Subnational Doing Business in Brazil 2021 Comparing Business Regulation for Domestic Firms in 27 Brazilian Locations with 190 Other Economies © 2021 International Bank for Reconstruction and Development/The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved 1 2 3 4 19 18 17 16 This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. 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Comparing Business Regulation for Domestic Firms in 27 Brazilian Locations with 190 Other Economies Resources on the Doing Business website Subnational Doing Business in Brazil 2021 Subnational and regional projects http://www.doingbusiness.org/brazil Differences in business regulations at the subnational and regional level Current features http://www.doingbusiness.org/subnational News on the Doing Business project http://www.doingbusiness.org Historical data Customized data sets since Doing Business 2004 Ease of doing business score http://www.doingbusiness.org/custom-query Data benchmarking 191 economies to the best regulatory performance and the ease of doing Law library business score Online collection of business laws and regulations https://www.doingbusiness.org/data/doing-business http://www.doingbusiness.org/law-library -score Entrepreneurship data Data Data on new business density (number of newly All the data for 191 economies—topic scores, registered companies per 1,000 working-age people) indicator values, lists of regulatory procedures and for 155 economies details underlying indicators http://www.doingbusiness.org/data​/exploretopics http://www.doingbusiness.org/data /entrepreneurship Reports Access to Doing Business reports as well as subnational and regional reports, case studies and customized economy and regional profiles http://www.doingbusiness.org/reports Methodology The methodologies and research papers underlying Doing Business http://www.doingbusiness.org/methodology Research Abstracts of papers on Doing Business topics and related policy issues http://www.doingbusiness.org/research Doing Business reforms Short summaries of business regulation reforms and lists of reforms since Doing Business 2008 http://www.doingbusiness.org/reforms ii Contents 1 Overview 20 About Doing Business and Subnational Doing Business in Brazil 2021 31 Starting a business 50 Dealing with construction permits 68 Registering property 88 Paying taxes 105 Enforcing contracts 123 Additional research: Registering as an Individual Microbusiness Owner (MEI) 132 Additional research: Paying taxes under the Simples Nacional tax regime 144 Data notes 181 State profiles 336 Acknowledgments iii iv DOING BUSINESS IN CHONGQING 2020 AT A G L ANCE Subnational Doing Business in Brazil 2021 Subnational Doing Business in Brazil 2021 under the Simples Nacional tax regime in Doing Business measures aspects of focuses on business regulations and their five locations in Brazil. regulation that enable or hinder entrepre- enforcement. It goes beyond Rio de Janeiro neurs in starting, operating or expanding and São Paulo to benchmark 25 other This report presents data current as of a business—and provides examples of Brazilian locations across five regulatory September 1, 2020 and includes compar- good practices for improving the business areas. The report also includes two pilot isons with other economies (data for other environment. studies on registering as an individual economies, as well as for Rio de Janeiro and microbusiness owner (‘Microempreende- São Paulo, are not considered official until dor Individual’, MEI) and paying taxes published by the Doing Business 2021 report). Full report: www.doingbusiness.org/brazil Five Doing Business indicator sets covering areas of national and local jurisdiction or practice Starting a business Paying taxes Records the procedures, time, cost, and paid-in minimum Records the taxes and mandatory contributions capital required for a small- or medium-size domestic that a medium-size company must pay in a given limited liability company to formally operate; includes a year as well as measures of the administrative gender dimension to account for any gender discriminatory burden of paying taxes and contributions and of practices. complying with postfiling procedures. Dealing with construction permits Enforcing contracts Records the procedures, time, and cost required for a small Records the time and cost for resolving a or medium-size domestic business to obtain the approvals commercial dispute through a local first-instance needed to build a commercial warehouse and connect it court, which hears arguments on the merits of to water and sewerage; assesses the quality control and the case and appoints an expert to provide an safety mechanisms in the construction permitting system. opinion on the quality of the goods in dispute; assesses the existence of good practices in the Registering property court system. Records the procedures, time, and cost required to transfer a property title from one domestic firm to another so that the buyer can use the property to expand its business, use it as collateral or, if necessary, sell it; assesses the quality of the land administration system; includes a gender dimension to account for any gender discriminatory practices. 27 Acre, Alagoas, Amapá, Amazonas, Bahia, Ceará, Espiríto Santo, Federal District, Goiás, Maranhão, Mato Grosso, locations Mato Grosso do Sul, Minas Gerais, Pará, Paraíba, Paraná, Pernambuco, Piauí, Rio de Janeiro, Rio Grande do Norte, Rio Grande do Sul, Rondônia, Roraima, Santa Catarina, São Paulo, Sergipe and Tocantins 2 pilot Registering as an individual microbusiness owner (MEI) and paying taxes under the Simples Nacional tax regime in studies Amazonas, Ceará, Federal District, Minas Gerais and Rio Grande do Sul Advantages and limitations of the Doing Business methodology Focus on the law and practice Reliance on expert respondents Doing Business does not cover: Makes the indicators “actionable” Reflects knowledge of those with most ✘ Market size because the law is what policy makers experience. ✘ Macroeconomic stability can change. Focus on domestic and formal sector ✘ State of the financial system Use of standardized case scenarios Keeps attention on the formal sector,  revalence of bribery and corruption ✘ P Enables comparability across locations where firms are most productive, but  evel of training and skills of the ✘ L but reduces the scope of the data. does not reflect the informal sector or labor force foreign firms. Subnational Doing Business in Brazil 2021 was produced by the World Bank Group at the request of the General Secretariat of the Presidency of Brazil, with funding from the National Confederation of Commerce of Goods, Services and Tourism of Brazil (CNC), the Brazilian Federation of Banks (Febraban), and the Brazilian Service of Support for Micro and Small Enterprises (Sebrae). v vi DOING BUSINESS IN CHONGQING 2020 CHAPTER 1 Overview MAIN FINDINGS Subnational Doing Business in Brazil 2021 presents a comparative analysis of the regulatory environment for doing business in 27 locations across the country, covering five areas: starting a business, dealing with construction permits, registering property, paying taxes and enforcing contracts. The report also includes two pilot studies on registering as an Individual Microbusiness Owner (MEI) and paying taxes under the Simples Nacional tax regime in five locations. Long and complex processes are a major challenge for Brazilian entrepreneurs in all five business regulatory areas, mainly due to a lack of coordination among national and local agencies. Brazil’s business environment presents a strong variation at the subnational level. Examples of good practices are found in different states, across income levels, regions, and sizes. Based on the overall performance of the five areas measured, it is easiest to do business in São Paulo, Minas Gerais and Roraima. At the same time, no single location comes first in all areas benchmarked, leaving room for all locations to learn from one another. Brazil’s business environment could improve significantly if existing local good practices were replicated in all cities and states, particularly in enforcing contracts and dealing with construction permits. Action areas addressing common themes across indicators — such as strengthening coordination between federal, state, and municipal agencies —  will improve the prospect that reforms will bear fruit. 1 2 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 T wenty-five years after new individual microenterprises, business regulatory environment, the term Custo Brasil1 was a 15% year-on-year increase.6 In this study—the country’s first coined by the Brazilian 2020, around one-quarter of adults Subnational Doing Business study in Confederation of Industry, the in the country were estimated to more than 15 years—expands the high cost of doing business be either starting a new business or benchmarking exercise to 27 capi- remains a topic of debate in the owning a company 3.5 years old or tal cities representing all federative country. Translated as “Brazil’s younger.7 Creating a level playing units (box 1.1). Cost”, it refers to the high com- field is crucial to ensure that these plexity to comply with local regu- new entrepreneurs can start and Despite regional economic dispari- lation, including barriers to entry, grow businesses, generate employ- ties, good performance is found in cumbersome processes, and oper- ment, and diversify the economy. states of all income levels, sizes, and ational costs associated with doing regions (table 1.1). Overall, doing business, making Brazilian goods Despite improvements, barriers business is easiest in São Paulo, and services more expensive than to firm operation and growth Minas Gerais and Roraima, where those of other countries. While remain —  a result, in part, of many good practices are found. The significant improvements have excessive government bureau- results show that, going beyond been made to reduce red tape, cracy. Onerous regulation diverts those places, local administra- bureaucratic hurdles remain. A entrepreneurs’ energy away from tions are also implementing good 2019 government study estimated developing their businesses and practices throughout the country. that doing business costs compa- may push them into informality. Many top-scoring locations are nies R$1.5 trillion ($283bn, or Informal firms accounted for an from the North and Northeast 22% of GDP) more in Brazil than estimated 17% of Brazil’s output regions, where the income per in Organisation for Economic in 2019.8 Brazil underperforms capita and firm density are below Co-operation and Development on measures of competitiveness. the national average.10 Strong vari- (OECD) economies.2 In 2017, it ranked 80 out of 137 ations are found at the subnational economies in the World Economic level, particularly in enforcing con- In the past 15 years, Brazil has Forum’s Global Competitiveness tracts and in dealing with construc- worked to improve its business Index.9 Likewise, in the Doing tion permits. They highlight an environment and encourage entre- Business 2021 report, Brazil, rep- opportunity for local policy makers preneurship. Since 2016, reform resented by São Paulo and Rio de around the country to learn from efforts have reduced the time to Janeiro, stood behind other large each other and adopt in-country start a business in São Paulo dra- federal countries such as India, examples of good practices, taking matically, from over 100 days to Mexico, or the Russian Federation. steps to increase competitiveness just 2 weeks.3 Supported by new and improve Brazil’s overall busi- legislation—mainly by establishing A more granular look at the regu- ness environment. a legal entity for individual micro- latory business environment across entrepreneurs in 20084—micro and Brazilian states reveals a more Yet, even if all of the country’s small companies play an increas- nuanced story where the regula- good practices were implemented, ingly critical role in the Brazilian tions that affect entrepreneurs can Brazil would still be far from the economy. Today, they represent vary significantly. In a country as global best practices. Long and 90% of firms in the country and large and diverse as Brazil—the complex processes are a major account for 30% of GDP (up from world’s fifth-largest and sixth most challenge for entrepreneurs in 20% in the 1990s).5 And their populous, with a decentralized all locations. Underlying reasons importance continues to grow. system of government comprising include the lack of coordination Faced with the crisis caused by the 5 regions, 27 federative units (26 among federal, state, and munic- COVID-19 pandemic, Brazilians states and the Federal District), ipal agencies, as well as frag- are turning to entrepreneurial and 5,570 municipalities—entre- mented and unclear regulations. activities as an alternative source preneurs face varying local prac- To leverage reform efforts, an of income. In the first 9 months of tices and regulations. To give a inclusive and structural approach 2020, Brazilians created 684,000 more complete picture of Brazil’s is needed—one that empowers Overview 3 BOX 1.1  What is Subnational Doing Business in Brazil 2021, and what does it measure? Doing Business measures the business regulatory environment for small and medium-size domestic firms. It assesses whether an economy has good rules and processes to yield positive outcomes for entrepreneurs and increase economic activity. Recognizing that governments play a vital role in bolstering private sector development, Doing Business promotes SMART (Streamlined, Meaningful, Adaptable, Relevant, and Transparent) regulation.a The premise is simple: clear laws and regulations afford entrepreneurs the confi- dence and the opportunities to invest. Rules should be efficient, transparent, accessible, and enforceable. Going beyond São Paulo and Rio de Janeiro, Subnational Doing Business in Brazil 2021 benchmarks the country’s 26 states and the Federal District in the areas of starting a business, dealing with construction permits, registering property, paying taxes, and enforcing contracts. States are measured through their capital cities. The report also includes two pilot studies analyzing the pro- cesses of registering an Individual Microbusiness Owner (Microempreendedor Individual, MEI) and paying taxes through the Simples Nacional tax regime in five locations. Subnational Doing Business selected the study locations and indicators in collaboration with the Government of Brazil to ensure geographic representation and indicator variation at the local level. The study’s objectives are to provide a broader understanding of Brazil’s business regulatory environment and highlight good practices that can inspire improve- ments around the country. The Data Notes and About Doing Business and Subnational Doing Business chapters cover in detail the methodology used to collect the data, as well as other aspects of this study. Data collection for Subnational Doing Business in Brazil 2021 started in late February 2020, at the moment when the COVID-19 pandemic hit the country.b As it disrupted the economy and brought many activities to a halt, the data collection phase was adjusted to be performed entirely remotely in 27 capital cities. Planned visits to agencies and in-person meetings with local officials and private sector experts, were replaced by videoconferences and phone calls. Yet, despite the challenge of relying on remote tools to engage with local respondents and officials throughout the country, the report counted with a high level of participation. This study was based on more than 1,500 contributors, collected from private and public sector professionals by questionnaires, phone or video interviews. From the private sector, professionals from accounting, law and engineering firms from each capital city were interviewed. Inputs from public officials, representing every agency responsible for business regulations in the five areas measured by the report in all 27 state and municipal governments, as well as from relevant state judiciary institutions and federal bodies, were instrumental for the report. As part of the data verification process, separate meetings were organized to present and obtain feedback on the preliminary data collected in each location. In total, more than 150 virtual meetings were organized with representatives from agencies such as commercial and property registries, municipal and state tax, urban, environmental, business licensing departments, judges and court officials, and firefighters corps. a. World Bank Group. 2013. Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises. Washington, DC: World Bank Group. b. The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. For all 27 locations, the data for starting a business, dealing with construction permits, registering property, and enforcing contracts are updated as of September 1, 2020. The data for paying taxes are updated as of December 31, 2019 for the 27 locations. and encourages not only the fed- On average, Brazil underperforms need to complete more procedures eral government but also local in all five indicator areas, under- to register a company or a property governments to design and imple- scoring the complex and lengthy transfer or get the permits to build ment reforms together. processes facing entrepreneurs. It a warehouse than in most econ- is more challenging to start a busi- omies in the world. For example, ness, register a property, comply entrepreneurs in most states in with taxes or obtain building per- Brazil complete the highest num- Main findings mits in the average Brazilian state ber of procedures worldwide to than in most other countries in register a property transaction. Long and complex processes Latin America and the Caribbean Property ownership information is are a major challenge for and the OECD high-income group. not consolidated, and parties must Brazilian entrepreneurs Businesses in all locations in Brazil consult an array of agencies to 4 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 TABLE 1.1  Doing business is easiest in São Paulo, Minas Gerais, and Roraima Registering property score Dealing with construction Dealing with construction Registering property rank Enforcing contracts score Starting a business score Enforcing contracts rank Starting a business rank permits score (0–100) Paying taxes score Paying taxes rank Aggregate score permits rank (0–100) (0–100) (0–100) (0–100) (0–100) Location Rank São Paulo (São Paulo) 1 59.1 81.7 14 48.9 15 65.8 1 33.9 19 65.4 3 Minas Gerais (Belo Horizonte) 2 58.3 82.0 12 61.6 3 53.3 12 34.0 17 60.7 8 Roraima (Boa Vista) 3 58.3 76.9 25 63.7 1 53.3 11 34.0 18 63.6 5 Paraná (Curitiba) 4 57.3 84.5 2 57.5 7 52.5 14 34.4 4 57.7 12 Rio de Janeiro (Rio de Janeiro) 5 57.1 83.2 6 57.2 8 57.4 2 33.7 25 53.9 18 Tocantins (Palmas) 6 56.8 77.8 23 59.3 5 52.8 13 34.1 15 59.8 9 Mato Grosso do Sul (Campo Grande) 7 56.7 77.8 22 62.4 2 54.7 6 34.3 8 54.3 17 Sergipe (Aracaju) 8 56.3 81.5 15 45.5 24 51.3 18 33.7 24 69.7 1 Ceará (Fortaleza) 9 56.3 82.0 13 60.1 4 52.4 15 33.9 21 53.2 19 Piauí (Teresina) 10 56.0 84.5 3 52.8 10 49.7 21 33.8 23 59.1 11 Goiás (Goiânia) 11 55.9 72.2 27 57.7 6 55.8 3 34.4 6 59.6 10 Federal District (Brasília) 12 55.8 75.9 26 47.2 19 53.3 10 34.3 9 68.4 2 Rondônia (Porto Velho) 13 55.5 82.2 10 45.5 23 51.3 17 34.5 2 63.8 4 Acre (Rio Branco) 14 54.9 77.6 24 51.7 11 48.3 25 33.8 22 62.9 6 Maranhão (São Luís) 15 54.4 83.4 5 42.0 27 50.2 20 34.2 10 62.3 7 Amazonas (Manaus) 16 54.4 79.5 18 49.5 14 53.6 8 34.3 7 54.8 15 Paraíba (João Pessoa) 17 53.9 79.1 20 55.5 9 49.0 23 34.1 14 51.7 20 Alagoas (Maceió) 18 53.8 82.8 8 48.0 16 53.8 7 34.5 3 49.6 22 Mato Grosso (Cuiabá) 19 53.5 78.0 21 47.6 17 51.9 16 34.1 16 56.0 14 Santa Catarina (Florianópolis) 20 53.2 83.9 4 47.5 18 55.6 4 34.2 13 44.8 26 Rio Grande do Norte (Natal) 21 53.1 80.4 16 50.6 13 45.5 26 34.2 11 54.7 16 Rio Grande do Sul (Porto Alegre) 22 52.9 83.0 7 46.5 20 49.0 24 34.2 12 51.7 21 Pará (Belém) 23 52.7 84.7 1 44.5 25 53.5 9 33.0 27 47.8 24 Bahia (Salvador) 24 52.5 79.6 17 51.5 12 49.4 22 33.2 26 48.9 23 Amapá (Macapá) 25 52.3 79.5 19 46.2 21 45.2 27 34.4 5 56.5 13 Espírito Santo (Vitória) 26 51.7 82.5 9 45.8 22 54.9 5 34.9 1 40.4 27 Pernambuco (Recife) 27 51.0 82.1 11 42.3 26 50.3 19 33.9 20 46.6 25 Source: Doing Business and Subnational Doing Business database. Note: Rankings are calculated on the basis of the unrounded scores, while scores with only one digit are displayed in the table. The aggregate score shown in this table is based on the average scores for the five areas measured and is presented in descending order. It captures the difference between each location’s performance and the global best practice for each of the five areas analyzed (starting a business, dealing with construction permits, registering property, paying taxes, and enforcing contracts). Scores are on a scale of 0 to 100, where 100 represents the best performance (the higher the score, the more efficient the regulatory environment). The complete dataset is available at the Doing Business website, at http://www.doingbusiness.org. The Doing Business 2021 data for Rio de Janeiro and São Paulo are not considered official until published by the Doing Business 2021 report. Overview 5 gather information on any debts or They need to cope with up to 97 retrieve the claimed money. The legal disputes associated with the tax obligations and multiple rules combined delays for these pro- property or seller. governing national, state, and city cesses would consume more than taxes—an average of 4,377 regu- 1,300 days from this hypothetical Likewise, the number of procedures lations, according to the Brazilian firm (figure 1.1). entrepreneurs must complete to Institute of Tax Planning (Instituto start a business or obtain a building Brasileiro de Planejamento e Strong variations are found permit are among the highest in Tributação, IBPT).11 In addition, in the business environment the world. Business founders inter- rules are constantly being updated: at the subnational level; act with several tax agencies to roughly 36 legal changes are made most variations are found in register a business for tax purposes every day—more than one per contract enforcement, and only. They must also register with hour.12 Tax matters also have an the least in paying taxes the state commercial registry and enormous impact on courts’ con- the municipality. To hire employ- gestion. They amount to 70% of Local regulations, as well as ees, separate interactions are all pending judicial enforcements the uneven implementation of needed with the Federal Savings in the country.13 Administrative national laws and reform initia- Bank (Caixa Econômica Federal) and judicial litigation at the fed- tives, lead to significant variations and the Ministry of Economy. In eral, state, and city levels amount in the ease of doing business across dealing with construction permits, to R$4.9 billion ($1.4 billion), or Brazilian locations (figure 1.2). Of Brazil is a rare example of a coun- 73% of GDP.14 the five Doing Business areas, per- try with a national construction formance in enforcing contracts database (maintained by the fed- All these bureaucratic require- varies the most, as courts are orga- eral tax authority), which builders ments deprive Brazilian firms of nized at the state level. Businesses are required to update for every productive time. Instead of focus- seeking to resolve a commercial new building. To obtain the per- ing on expanding their businesses, dispute will find that it is less mits to build a warehouse, builders entrepreneurs dedicate a remark- expensive and nearly three times also interact with municipal urban, able number of hours to comply faster to go through the courts in environment, sanitation, and tax with business regulations. Mato Sergipe (538 days, faster than in departments, in addition to state Grosso can be used as a proxy to Denmark) than in Espírito Santo firefighters’ corps, property reg- illustrate the country’s average (1,516 days, slightly longer than in istries, and water companies. In time commitment. A hypothetical India). Total court costs—includ- three locations, they even need to firm, similar to the one studied ing filing, notifications, and expert certify that a local artist’s artwork by Doing Business, needs more fees—can range from 3.7% of the has been placed in the warehouse. than two weeks to register and claim in Rio Grande do Norte to start operating. If the firm’s activ- 13.4% in Piauí. Paying taxes is also complicated ities require the construction of a in Brazil: across the 27 locations, warehouse, obtaining all of the Areas where municipal and state firms spend about 1,493 hours to necessary construction permits will agencies are the main players— comply with tax obligations, more take almost a year. If the company such as dealing with construction than anywhere else. The national had to sell the property, it would permits, starting a business, and digital bookkeeping system take 1.5 months to register and registering property—also pres- (Sistema Público de Escrituração finalize a property transfer. And ent significant variations. For Digital, SPED) used for tax fil- every year, this firm would spend example, building permits are ings requires a high level of user 1,483 hours—an additional two regulated by municipal councils; knowledge and a large amount of months—preparing, calculating, in Belo Horizonte (Minas Gerais) information. To file taxes and social filing, and paying taxes. Finally, if a permit costs R$13,643 ($3,720), contributions, taxpayers must a client fails to pay for the goods 20 times more than in Brasília input detailed information such sold by this business, the firm (Federal District). Likewise, as on invoices, inventory, and on would have to wait about 2.5 years state firefighters’ corps regulate employees and their dependents. to resolve the dispute in court and their inspection and certification 6 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 FIGURE 1.1  Red tape eats up productive hours from businesses throughout Brazil OECD high income BRICS LAC Brazil average average average average Sergipe Goiás Roraima Minas Gerais Federal District Tocantins Rondônia Acre Piauí São Paulo Paraná Mato Grosso Maranhão Ceará Mato Grosso do Sul Paraíba Rio Grande do Norte Amazonas Amapá Rio de Janeiro Bahia Rio Grande do Sul Alagoas Pará Santa Catarina Pernambuco Espírito Santo 0 250 500 750 1,000 1,250 1,500 1,750 2,000 Time (days) Time to start a business Time to obtain construction permits Time to register property Time to resolve a commercial dispute Time to comply with taxes BRICS = Brazil, Russian Federation, India, China, and South Africa; LAC = Latin America and the Caribbean; OECD = Organisation for Economic Co-operation and Development Source: Doing Business and Subnational Doing Business database. Note: LAC averages are based on economy-level data for its 32 economies. Chile, which is part of the OECD high-income economies, is not included in LAC averages. OECD high-income averages are based on economy-level data for 34 economies. BRICS averages are based on economy-level data for Brazil, the Russian Federation, India, China, and South Africa. The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. Other economies are represented by their main business cities. In the case of China, India, Mexico, and the Russian Federation, economies are represented by their two largest cities. Brazil's averages are based on the 27 locations measured in this study, including São Paulo and Rio de Janeiro. fees. Obtaining fire department in efficiency: it takes one-third second-longest time worldwide, approval for the same construc- of the time for an entrepreneur ahead of Cambodia). tion project costs 25 times less in to obtain a building permit in Tocantins (R$122 or $33) than in Roraima (179.5 days, less than Business startup costs vary nearly Mato Grosso (R$3,033.5 or $827). in the Netherlands) compared tenfold, ranging from 1.4% of There are also major differences to Pernambuco (532.5 days, the income per capita in Ceará to Overview 7 FIGURE 1.2  Performance gaps are largest in enforcing contracts and smallest in paying taxes Doing Business score (0–100) 100 90 90.9 88.3 84.7 Pará 84.7 80 80.7 79.7 75.7 77.3 72.2 Goiás 73.2 71.4 70 68.0 69.7 Sergipe 63.7 Roraima 65.8 São Paulo 67.8 63.0 60.7 62.4 60 55.7 56.2 51.4 52.4 54.0 50 45.2 Amapá 42.0 Maranhão 40.4 Espírito Santo 40 34.9 Espírito Santo 34.1 30 33.0 Pará 20 10 0 Starting Dealing with Registering Paying Enforcing a business construction permits property taxes contracts OECD high income average BRICS average LAC average Top performance Brazil Brazil average (27 locations) Lowest performance Brazil BRICS = Brazil, Russian Federation, India, China, and South Africa; LAC = Latin America and the Caribbean; OECD = Organisation for Economic Co-operation and Development Source: Doing Business and Subnational Doing Business database. Note: The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. 