. Others have specialized knowledge in specific tasks, such as Central Bank filings.

As we’ve said before, doing business in Brazil requires patience. Unfortunately, there’s a significant amount of bureaucracy and red tape that, quite frankly, takes time. And often it makes law firms more efficient to employ these service providers. Imagine the time (and money) wasted when your lawyer spends two hours waiting in line at the notary office. And that’s on top of any traffic jams they encounter on their way there.

What’s critical is that these service providers be managed properly. It’s one thing for a lawyer to hire a despachante to file the formation documents for a new company. But it’s the lawyer’s job to ensure the work is being performed properly, the same way it’s a partner’s responsibility to review the work of less experienced associates.

Let’s be clear: we’re not talking about bribing government officials to get things done. Some despachantes no doubt rely on shady business practices. But that’s neither the norm nor the purpose. Law firms can offer more efficient and cost-effective legal services to clients by allowing paralegal companies to help with administrative tasks.

If utilized properly, a despachante can add value for clients. Whether it’s getting certificates or making routine filings, outsourced paralegal services can serve a useful purpose.