13.6% in Mato Grosso (figure less than in the United Kingdom), do Norte costs roughly 6% of the 1.3), mostly due to differences in while the same process takes property value, nearly six times municipal operations license and 68 days in Amapá (on par with the cost in Alagoas, primarily due operating fees. To start a business Myanmar’s 65 days) mainly due to differences in property transfer in Campo Grande (Mato Grosso do to variations in efficiency at the tax rates and the cost of registra- Sul), entrepreneurs need to pay a respective property registries and tion and notary services. municipal operations license fee of municipal tax authorities. Macapá $51 ($14). But in Cuiabá, in neigh- (Amapá) is one of the locations The smallest variation across loca- boring Mato Grosso, to register where the process to pay the prop- tions is in paying taxes, which is the same firm they pay R$4,134 erty transfer tax is most burden- also the area in which Brazil scores ($1,127) for an operations license some, taking 14 days and adding lowest. Globally, Brazil scores bet- (R$2,202) plus an operating fee 4 steps to the process, including ter in paying taxes than only six (R$1,932). Registration varies con- an on-site inspection for property economies.15 Companies similar siderably, from 9.5 days in Minas valuation. On the other hand, this to the Doing Business scenario pay Gerais (1 day less than in Norway) process is completely automated in 65.3% of their profits in tax bills. to 24.5 days in the Federal District São Paulo where the payment is In all states, the bulk of the tax (similar to Costa Rica). calculated and completed within burden (63.3% of profits) comes a few minutes. Cost also presents from the same 9 federal taxes It takes 21 days to register a prop- a wide variation. Registering a and contributions that apply to erty transfer in São Paulo (0.5 days property transfer in Rio Grande income, sales, and labor. As taxes 8 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 FIGURE 1.3  Starting a business costs nearly ten times more in Mato Grosso than in Ceará Cost of starting a business (% of income per capita) 28 LAC average 25 16 13 10 7 Brazil average (27 locations) 4 BRICS average OECD high income average 1 so ima rais oas ahia tins aná Pará nas nto iauí oiás cre apá orte eiro uco rina hão ônia gipe trict aíba aulo Sul Sul ará os ra e ag B can Par o a P A m b n s o o Ce Gr Ro as G Al az o S G A do N e Jan am Cata ara ond Ser l Di Par ão P so d e d ato i n To Am pírit e d e r n ta M R e r a S o s n d d a M M Es an Rio P an S Fe d Gr Gr Gr to Rio Rio Ma BRICS = Brazil, Russian Federation, India, China, and South Africa; LAC = Latin America and the Caribbean; OECD = Organisation for Economic Co-operation and Development Source: Doing Business and Subnational Doing Business database. Note: The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. are filed through the SPED system opportunities for them to improve A lack of coordination among in all locations, compliance takes by learning from each other. For federal, state, and municipal nearly the same amount of time— example, although an entre- agencies is a main cause for the longest worldwide. Postfiling preneur can register property complexity and delays processes like income tax correc- quickly in Goiás, it is also the tions and audits are homogeneous most challenging location to start Going beyond the variations, a across states and are among the a business, requiring a total of common thread of the business reg- world’s longest. Although state 16 interactions. Likewise, paying ulatory environment across Brazil is and municipal taxes represent taxes may be easiest in Espírito that, due to insufficient coordina- only a small share of the total tax Santo, which has lower city taxes, tion, agencies impose overlapping and contribution rate, they vary but it is the most difficult location requirements and processes that considerably. For example, the to enforce contracts. Resolving a negatively impact procedural effi- annual garbage collection fee costs commercial dispute there takes ciency. They often work in silos at R$9,562 ($2,606) in Rio Branco roughly 4 years, 1.5 years lon- the various stages required in pro- (Acre); the same company pays ger than the Brazilian average. It cesses such as registering property, just R$111 ($30) in Macapá (the is the only state where the civil starting a business, or obtaining a capital of Amapá, a state in the courts lack automated tools for building permit. This results in a same region). lawyers to manage and file claims highly complex business environ- electronically. Starting a business ment, even in the locations with Strong variations also exist within is easiest in Pará, but it lags on the most streamlined processes in each location. From a public-pol- paying taxes. Similarly, Roraima Brazil (figure 1.4). icy perspective, such dispersion or leads on dealing with construction uneven performance across the permits but is behind most states A good illustration is the case of indicators measured highlights for starting a business. agencies involved in property Overview 9 FIGURE 1.4  In terms of procedures, even the top-performing Brazilian locations are outperformed regionally and globally Starting a business Dealing with construction permits Registering property Goiás More procedures 5 Maranhão Amapá 4 4 Brazil average: 11 Brazil average: 22 Brazil average: 15 -2 -3 Pará, Paraná, Piauí, Maranhão -4 -5 Mato Grosso do Sul, -6 -6 -6 São Paulo -7 -8 -8 São Paulo -9 -10 Deviation from Brazil average for number of procedures OECD high income average BRICS average LAC average Brazil best Brazil worst BRICS = Brazil, Russian Federation, India, China, and South Africa; LAC = Latin America and the Caribbean; OECD = Organisation for Economic Co-operation and Development Source: Doing Business and Subnational Doing Business database. Note: The figure shows the deviation from the Brazilian average of the number of procedures by indicator area. The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. transfers. Each agency completes taxpayer records at the municipal- licensing departments, and state its part of the process, often with- ity to reflect the new ownership. firefighters corps. In 2020, even in out coordination and with limited state capitals where the implemen- understanding of the process as a New reform initiatives often suffer tation was most advanced, there whole. The property registry and from a lack of uptake by players, were still agencies to be integrated. municipality (through its tax and resulting in a gap between the For example, registering with fed- urban development offices) both introduction of reforms and their eral taxes still required a separate manage property-related informa- implementation on the ground. A interaction and seven states still tion. However, there is no single good example is the uneven imple- had not merged state tax agency document incorporating all cadas- mentation of Redesim, a national registration with the commercial tral and legal ownership informa- network aimed at integrating registry. As a result, the number of tion. Property buyers and sellers business registrations. Although it procedures to start a business is still must consult various sources—cer- was first introduced by a federal high across Brazil, ranging from 9 tificates of ownership, cadastral cer- law in 2007, the main regulatory to 16. tificates, and maps (plans) of land framework for its implementation plots, for example—to obtain com- was only established in 2011.16 In enforcing contracts, the tran- prehensive information regarding Furthermore, it was unevenly sition to e-justice began in 2006 land ownership, value, boundaries, implemented around the country, with a national law allowing characteristics, and precise property as the law left it optional for state digital case files and electronic location. A lack of coordination and municipal agencies to join it. platforms.17 Initiatives to digitalize and communication means that Integration required harmonizing case files have been promoted by property owners often must act an array of software programs used the National Council of Justice, as messengers between agencies. by agencies such as state commer- with different levels of imple- In most locations, after registering cial registries, federal, state and mentation by state courts. In Rio the property transfer, buyers must municipal tax authorities, munic- Grande do Sul, 23% of cases had request themselves an update of the ipal environmental and sanitary been digitalized by 2020. Enforcing 10 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 a contract there takes 5 months updated information on municipal This wait is typically about two longer than in neighboring Paraná, taxes and fees is challenging, mak- business days; if the address is where 98% of case files are elec- ing it nearly impossible to predict rejected, the entrepreneur must tronic.18 Civil courts in Sergipe the cost of complying with business repeat the procedure and wait an began implementing electronic regulations or local taxes. The busi- additional two days each time. case files in 2013, whereas Espírito ness environment in many states Belo Horizonte provides a simu- Santo’s civil courts do not use dig- and cities could greatly benefit from lator21 to facilitate the feasibility ital files.19 transparent information on regula- process. In Salvador, on the other tions, taxes, and fees. hand, the feasibility process is not Taxation is another area with dif- integrated with the commercial ferences in the implementation Local taxes are but one exam- registry and takes seven days on of national initiatives. The SPED ple. Many cities, such as Recife average. system was introduced in 2007 to (Pernambuco) and Salvador harmonize tax filing obligations.20 (Bahia), update their fees online In real estate transactions, deter- The system went through multi- annually through the Municipal mining the costs of registering ple changes and over the years it Tax Code. But in some locations, and notarizing a deed—compris- started to encompass a tax return such as Belém (Pará) and Teresina ing a multitude of taxes and fees for the state ICMS, a sales tax sim- (Piauí), firms must contact the that go beyond the cost of these ilar to VAT. As states receive this local tax agency to obtain updated services—is also challenging in information though SPED, they fee schedules. And even when Brazil. These additional taxes are have been able to simplify ICMS information is available, tax cal- collected by notaries and prop- filing obligations. Yet, by the end culations often involve complex erty registrars and indirectly fund of 2019, 14 states still required tax- formulae. One example is the gar- municipal and state authorities payers to file an additional state- bage collection fee, charged in 20 like the judiciary, the Prosecutor’s level tax return for ICMS. This state capitals across Brazil. Curitiba Office, the Legislative Assembly, obligation added time and com- (Paraná) applies a fixed and clear and the Public Defender’s Office. plexity to an already onerous pro- garbage collection fee for all com- In fact, such taxes can increase the cess. For instance, complying with panies, but João Pessoa (Paraíba) cost of notarizing and registering ICMS-related obligations within uses a formula involving factors the public deed by more than 40%. SPED alone requires companies determined by law; these factors And although registrar and notary to prepare and file, on a monthly are based on collection frequency, fees are accessible online in most basis, a tax return with ten dif- building distance and type, and locations, these additional duties ferent sections, each with specific type of garbage generated. rarely are. Some states manage to information. Similarly-long filing consolidate this information in one obligations are needed to comply Private sector professionals place for easy access. In Tocantins, with other taxes and contributions. across Brazil also report a lack of for example, the registrars’ associa- transparency in the criteria that tion publishes an online calculator Brazilian firms could also authorities use to define require- to estimate the full set of costs, benefit from more transparent ments for business licensing along with all legislation regulating and accessible regulations fees—the relevant information is such fees.22 The registrars’ associa- hard to find and usually dispersed tions of Amazonas, Rio Grande do States and cities in Brazil can make across various pieces of legisla- Norte, and Rondônia, also publish doing business easier by improving tion. Moreover, in most locations a consolidated fee schedule, com- the transparency and accessibility of in Brazil, the process to obtain the prehensive of the total cost of ser- local business regulation. In many feasibility for a company’s address vices, on their respective websites. locations, fee schedules, taxes, requires a trial and error approach: São Paulo has a dedicated portal and some processes are difficult to business founders must fill in the where users can easily consult navigate because local legislation is intended address and company information on fee schedules for diffuse and unclear. From the point details and wait for approval (or all services, ensuring predictability of view of a small firm, getting rejection) from the municipality. of total costs. Overview 11 Thanks to a number of good in the fastest time to obtain a build- pay their taxes in Espírito Santo practices, doing business is ing permit in the country. (Southeast), which has one of the easiest in São Paulo, Minas lowest tax burdens in the country Gerais and Roraima At the same time, good and has a low payment frequency practices exist in locations for most local taxes. On aggregate and across the five from different regions, areas measured, São Paulo, Minas income levels, and sizes A regional analysis shows that states Gerais and Roraima score highest in the Southeast and Central-West among the 27 locations bench- Different locations come first in regions perform better on average marked, while Espírito Santo and each benchmarked area. It is easi- (figure 1.5).23 But these regions do Pernambuco score the lowest. The est to start a business in Pará (North not hold a monopoly on the best three leading states tend to have region) thanks to the advanced performance. All 5 Brazilian regions more efficient business regula- local implementation of Redesim. are represented in the 10 states tion—their business processes are The state has managed to integrate with the highest aggregate scores. faster, simpler, and less expensive many postregistration steps with The top performers per region are than the national average. Minas the registration procedure and Mato Grosso do Sul (Central-West), Gerais has the fastest process to keep the time required to conclude Sergipe (Northeast), Roraima start a business in the country this procedure low, if compared (North), São Paulo (Southeast) and (9.5 days) and scores highest for to states that have not yet accom- Paraná (South). the quality of building regulations plished the same level of integra- (11 out of 15 points, above the tion. Entrepreneurs in Pará require Recent initiatives have been national average of 8.9). Its state less time (11.5 days) and fewer improving the business capital, Belo Horizonte, uses a steps (9) to register a company environment around the robust online platform, Alvará na than those in most other states. country Hora, to accelerate and streamline Dealing with construction permits the building permitting process, is easiest in another North region Processes have been streamlined which takes less than 7 months. state, Roraima, where permits are and moved online in recent years, issued in 179.5 days, thanks to the increasing procedural efficiency at Likewise, registering property is implementation of an online sys- both the federal and local levels fastest and easiest in São Paulo, tem for construction permits and in different areas. As part of ini- where the lowest number of pro- to the coordination of the munic- tiatives to simplify business reg- cedures are needed to register a ipal agencies involved. Thanks istration, Bahia, Maranhão, Pará, property transfer. It stands out to the efficiency of its courts, the Paraná, Piauí, and Santa Catarina thanks to Guichê de Certidões, an small Northeast state of Sergipe is merged registrations for state and online one-stop shop launched Brazil’s top performer for resolving city taxes into a single interaction in January 2020, which connects a commercial dispute. Due mainly through Redesim. In construction several government agencies and to a high level of court automation licensing, a one-stop shop for the centralizes the process of obtaining and efficient case management, it agencies involved could stream- many due diligence certificates. The takes just 18 months on average line the process of obtaining per- country’s smallest state in popula- to resolve a commercial dispute in mits. Santa Catarina’s firefighters’ tion, Roraima has the third-highest Sergipe (compared to a national corps took steps in that direction aggregate score, thanks to lower average of 32 months). with plans to give municipalities costs and a good performance in direct access to their online system construction licensing. For instance, Registering property is easiest in to check project approvals and fire it has the country’s second-lowest São Paulo (Southeast region). As safety certificates, thereby reduc- property registration costs, at 1.9% mentioned, thanks to Guichê de ing user interactions. of the property value. In April 2019, Certidões, it has both the fastest its capital, Boa Vista, implemented and the most streamlined process Property registrations could ‘Alvará Online’, an online system to register a property transac- benefit from a common data- for construction permits, resulting tion. It is easiest for companies to base of cadastral maps and land 12 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Past e-government efforts FIGURE 1.5  Southeastern and Central-Western states overall perform and new investments better on the business environment in technology led to a smoother transition with RR fewer disruptions during the AP COVID-19 lockdown As a response to the lockdown AM measures to fight the spread of PA CE MA RN COVID-19, in 2020 government PB agencies worldwide had to adapt PI PE the business environment to face AC AL RO TO the crisis—Brazil was no excep- SE BA tion. Fortunately, national and MT local authorities had already been DF adopting online processes in dif- GO ferent areas of business regulation. MG ES Many steps to start a business, MS such as registering with federal Aggregate score (5 indicators): 59.1 - 57.0 SP taxes, were already online in all RJ 56.9 - 55.0 states. Registration was already 54.9 - 53.0 PR entirely online for Individual 52.9 - 51.0 Microbusiness Owners (MEI). SC Firms and individuals across Brazil filed and paid local and RS federal taxes online. Most courts throughout the country already used electronic case files (pro- cessos eletrônicos), which allow Source: Doing Business and Subnational Doing Business database. for online filing and electronic Note: Regions include the following states: Central-West: Federal District (DF), Goiás (GO), Mato Grosso (MT), Mato Grosso do Sul (MS); North: Acre (AC), Amapá (AP), Amazonas (AM), Pará (PA), Rondônia (RO), Roraima (RR), processing. These investments Tocantins (TO); Northeast: Alagoas (AL), Bahia (BA), Ceará (CE), Maranhão (MA), Paraíba (PB), Pernambuco (PE), in technological solutions would Piauí (PI), Rio Grande do Norte (RN), Sergipe (SE); South: Paraná (PR), Rio Grande do Sul (RS), Santa Catarina (SC); prove timely when the COVID-19 Southeast: Espírito Santo (ES), Minas Gerais (MG), Rio de Janeiro (RJ), São Paulo (SP). The Doing Business 2021 data for Rio de Janeiro and São Paulo are not considered official until published by the Doing Business 2021 report. pandemic hit. ownership data or from a cen- online certificate requests, was Authorities took additional mea- tralized website allowing users to launched nationwide in August sures both nationally and locally conduct due diligence. Recent ini- 2020 after a successful pilot roll- to counter the crisis and maintain tiatives aim to address these issues out in Rio de Janeiro and São government services during the by creating online one-stop shops Paulo. Authorities also established pandemic. While implemented for certificates and by increasing an online platform, the Central with the specific aim of maintain- inter-agency information sharing. Nacional de Serviços Eletrônicos ing government services during Property registries and municipal- dos Tabeliães de Protesto de Títulos the COVID-19 crisis, many of these ities in 12 locations improved their (CENPROT), that allows users initiatives could be permanently systems to automatically update across the country to obtain dis- adopted. For example, existing municipal taxpayer records upon pute certificates from any dispute online tools like e-Notariado, a payment of the property transfer registry in Brazil and query the platform that enables the provision tax, saving entrepreneurs time existence of disputes nationwide. of notarial services by electronic and procedures. The Guichê de However, by 2020 its use was yet means, were enhanced in 2020. Certidões, a platform consolidating to become widespread. Among other features, e-Notariado Overview 13 began allowing public notaries to Procedural deadlines in Brazil’s further, establishing special concil- use video conferencing and digital judicial system were suspended for iation proceedings for commercial signatures to notarize documents 1.5 months, but the courts contin- COVID-19–related disputes. remotely. Public deeds of purchase ued hearing urgent legal matters. and sale can now be prepared Remote work became mandatory and notarized online. The share for court staff, which meant that of online business registrations the court had to quickly adjust The way forward also rose throughout the country. case workflow and communication In many locations, the lockdown within the courts and with the public Benchmarking exercises like drove a shift from in-person to to compensate for the lack of physi- Subnational Doing Business in Brazil online services. Registrations at cal interactions. Electronic case files 2021 can motivate governments to the commercial registry of Paraíba, accelerated this response. To accel- reform by revealing areas where which were previously done erate case digitalization during the obstacles exist and highlighting mostly in person, were completed pandemic, the state courts of Mato opportunities to improve the qual- 90% online by July 2020.24 In Grosso, Minas Gerais, Pernambuco, ity and efficiency of business reg- Vitória (Espírito Santo), the munic- Rio Grande do Sul, and São Paulo ulation. Policy makers could start ipality decided to phase out the established procedures and special by taking advantage of the findings in-person option for obtaining an task forces to digitalize physical of this subnational study to under- operations license, relying entirely files. They also allowed lawyers to stand the sources of local variations on the online system, which was scan files and send them back to and replicate the good practices not widely used until March 2020. the courts to facilitate their con- identified locally, regionally, and version to electronic cases. Under globally. Comparisons between Construction licensing was also the National Council of Justice’s locations in the same country can disrupted, but cities found new leadership, all state courts adopted be strong drivers of reform—it is ways of communicating with measures to ensure continuity of more difficult for local govern- users and improving their ser- judicial services, including making ments and policy makers to justify vices. Some locations temporar- greater use of online tools to allow why doing business in their city or ily halted occupancy certificate court users to request information, state is more burdensome than in inspections, but others, such as exchange correspondence, and neighboring locations. Promoting Campo Grande, allowed inspec- attend hearings. peer-to-peer learning would pro- tions using video chat calls. Many vide opportunities for national and also modified licensing services, Although the Code of Civil local policy makers to share their setting up email addresses, addi- Procedure allowed virtual hearings good practices while learning from tional phone lines, and messaging long before the pandemic, their use others about what has worked bet- app accounts. The need for social increased sharply during lockdown. ter elsewhere. Although structural distancing accelerated the move Most states started conducting changes are also necessary, small from physical office visits to online these hearings by videoconference administrative improvements that platforms and prompted cities to to encourage the use of concilia- do not require major regulatory develop new electronic systems. tion and mediation mechanisms. changes can already make a big In mid-2020, Fortaleza (Ceará) Between April and July 2020, difference in the life of a small or and Recife were working on add- State Courts in Paraná, Rio Grande medium-size firm. ing the occupancy certificate to do Sul, and Santa Catarina created their online platforms. Others, virtual court-annexed mediation This report identifies areas like Curitiba, Aracaju (Sergipe), centers, allowing the entire pro- where obstacles exist in Brazil and Maceió (Alagoas), are tran- ceeding (from filing to conclusion) and highlights opportunities for sitioning to an online platform, to occur electronically. In April improvement based on local and while Porto Alegre (Rio Grande do 2020, Espírito Santo issued guide- international good practices (table Sul) started implementing a fully lines to pilot virtual dispute concil- 1.2). The reform path can start by online system, which is slated for iation hearings during COVID-19. addressing easier changes–some of completion in 2021. São Paulo and Pernambuco went which can be done at local level–but 14 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 TABLE 1.2  Summary of good practices to improve the ease of doing business across Brazil Good practices Relevant agencies Starting a business • Consolidated postregistration procedures National: Local: • Optimized digital authentication and electronic registration • Federal Revenue Service • Municipalities • Reduced complexity and increased transparency and consistency in • Ministry of Economy • State governments municipal licensing • National Department of Business • Commercial registries • Simplified municipal fees and registration process more affordable Registration and Integration (DREI) • Streamlined social security registration • Redesim Steering Committee (CGSIM) • Improved connectivity and increased outreach campaigns • Federal Savings Bank • Employees union • Employers union Dealing with construction permits • Streamlined procedures across the permitting process National: Local: • Improved coordination between government agencies • National Registry of Construction • Municipalities • Online platforms for construction permitting Works - Federal Revenue Service • Military Firefighters Corps • Increased private sector participation • Labor Public Attorneys’ Office • Regional Councils of • Risk-based approach for building licensing • Federal Council of Engineering and Engineering Agronomy • State Councils of • Mandatory liability insurance regimes • Architecture and Urbanism Council Architecture and Urbanism • Property registries Registering property • Automated or unified systems to enhance coordination between National: Local: municipalities and property registries • National Council of Justice • Municipalities • Simple mechanisms for property tax payment • National Association of Real Estate • State courts • Streamlined due diligence consultation process Registries • Property registries • Initiatives to improve geographic coverage of property registry and • Brazilian Association of Notaries and • Public notaries cadastre Registrars • Dispute registries • Easily accessible and complete fee schedules for registration and • Brazilian Notarial College notary services • State registrars associations • National Operator of the Electronic Real State Registry System Paying taxes • Joint payments of local taxes and simple municipal tax compliance National: Local: requirements • Federal Revenue Service • Municipal tax authorities • Streamlined tax filing obligations • National Social Security Institute • Municipal agencies • Clear, simple and stable tax legislation • Federal Savings Bank responsible for city fees • Having one tax per tax base • State tax authorities • Efficient and transparent tax audit processes • Increased possibilities for refund of indirect taxes (taxes similar to VAT) Enforcing contracts • Backlog reduction programs National: Local: • Improved case management, including time standards and more • National Council of Justice • State courts pre-trial conferences • Ministry of Justice and Public Security • Civil courts • Increased court automation • Streamlined enforcement proceedings • Effective alternative dispute resolution mechanisms Source: Doing Business and Subnational Doing Business database. Note: The list of agencies includes the main agencies relevant to each regulatory area, but others might also be implicated. For a detailed explanation of each good practice, refer to the “What are the challenges and good practices?” section of each indicator chapter. Overview 15 solving cross-cutting business envi- municipal taxes a year, but this is and innovation and makes it easier ronment issues requires a well-co- done in just two combined pay- for aspiring entrepreneurs to com- ordinated coalition among national, ments, half of the number of pay- pete on an equal footing. Evidence state and local policy makers. The ments in Belém. from Brazil shows that states that results would benefit all. perform better on the business Replicating efficient processes environment tend to have higher The road ahead: improving developed by other Brazilian firm entry rates (figure 1.7). the business environment states and cities could lead to effi- around Brazil ciency gains without the need for Investing in a strong national major legislative changes. Since business environment reform Using Doing Business data for Rio de São Paulo and Rio de Janeiro rep- agenda Janeiro and São Paulo as a bench- resent Brazil in the Doing Business mark for the regulatory environ- report, if they were to replicate The challenge of reforming the ment, the Brazilian Government’s the best performances recorded in business environment often goal is to be within the top 50 the 27 locations, Brazil’s perfor- requires a comprehensive reform economies on the ease of doing mance on the ease of doing busi- agenda, championed by a dedi- business by the end of 2022.25 ness would improve considerably. cated actor, working in conjunc- Replicating good practices that have Gains would be particularly strong tion with federal agencies as well been proven successful within the in the areas of construction licens- as states and cities.Different models Brazilian business environment ing and contract enforcement exist in organizing reform agenda. could be a first step towards this (figure 1.6). However, adopting Brazilian authorities could look target. For example, the state of existing local good practices would at other large federal countries, Maranhão, where entrepreneurs only be the first step. Even if all of which streamlined business ser- wait for almost one and a half years the country’s good practices were vices with an active reform agenda for their building permits, could implemented, Brazil would still be and robust coordination efforts. look to other Brazilian locations to far from its aspiring goal, partic- understand what they have done ularly in the ease of paying taxes During the past decades, federal to promote efficiency. Fortaleza and starting a business. In the long countries like India, Mexico, and has adopted fast-track approvals term, improvements will require the Russian Federation have cre- to simplify and expedite the build- structural reforms, guided as well ated national agencies dedicated ing licensing process. Through the by international best practices. to streamlining business processes Fortaleza Online one-stop shop, and improving coordination. a firm can obtain a construction Indeed, investing in the business In India, the Department for license in 10 days, much faster than environment could pay off. Good Promotion of Industry and Internal the national average of 118 days; it rules—establishing and clarifying Trade (DPIIT) was established in takes less than 7 months to com- property rights, increasing the 1995 to promote industrial devel- plete all licensing steps. Likewise, predictability of economic out- opment, internal trade, and the in the area of registering property, comes, and providing contractual ease of doing business. Russia’s Pará could serve as an inspiration partners with core protections Agency for Strategic Initiatives for reforms in neighboring Amapá, against abuse—create a regulatory (ASI) is an autonomous agency where it takes three times as long environment where new entrants that aims at implementing social to transfer a property (68 days). with drive and good ideas can suc- and economic measures, including In Pará, property registries tend cessfully launch their business and improvements in the business cli- to operate with a more efficient where firms can invest, expand, mate. Top-level government sup- back-office management. Similarly, and create jobs. Firms benefit from port has been key to their success Pará’s capital of Belém could look regulation that is efficient, acces- in disseminating good practices in to Natal (Rio Grande do Norte) sible, and simple to implement the business environment. Their or Recife for inspiration on how and comply with. Transparent and heads of government were deeply to improve how firms pay taxes. straightforward regulation facil- involved in mobilizing agencies Companies in those cities pay five itates business entry, expansion, and public opinion behind the 16 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 FIGURE 1.6  Brazil’s business environment would improve if good practices found in some states were adopted nationally Brazil (Rio de Janeiro Best practice within Brazil and São Paulo average) Potential scores (with the best performance in each indicator Doing Business 2021 scores of the 5 topics covered in this study) Starting a business 85.8 9 procedures (Maranhão, Pará, Paraná, and Piauí), 9.5 days (Minas Gerais), 1.4% of GNI per capita (Ceará), Starting a business 82.2 0.0 paid-in minimum capital (all locations) 10.6 procedures, 13.1 days, Enforcing contracts 3.7% of GNI per capita, 538 days (Sergipe), 19.9% of claim value (Federal District), 0.0 paid-in minimum capital 71.0 12.5 points on quality of judicial processes (17 locations) Registering property 70.4 Registering property 9.2 procedures, 29 days, 68.6 8 procedures (São Paulo), 21 days (São Paulo), 3.6% of property value, 1.1% of property value (Alagoas), 16.7 points on quality of land administration 62.6 17 points on quality of land administration (Rio de Janeiro) Enforcing contracts 60.9 Dealing with construction permits 869.1 days, 22.6% of claim value, 18 procedures (Mato Grosso do Sul and São Paulo), 12.5 points on quality of judicial processes 179.5 days (Roraima), 0.5% of warehouse value (Federal District), 11 points on building quality control (Minas Gerais) Dealing with construction permits 52.1 18.4 procedures, 337.5 days, 1.2% of warehouse value, 8.4 points on building quality control 35.0 Paying taxes Paying taxes 33.8 9 payments (Espírito Santo and Paraná), 1,483 hours (12 locations), 10 payments, 1,496 hours, 66% of profit, 64.4% of profit (Espírito Santo, Mato Grosso and Tocantins), 7.8 points on postfiling index 7.8 points on postfiling index (all locations) Source: Doing Business and Subnational Doing Business database. Note: The Doing Business 2021 data for Rio de Janeiro and São Paulo are not considered official until published by the Doing Business 2021 report. business reform agenda. Other negotiating cooperative arrange- financing to foster competition for key ingredients for success are ments and coordination between growth, productivity, and innova- having clear action plans with the different levels of government tion. The fund advertises online traceable targets, in addition to is almost impossible. each year for proposals, with fund- proper coordination channels to ing available to private firms, state ensure the implementation at Mexico provides an example and municipal governments, and the local level. In federal states, of how to leverage competition the judiciary. It supports regulatory the central government often sets among states and promote peer improvement projects at the three out general legislation and leaves learning as strategies to incentiv- levels of government to facilitate implementation to the subna- ize reforms. Championed by the regulatory compliance, increase tional governments, considering National Regulatory Improvement formalization, and reduce costs, varying regional circumstances. Commission (Comisión Nacional de time, and cumbersome procedures In countries where different Mejora Regulatoria, CONAMER), for companies. To track results, parties dominate different gov- Mexico’s national reform agenda CONAMER periodically carried out ernment levels (as in Brazil and included the creation of a fund— subnational Doing Business studies other federal states like Australia, the Fondo de Apoyo para la Micro, and organized biannual meetings Canada, and India), formal inter- Pequeña y Mediana Empresa (the for local officials to learn about governmental processes and insti- micro, small, and medium enter- good practices and connect to peers tutions are vital. Without them, prise support fund)—to provide from other states. Peer learning also Overview 17 SEME to propose and monitor FIGURE 1.7  States with a higher performance on the business reforms in different areas. As of environment tend to have higher firm entry rates mid-2020, plans were underway to Number of new firms implement several coordinated ini- per state in 2019 tiatives to simplify and improve the business environment, focusing on 5,000 the two main business cities.29 If these initiatives are enlarged to encompass other locations in Brazil, which lag Rio de Janeiro and São Paulo’s performance, the 0 entire country’s business environ- ment could have much to gain. In this sense, the bottlenecks and good practices identified by Subnational Doing Business in Brazil 2021 can guide authorities to iden- -5,000 tify areas for reform and existing good practices within the country. -4 -2 0 2 4 A coordinated, nationwide reform Aggregate score for the 5 topics (0–100) agenda, pulling together the rel- evant agencies and committing Source: Doing Business and Subnational Doing Business database; Federal Revenue Service (DataSebrae); Brazilian Institute of Geography and Statistics (Instituto Brasileiro de Geografia e Estatística, IBGE); United them to enforceable and action- Nations Development Program Human Development Index. able goals, could greatly benefit Note: The relationship between the aggregate score for the five topics covered in this study and the average business activities beyond Brazil’s number of newly-created firms per month in each state in 2019 is significant at the 10% level, controlling for income per capita, population, the human development index and a robustness test. largest cities—especially if reforms target the complexity and dura- takes place when local policy mak- Initial steps are being taken in tion of processes and reduce costs ers visit neighboring states and cit- Brazil. In 2015, the federal gov- where possible. ies. For example, policy makers of ernment launched Programa Bem the state of Colima visited Sinaloa, Mais Simples, an initiative to reduce where they learned about issuing bureaucracy, simplify and expedite land use authorizations electron- government services, and improve ically; soon after, Colima set up a the business environment and the similar system.26 Another interest- efficiency of public administration. ing example comes from Poland, In early 2019, a specialized federal where the national government body under the General Secretariat designed an action plan based on of the Presidency was established, the results of the first subnational tasked with implementing this Doing Business assessment, to help program with a special focus on the two worst-performing regions modernizing public institutions in the country adopt practices from and services. Most importantly, the better-performing regions in the Special Secretariat for State business registration.27 As a result, Modernization (Secretaria Especial Kielce and Rzeszów, inspired by de Modernização do Estado, good practices from other regions, SEME) has the strategic role of promoted electronic business reg- coordinating reforms with federal, istrations and improved staff train- state, and municipal agencies.28 ing and document handling. Action Groups were set up under 18 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 6. According to Sebrae (https:// 13. National Justice Council Notes portaldodesenvolvimento.sebrae (Conselho Nacional de Justiça). .com.br/numero-de-novos-mei 2020. Justiça em Números 2020. 1. This term was first used in a -criados-em-2020-supera-em Ano-base 2019. Brasília: CNJ. conference promoted by the -quase-43-mil-o-registro-do 14. Vasconcelos, Breno, Lorreine Brazilian Confederation of -mesmo-periodo-de-2019/). Messias, and Larissa Longo. Industry (Confederação Nacional 7. Bosma, Niels, Stephen Hill, 2020. Contencioso tributário no da Indústria, CNI) in 1995. It is Aileen Ionescu-Somers, Donna Brasil. Relatório 2019 - Ano de often used to describe the set Kelley, Jonathan Levie, Anna referência 2018. July. of structural, bureaucratic and Tarnawa and the Global 15. Brazil scores better in paying taxes economic difficulties companies Entrepreneurship Research than Bolivia, the Central African face, that compromises new Association (GERA). 2020. Republic, Chad, the Republic of investments and worsens the Global Entrepreneurship Monitor Congo, Somalia, and Venezuela, RB. business environment in the 2019/2020 Global Report. 16. Redesim was introduced by country. Commonly-mentioned 8. Informal firms as a share of Federal Law No. 11,598 of obstacles to growth and Brazil’s GDP is calculated using December 3, 2007. Its regulatory competitiveness in the country the ‘Underground Economy framework was established by are a complex tax system, high Index’ (Índice de Economia CGSIM Resolution No. 25 of costs to access finance, inadequate Subterrânea), published by the October 18, 2011. infrastructure, excessive Getúlio Vargas Foundation’s 17. Law No. 11,419 “Da bureaucracy and government Brazilian Institute of Economics Informatização do Processo inefficiencies. (https://noticias (Ibre/FGV), in partnership Judicial” of December 19, 2006. .portaldaindustria.com.br/noticias with the Brazilian Institute of 18. Share of processos eletrônicos by /competitividade/ha-mais-de-25 Competition Ethics (ETCO) State Court. See CNJ (Conselho -anos-termo-custo-brasil-sintetiza https://www.etco.org.br Nacional de Justiça). 2020. -obstaculos-ao-desenvolvimento/; /noticias/informalidade-avanca “Avaliação dos Impactos da https://www.portaldaindustria -mas-em-ritmo-mais-lento/. Pandemia causada pela COVID- .com.br/industria-de-a-z/o-que-e 9. 2017. Global Competitiveness 19 nos processos de trabalho dos -custo-brasil/). Index 2017-2018. Geneva: World Tribunais.” Brasília: Conselho 2. According to the Ministry of Economic Forum. Nacional de Justiça. Economy of Brazil; see 10. Federal Revenue Service 19. The State Court of Espírito http://antigo.economia.gov.br (DataSebrae); Brazilian Institute Santo announced plans in /Economia/noticias/2019/11 of Geography and Statistics November 2020 to expand the /governo-lanca-programa-para (Instituto Brasileiro de Geografia implementation of electronic -diminuir-o-custo-brasil. e Estatística, IBGE). case files to some civil courts 3. Doing Business 2018 and Doing 11. Breda, Zulmir Ivânio. 2018. (Regulatory Act No. 106/ 2020). Business 2021. “Estrutura tributária e a qualidade 20. SPED was introduced by Decree 4. See the additional research dos gastos públicos.” Federal No. 6,022 of January 22, 2007. chapter on registering as an Council of Accounting (Conselho 21. See Belo Horizonte’s simulator at Individual Microbusiness Owner Federal de Contabilidade, CFC). http://alf.siatu.pbh.gov.br/siatu (Microempreendedor Individual, August 3. https://cfc.org.br -urbano-consulta-previa-publico MEI). /destaque/estrutura-tributaria-e /f/t/consultapreviapjman. 5. According to data from Brazilian -a-qualidade-dos-gastos-publicos/; 22. See https://anoregto.com.br Service of Support for Micro and Amaral, Gilberto Luiz do, et al. /emolumentos. The State Court Small Enterprises (Sebrae) and 2020. Quantidade de normas of Alagoas also offers a cost the Federal Revenue Service, as editadas no Brasil: 32 anos simulation tool (see https://cgj.tjal of May 2020, out of 19,228,025 da Constituição Federal de .jus.br/simuladorEmolumentos/), firms in Brazil, 17,293,316 1988. Brazilian Institute of Tax but depending on the service are classified as either an Planning (Instituto Brasileiro de consulted, estimates of total costs Individual Microbusiness Owner, Planejamento e Tributação, IBPT). are not always accurate. microenterprise, or small firm. https://ibpt.com.br/estudo 23. Each region’s average aggregate https://datasebrae.com.br -sobre-a-quantidade-de-normas score for the five topics is: Central- /totaldeempresas/; http://www -editadas-no-brasil-desde-a West: 55.1; North: 54.8; Northeast: .agenciasebrae.com.br/sites/asn -ultima-constituicao-2020/. 53.9; South: 54.2; Southeast: 56.6. /uf/NA/pequenos-negocios-ja 12. Amaral, Gilberto Luiz do, et 24. As reported by local public -representam-30-do-produto al. 2020. Quantidade de normas officials who met with the -interno-bruto-do-pais,7b965c91 editadas no Brasil: 32 anos da Subnational Doing Business team 1da51710VgnVCM1000004c002 Constituição Federal de 1988. between July and August 2020. 10aRCRD. Overview 19 25. Federal Government. 2019. Bolsonaro: reforms will put Brazil among the top 50 countries to do business with. January 22. http://www.brazil.gov.br/about -brazil/news/2019/01/bolsonaro -reforms-will-put-brazil-among -the-top-50-countries-to-do -business-with. 26. World Bank. 2015. Doing Business in Poland 2015. Washington, DC: World Bank. 27. World Bank. 2017. Poland Catching-Up Regions: Recommendations for Easier Business Registration. Washington, DC: World Bank. 28. Programa Bem Mais Simples is a government program established by Federal Decree No. 8,414 of 2015. SEME was created in 2019 by Federal Decree No. 9,670. 29. For more information the government’s business environment initiatives, see https://www.gov.br/casacivil /pt-br/assuntos/noticias/2020 /agosto/modernizacao-do -ambiente-de-negocios-plano -para-levar-o-brasil-aos-50 -paises-em-ranking-do-banco -mundial. CHAPTER 2 About Doing Business and Subnational Doing Business in Brazil 2021 Doing Business measures aspects of regulatory efficiency and institutional quality of the key processes that affect local small and medium-size businesses in 191 economies. Doing Business covers 10 specific areas of the business environment: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency. The Doing Business dataset—covering the past 18 years— is used widely by governments, researchers, international organizations, and think tanks to guide policies, conduct research, and develop new indexes Subnational Doing Business in Brazil 2021 an independent report of the global Doing Business study, benchmarks 27 locations, covering five Doing Business indicators: starting a business, dealing with construction permits, registering property, paying taxes and enforcing contracts. It also includes two pilot studies on registering as an Individual Microbusiness Owner (‘Microempreendedor Individual’, MEI) and paying taxes under the Simples Nacional tax regime; these are measured in five locations in Brazil. 20 About Doing Business and Subnational Doing Business in Brazil 2021 21 D oing Business is founded data. The objective is to encour- electricity, registering property, on the principle that eco- age better quality institutions as getting credit, protecting minority nomic activity benefits well as efficient, transparent, and investors, paying taxes, trading from clear rules and efficient ser- easy-to-implement regulation that across borders, enforcing con- vice provision by the institutions allows businesses to thrive. Doing tracts, and resolving insolvency responsible for their application. Business data focus on 10 areas of (table 2.1). Doing Business also The rules and their structural the business environment affecting collects data on contracting with framework—setting out property small and medium-size domestic the government, which measure rights, facilitating the resolution of firms in the largest business city of the steps and time to participate disputes, and protecting contrac- an economy. The project uses stan- in, win, and execute a roadworks tual partners from arbitrariness dardized case studies to provide contract through open procure- and abuse—encourage voluntary objective, quantitative measures ment; features of e-procurement exchanges between economic that can be compared across 191 platforms; and good practices in actors. Such rules are much more economies and across time. the regulatory framework for such effective in promoting growth and contract. These data are not part development when they are effi- of the ease of doing business score cient, transparent, accessible, and and are available on the Doing implemented through well-func- Factors measured by Business website. tioning infrastructure. Doing Business and Subnational Doing Subnational Doing Business reports, In Rules and institutions create an which are produced independently Business studies environment where new entrants and by a separate team from the with drive and innovative ideas Doing Business captures several global Doing Business study, focuses can get started in business and important dimensions of the on the indicators that are most where productive firms can invest, business environment affecting likely to vary from city to city or expand, and create new jobs. domestic firms. It provides quan- state to state, such as those on The role of government policy in titative indicators on regulatory dealing with construction permits the daily operations of small and efficiency and institutional quality or registering property. Indicators medium-size domestic firms is a for starting a business, dealing that use a legal scoring methodol- central focus of the Doing Business with construction permits, getting ogy, such as those on getting credit TABLE 2.1 What Doing Business and Subnational Doing Business studies measure Indicator set What is measured Typically included in subnational Doing Business studies: Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company for men and women Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety permits mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid; the reliability of the electricity supply; and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Trading across borders Time and cost to export the product of comparative advantage and to import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes for men and women Not typically included in subnational Doing Business studies: Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time and total tax rate and contribution for a firm to comply with all tax regulations as well as postfiling processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency 22 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 or protecting minority investors, the European Union). Projects beyond a data collection exercise. are typically excluded because are undertaken at the request of They have proved to be strong they mostly look at national laws governments. motivators for regulatory reform with general applicability. at the local level: Data collected by subnational • The data produced are compa- Doing Business measures aspects studies show that there can be sub- rable across locations within of business regulation affecting stantial variation within an econ- the economy and interna- domestic small and medium-size omy, including in Brazil (figure tionally, enabling locations firms defined on the basis of 2.1). In Croatia in 2018, for exam- to benchmark their results standardized case scenarios and ple, dealing with construction both locally and globally. located in the largest business permits took 112 days in Varazdin Comparisons of locations that city of each economy. In addition, and twice that time in Split. And are within the same economy for 11 economies a second city is in Brazil, this time ranged from and therefore share the same covered. 179.5 days in Roraima to 532.5 legal and regulatory frame- days in Pernambuco. Indeed, work can be revealing: local Subnational Doing Business studies within the same economy, one officials find it hard to explain cover a subset of the 11 areas of can find locations that perform why doing business is more business regulation that Doing as well as economies that score in difficult in their jurisdiction Business covers across 191 econo- the top 20 on the ease of dealing than in a neighboring one. mies. Subnational studies expand with construction permits and • Pointing out good practices the Doing Business analysis beyond locations that perform as poorly as that exist in some locations but the largest business city of an economies that score in the bot- not others within an economy economy. They measure variation tom 40 on that indicator. helps policy makers recognize in regulations or in the imple- the potential for replicating mentation of national laws across Subnational Doing Business stud- these good practices. This can locations within an economy (as ies create disaggregated data on prompt regulatory reform in this study) or a region (as in business regulation. But they go discussions across different FIGURE 2.1  Different locations, different regulatory processes, and same economy Time to deal with construction permits (days) 360 Reggio Calabria (326) 320 Coimbra 280 Heraklion (265) (255) Split 240 (227) Cork (200) 200 Larissa Waterford Faro 160 (158) (159) (133) Varazdin Cagliari 120 (100) (112) 80 40 0 Greece Ireland Portugal Croatia Italy Shortest time Longest time Average time Source: Subnational Doing Business database. Note: The average time shown for each economy is based on all cities covered by the data: six cities in Ireland in 2019, six cities in Greece in 2019, eight cities in Portugal in 2018, five cities in Croatia in 2018 and thirteen cities in Italy in 2019. About Doing Business and Subnational Doing Business in Brazil 2021 23 levels of government, pro- 2021 is the first subnational Doing investment, market capitalization viding opportunities for local Business study for Brazil in fifteen in stock exchanges, and private governments and agencies to years. It benchmarks business reg- credit as a percentage of gross learn from one another and ulation and its enforcement in 27 domestic product (GDP).2 resulting in local ownership federative units (26 states and the and capacity building. Federal District), which are ana- Subnational Doing Business in Brazil lyzed through their capital cities. 2021 benchmarks 27 locations, Since 2005 subnational stud- covering five Doing Business indi- ies have covered 599 locations How the indicator sets are cator sets (or topics)—starting a in 83 economies (figure 2.2). selected business, dealing with construc- Twenty-two economies—includ- tion permits, registering property, ing Colombia, Indonesia, Kenya, The design of the Doing Business paying taxes and enforcing con- Mexico, Nigeria, the Philippines, indicator sets has been informed tracts. These were chosen based the Russian Federation, and by theoretical insights gleaned on their relevance to the national South Africa—have undertaken from extensive research.1 In addi- context and their ability to show two or more rounds of subna- tion, background papers develop- variation across the locations tional data collection to measure ing the methodology for most of covered. The report also includes progress over time. Ongoing stud- the areas covered by Doing Business two pilot case studies measuring ies include those in the European have established the importance the processes of registering an Union (Austria, Belgium and of the rules, regulations, and insti- individual microbusiness owner the Netherlands) and the United tutions that Doing Business focuses (MEI) and of paying taxes under Arab Emirates (two emirates). on for such economic outcomes the Simples Nacional tax regime; Subnational Doing Business in Brazil as trade volumes, foreign direct they cover five locations in Brazil. FIGURE 2.2  Comparing regulation at the local level: Subnational Doing Business studies Source: Subnational Doing Business database. 24 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 The ease of doing business Calculation of the doing regulatory performance is defined score business score for each topic as one hour even though in many economies the time is less than that. To provide different perspectives Calculating the ease of doing busi- on the data, Doing Business presents ness score for each of the three In the same formulation, to miti- data both for the individual indica- topics for each city involves two gate the effects of extreme outliers tor sets and for an aggregate mea- main steps. In the first step indi- in the distributions of the rescaled sure: the ease of doing business vidual component indicators are data for most component indica- score. The ease of doing business normalized to a common unit tors (very few economies need 700 score aids in assessing the absolute where each of the 19 component days to complete the procedures level of performance and how it indicators y is rescaled using the to start a business, but many need improves over time. The individual linear transformation (worst – y)/ 9 days), the worst performance scores for each indicator set show (worst – best). In this formulation is calculated after the removal of the proximity of each economy the highest score represents the outliers. The definition of outliers to the best performance observed best regulatory performance on the is based on the distribution for in each of the indicator sets across indicator across all economies cov- each component indicator. To sim- all economies in the Doing Business ered by Doing Business since 2005 plify the process two rules were sample since 2005 or the third year or the third year in which data for defined: the 95th percentile is used in which data were collected for the indicator were collected. for the indicators with the most the indicator set. This approach dispersed distributions (including underscores the gap between a Thus, an economy may establish the time and cost indicators), and particular economy’s performance the best regulatory performance the 99th percentile is used for num- and the best performance at any for an indicator even though it ber of procedures (figure 2.3). No point in time and is used to assess may not have the highest score in outlier is removed for component the change in the economy’s busi- a subsequent year. Conversely, an indicators bound by definition or ness environment over time as economy may score higher than construction, including legal index measured by Doing Business. the best regulatory performance scores (such as the quality of land if the economy reforms after the administration index or the quality Subnational Doing Business in Brazil best regulatory performance is set. of judicial processes index). 2021 includes indicator scores For example, the best regulatory and rankings for the 27 selected performance for the time to get In the second step for calculating the locations on starting a business, electricity is set at 18 days. In the ease of doing business score for each dealing with construction per- Republic of Korea it now takes 13 topic, the scores obtained for indi- mits, registering property, paying days to get electricity while in the vidual indicators for each location taxes and enforcing contracts. The United Arab Emirates it takes just are aggregated through simple aver- score measures a location’s perfor- 7 days. Although the two econ- aging into one score for each topic. mance with respect to a measure omies have different times, both of regulatory best practice for each economies score 100 on the time A city’s topic score is indicated topic. For registering property, to get electricity because they have on a scale from 0 to 100, where for example, Georgia, Norway, exceeded the threshold of 18 days. 0 represents the worst regulatory Portugal and Sweden have the performance and 100 the best. lowest number of procedures For scores on indexes such as the All topic ranking calculations are required (1). Georgia holds the building quality control index or based on scores without rounding. shortest time to register property the quality of land administration (1 day), while Saudi Arabia has index, the best regulatory perfor- Variability of cities’ scores the lowest cost (0.0% of property mance is set at the highest possible across topics value). No economy has reached value (although no economy has the best performance of 30 points yet reached that value in the case Each Doing Business topic measures on the quality of land administra- of the latter). For the different times a different aspect of the business tion index (table 2.2). to trade across borders, the best regulatory environment. A city’s About Doing Business and Subnational Doing Business in Brazil 2021 25 TABLE 2.2  Which economies set the best regulatory performance? Number of economies attaining best Best regulatory Worst regulatory Doing Business area and indicator performance performance performance Starting a business Procedures (number) 1 1 18a Time (days) 0 0.5 100b Cost (% of income per capita) 3 0.0 200.0b Minimum capital (% of income per capita) 121 0.0 400.0b Dealing with construction permits Procedures (number) 0 5 30a Time (days) 0 26 373b Cost (% of warehouse value) 0 0.0 20.0b Building quality control index (0–15) 8 15 0c Registering property Procedures (number) 4 1 13a Time (days) 1 1 210b Cost (% of property value) 1 0.0 15.0b Quality of land administration index (0–30) 0 30 0c Paying taxes Payments (number per year) 2 3 63b Time (hours) 1 49d 696b Total tax and contribution rate (% of profit) 37 26.1e 84.0b Postfiling index (0–100) 0f 100 0c Time to comply with VAT refund (hours) 11 0 50b Time to obtain VAT refund (weeks) 2 3.2 55b Time to comply with corporate income tax correction (hours) 14 1.5 56b Time to complete a corporate income tax correction (weeks) 101 0g 32b Enforcing contracts Time (days) 0 120 1,340b Cost (% of claim) 0 0.1 89.0b Quality of judicial processes index (0–18) 0 18 0c Source: Doing Business database. a. Worst performance is defined as the 99th percentile among all economies in the Doing Business sample. b. Worst performance is defined as the 95th percentile among all economies in the Doing Business sample. c. Worst performance is the worst value recorded. d. Defined as the lowest time recorded among all economies in the Doing Business sample that levy the three major taxes: profit tax, labor taxes and mandatory contributions, and VAT or sales tax. e. Defined as the highest total tax and contribution rate among the 15% of economies with the lowest total tax and contribution rate in the Doing Business sample for all years included in the analysis up to and including Doing Business 2015. f. No economies in the Doing Business sample that levy both corporate income tax and VAT or sales tax have attained the best performance. g. Time to complete a corporate income tax correction is 0 when there is no audit measured for the economy. No audit is measured when the percentage of cases exposed to an additional review is less than 25%. scores can vary, sometimes sig- for starting a business and 100.0 differences in the degree of pri- nificantly, across topics. One way for trading across borders, but only ority that government authorities to assess the variability of a city’s 62.0 for protecting minority inves- give to particular areas of business regulatory performance is to look tors and 35.0 for getting credit. regulation reform and in the abil- at its scores across topics. Consider ity of different government agen- the example of Portugal (repre- Variation in performance across cies to deliver tangible results in sented by Lisbon). It scores 91.3 topics is not unusual. It reflects their area of responsibility. 26 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 in economies with a population FIGURE 2.3  How are scores calculated for indicators? An example of more than 100 million (as of Dealing with construction permits: 2013). procedures score 100 Best regulatory performance Doing Business recognizes the lim- Best regulatory itations of standardized case sce- performance: 80 5 procedures narios and assumptions. Although such assumptions come at the expense of generality, they also 60 ensure the comparability of data. Some of the dimensions covered by Doing Business are complex, so 40 it is important that the standard- ized cases are defined carefully. Worst regulatory For example, the standardized 20 performance (99th percentile): case scenario usually involves a 30 procedures limited liability company or its 0 legal equivalent. There are two 0 5 10 15 20 25 30 35 reasons for this assumption. First, Procedures (number) private limited liability companies are the most prevalent business Source: Doing Business database. form (for firms with more than one owner) in many economies Topic rankings central consideration for the Doing around the world. Second, this Business indicator sets, which are choice reflects the focus of Doing The rankings range from 1 to 27. developed using standardized case Business on expanding oppor- The ranking of states is deter- scenarios with specific assump- tunities for entrepreneurship: mined by sorting the aggregate tions. One such assumption is investors are encouraged to ven- doing business scores for each the location of a standardized ture into business when potential topic. business—the subject of the Doing losses are limited to their capital Business case study—in the largest participation. business city of the economy. The reality is that business regulations Another assumption underlying Advantages and and their enforcement may differ the Doing Business indicator sets is limitations of the within a country, particularly in that entrepreneurs have knowl- methodology federal states and large econo- edge of and comply with applicable mies. Gathering data for every regulations. In practice, entrepre- The Doing Business methodology is relevant jurisdiction in each of the neurs may not be aware of which designed to be an easily replicable 191 economies covered by Doing institutions are responsible for a way to benchmark specific char- Business is infeasible. Nevertheless, specific business process or how to acteristics of the business environ- where policy makers are inter- comply with regulations and may ment—how they are implemented ested in generating data at the lose considerable time trying to find by governments and experienced local level, beyond the largest out. Alternatively, they may inten- by private firms and professionals business city, and in learning from tionally avoid compliance—by not on the ground. Its advantages and local good practices, Doing Business registering for social security, for limitations should be understood has complemented its global indi- example. Firms may opt for brib- when using the data. cators with subnational reports. ery and other informal arrange- Also, starting with Doing Business ments intended to bypass the rules Ensuring comparability of the data 2015, coverage was extended to where regulation is particularly across a global set of economies is a the second-largest business city onerous. Levels of informality tend About Doing Business and Subnational Doing Business in Brazil 2021 27 to be higher in economies with few features of each area that it Subnational Doing Business reports particularly burdensome regula- covers, business reforms should collect data—independently of tion. Compared with their formal not focus solely on these areas. the global Doing Business data— sector counterparts, firms in the Instead, they should be evaluated through several rounds of commu- informal sector typically grow within a broader context. nication with expert respondents more slowly, have poorer access (both private sector practitioners to credit, and employ fewer work- and government officials), and also ers—and these workers remain through responses to question- outside the protections of labor Stages of a Subnational naires, conference calls, written law and, more generally, other Doing Business study correspondence, and visits by the protections embedded in the law.3 team Subnational Doing Business Firms in the informal sector are Subnational Doing Business studies team (when feasible).4 also less likely to pay taxes. Doing adopt the Doing Business method- Business measures one set of factors ology for the indicators bench- Subnational Doing Business follows that help explain the occurrence of marked in the study. However, similar data collection methods informality, and it provides policy subnational studies are conducted as Doing Business. However, sub- makers with insights into potential independently by a separate team national Doing Business studies are areas of business reform. from the global Doing Business driven by client demand and do team and differ in how they are not follow the same timeline as Doing Business does not cover implemented (figure 2.4). global Doing Business publications. many important policy areas, and In addition to filling out question- its scope is narrow even within the Data collection and naires, Subnational Doing Business areas it does cover. Doing Business verification respondents submit references of does not measure the full range of the relevant laws, regulations and factors, policies, and institutions The Subnational Doing Business data, fee schedules. The team collects that affect the quality of an econ- including the indicators presented the texts of the relevant laws and omy’s business environment or its in Subnational Doing Business in regulations and checks the ques- national competitiveness. It does Brazil 2021, are primarily based tionnaire responses for accuracy. not, for example, capture aspects on a detailed reading of domestic The team examines the relevant of macroeconomic stability, devel- laws, regulations, and administra- building codes, for example, to opment of the financial system, tive requirements as well as their check what inspections are legally market size, the incidence of brib- implementation in practice as expe- required while building a ware- ery and corruption, or the quality rienced by private professionals. house. The team also collects data of the labor force. The focus is also deliberately FIGURE 2.4  Typical stages of a Subnational Doing Business project narrow within the specific Doing Business indicator sets. The trad- Stage 1 Stage 2 Stage 4 ing across borders indicator set, Stage 3 Client inquiry Project setup and Data collection for example, captures the time and request engagement with Project kickoff and preparation of and cost required for the logistical local partners preliminary results process of exporting and import- ing goods, but it does not include the cost of tariffs or international transport. Similarly, the indicator Stage 6 Stage 5 sets on starting a business and Stage 7 Data verification, Presentation of Launch of construction of preliminary results protecting minority investors final results final indicators and to public officials do not cover all aspects of com- report drafting (”right of reply”) mercial legislation. Given that Doing Business measures only a 28 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 from public officials that work areas covered by Subnational Doing receiving the completed question- on the areas benchmarked in the Business in Brazil 2021. Because of naires from both private and public study. For example, public author- the focus on legal and regulatory respondents for Subnational Doing ities across Brazil that work on the arrangements in registering prop- Business in Brazil 2021, verifying the five study areas completed ques- erty and enforcing contracts, most information against the law, and tionnaires during the data collec- of the respondents for this indicator conducting follow-up inquiries to tion process and provided the team are legal professionals. Architects, ensure that all relevant information with laws, regulations, and other engineers and other profession- is captured, the Subnational Doing documents related to the imple- als answered the questionnaires Business team shared the prelimi- mented reforms. related to dealing with construction nary findings with the government permits. Accountants, lawyers and and relevant public authorities in The team conducts extensive con- other professionals answered the each location. Through this pro- sultations with multiple contribu- questionnaires related to starting a cess, government officials had the tors. For some areas—for example, business and paying taxes. Certain opportunity to comment on the those measuring dealing with local and national public officials preliminary data in meetings with construction permits, enforcing (such as judges, registrars from the World Bank Group staff as well as contracts, and registering prop- property registry and officials from in writing (“right of reply” period). erty—the time component is based tax agencies) also provide informa- on actual practice and not on the tion that is incorporated into the Having public officials discuss law. When respondents disagree, indicators. and comment on the prelimi- the time indicators reported repre- nary results has proven to be an sent the median values of several The Subnational Doing Business important activity, not only to responses given under the assump- approach is to work with legal prac- improve the quality of the study tions of the standardized case. titioners or other professionals who but also to enhance the dialogue regularly undertake the transactions between the local governments Subnational Doing Business involved. Following the standard and the World Bank Group at the respondents methodological approach for time- subnational level. and-motion studies, Subnational For Subnational Doing Business in Doing Business in Brazil 2021 breaks World Bank internal review Brazil 2021, more than 1,500 pro- down each process or transaction, process fessionals across the 27 selected such as obtaining a construction per- locations assisted in providing mit or transferring a property title, Once the team has finalized the the data that inform the five into separate steps to ensure a better indicators, the team prepares a areas covered (table 2.2). Data estimate of time. The time estimate draft report that includes the data was collected between February for each step is given by practi- findings and analysis. Technical and September 2020. All private tioners with significant and routine experts that work on the respec- professionals were independently experience in the transaction. tive indicator areas within the recruited by the Subnational Doing World Bank Group review each Business team. The Subnational Government engagement topic chapter. The full draft report Doing Business website and the then undergoes an internal peer acknowledgments section of this Throughout the project lifecycle, review within the World Bank study list the names and creden- Subnational Doing Business studies before it is finalized. tials of those respondents wishing are implemented in close collab- to be acknowledged. oration with the client and local authorities. Selected on the basis of their exper- Uses of the Doing tise in these areas, respondents are In addition to participating in Business data professionals who routinely admin- the data collection process, local ister or advise on the legal and reg- authorities play a key role in the Doing Business was designed with ulatory requirements in the specific data verification process. After two main types of users in mind: About Doing Business and Subnational Doing Business in Brazil 2021 29 policy makers and researchers. governments set the minimum sharing are peer-to-peer learning It is a tool that governments can capital requirement for new firms, events—workshops where offi- use to design sound business invest in company and property cials from different governments policies. Nevertheless, the Doing registries to increase their effi- across a region or even across the Business data are limited in scope ciency, or improve the efficiency globe gather to discuss the chal- and should be complemented of tax administration by adopting lenges of reforming and to share with other sources of informa- the latest technology to facili- their experiences. tion. Doing Business focuses on a tate the preparation, filing, and subset of business environment payment of taxes by the busi- Research areas and on the particular case ness community. Governments studies analyzed. These areas and also undertake court reforms to Doing Business data are widely used case studies are chosen to be illus- shorten delays in the enforce- by researchers in academia, think trative of the business environ- ment of contracts. But some Doing tanks, international organizations, ment, but they do not constitute Business indicator sets capture and other institutions. Since 2003, a comprehensive description of procedures, time, and costs that thousands of empirical articles that environment. By providing a involve private sector participants, have utilized Doing Business data unique data set that enables anal- such as lawyers, notaries, archi- or the Doing Business conceptual ysis aimed at better understanding tects, electricians, or freight for- framework to analyze the impact the role of a business-friendly warders. Governments have little of the business environment on environment in economic devel- influence in the short run over various economic outcomes. opment, Doing Business is also an the fees these professions charge, important source of information though much can be achieved by for researchers. strengthening professional licens- ing regimes and preventing anti- Governments and policy competitive behavior. makers Over the past decade, govern- Doing Business offers policy mak- ments have increasingly turned ers a benchmarking tool useful to Doing Business as a repository in stimulating policy debate, both of actionable, objective data pro- by exposing potential challenges viding unique insights into good and by identifying good practices practices worldwide. To ensure and lessons learned. Despite the the coordination of efforts across narrow focus of the covered areas, agencies, nearly 90 economies the initial debate they generate have formed reform committees. typically turns into a deeper dis- These committees use the Doing cussion on areas where business Business indicator sets as one reform is needed, including areas input to inform their programs for well beyond those measured improving the business environ- by Doing Business. In economies ment. Since 2003, governments where subnational studies are have reported more than 4,100 conducted, the Doing Business business reforms, 1,513 of which indicator sets go one step further have been informed by Doing in offering policy makers a tool to Business.5 identify good practices that can be adopted more broadly within Many economies share knowl- their economies. edge on the reform process related to the areas measured by Doing The Doing Business indicator sets Business. Among the most com- are “actionable.” For example, mon venues for this knowledge 30 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Notes 1. Djankov, Simeon. 2016. “The Doing Business Project: How It Started: Correspondence.” Journal of Economic Perspectives 30 (1): 247–48. 2. These papers are available on the Doing Business website at http://www.doingbusiness.org /methodology. 3. Schneider, Friedrich. 2005. “The Informal Sector in 145 Countries”, Department of Economics, University of Linz; La Porta, Rafael and Andrei Shleifer. 2008. “The Unofficial Economy and Economic Development”, Tuck School of Business Working Paper 2009-57, Dartmouth College, Hanover, New Hampshire. 4. In 2020, data collection visits by the Subnational Doing Business team were not possible because of the COVID-19 pandemic. 5. These are reforms for which Doing Business is aware that information provided by Doing Business was used in shaping the reform agenda. CHAPTER 3 Starting a business MAIN FINDINGS On average, the process of starting a business in Brazil requires 11 procedures, three weeks, and costs the equivalent of 5.1% of income per capita. Brazil requires three more procedures than the average in Latin America and the Caribbean. Still, it is less time-consuming and costly to start a business in Brazil than elsewhere in the region (29.5 days and 27.3% of income per capita). Brazil is one of only 15 economies globally—of the 191 measured worldwide by Doing Business—where starting a business requires at least 11 procedures. Registering a company in Brazil is complex mainly due to the involvement of no less than six different public agencies at the municipal, state, and federal levels. Local-level procedures— particularly those to get a municipal operations license—are the main reason for differences in the benchmarked locations. Reform efforts are underway across Brazil, but these have yet to reach their full potential. A lack of digitalization, requirements for multiple interactions, and cumbersome regulation remain a challenge to Brazilian firms seeking to formalize. 31 32 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 B razil is one of the largest personal assets are not put at risk. and foster a favorable business economies in the world.1 Registration also increases access to environment. The simplification However, the country’s formal services such as courts and of startup formalities—often the informal sector accounts for banks. Formalization reduces the first government regulation that nearly one-fifth of all economic potential for harassment and brib- companies encounter—has been activity—equivalent to the GDP ery that comes with operating an at the forefront of these efforts. of Colombia or South Africa— informal business. When firms are Within a decade, thanks to the employing 40% of the country’s formally registered, their employ- nationwide efforts of federal, workforce.2 ees can benefit from protections state, and municipal agencies to provided by the law. Formally- streamline pre- and postregistra- Formalization offers benefits and incorporated firms also generate tax tion requirements and improve legal protections that the shadow revenue for governments. online processes, the time to start economy does not. Evidence a business in Brazil has fallen sig- suggests that relative to formal Brazilian entrepreneurs risk their nificantly. A decade ago, it took firms, informal businesses tend to personal savings on business ven- 15 steps and 120 days at a cost of grow slowly, employ fewer peo- tures they believe in. Starting a 7.3% of income per capita to reg- ple, and contribute little to fiscal business involves obstacles, but ister a firm in São Paulo.4 Today, revenue generation.3 By pulling excessive bureaucracy should not in the same city it takes 11 steps, resources together in a recognized be one of them. Recognizing the 13.5 days, and 2.7% of income per limited liability venture—the type importance of channeling the cre- capita5 (see box 3.1 for methodol- of company measured by Doing ative energy of its entrepreneurs, ogy). Nevertheless, there is room Business—entrepreneurs have more the Brazilian government has for further procedural streamlin- freedom to innovate because their taken steps to curb bureaucracy ing and consolidation. BOX 3.1  What does starting a business measure? Doing Business records all procedures required for an entrepreneur to start and formally operate a business, as well as the time and cost to complete these procedures and the paid-in minimum capital requirement (figure B 3.1). To make the data comparable across locations in the same country and across the 190 economies measured globally, Doing Business uses a standardized case study of a limited liability company—Sociedade Limitada in Brazil—that engages in general industrial or commercial activities, has start- up capital equivalent to 10 times income per capita, and employs FIGURE B 3.1  What are the number of procedures, time, cost and paid-in between 10 and 50 people. The minimum capital to get a local limited liability company up and running? Doing Business 2021 data for Rio de Janeiro and São Paulo, as well Cost (% of income per capita) as for comparator economies and Formal regional averages, are not consid- operation ered official until published by the Doing Business 2021 report. Paid-in $ Number of minimum procedures capital This report includes a pilot study (see the additional research section) on the Individual Microbusiness Owner (MEI) in five locations in Entrepreneur Time Brazil, which is separate from the (days) Preregistration Registration Postregistration starting a business indicator ana- lyzed here. It is not included in the Source: Doing Business and Subnational Doing Business database. ranking or scoring for the starting a Note: For more information, see the chapter About Doing Business and Subnational Doing Business in Brazil business indicator set. 2021 and the data notes. Starting a business 33 The creation of the Individual and the exact proposed location. If Microbusiness Owner (Micro- How does starting a the location is approved, the system empreendedor Individual, MEI) business work in Brazil? issues a protocol number allow- registration classification6—an indi- ing the user to (2) register with vidual microbusiness owner who The requirements for operating a the federal tax authority (Receita can hire up to one employee—was limited liability company are gov- Federal do Brasil, RFB).12 Upon another key step toward reducing erned at the national level by the approval from the tax authority, informality. Since its inception in Brazilian Civil Code,9 the Public Redesim generates a document 2009, the MEI has facilitated the Records of Mercantile Companies’ (Documento Básico de Entrada, formalization of approximately Law,10 and laws updating or DBE). This document and the pro- 14 million entrepreneurs. Today, amending the latter, including the tocol number must be presented in MEIs are the most common type Economic Freedom Law. Under Redesim’s online system (“módulo of business in Brazil (an estimated Brazil’s federal constitution, states integrador”), which is integrated 55% of all companies in the coun- grant company registration, and with the commercial registries in try are registered as MEIs).7 municipalities issue business each location. The system gener- operations licenses. The Brazilian ates a registration fee that must (3) The Economic Freedom Law,8 federative model grants munic- be paid13 before the founders com- approved by the federal gov- ipalities, states, and the federal plete company registration. ernment in September 2019, is government the autonomy to levy another important reform aimed and regulate taxes and fees. The Once the fee is paid, the appli- at fostering entrepreneurship and legal concept of “police power” cants must (4) upload the social improving the country’s business (poder de polícia)11 allows munic- contract of the company signed environment. The most impactful ipal laws to regulate location and by all partners. Once the appli- change proposed in the new law operational requirements, licenses, cation is approved by the com- may be the accelerated granting of and fees. Some municipalities have mercial registry, the company licenses for businesses conducting tax codes (código tributário) that obtains the Company Registration low-risk activities (or the abolition summarize and gather all the taxes Identification Number (Número of this requirement altogether). and fees due from businesses. Most de Identificação do Registro de In 2007, Law 11,598 stated variations in the process to start Empresas, NIRE) and a federal that locations that are mem- a business across the locations tax identification number from bers of Redesim (Rede Nacional benchmarked by Subnational Doing the National Corporate Taxpayer para Simplificação do Registro Business in Brazil 2021 are found at Registry (Cadastro Nacional de e Localização de Empresas e the municipal level. Pessoas Jurídicas, CNPJ).14 In sev- Negócios)—an online platform eral locations—where state and linking various stakeholders at all Eight procedures are required to municipal authorities are con- levels of the business registration set up a limited liability company nected to the commercial registry process—should grant temporary anywhere in Brazil. Up to eight through the Redesim platform— operations licenses to businesses additional requirements may users also obtain a municipal that are not considered high-risk. apply, depending on the compa- operations license and complete However, in practice only four ny’s location (figure 3.1). First, registration with municipal and locations (Paraíba, Pernambuco, business founders check the avail- state tax agencies.15 However, reg- Rondônia, and Sergipe) do so. The ability of the company name (with istration with the municipal tax adoption and implementation of the commercial registry) and the agency is a separate step in nine the Economic Freedom Law will feasibility of the activity’s location locations,16 and registration with confront numerous obstacles. (with the municipality). This can the state tax agency is a separate Institutions on the ground must be done online through Redesim step in seven.17 Obtaining an ensure comprehensive simplifica- (see box 3.3). operating license is a separate step tion and integration of processes, in 20 municipalities (only seven which will also require invest- The applicant must provide infor- locations18 combine it with the ment in staff training. mation on the company’s activities registration of the company). 34 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 FIGURE 3.1  Starting a business takes 11 steps on average and involves up to 6 public agencies at the national, state, and municipal levels Time (days) Preregistration Registration Postregistration Register with the employers 20 Update employees’ union and the information* Notify* employees union* Obtain operations F license 16 M In 7 locations it Pay is integrated 12 Obtain digital operations with the Check certificate license fee commercial availability registry of company Register Register for name + in 9 locations an CNPJ and NIRE M S operating fee is also 8 S S paid (counted as a and Pay separate procedure) Register feasibility registration of location fees F in 7 locations 4 M in 9 locations 0 1) Commercial 2) Federal 3) Commercial 4) Commercial a. Municipal 5) Digital Commercial Municipality 6) Social 7) eSocial 8) Unions registry and tax bank registry tax agency e-certifier bank integration or CAGED municipality authority and/or program (Federal b. State tax Savings Bank) agency or or or or F Federal level Public sector Procedure happening in all locations Completed online S State level Private sector * Simultaneous with previous procedure Completed in person M Municipal level Source: Doing Business and Subnational Doing Business database. Note: Several municipal departments may play a role in the process. This figure illustrates the 11 most common procedures across locations. For more details on each location, see the State profiles. Next, the company must (5) obtain program (Programa de Integração Patronal) and the employees union a digital certificate (certificado dig- Social, PIS) through the website of (Sindicato dos Empregados). ital do Cadastro Nacional da Pessoa the Federal Savings Bank (Caixa Jurídica, e-CNPJ)19 from an accred- Econômica Federal); (7) notifying ited company to issue invoices and the Ministry of the Economy’s gen- fulfill accounting obligations with eral cadaster of employed and unem- How does starting the tax authorities. ployed workers (Cadastro Geral a business in Brazil de Empregados e Desempregados, compare regionally The final three steps, related to CAGED) of the employment rela- and globally? social and labor obligations, take tionship through CAGED or the place simultaneously: (6) registering eSocial portal;20 and (8) registering Across the 27 locations bench- employees in the social integration with the employers union (Sindicato marked in Brazil, starting a Starting a business 35 business requires an average of (5). The process is also more high-income economies (9.5 11.1 procedures and 15.4 days at a streamlined in Brazil’s fellow days), Mexico (8.4), China (8.5), cost of 5.1% of income per capita. BRICS economies: China (5 pro- Russia (10.1), and India (14.9). As in 120 other economies, there cedures), India (5.5), the Russian is no requirement to deposit a Federation (4), and South Africa Starting a business in Brazil is minimum amount as paid-in cap- (5). In Brazil, most procedures (7 also relatively inexpensive. At ital before company registration. out of 11) occur in the postregis- 5.1% of income per capita, it tration phase. By contrast, there costs five times less to start a Globally, Brazil is one of 15 are only two postregistration business in Brazil than the LAC economies (out of 191 measured requirements in Russia (figure average (27.3% of income per by Doing Business 2021) where 3.3). capita).22 The cost is also lower starting a business requires 11 or than in Mexico (15.3%) and more procedures (figure 3.2).21 Regarding the time to start a busi- India (6.7%). However, Brazilian Entrepreneurs in Brazil comply ness, at 15.4 days, Brazil outper- entrepreneurs pay more to start a with more requirements than forms the LAC regional average business than their counterparts those in Latin America and the (29.5 days) and South Africa (35). in the OECD high-income econo- Caribbean (8 procedures) and However, the process takes lon- mies (2.9%), South Africa (0.2%), OECD high-income economies ger in Brazil than in the OECD Russia (0.9%), and China (0%). FIGURE 3.2  The gap between Brazil and the other BRICS is widest at the procedural level Procedures Time Cost (number) (days) (% of income per capita) Georgia 1 Canada, Georgia, New Zeland 0 China, Rwanda, Slovenia 0 (global best) (global best) (global best) 2 4 South Africa 1 Ceará Mexico 8 Russian Federation Rio Grande do Sul 3 BRICS average 2 China OECD high income 9 OECD high income average 3 8 locations Russian Federation 4 average Minas Gerais OECD high income average Russian Federation 10 Santa Catarina China, South Africa 5 Argentina 4 India 11 8 locations Argentina Brazil average 5 BRICS average 6 12 6 7 13 Mexico 13 locations India 7 7 locations LAC average 8 14 8 9 4 locations India 15 Brazil average 9 Roraima 10 5 locations BRICS average 16 13 17 Brazil average 11 9 locations 11 locations Mato Grosso 14 21 Argentina 12 4 locations 24 15 Mexico 13 4 locations Federal District 25 16 14 29 LAC average 27 LAC average 15 30 28 16 Goiás South Africa 35 29 17 36 30 BRICS = Brazil, Russian Federation, India, China, and South Africa; LAC = Latin America and the Caribbean; OECD = Organisation for Economic Co-operation and Development Source: Doing Business and Subnational Doing Business database. Note: Averages for LAC and OECD high income economies are based on economy-level data for their respective 32 and 34 economies (data for Chile was included in the averages for OECD high income economies). Averages for the BRICS are based on data for Brazil, China, India, Russian Federation and South Africa. The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. China, India, and the Russian Federation are represented by their two largest business cities. Other economies are represented by their largest business cities. Averages for Brazil are based on data from the 27 locations analyzed in this report, including São Paulo and Rio de Janeiro. 36 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 use certificate (and submitting a FIGURE 3.3  Brazil’s postregistration phase is the longest among the BRICS payment) and the building num- ber certificate (and submitting a Russian Federation 1 1 2 payment) from the municipality.24 In Goiânia (Goiás), which enacted South Africa 1 4 new land use and building number China 1 1 3 metrics, applicants must certify that the proposed company address is India 1 1 3.5 suitable for the proposed business. BRICS average 1 1.2 3.9 The registration phase is similar Mexico 2 1 4.8 in all locations. First, entrepre- Brazil average 2 2 7.1 neurs enter the Redesim protocol number and the DBE (basic entry Argentina 3 2 7 document) into the commercial 0 2 4 6 8 10 12 registry’s integrated online system. Procedures (number) The system generates a registration Preregistration Registration Postregistration fee automatically, which the user must pay25 before the commercial registry will approve the company’s Source: Doing Business and Subnational Doing Business database. social contract26 and register the Note: Averages for Brazil are based on the 27 locations benchmarked in this study, including São Paulo and Rio de Janeiro. The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator company. All commercial registries economies and regional averages, are not considered official until published by the Doing Business 2021 have digitized company registration report. processes, facilitating the electronic submission of documents and issu- The preregistration phase consists ance of certificates. The uptake of How does starting a of two steps in all locations except online registration procedures has business vary within Bahia and Goiás (figure 3.4). The increased across Brazil. The share of Brazil? municipality in Salvador (Bahia) business owners setting up a limited requires an additional proce- liability company using the online Among the 27 locations mea- dure—obtaining the declaration commercial registry has risen, espe- sured, starting a business is easiest of location feasibility (Termo de cially since the COVID-19 pandemic in Pará, where the process takes Viabilidade de Localização, TVL).23 hit the country (box 3.2). 9 procedures and 11.5 days at a The entrepreneur must also pay cost of 6.3% of income per capita. a fee to validate the document Four postregistration procedures It is most burdensome in Goiás, (there is no fee for checking take place in all locations ana- where the process involves 16 location feasibility in other loca- lyzed—three separate registrations procedures, 21 days, and 5.1% of tions)—resulting in two additional with social and labor authorities income per capita (table 3.1). procedures in Bahia. Obtaining and obtaining the digital certificate the TVL is time-consuming, but of the CNPJ for revenue authority Procedures doing so facilitates the request interactions. However, depending for the operations license, which on the firm’s location—the degree The number of procedures Bahia grants automatically two of merging of state and municipal required to start a business in days after the commercial registry requirements varies—between Brazil varies significantly—from issues the national corporate tax- one and seven additional postreg- 9 in Maranhão, Pará, Paraná, and payer registration (CNPJ). istration requirements may apply Piauí to 16 in Goiás—depending (figure 3.4). In some locations, on the level of integration of state In Goiás, four additional preregis- separate interactions with state or and municipal requirements for tration procedures and payments municipal agencies are required, business registration. are required: obtaining the land including for registration with Starting a business 37 TABLE 3.1  Starting a business in Brazil—where is it easiest? Starting a Cost business score Procedures Time (% of income per Location Rank (0–100) (number) (days) capita) BRICS average 88.3 6.0 16.3 2.3 LAC average 79.7 8.0 29.5 27.3 OECD high income average 90.9 5.0 9.5 2.9 Brazil average (27 locations) 80.7 11.1 15.4 5.1 Pará (Belém) 1 84.7 9 11.5 6.3 Paraná (Curitiba) 2 84.5 9 12.0 6.5 Piauí (Teresina) 3 84.5 9 13.0 5.1 Santa Catarina (Florianópolis) 4 83.9 10 10.0 3.9 Maranhão (São Luís) 5 83.4 9 18.0 3.6 Rio de Janeiro (Rio de Janeiro) 6 83.2 10 12.5 4.6 Rio Grande do Sul (Porto Alegre) 7 83.0 10 14.5 1.7 Alagoas (Maceió) 8 82.8 10 12.5 7.4 Espírito Santo (Vitória) 9 82.5 10 14.5 5.7 Rondônia (Porto Velho) 10 82.2 11 11.0 3.5 Pernambuco (Recife) 11 82.1 11 11.0 4.1 Minas Gerais (Belo Horizonte) 12 82.0 11 9.5 8.0 Ceará (Fortaleza) 13 82.0 11 13.0 1.4 São Paulo (São Paulo) 14 81.7 11 13.5 2.7 Sergipe (Aracaju) 15 81.5 11 14.0 3.3 Rio Grande do Norte (Natal) 16 80.4 11 17.5 4.7 Bahia (Salvador) 17 79.6 11 19.5 7.0 Amazonas (Manaus) 18 79.5 11 20.5 6.1 Amapá (Macapá) 19 79.5 12 15.5 4.7 Paraíba (João Pessoa) 20 79.1 12 18.0 2.7 Mato Grosso (Cuiabá) 21 78.0 12 17.0 13.6 Mato Grosso do Sul (Campo Grande) 22 77.8 13 17.5 2.0 Tocantins (Palmas) 23 77.8 12 21.0 6.9 Acre (Rio Branco) 24 77.6 13 17.0 4.9 Roraima (Boa Vista) 25 76.9 13 17.5 9.1 Federal District (Brasília) 26 75.9 13 24.5 3.2 Goiás (Goiânia) 27 72.2 16 21.0 5.1 BRICS = Brazil, China, India, Russian Federation, and South Africa; LAC = Latin America and the Caribbean; OECD = Organisation for Economic Co-operation and Development Source: Doing Business and Subnational Doing Business database. Note: Rankings are calculated on the basis of the unrounded scores, while scores with only one digit are displayed in the table. There is no paid-in minimum capital requirement across all Brazilian locations. Rankings are based on the average score for the procedures, time, cost, and paid-in minimum capital associated with starting a business. The score is normalized to range from 0 to 100 (the higher the score, the better). For more details, see the chapter About Doing Business and Subnational Doing Business in Brazil 2021 and the Data notes. The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. municipal and state taxpayers’ District, and Roraima, none of Maranhão, Pará, Paraná, Piauí, agencies and getting an opera- these postregistration procedures and Santa Catarina, on the other tions license from the municipal- are integrated with the commer- hand, have merged all postregis- ity (box 3.3). In Amapá, Federal cial registry procedure. Bahia, tration steps involving municipal 38 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 BOX 3.2  COVID-19: a boost to demand for online procedures Brazil issued several important norms to facilitate starting a business amid the COVID-19 pandemic. In June 2020, the National Department of Business Registration and Integration (Departamento Nacional de Registro Empresarial e Integração, DREI) waived the requirement to notarize commercial registry documents.a To some extent, this reform put aspects of the Economic Freedom Law into practice.b The use of electronic platforms across Brazil has risen sharply since the start of the crisis—and may become more prominent and permanent. For many locations, COVID-19 was the impetus for an “in person to online shift.” Before the pandemic, although the commercial registry in Paraíba allowed both in person and online business registration, most applications were made in person. However, by July 2020, 90% of registrations were online. The need for social distancing—as well as the reform waiving notarization requirements—were strong drivers of this growth. Vitória (Espírito Santo) had an online operations license system in place since 2019, but usage was low until the pandemic reached Brazil in March 2020; users overwhelmingly preferred the in person process. Once the municipality phased out the in-person option, uptake of the online system surged. In São Paulo, where entrepreneurs can register their company in person or online, the number of new online business registrations rose sharply in early 2020, from 302 in January to 2,169 in May. Still, because most entrepreneurs preferred physical documents to electronic ones, São Paulo’s commercial registry began accepting registration documents by postal mail. Between April 14 and May 31, 2020, the registry received 6,137 in person and mail registrations for limited liability companies. The total number of electronic registrations in the same period was less than half that amount (3,003).c a. DREI Normative Instruction 81 of June 10, 2020. See https://www.in.gov.br/en/web/dou/-/instrucao-normativa-n-81-de-10-de-junho-de-2020-261499054. b. Law 13,874 of September 20, 2019. c. Data provided by the São Paulo state commercial registry during the data collection phase (June 2020). FIGURE 3.4  Most variations in procedures occur at the postregistration phase Maranhão, Pará, Paraná, Piauí 2 2 5 9 Brazil average Alagoas, Espírito Santo, Rio de Janeiro, Rio Grande do Sul, Santa Catarina 2 2 6 10 Amazonas, Ceará, Minas Gerais, Pernambuco, 2 2 7 11 Rio Grande do Norte, Rondônia, São Paulo, Sergipe Bahia 4 2 5 11 Amapá, Mato Grosso, Paraíba, Tocantins 2 2 8 12 Acre, Federal District, Mato Grosso do Sul, Roraima 2 2 9 13 Goiás 6 2 8 16 0 2 4 6 8 10 12 14 16 Procedures (number) Preregistration Registration Postregistration Source: Doing Business and Subnational Doing Business database. Note: The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. Starting a business 39 BOX 3.3  Redesim: streamlining business registration across Brazil To simplify and streamline the process of business registration, in 2007 the federal government launched a national network of stakeholders to progressively integrate procedures for setting up new companies, the Rede Nacional para Simplificação do Registro e Localização de Empresas e Negócios, or Redesim.a Law 11,598/2007 made membership in Redesim mandatory for federal agen- cies and voluntary for states and municipalities.b By 2020, all state capitals and Federal District—as well as around 55% of the country’s 5,570 municipalitiesc—were members. The level of service integration depends on local capacity, ranging from formal membership and participation in meetings and training programs to actual database sharing and online system integration. The national business registration and integration department, DREI, is responsible for coordinating the network and standardizing commercial registry practices via normative instructions. Redesim’s steering committeed is also a key player. Commercial registries administered at the state level and integrated to Redesim serve as a starting point.e Thirteen years after its creation in 2007, the Redesim network still has not been fully implemented. Implementation challenges have included governance issues at all levels (due to the complexity of business registration in Brazil) and the multitude of agencies in- volved at the federal, state, and municipal levels. Other challenges include the possibility of policy reversals due to political changes or disagreements between states and municipalities; voluntary adhesion (some agencies may not be convinced of the benefits); and delays in creating an overarching governance structure, leaving room for the establishment of multiple local solutions that further increased the institutional and technical complexities and challenges of integration. Furthermore, limited resources (especially in small municipalities) and difficulty in adopting new procedures and systems have also posed challenges, as has the view that the integration process is government-centered and focused on back-end data sharing. In 2018, the Redesim network entered a new phase with the implementation of its online portal. The new initiative supported the move toward a single window unifying all services to start a business under the same login and password. Nonetheless, several states and municipalities still maintain their own point of access, and procedures can be completed separately. CGSIM Resolution 61 of August 12, 2020, provided additional legal background to enhance procedural integration under Redesim, including the location feasibility and the federal tax authority procedures and reinforcing the need of integrating the operations license and the registration with municipal and state tax agencies with the commercial registry step. Known as Model B (Modelo B), this requires even further integration of databases, systems, and requirements at the federal, state, and municipal levels. The resolu- tion does not explicitly mention the integration of labor procedures (or even payment procedures). Although it does not streamline and consolidate all procedures considered by the Doing Business methodology,f the Redesim portal has the potential to further reduce both the procedures and time needed to start a business. a. For more information, see the website at http://www.redesim.gov.br/. b. The law also “prohibits additional measures in addition to those essential regarding registration, alteration, and termination of companies.” c. See http://www.redesim.gov.br/clientes/portalredesim/portalredesim/copy_of_conheca-a-redesim. d. O Comitê para Gestão da Rede Nacional para a Simplificação do Registro e da Legalização de Empresas e Negócios (CGSIM). e. CGSIM Resolution 25 of October 18, 2011. Available at https://www.legisweb.com.br/legislacao/?id=115654. f. In particular, the municipal operating fee (where it exists), social security registration (PIS), eSocial registration, and labor union registration. and state authorities27 with the at the commercial registry. Still, business. The process is integrated commercial registry into a sin- Minas Gerais has yet to integrate with company registration proce- gle online interaction within the the state tax authority registra- dures at the commercial registry Redesim platform through the tion (it requires an additional in Paraíba and Pernambuco, but in respective commercial registry interaction). Rondônia and Sergipe it requires system. Similarly, by integrating an additional step. Companies in electronic databases, Minas Gerais In Paraíba, Pernambuco, Rondônia, all four states also need to obtain a combined municipal tax registra- and Sergipe, business founders first definitive operations license within tion and obtaining the operations obtain a temporary license that the first year of operation. All license into a single procedure allows them to start operating the municipalities that are members 40 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 of the Redesim network should license is integrated with com- share of time, can be concluded in provide a temporary license to pany registration at the commer- one or more procedures, depend- low-risk firms to allow the start of cial registry,32 the registration ing on whether it (i) is partially business operations immediately phase takes 2.8 days on average or totally integrated with the after registration.28 in Brazil.33 The process takes from commercial registry, (ii) involves a 1.5 days in Rio de Janeiro and 2.5 temporary license, or (iii) has a fee. In 23 locations, firms must days in 12 locations34 (including The time is lower in the seven loca- complete one additional pro- registration fee payment)35 to 4.5 tions where getting the operations cedure—paying a fee at a com- days in Rio Grande do Sul. The license is integrated with company mercial bank—to obtain the variation in time is mainly due to registration at the commercial definitive operations license. the volume of companies seeking registry.36 In these locations, the This fee is not required in Bahia, registration and the staff capacity average time of the integrated pro- Federal District, São Paulo, and of each commercial registry. cedures (including the payment Sergipe.29 Additionally, in nine of fees, which is not integrated) locations,30 entrepreneurs pay an Obtaining the operations license, is 5.4 days,37 ranging from 2 days annual municipal operating fee, which accounts for the biggest in Minas Gerais38 to 11 days in including during the first year; it is most commonly charged during the second month of operations. FIGURE 3.5  Entrepreneurs in Brazil spend between 5.5 and 17 days complying with postregistration procedures Time Minas Gerais 2.5 1 6 9.5 Of the locations benchmarked, Operations license starting a business is fastest in is integrated Minas Gerais (9.5 days) and Santa Santa Catarina 1 3.5 5.5 10 Catarina (10 days). The same Temporary license exists process takes 24.5 days in the Federal District. The average time Pernambuco, Rondônia 2.5 2.5 6 11 to start a business in Brazil is 15.4 *5.4 days in 7 locations *4.9 days in 7 locations days across the 27 locations. Not surprisingly, the postregistration Brazil average 3 3.4 9 15.4 phase accounts for more than half Operations license (10 days) of the total time—where most procedures and the operations Amazonas 2.5 3.5 14.5 20.5 license (taking the longest) hap- 9 procedures including the operations license (10 days) pen (figure 3.5). Federal District 4 3.5 17 24.5 The preregistration phase ranges from one day (in Sergipe and Santa 0 5 10 15 20 25 Catarina) to 10 days in Bahia, Time (days) where the location feasibility check Preregistration Registration at commercial registry Postregistration (TVL) alone takes seven days; in *where the operations licence is integrated other locations, the equivalent check takes 1.5 days on average.31 Source: Doing Business and Subnational Doing Business database. The preregistration phase takes 4.5 Notes: In Pernambuco and Rondônia, the temporary license and the definitive license procedures take 0.5 days in Goiás, as four additional days each. Because the definitive license is requested while the temporary one is still valid and the business is already operating, only the application is counted as a separate procedure (not the time for its analysis). Bahia, procedures are required. Federal District, São Paulo, and Sergipe do not charge a fee for the operations license; other locations charge a fee (in a separate procedure). In Minas Gerais, the average time of the integrated procedure (commercial Excluding the seven locations registry and operations license) shown in the figure does not include the payment of the operations license fee. The Doing Business 2021 data for Rio de Janeiro and São Paulo are not considered official until published by where getting the operations the Doing Business 2021 report. Starting a business 41 Maranhão. The requirements and license procedure is integrated with than in others. The cost ranges from capacity of each commercial reg- the municipal tax agency registra- 1.4% of income per capita in Ceará istry and municipality determine tion step, but it is done after the to 13.6% in Mato Grosso. the time variation. In the other 20 interaction with the commercial locations, procedures at the com- registry. Pernambuco and Rondônia Across every location, postreg- mercial registry and municipality perform better mainly because they istration procedures (operations (operations license) are completed are among four locations that offer license fee, operating fee, and separately (including the payment temporary operations licenses.40 CNPJ digital certificate) are most of fees), taking together 8.7 days on costly for entrepreneurs, account- average,39 ranging from 4 days in Cost ing for over 75% of the total cost Pernambuco, Rio de Janeiro, and to start a business. Municipal fees Rondônia to 14 days in Amazonas. Starting a business in Brazil is consid- comprise more than half of the In Rio de Janeiro, the operations erably more costly in some locations total cost (figure 3.6), followed by FIGURE 3.6  Fees across Brazil vary significantly, but municipal levies represent more than half of the total cost Ceará Rio Grande do Sul Mato Grosso do Sul Postregistration São Paulo Paraíba Others 1.4% Federal District Digital Sergipe certificate 17.1% Rondônia Maranhão Commercial Operations Santa Catarina registry license fee 22.0% 41.8% Pernambuco Rio de Janeiro Operating fee Rio Grande do Norte 17.7% Amapá Acre Municipality Goiás Piauí Espírito Santo Amazonas Pará Paraná Tocantins Bahia Alagoas Minas Gerais Roraima Mato Grosso 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Cost (R$) Operations license fee Operating fee Commercial registry CNPJ digital certificate State fee Other municipal fees Source: Doing Business and Subnational Doing Business database. Note: Other municipal fees refer to the inscription with the municipal tax agency. The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. 42 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 fees associated with the commer- Across the benchmarked loca- others, the main goal being just one cial registry (22.0% of the total tions, the cost of the digital cer- interaction with the government cost) and the digital certificate tificate for 12 months averages for starting a business. Under the (17.1.%). R$225 ($61), ranging from R$200 umbrella of Redesim, some com- ($54) in Amapá, Federal District, mercial registries partnered with The registration fee charged by Goiás, Mato Grosso, and Tocantins the federal tax authority, state tax the commercial registry is set to R$270 ($101) in Pernambuco. departments, municipal depart- at the state level, and therefore Several public agencies offer ments, and other administrative varies significantly among the 27 similar, cheaper products (for bodies to share relevant business locations, ranging from R$91.85 example, Imprensa Oficial in the data. As a result, these locations ($25) in Paraná to R$502 ($134) state of São Paulo, which costs have eliminated up to four sepa- in Rondônia. When it comes to just R$150), but entrepreneurs rate interactions. When a company municipal levies, 23 locations prefer the products of private is registered with the commercial charge an operations license fee companies.46 registry, the respective informa- at the time of registration and 9 tion—if relevant to another public charge an equivalent fee within authority’s database—is automat- the first year of operation;41 some ically transmitted (when a digital charge the fee annually. Five loca- What are the partnership exists). The locations tions charge both.42 challenges and good where it is easier to start a busi- practices? ness in Brazil (Pará, Paraná, Piauí, Across locations, there is a per- Santa Catarina, and Maranhão) vasive lack of understanding of Consolidated have merged most postregistration the costs associated with licens- postregistration procedures steps with the commercial registry. ing and operations.43 Brazilian Postregistration procedures are not entrepreneurs often hire lawyers Multiple, separate procedures fully integrated with the registra- and accountants to provide pro- make business registration tion phase in any of the bench- fessional assistance in navigating in Brazil a long, complicated, marked locations (table 3.2). these costs, increasing the cost of and often redundant process. starting a business.44 In Sergipe Although there is variance among Other economies offer good prac- (Aracaju), the fee called ‘’Taxa locations, more structural reforms tice examples of consolidating de Localização e Funcionamento’’ are needed to streamline the business startup requirements. In is paid annually in installments process. Redesim’s implemen- New Zealand, entrepreneurs can and is therefore considered an tation—spanning more than a complete the business registration operating fee. In Rio de Janeiro, decade—has gradually increased process online in two procedures. the fee named ‘’Taxa de Licença integration (initially on the back- Thanks to the interconnectiv- para Estabelecimento’’ is paid end) between commercial reg- ity of various agencies’ systems, only at the moment the license istries and municipal and state they can register with the tax is obtained and is therefore con- agencies in all benchmarked and social security authorities at sidered an operations license locations. However, from a user’s the same time they complete the fee.45 Both fees vary significantly. perspective, there is room for fur- incorporation process. Similarly, Operating fees can range from ther consolidation of integration, Portugal implemented a one- R$380.50 ($104) in Pernambuco specifically the creation of a single stop shop (Empresa na Hora) for (Recife) to R$1,936.35 ($528) in window. company registration, merging Minas Gerais (Belo Horizonte); all preregistration and registra- operations license fees range from Making the process more efficient tion requirements. Before 2006, R$50 and R$50.9 ($14) in Ceará does not necessarily mean elim- starting a business in Portugal (Fortaleza) and Mato Grosso inating requirements but rather required completing 11 proce- (Campo Grande) respectively to merging procedures to simplify the dures, filing 20 forms, and wait- R$2,325 ($634) in Roraima (Boa process. Good practices in some ing about 2.5 months at a cost Vista). locations could be implemented in of 13.5% of income per capita. Starting a business 43 TABLE 3.2  Level of integration of postregistration procedures Postregistration formalities integrated with commercial registry Operations Operating Registration with municipal tax agency Labor procedures license fee Registration with state tax agency Temporary operations license Social integration program CNPJ digital certificate Obtain payment slip Request and obtain Pay fee Pay fee eSocial Unions Location Bahia Yes Yes Yes n.a. Yes No n.a. No No No No 44% Maranhão, Pará, Paraná, Piauí, Santa Catarina a Yes Yes Yes No n.a. n.a. n.a. No No No No 38% Pernambuco Yes Yes No No Yes No Yes No No No No 36% Minas Gerais Yes No Yes No Yes No n.a. No No No No Level of integration of postregistration procedures Rio Grande do Norte Yes Yes No No Yes No n.a. No No No No 30% Sergipe Yes Yes No n.a. Yes No No No No No No Alagoas, Espírito Santo, Rio Grande do Sul Yes Yes No No n.a. n.a. n.a. No No No No 25% Rondônia Yes Yes No No n.a. n.a. No No No No No São Paulo No Yes No n.a. Yes No n.a. No No No No 22% Paraíba No Yes No No n.a. n.a. Yes No No No No Acrea,e, Mato Grossoa No Yes No No Yes No n.a. No No No No 20% Amazonas, Tocantins a Yes No No No n.a. n.a. n.a. No No No No Ceará, Goiásb No Yes No No n.a. n.a. n.a. No No No No 13% Mato Grosso do Sula Yes No No No n.a. n.a. n.a. No No No No Rio de Janeiroc No Yes No No n.a. n.a. n.a. No No No No Amapá No No No No n.a. n.a. n.a. No No No No Federal Districtd n.a. No No n.a. No No n.a. No No No No 0% Roraima a No No No No n.a. n.a. n.a. No No No No Source: Doing Business and Subnational Doing Business database. n.a. = not applicable Notes: The figure shows all steps required in each location after registering at the commercial registry and measures the percentage of these steps being integrated with the commercial registry. For more details of each location, see the State profiles. The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. a. In Acre, Mato Grosso do Sul, Roraima, Santa Catarina and Tocantins, users pay a separate fee for state tax registration. b. In Goiás, users pay a separate fee to the municipal tax agency. c. In Rio de Janeiro, the operations license procedure is integrated with the municipal tax registration procedure (and both procedures are not integrated with the registration in the commercial registry step). d. In Federal District, the operating fee step is divided into three procedures: “obtain operating fee slip,” “pay operating fee,” and “obtain operating fee certificate.” e. In Acre, getting the operations license involves requesting the license, paying the fee in a commercial bank and presenting the municipality with the proof of payment. Today, user-provided information registration within 1 hour at a between the agencies involved in is shared automatically among cost of €360 ($436),47 or 1.8% of business registration resulted in the relevant public agencies, and income per capita. a consolidation of requirements the entrepreneur can receive a and fewer interactions for entre- corporate taxpayer number, social In Russia (Moscow and St. Peters- preneurs. Entrepreneurs can com- security number, and commercial burg), improved coordination plete many formalities using the 44 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 one-stop shops in Moscow and St. (instrumento padrão) and a digital users to proceed to online regis- Petersburg, including entering the signature (certificado digital do tration.53 In the United Kingdom, new business into the Unified State Cadastro de Pessoa Física, e-CPF).50 entrepreneurs receive a company Register of Legal Entities; registering The e-CPF’s high cost is a major authentication—a six-character with the tax authorities to obtain a deterrent—it can cost up to R$150 alphanumeric code—and a pass- taxpayer identification number and ($40) per business founder. As a word during business registration tax registration code; registering substitute, Rio de Janeiro devel- to verify their authority. This code employees with the pension fund, oped the Biovalid51 facial recogni- acts as the electronic equivalent the social security fund, and the tion application for mobile phones of the handwritten signature.54 medical insurance fund; and getting through a partnership between the Applicants in Estonia—where a statistics code from the Federal commercial registry (JUCERJA), approximately 98% of the pop- State Statistics Service. the federal data processing agency ulation has electronic identity (SERPRO), and DREI.52 Unlike the cards55—can register their busi- The Redesim legislation facilitated e-CPF, the app—which costs just ness using only their electronic the creation of in person, one-stop R$5 ($1.30)—does not require any identity card.56 shops,48 mostly in state capitals, in person interaction to be enabled. to provide business services. For Reduced complexity and example, São Paulo’s Empreenda Many locations have transitioned increased transparency and Fácil and Paraná’s Empresa Fácil to online registration, some even consistency in municipal streamline the registration, mod- before COVID-19. However, licensing ification, and termination of busi- online company registration is not nesses. However, these initiatives significantly faster than register- Obtaining the operations license have yet to merge procedures ing in person. In Paraíba, where can take up to 10 days in Brazil, like labor requirements. Instead, registrations have shifted from making it the most complex and authorities have opted to digi- being handled mainly in person time-consuming step to start a talize many of Brazil’s one-stop (before the pandemic) to online business. With regulation set at the shops since the pandemic’s onset, (currently), the time has remained municipal level, significant varia- duplicating many of Redesim’s the same (3.5 days, including tions exist across locations, includ- functions and existing commercial fee payment). Similar anecdotal ing in risk classification. Among registry website services. Adopting evidence exists across Brazil. To BRICS, only Brazil and China the Redesim model is unlikely to reduce this time, locations could require a municipal operations be sufficient to merge all of the promote automatic registration license.57 In Mexico (Mexico City), procedures required to start a using inexpensive electronic sig- the notification of opening a com- business in Brazil, in particular natures or other digital identifiers. mercial establishment is required labor and payment procedures. The Biovalid app could be adopted at the municipal level only and Furthermore, Redesim’s norms elsewhere if deemed a success in completed online in 0.5 days (it and legislation does not explicitly Rio de Janeiro. It is already slated is not required in Monterrey). In envisage such consolidation. for implementation in Ceará in India (Mumbai), a company must the medium term. also comply with a municipal Optimized digital registration procedure in order authentication and In Rwanda, firms can obtain the to be able to operate (according electronic registration49 digital signature for business regis- to the Shops and Establishments tration from a government depart- Act). In the Latin America and the The Economic Freedom Law allows ment in 0.5 days at no cost. To Caribbean region, Argentina does for the immediate registration of apply, the managing director (or not require municipal licensing. companies (after confirmation of one of the shareholders) signs up Jamaica is the best example: entre- company name availability and the with only their email address and preneurs are required to obtain a location feasibility check) for entre- a scan of their identity card. Once municipal license but can complete preneurs using the commercial the account is set, a registration the whole registration process in registry’s standard social contract number is generated to enable only two procedures. Starting a business 45 In an effort to simplify operations can get a temporary operations R$2,325 ($634) in Roraima (Boa licensing, in 2019 Redesim issued license in 1.5 days on average. Vista). Lowering and unifying fees CGSIM Resolution 51 eliminat- The temporary license is valid at the municipal level could be an ing inspections for medium-risk for up to 180 days, during which effective option. Fortaleza (Ceará) activities (“low risk B”)—including time the business can operate and reduced the operations license fee the Doing Business case study com- gather the required documents from R$5,000 ($1,363) to R$50 pany—and ordering federal, state, to obtain the definitive license.61 ($13.7) in 2019.62 and municipal administrations to In those locations not currently automatically grant a provisional offering temporary licenses, doing Of the 191 economies measured authorization or license to operate so would demonstrate a clear in the global Doing Business report, upon registration. Article 2 specifies municipal-level commitment to about two-thirds do not require that companies remain subject to a business formalization. The ability a business license or the business subsequent inspection (typically to verify the license less urgently license is provided free of charge upon issuance of the definitive (and have a declaration of respon- (as in China). In Doing Business operations license). On the other sibility from business owners on 2020, Rwanda, one of the two hand, low-risk activities (“low risk file) could optimize resources or Sub-Saharan African economies A”) are exempted from obtaining direct them toward the inspection ranked in the top 50 globally, any kind of license to operate.58 of higher-risk activities. exempted newly-formed small Nevertheless, municipalities or and medium enterprises from pay- states can impose their own risk Simplified municipal ing the trading license tax for their classifications and overrule the fed- fees and an affordable first two years of operation. This eral classification proposed by the registration process change decreased the total cost of resolution.59 The lack of risk clas- starting a business in Rwanda by sification harmonization among Municipal taxes and fees are the 24.7% of GNI per capita. In Doing municipalities can complicate the largest determinants of cost in Business 2021, following imple- process of obtaining the operations Brazil. High registration costs deter mentation of the abovementioned license. The same activity could entrepreneurs from formalizing reform, Rwanda abolished the receive a different risk classification their businesses. Simplifying and requirement that founders obtain depending on individual municipal unifying such fees would reduce a certificate from the tax authority criteria—activity code, company the financial burden entrepreneurs confirming their exemption. As a size, and location—leading to face in the first year of operations, result, the procedure to obtain the starkly different experiences for allowing them to invest in their trading license was eliminated. entrepreneurs across Brazil.60 businesses. Small and medium enterprises are financially vulner- Private professionals across Brazil Some Brazilian municipalities able in the first months and even report a lack of transparency in have successfully streamlined the years of existence; establishing the criteria used to define require- process of issuing the operations early payments of operations ments for licensing, including license. In Florianópolis (Santa license and operating fees can be fees. The relevant information, Catarina), Floripa Mais Simples— discouraging. The authorities can spread across various pieces of an integrated service of the generate additional future revenue legislation or tax codes, is often municipality and the commercial if these businesses thrive and grow. difficult to find. Municipalities registry—allows low-risk com- Due to their autonomy to legislate could publicize documentary panies to obtain the operations areas such as business licenses, requirements (and any applicable license upon registration. Other Brazil’s municipalities are funda- fees) in simple terms and in an locations offer a temporary oper- mental to the success of reforms integrated manner through the ations license upon registration, emanating from the state or fed- Redesim platform. The use of a in line with CGSIM guidelines. In eral level. However, as a result simulator—to present all require- Paraíba, Pernambuco, Rondônia, of this autonomy, an operations ments and associated costs—could and Sergipe, a business engaged license can cost anywhere from benefit entrepreneurs by increas- in low- to medium-risk activities R$50 ($14) in Ceará (Fortaleza) to ing predictability. 46 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Streamlined social security Secretariat of Labor’s cadaster Companies House, where com- registration when notifications occur at the puter terminals are available for Ministry of Economy. Employees’ electronic registration. Locations Brazil has three different labor only identification in eSocial will in Brazil could offer a similar ser- procedures for starting a business— be their social security number. vice to those who struggle with registering the employees in the Employers will be exempted from technology. social integration program, notify- referring to other registration ing the Ministry of Economy of the numbers, resulting in the integra- Commercial registries and munici- employment relationship through tion of two of the current labor palities could invest in training for the eSocial portal, and registering procedures within the commer- staff and dissemination campaigns with the unions. Brazil could follow cial registry. Jamaica, France, and for the public to allow a smooth the example of Spain, where a new Russia have integrated employ- and effective transition. Clear company can register employees ee-related labor procedures with guidance materials (in paper form, through an electronic platform company registration. through websites, and on social at the moment of incorporation. media) and help desks with trained Several other European Union Improved connectivity staff (to answer customer queries) member states assume a job starts and increased outreach could support the implementation when an employer pays wage-re- campaigns of those new processes. To encour- lated taxes for the first time and that age the use of online platforms, it ends when such taxes are paid As elsewhere around the world, governments could introduce for the last time—like in Denmark. the coronavirus pandemic has incentives, such as offering online These economies require employ- shifted Brazil toward online ser- registration at reduced fees. In the ers to include information on an vices. According to the Brazilian United Kingdom, submission of employee’s job characteristics with Support Service to Micro and applications by post is still possible, the payment of wage-related taxes Small Businesses (Serviço but it is more costly and time-con- rather than reporting this informa- Brasileiro de Apoio às Micro e suming than submitting an appli- tion separately. This streamlined Pequenas Empresas, Sebrae),64 all cation online.67 system eliminates multiple submis- of Brazil’s commercial registries sions of registration information are transitioning to fully online and ensures efficient postregistra- services. Optimism about digital tion procedures. inclusion is also high following the country’s successful experience Amendments to the Labor Law with the Individual Microbusiness in July 2017 made the payment Owner registration, which is of union contributions optional. completed entirely online. The However, in practice most entre- MEI has allowed low-income preneurs still register their compa- Brazilians to start formal busi- nies with the unions. Unions have nesses in droves. To benefit entre- a strong presence in Brazil and preneurs at all income levels, most employees still register, par- the government could continue ticularly in the commercial sector. improving connectivity (internet and computer access, for example) The Ministry of Economy launched across Brazil.65 Since 2001, the a simplified form in October 2020 United Kingdom’s electronic filing to integrate eSocial—a digital plat- system has allowed entrepreneurs form to fulfill labor, tax, and social to register their businesses and security obligations—with com- check for the company name in mercial registries across Brazil.63 just a few hours simply by fil- eSocial will automatically transfer ing incorporation documents.66 mandatory information to the Entrepreneurs can still visit the Starting a business 47 12. This must be done by filing 14, 2019, which went into effect Notes the Company Registration File in January 2020, all types of (Ficha Cadastral da Pessoa companies, with the exception 1. World Bank data. See Jurídica) and the Members and of public companies and https://data.worldbank.org Managers File (Quadro de Sócios international organizations, are /indicator/NY.GDP.MKTP e Administradores) through required to provide information .CD?most_recent_value the agency’s portal, which is to eSocial and no longer to _desc=true. integrated with the Redesim CAGED. However, the transition 2. For more information, see the system. from one system to another is website of the Instituto Brasileiro 13. Entrepreneurs can pay at any still being implemented, resulting de Ética Concorrencial at commercial bank or by wire in different interpretations and https://www.etco.org.br transfer (through a commercial practices by the private sector— /economia-subterranea/. bank’s website where the person some send the labor information 3. World Bank. 2009. making the payment holds an twice: both to CAGED and “Microenterprises.” Enterprise account). eSocial; others send information Note No. 5. Washington, DC: 14. The CNPJ is the most commonly only to CAGED, and still others World Bank. http://documents used identification number, only to eSocial. Consequently, .worldbank.org/curated/en together with the NIRE and state both CAGED and eSocial names /468601468155705123/pdf or municipal sales tax numbers. are kept in the procedure. /508550BRI0Box31IC10 The federal government intends to 21. Eleven economies also require Enterprise0Note5.pdf. standardize the CNPJ as a unique 11 procedures. In Doing Business 4. According to Doing Business 2011. business identification number, 2021, Brazil has 10.6 procedures At that time, São Paulo was the according to Law 13.853/2019. as population weighted average only location measured. 15. Taxation at the municipal and of the two measured cities, 5. The Doing Business 2021 data for state levels is conducted by the São Paulo and Rio de Janeiro. Rio de Janeiro and São Paulo, as respective municipal or state tax Subnational Doing Business in well as for comparator economies agencies. The agency’s name Brazil 2021 uses the average for and regional averages, are not varies according to location. the 27 benchmarked. The Doing considered official until published “Secretaria da Fazenda”, Business 2021 data for Rio de by the Doing Business 2021 report. “Secretaria de Finanças”, and Janeiro and São Paulo, as well 6. For more information, see chapter “Secretaria da Economia” are as for comparator economies 8, that presents a pilot study examples of the most common and regional averages, are not on registering as an Individual names. considered official until published Microbusiness Owner (MEI). 16. Acre, Amapá, Ceará, Goiás, Mato by the Doing Business 2021 report. 7. Oliveria, Kelly. 2020. “Abertura Grosso, Paraíba, Rio de Janeiro, 22. Only Argentina, Trinidad and de empresas cresce, enquanto Roraima and São Paulo. The Tobago, Puerto Rico, and Jamaica fechamento recua em 8 meses.” Doing Business 2021 data for Rio are cheaper within the region. Agência Brasil, September 17. de Janeiro and São Paulo, as well 23. The TVL replaces the address check https://agenciabrasil.ebc.com. as for comparator economies that occurs simultaneously with br/economia/noticia/2020-09/ and regional averages, are not the company name check in other abertura-de-empresas-cresce- considered official until published locations. It is done before checking enquanto-fechamento-recua- by the Doing Business 2021 report. the availability of the company em-8-meses. 17. Amapá, Amazonas, Federal name. This requirement does not 8. Law 13,874 of 2019. District, Mato Grosso do Sul, exist in other municipalities in the http://www.planalto.gov.br Minas Gerais, Roraima and same state. For more information, /ccivil_03/_Ato2019-2022/2019 Tocantins. see http://simplifica.salvador.ba /Lei/L13874.htm#art19. 18. Bahia, Maranhão, Minas Gerais, .gov.br/. 9. Law 10,406 of 2002. Pará, Paraná, Piauí, and Santa 24. See https://www.goiania.go.gov. http://www.planalto.gov.br Catarina. br/shtml/seplam/servicos/ /ccivil_03/leis/2002 19. An electronic document that numero.shtml. /L10406compilada.htm. acts as a virtual identity in 25. Some locations restrict 10. Law 8,934 of 1994. accordance with rules established where entrepreneurs can pay http://www.planalto.gov.br by the Management Committee registration fees. For example, /ccivil_03/leis/L8934.htm. of ICP-Brasil. in Roraima fees must be paid at 11. Law 5,172 of 1966. 20. Until the seventh day of the Banco do Brasil. http://www.planalto.gov.br/ month after the hiring. According 26. Commercial registries provide ccivil_03/leis/l5172compilado.htm. to the Ministry of Economy an automatically-generated Ordinance No. 1,127 of October social contract template with 48 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 the initial information provided 34. Alagoas, Amapá, Ceará, Espírito 42. Acre, Mato Grosso, Minas Gerais, at the previous procedures. It is Santo, Goiás, Mato Grosso, Mato Pernambuco, Rio Grande do Norte. up to the applicants to use this Grosso do Sul, Pernambuco, Rio 43. The name of the fee varies across automatically-generated contract, Grande do Norte, Rondônia, locations: Taxa de Fiscalização in which only parts of the text Sergipe, Tocantins. de Estabelecimento; Taxa can be changed, or to upload their 35. The time to pay the fee is de Licença para Localização own version of social contract. recorded at 0.5 days across e Funcionamento; Taxa de 27. Not including the eventual Brazil because online payment is Fiscalização, de Localização payment of fees related to available nationwide. e Funcionamento; Taxa de these steps, which are made at 36. Bahia, Maranhão, Minas Gerais, Expediente; Taxa de Licença para commercial banks. Pará, Paraná, Piauí, Santa Localização; Taxa de Fiscalização 28. Article 6 of Law 11,598 of 2007. Catarina. do Funcionamento; Taxa de This provision was further 37. Across Brazil, to request the Localização e Funcionamento; detailed by Redesim (CGSIM) operations license, a business and Taxa de Licença para steering committee resolution 51 must be registered with the Estabelecimento. of 2019. municipality, unless when the 44. These professional fees are not 29. In Bahia, the fee paid in the operations license procedure is reflected in this report because preregistration phase (related to integrated with the commercial it is not a requirement that the TVL) replaces the definitive registry as it is the case in these entrepreneurs hire them. operations license fee. In the seven locations: the municipal 45. The Doing Business 2021 data Federal District, São Paulo, and taxpayer’s registry is integrated for Rio de Janeiro and São Sergipe, business founders are with the commercial registry. In Paulo, as well as for comparator exempt from this tax. However, Palmas, the municipal registry economies and regional in these four locations the and the operations license are averages, are not considered operating fee (another type of integrated but not with the official until published by the municipal fee) is due in the first commercial registry. Doing Business 2021 report. year of operations. The Doing 38. Including the additional step 46. For example, Certisign and Business 2021 data for Rio de of registering with the state tax Serasa Experian. Janeiro and São Paulo, as well authority in Minas Gerais. This 47. World Bank. 2012. Doing Business as for comparator economies procedure is integrated with in the European Union 2012: and regional averages, are not the company registration at the Croatia, Czech Republic, Portugal considered official until published commercial registry in the other and Slovakia. Washington, DC: by the Doing Business 2021 report. six locations mentioned. World Bank. 30. Acre, Bahia, Federal District, 39. The time to register a company 48. Article 12 of Law 11,598/2007. Mato Grosso, Minas Gerais, at the commercial registry and 49. In establishing tools to simplify Pernambuco, Rio Grande do obtain the operations license online registration, public Norte, São Paulo, Sergipe. The at the municipality is added authorities will find global good Doing Business 2021 data for Rio to facilitate a comparison with practices and multisectoral de Janeiro and São Paulo, as well locations where these steps expertise on digital identification as for comparator economies are integrated. For a detailed systems in the “ID4D Practitioner’s and regional averages, are not overview of each location, see Guide” (https://id4d.worldbank considered official until published the list of procedures. .org/guide) as well as guidance on by the Doing Business 2021 report. 40. In the other locations with particular aspects such as access to 31. The TVL procedure is partly temporary licenses, the time to digital identification for vulnerable offset by the absence of a complete the required commercial groups. separate operations license registry and operations license 50. DREI Normative Instruction 57 procedure. Nonetheless, in many steps is 4.5 days (Paraíba) and 8 of March 2019, article 1. locations the operations license days (Sergipe). 51. As of March 2, 2020, Biovalid was takes six days on average. 41. Acre, Bahia, Federal District, made available at JUCERJA in 32. Bahia, Maranhão, Minas Gerais, Mato Grosso, Minas Gerais, compliance with the General Data Pará, Paraná, Piauí, and Santa Pernambuco, Rio Grande do Protection Law, No. 13,853/19, Catarina. Norte, Sergipe, São Paulo. The sanctioned by the federal 33. Provisional Measure 876 of 2019 Doing Business 2021 data for Rio government on July 8, 2019. states that the commercial registry de Janeiro and São Paulo, as well 52. DREI Normative Instruction must conclude registration within as for comparator economies 75 of February 18, 2020; A five business days. If it does not, and regional averages, are not Voz da Cidade. 2020. “Jucerja the documents will be considered considered official until published amplia validade de aplicativo de registered. by the Doing Business 2021 report. reconhecimento facial; Biovalid Starting a business 49 é utilizado para a biometria still require a Fire Department 67. For more information, see na abertura de empresas.” license or inspection at the time https://www.gov.uk/limited avozdacidade.com, September 1. of business incorporation for -company-formation https://avozdacidade.com/wp each new business. This step can /register-your-company. /jucerja-amplia-validade-de take up to 30 days and there -aplicativo-de-reconhecimento are fees involved—an additional -facial-biovalid-e-utilizado-para burden for entrepreneurs. This -a-biometria-na-abertura-de requirement still applies even if -empresas/. a similar business in the same 53. Company’s also use this number building was running previously as a tax identification number with all due diligences completed. (TIN) and a VAT number. Salvador only charges an annual 54. See http://www.companieshouse firefighting tax of R$17.30 .gov.uk/infoAndGuide/faq ($4.70). São Paulo and Recife /webFiling.shtml. replaced the Fire Department 55. For more information on license by requiring a report E-Estonia “E-Identity,” see from an engineer or architect https://e-estonia.com hired by the entrepreneur to /solutions/e-identity/. conduct an assessment and issue 56. For more information on e-ID a declaration. services in the European Union, 61. In contrast, in Teresina (Piauí), see http://europa.eu/rapid a similar activity is considered /press-release_MEMO-12-403 medium to high risk and the time _en.htm. For additional to obtain a license is five days. information on the Estonian 62. Law 21/2019 of June 36, 2019. system, see http://e-estonia.com See Regadas, Anna. 2019. /component/e-business-register. “Alvará Social é aprovado na 57. In China it takes five days to Câmara Municipal de Fortaleza.” obtain the municipal operations Câmara Municipal de Fortaleza, license. June 26. https://www.cmfor.ce 58. This initiative is projected to .gov.br/2019/06/26/alvara benefit 10.3 million low-risk -social-e-aprovado-na-camara companies, or 58% of total active -municipal-de-fortaleza/. companies in Brazil. Máximo, 63. Gomes, Pedro Henrique. Wellton. 2020. “Dispensa de 2020. “Governo lança eSocial alvará beneficiará 10,3 milhões simplificado e anuncia programa de empresas de baixo risco." para revisar normas trabalhistas.” Agencia Brasil, January 28. Globo.com, October 22. https://agenciabrasil.ebc.com https://g1.globo.com/politica .br/economia/noticia/2020-01 /noticia/2020/10/22/governo /dispensa-de-alvara-beneficiara -lanca-esocial-simplificado-e -103-milhoes-de-empresas-de -anuncia-programa-para-revisar -baixo-risco. -normas-trabalhistas.ghtml. 59. Item III, Article 3 of Law 13,874 64. Meeting with Sebrae in states that the municipality November 2020 on the must forward notification to the Empreendedor Digital project. Ministry of Economy. If it fails 65. Reforms are currently being to do so, the classification from analyzed by the senate to expand CGSIM Resolution 51 would internet access in rural areas. See overrule the municipal decree. https://www25.senado.leg.br/en 60. Many locations (including /web/atividade/materias Fortaleza and Porto Velho) also /-/materia/140555. require a current license from the 66. Moss, Tim. 2014. “International Fire Department—Doing Business Good Practices in Business considers this under dealing with Registers.” Presentation at construction permits indicators— Corporate Registers Forum, Rio to issue the operations license. In de Janeiro, March 18. practice, many Brazilian locations CHAPTER 4 Dealing with construction permits MAIN FINDINGS Dealing with construction permits in Brazil requires 22 procedures on average, ranging from 18 in Mato Grosso do Sul and São Paulo to 26 in Maranhão. The process costs the least in the Federal District (0.5% of the warehouse value) and the most in Goiás (2.6%). Dealing with construction permits takes around 11 months on average, but builders in Pernambuco wait almost 18 months to obtain all necessary permits and clearances and undergo all inspections to build a warehouse. Complying with permitting requirements for a commercial warehouse takes 6 months longer in Brazil than the OECD high-income average and twice as long as the BRICS average. Minas Gerais performs best for building quality control, scoring 11 of 15 possible points. Local governments in several states are implementing online platforms to increase the efficiency and transparency of the construction permitting process. Better coordination and integration between agencies could reduce the regulatory burden for construction sector entrepreneurs. 50 Dealing with construction permits 51 T he construction sector is an 6% of GDP. Easing the regulatory in additional delays to project com- important component of burden in the construction per- pletion.2 In addition, the country’s the Brazilian economy, rep- mitting process could bolster this heavy regulatory burden encour- resenting 3.3% of GDP in 2020. sector’s recovery. ages informality by driving build- In 2018, it employed 7.3% of the ers to carry out projects without workforce. The sector suffered the Burdensome regulation can hamper the competent authorities’ review effects of the economic recession investment and employment in the and approval, undermining con- in 2015–17, contracting by 9.4% construction sector. Bureaucratic struction safety. Fewer than 15% annually.1 A modest recovery in hurdles represent additional costs of Brazilians use the services of 2019 helped but the sector was of up to R$18 billion ($3.2 billion) architects or engineers for new severely impacted by the 2020 in Brazil’s construction market; a construction or renovations.3 pandemic with an estimated drop significant share of these costs are of 7% and it remains far from its borne to obtain clearances and per- Construction permitting in Brazil previous economic share of over mits before construction, resulting involves numerous agencies at the BOX 4.1  What does dealing with construction permits measure? To measure the ease of dealing with construction permits, Doing Business records the procedures, time, and cost required for a small or medium-size business to obtain the necessary approvals to build a commercial warehouse and connect it to water and sewerage. This includes all inspections and certificates needed before, during, and after the construction of the warehouse. To make the data comparable across locations, the case study assumes that the warehouse is in the periurban area of the analyzed business city, that it is not in a special economic or industrial zone, and that it will be used for the general storage of nonhazardous materials (such as books). In addition, Doing Business compiles a building quality control index that measures the underlying quality of construction regulations and controls. The index accounts for one-quarter of the ease of doing business score for dealing with construction permits (figure B 4.1). The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. FIGURE B 4.1  Dealing with construction permits measures the efficiency and quality of building regulation Every interaction with an external party (i.e., municipality, inspectors, Rankings are based on Number of procedures scores for four indicators utilities) is considered a procedure; starts with first filing of the to legally build application or request and is completed when the final document or a warehouse service is received (construction permits, utility connections) Days to comply with Cost to comply with formalities to build a + warehouse formalities as % of warehouse value Time required to Time is recorded in calendar days; captures the median complete each duration of each procedure procedure + 25% 25% Time Cost Cost required to 25% 25% complete each Cost is recorded as a % of the warehouse value; captures Procedures Buiilding quality the cost of each procedure control index procedure + Steps to comply with Quality of building Building quality control Assesses the quality of building regulation and its formalities; completed regulation and its index (0–15) implementation when final document implementation is received Source: Doing Business database. Note: For more information, see the chapter About Doing Business and Subnational Doing Business in Brazil 2021 and the data notes. 52 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 municipal, state, and federal levels. fire prevention regulation, their industry good practice. The man- Although wide variations exist involvement with construction ager of the construction project between locations in terms of the permitting is consistent across the must obtain the technical term of time, cost, and complexity of the country, including preconstruc- responsibility (ART for engineers process, builders deal with cumber- tion fire prevention analysis and and RRT for architects) from the some regulation that involves mul- postconstruction final inspection local engineers or architects’ coun- tiple requirements and agencies. and certification. cil, which is also attached to the Brazil could benefit from adopting construction permit application.4 regulatory good practices in the Other bodies and regulations In a majority of states, applicants sector. Local authorities are already involved in the construction must submit a fire prevention implementing some of these prac- permitting process are defined plan to the Military Firefighters tices, which have the potential to nationally. Some are related to Corps for analysis. All 27 loca- improve the efficiency of dealing requirements that are not com- tions require a building license. with construction permits and monly found in other economies Depending on the location, these encourage entrepreneurs to follow analyzed by Doing Business. For and other procedures—obtaining the formal regulatory process when example, the National Registry of the feasibility conditions certif- developing their projects. These Construction Works (CNO) is a icate, debt clearance certificate, good practices include simplifying Federal Revenue Service database water and sewerage preapprovals, permit approval procedures and put in place to guarantee that a tax and environmental licensing— setting up online platforms. States identification number (of a com- must be completed before con- can also learn from each other’s pany or individual) is associated struction begins. good practices. with every construction project. The Federal Council of Engineering Once construction starts, the tech- and Agronomy and the Council nical manager must register the of Architecture and Urbanism of works with the National Registry How does construction Brazil define the terms of regula- of Construction Works. In more permitting work in tions that assign responsibility for than half of locations, the munic- Brazil? one or all aspects of the works to ipality may make inspections; a certified and registered engineer random labor inspections by the Municipal authorities regulate or architect. Nonetheless, these Labor Public Attorneys’ office construction permitting in Brazil are implemented at the state may happen across the country. in accordance with state and fed- level by the Regional Councils of After the building is completed, eral guidelines. Although munic- Engineering and the State Councils the builder must obtain the final ipalities issue building permits, of Architecture and Urbanism, fire inspection report, which state and federal entities also play respectively. requires requesting and receiving a role (figure 4.1). Generally, a final firefighters corps inspec- building codes and urban plan- Before construction, developers tion. The connection to water ning are defined at the municipal must obtain a land ownership and sewerage is also finalized—in level, with decrees and ordinances certificate from the local prop- half of cases, the connection is defining specific regulations. The erty registry, which is commonly preceded by an inspection by the Military Firefighters Corps (Corpo attached to the construction utility company. de Bombeiros Militar) is respon- permit application sent to the sible for reviewing projects and municipalities as proof of own- Obtaining the municipal certificate certifying that new construction ership. Some locations also allow of occupancy (“Habit-se”) is man- complies with fire safety regula- different documents for this pur- datory in all states and generally tions. Traditionally, Brazil’s fire pose, such as the land deed or requires requesting and receiving safety authorities are established sales contract. Obtaining a soil an inspection by the municipality. as military organizations and orga- test and topographic survey from The final steps involve finaliz- nized at the state level. Although private third-party providers for ing registration with the Federal each authority defines its own the preparation of the plans is also Revenue Service, obtaining a Dealing with construction permits 53 FIGURE 4.1  Dealing with construction permits in Brazil requires builders to interact with multiple agencies at various government levels Rio Grande do Norte Mato Grosso do Sul Rio Grande do Sul Santa Catarina Federal District Rio de Janeiro Espírito Santo Minas Gerais Mato Grosso Pernambuco Amazonas Maranhão São Paulo Rondônia Tocantins Roraima Alagoas Paraíba Sergipe Amapá Paraná Ceará Goiás Bahia Piauí Acre Pará BEFORE CONSTRUCTION l Request and obtain information for construction purposes (17 locations) l l l l l l l l l l l l l l l l l l Obtain proof of land ownership from property registry (all but Minas Gerais) l l l l l l l l l l l l l l l l l l l l l l l l l l l Obtain soil test l l l l l l l l l l l l l l l l l l l l l l l l l l l l Obtain topographic survey l l l l l l l l l l l l l l l l l l l l l l l l l l l l Obtain Technical Term of Responsibility (ART/RRT) l l l l l l l l l l l l l l l l l l l l l l l l l l l l Obtain Debt Clearance Certificate (14 locations) l l l l l l l l l l l l l l l Submit project for analysis by Fire Department (all but São Paulo) l l l l l l l l l l l l l l l l l l l l l l l l l l l Request and obtain construction permit/license l l l l l l l l l l l l l l l l l l l l l l l l l l l l Approve hydrosanitary project with the water and sewerage company (14 locations) l l l l l l l l l l l l l l l Request and obtain environmental license (11 locations) l l l l l l l l l l l DURING CONSTRUCTION l Register construction at the National Registry of Construction Works (CNO) l l l l l l l l l l l l l l l l l l l l l l l l l l l l Receive inspection from Municipality (18 locations) l l l l l l l l l l l l l l l l l l l Receive labor inspection from Labor Public Attorneys’ l l l l l l l l l l l l l l l l l l l l l l l l l l l Office AFTER CONSTRUCTION l Request inspection from Fire Department l l l l l l l l l l l l l l l l l l l l l l l l l l l l Receive inspection from the Fire Department l l l l l l l l l l l l l l l l l l l l l l l l l l l l Obtain Final Fire Inspection Report (all but Federal District*) l l l l l l l l l l l l l l l l l l l l l l l l l l l Receive inspection from water and sewerage company l l l l l (16 locations) l l l l l l l l l l l l Request and connect to water and sewage l l l l l l l l l l l l l l l l l l l l l l l l l l l l Request final inspection from Municipality (all but Ceará and São Paulo) l l l l l l l l l l l l l l l l l l l l l l l l l l Receive final inspection from Municipality (all but Ceará and São Paulo) l l l l l l l l l l l l l l l l l l l l l l l l l l Obtain Certificate of Occupancy ("Habite-se") l l l l l l l l l l l l l l l l l l l l l l l l l l l l Close CNO registration and obtain debt clearance certificate l l l l l l l l l l l l l l l l l l l l l l l l l l l l Register building with the property registry l l l l l l l l l l l l l l l l l l l l l l l l l l l l Municipality l Private company l Fire Department l Federal Revenue Service l Property registry l Engineers/Architects' Syndicate l Water and Sewerage Company l Labor Public Attorney's Office Source: Doing Business and Subnational Doing Business database. Note: Unless otherwise noted, the procedure takes place in all locations. The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. *In the Federal District, obtaining the Final Fire Inspection Report does not require an additional interaction and therefore is included in the previous Fire Department procedure. 54 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 federal debt clearance certificate, in Latin America and the Caribbean longer than in LAC. In India and and registering the building with (LAC) and the OECD high-income China, the process is more than the local property registry. economies, requiring 6 and 9 addi- 200 days faster. On the other hand, tional procedures, respectively. The the cost of dealing with construc- comparison is similar with respect tion permits in Brazil is similar to to other BRICS economies. For the OECD high-income econo- How does dealing with example, in the Russian Federation mies’ average of 1.5% of the ware- construction permits and India, only 13 and 15 proce- house value and lower than the in Brazil compare dures are necessary. More complex average of 3.8% in LAC. Among processes can also translate into BRICS economies, the cost is lower regionally and globally? longer delays. Compliance with all than Brazil only in China (1.1%) Dealing with construction permits the permitting requirements for a and Russia (1%). in Brazil requires 22 procedures, commercial warehouse takes six takes 323 days, and costs 1.4% of months longer in Brazil than in the Brazil’s 26 states and the Federal the warehouse value (figure 4.2). average of the OECD high-income District obtain an average score The process is more complex than economies and almost five months of 8.9 out of 15 possible points FIGURE 4.2  The construction permitting process in Brazil is more complex and takes longer than the average of Latin America and the Caribbean EFFICIENCY OF CONSTRUCTION PERMITTING BUILDING QUALITY CONTROL Procedures Time Cost Index (number) (days) (% of warehouse value) (0–15) 1 0 4 economies 0 China, New Zealand 15 Denmark, Korea, Rep. (global best)* India (global best)** Marshall Islands 7 (global best) (global best) 50 0.5 Federal District OECD high income 12 Russian Federation 14 average Mexico 4 locations Russian Federation 13 China 100 Russian Federation 1 India China 14 9 locations OECD high income average 150 Brazil average BRICS average 13 India, Mexico 15 Russian Fed., South Africa OECD high income 1.5 5 locations BRICS average Roraima average BRICS, LAC average South Africa 16 LAC average 200 BRICS average 6 locations Mexico, South Africa 12 7 locations South Africa 2 China 17 OECD high income 250 Amazonas average Mato Grosso, Argentina 18 São Paulo 2.5 Goiás Argentina 11 Minas 6 locations Gerais 19 Argentina 300 3 locations Brazil average Argentina 3 20 Goiás India 10 350 21 8 locations 4 locations 3.5 400 Brazil average 22 4 locations Espírito Santo LAC average 9 20 locations LAC average 4 Brazil average 23 450 9 locations 24 3 locations Santa Catarina 8 6 locations 500 9.5 Maranhão 25 Pará Mexico Pernambuco 26 Maranhão 550 10 0 BRICS = Brazil, Russian Federation, India, China, and South Africa; LAC = Latin America and the Caribbean; OECD = Organisation for Economic Co-operation and Development Source: Doing Business and Subnational Doing Business database. Note: LAC averages are based on economy-level data for the 32 LAC economies. OECD high-income averages are based on economy-level data for the 34 OECD high-income economies. BRICS averages are based on the economy-level data of the 5 economies included in the group. The averages for Brazil are based on the 27 locations benchmarked in Brazil. Other economies are represented by their largest city as measured by Doing Business. The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. * It costs 0.1% of the warehouse value in Barbados, Mongolia, Qatar, and St. Vincent and the Grenadines. ** Hong Kong SAR, China; Luxembourg, Rwanda; Saudi Arabia, and the United Arab Emirates also score 15 on the building quality control index. Dealing with construction permits 55 on the building quality control the 27 locations benchmarked for Municipalities require the soil test index. This performance is on Subnational Doing Business in Brazil in those locations that require an par with the LAC regional aver- 2021. Dealing with construction environmental license. age (9 points) but lower than the permits is easiest in Roraima, average score for OECD high-in- where it takes 19 procedures, 179.5 Municipalities enforce national come economies (11.6) and three days, and costs 1.0% of the ware- regulations according to their local BRICS economies—China (15), house value (table 4.1). Roraima needs. As a result, environmental India (15), and Russia (14). performs strongly across the indi- licensing requirements vary across cators for procedures, time, and Brazil. Getting an environmental China, India, and Russia have cost. It takes only one procedure license, whether phased7 or sim- made significant progress in deal- more in Roraima than in Mato plified, is mandatory in 11 states.8 ing with construction permits Grosso do Sul and São Paulo—the Builders need only a license in recent years thanks to steady best performing states in this mea- exemption in Bahia and Ceará. Rio reform efforts. These economies sure—and Roraima’s process is Grande do Norte is the only state have streamlined the permitting the fastest in Brazil. Dealing with that has merged the environmen- process by either eliminating or construction permits is most diffi- tal license and construction permit merging approvals and certifi- cult in Maranhão, where it takes application processes. A warehouse cations to reduce the number of 26 procedures, 503 days, and costs such as the one analyzed in the interactions that builders have with 1.5% of the warehouse value. Doing Business case study does not the authorities while also enforc- require an environmental license ing time limits for procedures in Procedures in 13 states. Some states require all the phases of the construction supplementary environment-re- process. Online platforms and Dealing with construction permits lated procedures. For example, electronic single windows have in Brazil takes from 18 procedures Ceará and Pernambuco require supported these initiatives. India in Mato Grosso do Sul and São a waste management report, and reduced the number of procedures Paulo to 26 in Maranhão (figure Minas Gerais requires a declaration for dealing with construction per- 4.3). Before construction, any- that the proposed construction is mits from 33 to 15 between 2012 where from 6 to 12 requirements not located in a permanent preser- and 2020, while Russia reduced must be fulfilled depending on the vation area. the time from 265 to 155 days in state. In 17 states, it is either man- the same period. In addition, these datory or good practice to obtain In three states—Amazonas, Espírito economies improved their scores the feasibility conditions certifi- Santo, and Sergipe—the authorities in the building quality control cate, which contains information conduct formal preconstruction index by strengthening profes- for construction purposes.5 In 5 inspections, checking the plot’s reg- sional certification requirements, states,6 this certificate is available istered dimensions and the align- introducing decennial liability and online, and applicants can down- ment and leveling of the terrain and insurance, and implementing risk- load it instantly thanks to the avail- verifying that construction work based inspections. China made the ability of geolocational surveys. has not begun. Other states conduct biggest progress: its score on the In the other 12 states, the local inspections but do not require con- building quality control index rose government may take anywhere struction staff or property owners from 9 to 15 over the past 8 years. from 2 days to 1 month to issue it. to be present. In contrast, some In all states except Minas Gerais, locations check the topographic the developer must obtain current survey against the land ownership proof of land ownership from the certificate. How does dealing with local property registry. Obtaining construction permits a soil test and topographic sur- Sixteen states have some type vary within Brazil? vey is also industry practice in all of municipal inspection during states; these are typically done by the construction phase. Minas The efficiency of the building per- a private licensed company and a Gerais—where the state capi- mitting process varies widely across third-party surveyor, respectively. tal, Belo Horizonte, reformed its 56 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 TABLE 4.1  Dealing with construction permits in Brazil—where is it easiest? Dealing with construction Cost Building quality permits score Procedures Time (% of warehouse control index Location Rank (0–100) (number) (days) value) (0–15) BRICS average 73.2 15.8 171.5 1.7 12.9 LAC average 63.0 15.8 189.0 3.8 9.0 OECD high income average 75.7 12.7 152.7 1.5 11.6 Brazil average (27 locations) 51.4 21.9 323.1 1.4 8.9 Roraima (Boa Vista) 1 63.7 19 179.5 1.0 9 Mato Grosso do Sul (Campo Grande) 2 62.4 18 203 1.5 9 Minas Gerais (Belo Horizonte) 3 61.6 23 187.5 1.6 11 Ceará (Fortaleza) 4 60.1 19 205 1.1 8 Tocantins (Palmas) 5 59.3 22 199.5 1.0 9 Goiás (Goiânia) 6 57.7 20 221.5 2.6 9 Paraná (Curitiba) 7 57.5 23 214 0.8 9 Rio de Janeiro (Rio de Janeiro) 8 57.2 19 267 1.1 9 Paraíba (João Pessoa) 9 55.5 21 240 1.2 8 Piauí (Teresina) 10 52.8 23 279 0.8 9 Acre (Rio Branco) 11 51.7 23 295.5 0.7 9 Bahia (Salvador) 12 51.5 22 292.5 1.8 9 Rio Grande do Norte (Natal) 13 50.6 21 300 1.6 8 Amazonas (Manaus) 14 49.5 23 298.5 2.3 9 São Paulo (São Paulo) 15 48.9 18 382.5 1.2 8 Alagoas (Maceió) 16 48.1 21 352.5 1.9 9 Mato Grosso (Cuiabá) 17 47.6 23 337.5 1.5 9 Santa Catarina (Florianópolis) 18 47.5 21 480 1.2 9 Federal District (Brasília) 19 47.2 24 347.5 0.5 9 Rio Grande do Sul (Porto Alegre) 20 46.6 22 367.5 1.5 9 Amapá (Macapá) 21 46.2 22 397.5 1.5 9 Espírito Santo (Vitória) 22 45.8 23 413.5 0.9 9 Rondônia (Porto Velho) 23 45.5 24 360.5 1.1 9 Sergipe (Aracaju) 24 45.5 23 347 1.4 8 Pará (Belém) 25 44.5 23 519 2.0 9 Pernambuco (Recife) 26 42.3 24 532.5 1.7 8 Maranhão (São Luis) 27 42.0 26 503 1.6 9 BRICS = Brazil, India, Russian Federation, China, and South Africa; LAC = Latin America and the Caribbean; OECD = Organisation for Economic Co-operation and Development Source: Doing Business and Subnational Doing Business database. Note: Rankings are calculated on the basis of unrounded scores, while scores with only one digit are displayed in the table. Rankings are based on the average score for the procedures, time, and cost associated with dealing with construction permits, as well as for the building quality control index. The score is normalized to range from 0–100 (the higher the score, the better). For more details, see the chapter About Doing Business and Subnational Doing Business in Brazil 2021. The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. Dealing with construction permits 57 FIGURE 4.3  Dealing with construction permits is most streamlined in São Paulo and Mato Grosso do Sul and most complex in Maranhão Mato Grosso do Sul 6 3 8 1 18 São Paulo 6 3 8 1 18 Ceará 9 3 6 1 19 Rio de Janeiro 7 2 8 2 19 Roraima 7 3 8 1 19 Goiás 7 3 8 2 20 Alagoas 9 2 8 2 21 Paraíba 8 3 9 1 21 Rio Grande do Norte 7 3 8 3 21 Santa Catarina 8 2 9 2 21 Amapá 8 2 9 3 22 Bahia 8 3 9 2 22 Rio Grande do Sul 8 3 8 3 22 Tocantins 8 3 8 3 22 Acre 8 3 9 3 23 Amazonas 9 3 8 3 23 Espírito Santo 10 3 8 2 23 Mato Grosso 8 3 9 3 23 Minas Gerais 8 5 8 2 23 Pará 9 2 8 4 23 Paraná 7 3 10 3 23 Piauí 10 2 9 2 23 Sergipe 10 2 9 2 23 Federal District 8 3 10 3 24 Pernambuco 11 3 9 1 24 Rondônia 10 3 9 2 24 Maranhão 11 3 9 3 26 0 4 8 12 16 20 24 28 Procedures (number) Preconstruction Construction Postconstruction Utilities Source: Doing Business and Subnational Doing Business database. Note: The Doing Business 2021 data for Rio de Janeiro and São Paulo are not considered official until published by the Doing Business 2021 report. Master Plan in 2019—is the only construction license rather than inspections from the fire depart- state where scheduled inspections checking whether the works com- ment and the municipality, which, occur at different stages of the ply with technical guidelines. If in turn, issue two separate certifi- construction works. The technical they do not have a valid license, cates of occupancy. No location in manager is required to request work can be suspended, and the Brazil allows these final inspec- municipal inspections at the struc- developer may receive a fine. Two tions to be performed jointly. The tural, foundation, and building other common construction phase builder can request the fire depart- phases. Random inspections by procedures are the registration ment final inspection online in 13 the municipality occur routinely at the CNO and the Labor Public states; in others, the request must in 15 states. In these locations, Attorneys’ Office inspection. be made in person. municipal inspectors are primarily concerned with checking whether After construction, the builder The connection to the water and the construction site has a valid requests and receives the final sewage network is also finalized 58 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 after construction. Twenty states9 needed to build a warehouse and management plans (Pernambuco require at least one extra pro- connect it to the water and sewer- and Ceará). The Federal District, cedure apart from the actual age network. Paraíba, and Pernambuco require connection to the utility net- builders to certify that a local art- work—commonly an inspection Many factors influence a prolonged ist’s artwork is displayed in the before construction begins, a permitting process. Building license building. The high number of project preapproval, or both. In approval alone can take anywhere steps underscores the lack of close 2018, less than half (roughly from 10 days in Ceará to 274 days coordination between the various 45%) of Brazil’s urban population in São Paulo. The time needed municipal departments, which had full access to the public water to obtain a building license is the means the applicant must visit network. The figure for access to main factor behind the lengthy multiple locations to submit doc- sewage treatment is even lower, overall permitting process in umentation and obtain approvals. with only five states rising above Maranhão and São Paulo–where 70% sewerage coverage and three it takes twice as long as the aver- Cost states with coverage under 10%.10 age. Reported reasons for delays in For example, in the capital cities issuing the license include a lack The cost of dealing with construc- of Alagoas and Santa Catarina, of personnel in project analysis tion permits in Brazil ranges from where public sewerage coverage teams, low-quality architectural 0.5% of the warehouse value in ranges from 20% to 40%, the projects, and the need for revi- the Federal District to 2.6% in municipal sanitation department sions. In contrast, Fortaleza (Ceará) Goiás (figure 4.5). Entrepreneurs must approve the hydrosanitary implemented a new approach for face a lower cost in the Federal project for the waste manage- issuing building licenses in 2016 District mostly due to relatively ment solution in case it requires that places a stronger emphasis on modest construction permit and the installation of a septic tank or the private sector’s responsibility fire department fees. The higher wastewater disposal station. to comply with regulations and cost in Goiás is mainly on account makes use of an online platform to of a higher occupancy certificate Ceará and São Paulo forgo the final expedite the process (box 4.2). fee. Brazil’s average cost is 1.4%, municipal inspection in exchange well below the LAC regional aver- for a declaration of responsibility In all locations, other formali- age (3.8%). from the project executor. In eight ties also add to the length of the states, builders are also required to process. The time to obtain the Municipal fees and private sector obtain a certificate of municipal tax municipal occupancy certificate costs (soil test and topographic payment before requesting the cer- is twice the national average in survey) contribute the most to tificate of occupancy.11 After these Pernambuco. A separate environ- the total cost, representing 40.5% steps, builders in all locations can mental license can add anywhere and 32.3%, respectively. They are proceed to close the record at the from 22 days in Paraíba to 135 followed by property registry fees CNO and register the new building days in Sergipe to preconstruction (14.4%), utility connection costs at the real estate registry. requirements. (6.5%), fire department project approvals (5.3%), and profes- Time The time to obtain a soil test and sional association approvals (1%). a topographic survey varies from The time to deal with construction four days in Roraima to one month Each municipal council sets build- permits varies from six months in Paraíba. Many states require ing permit and occupancy certifi- in Roraima to almost two years additional preapproval steps that cate fees independently. Generally, in Pernambuco (figure 4.4). In increase the complexity of the the permit cost consists of a four states (Maranhão, Pará, process, such as preconstruc- fee–updated annually–per square Pernambuco, and Santa Catarina), tion inspections (Amazonas and meter of the constructed area builders wait over 16 months Sergipe), traffic-related autho- plus an administrative fee. The to obtain all permits and clear- rizations (Amazonas, Maran- building permit cost represents ances and undergo all inspections hão, and Rondônia), and waste 22% of the total permitting cost Dealing with construction permits 59 FIGURE 4.4  Dealing with construction permits takes almost a year longer in Pernambuco than in Roraima Roraima 45 24 37 7 66.5 179.5 Minas Gerais 62 49 34 14 28.5 187.5 Tocantins 23 38 40 12 86.5 199.5 Mato Grosso do Sul 35 53 45 12 58 203 Ceará 10 34 35 60 66 205 Paraná 95 33 23 15 48 214 Goiás 75 30 71 11 34.5 221.5 Paraíba 60 25 45 30 80 240 Rio de Janeiro 150 29 28 30 30 267 Piauí 120 45 30 7 77 279 Bahia 120 60 59 35 18.5 292.5 Acre 120 30 49 30 66.5 295.5 Amazonas 90 45 75 15 73.5 298.5 Rio Grande do Norte 50 60 51 10 129 300 Mato Grosso 135 42 23 20 117.5 337.5 Sergipe 90 45 30 30 152 347 Federal District 105 45 61 13 123.5 347.5 Alagoas 90 60 90 15 97.5 352.5 Rondônia 165 13 53 10 117.5 360.5 Rio Grande do Sul 150 53 45 60 59.5 367.5 São Paulo 274 29 28 30 21.5 382.5 Amapá 150 60 45 15 127.5 397.5 Espírito Santo 180 40 40 75 78.5 413.5 Santa Catarina 210 30 53 15 172 480 Maranhão 240 45 55 20 143 503 Pará 180 45 90 75 129 519 Pernambuco 150 65 101 45 171.5 532.5 0 40 80 120 160 200 240 280 320 360 400 440 480 520 560 600 Time (days) Building permit Fire safety certificate Occupancy certificate Water connection Other formalities Source: Doing Business and Subnational Doing Business database. Note: The Doing Business 2021 data for Rio de Janeiro and São Paulo are not considered official until published by the Doing Business 2021 report. on average, ranging from 0.04% fee is multiplied by the number to R$4,198.77 in Mato Grosso. of the warehouse value in the of months the construction works On average, fire-related project Federal District to 0.8% in Minas will last. The occupancy certificate approvals (including the fire pre- Gerais, where it represents 50% ranges from no cost in São Paulo vention plan analysis and final of the total cost. In some states, to 1.3% of the warehouse value fire inspection report) amount to including São Paulo and Espírito (R$21,342.38, or $5,819.61) in 0.07% of the warehouse value. Santo, municipalities charge sep- Goiás, or 50% of the total cost. The exception is São Paulo, where, arately for the project analysis and since 2020, buildings with a total construction approval before issu- The soil test and topographic built area of up to 1,500 square ing the building permit. In other survey cost R$4,734.26 and meters fall into the Simplified cases, including the municipalities R$2,713.67, respectively, on Technical Project (PTS) category, of Manaus (Amazonas) and Rio average. Fire department fees exempting them from precon- de Janeiro (Rio de Janeiro), the vary from R$211.04 in Tocantins struction project approval. 60 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 BOX 4.2  The rise of responsibility-based permitting in Brazilian states Lengthy project analyses by municipal officials are a bottleneck to dealing with construction permits in Brazil. Fast approvals can reduce bureaucratic delays and expedite the licensing process. In Fortaleza (Ceará), a pioneer in this area, it currently takes just 10 days to issue a construction license, significantly faster than the national average of 118 days. In Fortaleza, construction licensing is done through Fortaleza Online, the municipality’s online one-stop shop. The system uses the information entered by the applicant to categorize the project using a parametrized form incorporating municipal regulation (land use and occupation law, city code, and Master Plan). After categorizing the construction, the applicant pays the permitting fee, and the system issues the construction permit without any review by the municipality. The property owner—or a certified professional responsible for project design or execution—signs a Term of Responsibility. Fortaleza’s implementation of responsibility-based permitting began in early 2016 for buildings of up to 750 square meters; it was later expanded to larger total built areas.a In 2018, a municipal decree reduced the number of documents required in the construc- tion permit application from 20 to 9. The municipality saw a significant reduction in time compared to the 60 days the process took previously. The process in Belo Horizonte (Minas Gerais), Alvará na Hora, also relies on a robust online platform. It benefits from thorough geo- graphic information system mapping, empowering straightforward legal basis application by staff, and ready-to-go informational reports for builders. Municipal staff analyzes the submitted documentation, but builders no longer must undergo a lengthy project analysis.b Fortaleza and Belo Horizonte follow different strategies to assure that responsibility-based permitting does not negatively affect building safety. Fortaleza’s municipal secretary established formal agreements with the engineers’ council (Crea-CE) and local law enforcement to ensure that professionals who do not meet quality requirements are prevented from using the expedited process in the future and face civil and criminal charges. Belo Horizonte requires that projects approved using the fast-track option receive phased inspections during construction. Both initiatives have increased adherence to formal construction permitting regulations and allowed municipal staff to focus time and resources on more complex projects. Other municipalities are following suit. In Palmas (Tocantins), which established a simplified permitting process in 2018, the ar- chitectural project is presented at the conclusion of the works with the understanding that the design is the sole and exclusive responsibility of the certified author of the project. Campo Grande (Mato Grosso do Sul) aims to use its existing online platform to offer responsibility-based permitting soon. a. Kossling, Carol. 2016. “Fortaleza lança alvará de construção online.” Diariodonordeste.com, January 5. https://diariodonordeste.verdesmares.com.br/negocios/fortaleza-lanca-alvara-de-construcao-online-1.1466746. b. Prefeitura de Fortaleza. 2019. Fortaleza Online. Fortaleza, Brazil: Prefeitura de Fortaleza. https://cbic.org.br/industriaimobiliaria/wp-content/uploads/sites/20/2019/04/Agueda_Fortaleza.pdf. Water and sewerage connection are not, the utility company may for the land ownership certifi- costs also diverge, depending on assume the cost. Water and sew- cate. Building registration fees12 network availability. Many urban erage connection fees vary signifi- range from R$189.7 in Ceará to areas lack access to water and pub- cantly, ranging from R$128.1 in R$14,375.8 in Amazonas (where lic sewerage networks, so connec- Amapá to R$6,429 in Goiás (15% these fees represent 38% of the tion costs may include installing a of the total cost). total cost). septic tank or wastewater disposal station. The builder pays for a net- Property registry fees also vary Together with its regional councils, work extension to connect to the across states. Builders pay from the Federal Council of Engineering public network where public net- R$22.8 in Santa Catarina to and Agronomy (CONFEA) sets works are available. Where they R$147 in Rio Grande do Norte the cost of the Technical Term of Dealing with construction permits 61 FIGURE 4.5  In many cities, municipal fees comprise much of the cost of construction permits Share of warehouse value (%) 3.0 2.6 2.5 2.3 2.0 2.0 1.9 1.8 1.7 1.6 1.6 1.6 1.5 1.5 1.5 1.5 1.5 1.4 1.2 1.2 1.2 1.1 1.1 1.1 1.0 1.1 1.0 0.9 0.8 0.8 0.7 0.5 0.5 0.0 iás onas rá as ia o is te o so ul ul á e lo a a ro ia rá a ns to á uí cre trict Go Pa ago Bah buc Gera Nor anhã ros do S do S map ergip Pau tarin araíb anei dôn Cea raim anti San aran Pia A is az Al a m s d o a r o G o e A S ã o C a P J o n R o o c t o P lD Am rn Pe Min ande a M t ss nd S nta de R T pír i era Ma Gro Gra S a R i o E s Fe d Gr to Rio Rio Ma Municipal fees Private sector studies Water and sewage Property registry Fire department Professional association Source: Doing Business and Subnational Doing Business database. Note: The Doing Business 2021 data for Rio de Janeiro and São Paulo are not considered official until published by the Doing Business 2021 report. Responsibility (ART), a document Going beyond efficiency— insurance regimes, and profes- defining responsibility for the the building quality control sional certifications indices. The execution of works or services. index index ranges from 0 to 15 points, The cost of the ART, which is with higher values indicating required under federal law for all The building quality control index better quality control and safety construction projects, is standard- is based on six indexes: the qual- mechanisms in the construction ized for all locations nationwide, ity of building regulations, qual- regulatory system. The bench- for contracts up to R$15,000, at ity control before, during, and marked locations in Brazil score R$233.94. after construction, liability and between 8 and 11 points on the 62 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 building quality control index, phased inspections during con- a registered member of the council with an average score of 8.9. struction (1 point). of architects or engineers; a mini- Building regulations are easily mum number of years of practical accessible (1 point), and require- A final, legally-mandated munici- experience is not required (1 point). ments for obtaining a building pal inspection is common practice The same requirements apply to the permit are clearly specified (1 across Brazil to obtain the occu- professional conducting the techni- point) in all benchmarked loca- pancy certificate. Some locations cal inspections during construction tions except Paraíba, Rio Grande accept reports signed by in-house (1 point), except in Ceará, where do Norte and Sergipe, where the or external supervising engineers the officers from the inspection entrepreneur must request the as a valid declaration (2 points). agency are not required to have a fee schedule. This information is In place of the final inspection, university degree or be registered usually accessible on official web- since April 2020 Rio Grande do with the council or architects or sites, although it can be unclear Sul has accepted a declaration engineers. or convoluted. In July 2020, by the technical manager certify- Florianópolis (Santa Catarina) ing its conclusion and regulatory began compiling all construction compliance. In practice, the final permitting-related fees and taxes inspection takes place in all loca- What are the challenges into a single and comprehensive tions (1 point) except São Paulo, and good practices? document. Other state capitals, where the responsible technical including Goiás, Alagoas, and engineer does not always submit Sound construction regulation Bahia, publish their fee schedules a final report. that ensures quality standards for online, allowing users to easily new buildings protects the public calculate the cost of building per- The Brazilian Civil Code establishes interest. Such regulation, how- mits and occupancy certificates. the liability of the construction ever, requires effective enforce- company in charge of the build- ment mechanisms managed by A municipal licensed architect ing works and materials regarding qualified and accountable pro- or licensed engineer is part of their strength and safety for five fessionals. Economies that follow the committee that reviews and years.13 Generally, the architect or good practices in construction approves building permit appli- engineer who designed the build- permitting consider both the cations in all locations. Ceará ing plans and the professional or efficiency and predictability of recently implemented a system agency that conducted technical the permitting process and leave that automatically approves build- inspections may also be held legally little room for discretionary prac- ing permit applications without liable for latent defects such as tices. Before the COVID-19 pan- prior analysis from the municipal structural flaws or problems in the demic, some states across Brazil urban office. The independent building once it is in use (1 point). were already starting to adopt architect or engineer who pre- However, no parties are legally such practices. The public health pared the plans must submit an required to obtain a latent defect emergency created an impetus to attestation stating that the plans liability or decennial (10-year) lia- move forward with facilitating the comply with building regulations bility insurance policy. In practice, building permitting process (box (1 point). unless stipulated in a contract, it 4.3). is not commonly obtained by any Municipalities are not legally man- party (0 points). Simplified procedures across dated to conduct technical inspec- the permitting process tions at different stages during In all locations, regulations mandate construction. However, officials can that the professional responsible for With an average of 22 procedures, carry out unscheduled inspections verifying the regulatory compli- Brazil’s states could improve the following a complaint (0 points), ance of the architectural plans or ease of dealing with construction except in Minas Gerais (1 point). drawings have a university degree permits by streamlining or consol- In practice, only in Minas Gerais (a minimum of a bachelor’s) in idating some steps to reduce the the municipality always conducts architecture or engineering and be number of interactions undertaken Dealing with construction permits 63 BOX 4.3  Dealing with construction permits during COVID-19 The global COVID-19 pandemic disrupted the normal operations of public agencies involved in construction licensing processes. Local authorities took varying approaches to maintain the most necessary procedures while reducing face-to-face service delivery. Most locations experienced delays and some paused operations–for three weeks in Tocantins and a week in Maranhão and Acre. Some locations postponed occupancy certificate inspections. Others, for example Mato Grosso do Sul, conducted inspections using alternative methods like video chat calls. Rio Grande do Norte and Rio Grande do Sul required a report submitted by an in-house supervising engineer. Most municipalities that continued carrying out on-site inspections adapted to the new security measures and limited the work of inspectors from vulnerable groups. A common consequence of the pandemic has been the acceleration of technological transformation. Municipalities adapted their operations by setting up institutional emails, adding phone lines, and creating accounts in messaging or video chat apps. At the same time, in-person procedures were either interrupted or required a prior appointment. São Paulo and Bahia created new email accounts and opened additional phone lines at the start of the pandemic. Those municipalities with fully or partially online platforms to request a building permit before the pandemic improved its features or developed future action plans. For example, Ceará and Pernambuco are currently working toward including the occupancy certificate in their online platforms. Other localities—Paraná, Sergipe, and Alagoas—are transitioning to online platforms. Rio Grande do Sul is implementing a fully online platform for completion in 2021. Similar to the municipalities, Brazil’s firefighters corps kept both an online and limited face-to-face system. In Sergipe, Amazonas, and Espírito Santo, firefighters maintained a face-to-face system, but only with scheduled appointments. Amazonas provided cus- tomized appointments for general information or technical support. The firefighters corps in Rio Grande do Sul is using a fully online system: users can complete all steps through the platform, and inspections are only required for high fire risk buildings. by builders. For example, munic- the feasibility conditions certificate serving as a more affordable tool for ipalities could streamline the first. land use planning and better build- process to obtain the feasibility ing licensing. conditions certificate. This doc- Improving in this and other areas ument certifies a construction will require updated, comprehen- In Porto Alegre (Rio Grande do project’s viability in a specific land sive, and easily-accessible urban Sul), thanks to an electronic plat- plot and indicates which entities planning data. In Brazil, 80% of the form, it takes only 0.5 days and no must be consulted to obtain their 5,570 municipalities have a digitized cost for the municipality to issue the legally required clearances.14 It can cadaster, but only 21% have geo- municipal informative declaration help builders prepare their project referenced cadastral information, certificate (DMI). The DMI provides and license applications and avoid undermining their reliability and useful and detailed information, delays. In Brazil, most municipali- usefulness for urban planning.15 including urban data for a given ties issue this certificate manually; Further progress in this area can land plot plus zoning requirements, gathering all the information on be achieved through the National land use and occupation conditions, the requirements, documents, and System of Land Information information on the water and sew- approvals takes civil servants a Management (Sistema Nacional de erage network, and environmental substantial amount of time. Delays Gestão de Informações Territoriais, and cultural restrictions, among in issuing the certificate and paying SINTER), which seeks to integrate others.17 Builders can download fees—together with the large num- fiscal, cadastral, and geospatial data this certificate immediately using ber of documents required—can from across the different levels of only the property address or file discourage builders from apply- government (federal, state, and number. ing. Instead, they may choose to municipal).16 When implemented, submit the construction project this platform has the potential Municipalities could also combine directly for a preliminary project to provide data to municipalities different preapprovals into fewer screening rather than requesting faster and with more transparency, steps, saving the entrepreneur from 64 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 interacting with various depart- registration number, qualification the OSC, for construction permits ments in the same municipality. In identification number, signature, in 2012. Before its establishment, Pernambuco, for example, builders and stamp/statement that the applicants had to submit approval need to obtain five clearances and person has reviewed and taken requests to at least 14 different approvals from different depart- responsibility for the design activi- authorities. With the OSC, builders ments within the municipality ties. Such professionals must be reg- interact with a single contact point of Recife before requesting the istered with the Ontario Ministry that distributes applications to the building license. In contrast, in Rio of Municipal Affairs and Housing relevant technical departments Grande do Norte, the construction after passing a qualifications exam. (including planning, fire and res- license application also includes In case of noncompliance with the cue, water, sewerage, and electric- documentation to obtain the traf- code, the professional can have her ity, among others), monitors their fic and environmental license. registration suspended or revoked progress, and enforces response Moving in this direction can make by the Ministry. Local authorities time limits. Today, it takes 30 days the approval process less burden- could also consider eliminating for builders to obtain the approval some for builders. In 2014, the procedures that are not common to begin the construction works in municipality of Puebla, Mexico, practice for the construction per- Kuala Lumpur. streamlined the permitting process mitting process in other econo- by merging five different approv- mies. For example, the Federal Online platforms can facilitate the als–alignment certificate, land use District, Paraíba, and Pernambuco integration of services from differ- permit, environmental conditions, could remove the requirement ent agencies and the creation of waste management plan, and the to certify that an artwork from a electronic one-stop shops. Several construction permit itself–into a local artist has been placed in the locations in Brazil have already single approval. building. implemented online platforms for submitting and approving construc- Local authorities could also con- Better coordination between tion permits. In Rio Grande do Sul, sider reworking some procedures government agencies and the municipality of Porto Alegre in Brazil that are not common in introduction of online is finalizing a fully online building other Doing Business economies. platforms permitting process that also redi- In Brazil, engineers and architects rects documents to the water and need to obtain a technical term of Builders in Brazil have to deal sewerage services as well as the his- responsibility from the correspond- with agencies at three levels of torical and cultural heritage office ing council of engineers (ART) or government to obtain the clear- (EPAHC). In Piauí, the municipal- architects (RRT) registering every ances and approvals to complete a ity of Teresina implemented an contractual relationship related construction project. Even at the online system, Construa Fácil, in to a construction project. Having municipal level, there is usually July 2019 through which builders an ART or RRT provides certainty no link between the main secre- submit their application to the cor- that the professional in charge of taries that regulate the construc- responding Urban Development executing the task possesses the tion sector (urban, environment, Superintendency (SDU), who, in necessary qualifications. In other sanitation, traffic, and tax office). turn, reviews it and redirects it to economies, the registration of a Instead, they tend to work in silos. other corresponding agencies as contractual relationship is not a necessary. The tax office and the required step in the permitting The integration of processes from SDU are connected and update process. Instead, engineers or various agencies through one- each other about the permits issued architects include their profes- stop shops and online platforms and the taxes paid, eliminating the sional registration number in the can minimize the number of need to obtain a debt clearance documentation when requesting interactions and reduce the time certificate. the building permit. In Toronto, to obtain a building permit and Canada, when of applying for other approvals. In Malaysia, Such platforms could go beyond a building permit, the drawings for example, the city of Kuala simply enabling the submission of must include the designer’s name, Lumpur created a one-stop shop, documents and instead allow users Dealing with construction permits 65 to interact with project analysts projects and conduct inspections time to obtain a building license from the municipalities, submit cor- can result in delays. Municipalities in Bogotá has decreased from 3 rections, and track the status of the across Brazil could consider years to 42 days. Nevertheless, request, among other features. In increasing the role of private urban curators are not involved Mato Grosso do Sul, the municipal- sector professionals in these in conducting inspections, which ity of Campo Grande implemented tasks to enhance the efficiency are still carried out by the munic- an online system for the approval of the permitting process. Private ipality. In contrast, in 2010, North of architectural projects. Through sector participation could help Macedonia allowed independent this platform, users can submit the local authorities to allocate their supervising engineers to conduct requests for a building permit and resources better, prioritizing more inspections during construction the associated documents in digital complex or riskier projects. Other for low-risk projects instead of format. Information on feasibility economies have increased the municipal employees. Engineers conditions and zoning require- scope of private sector participa- can also prepare a final report ments is also available online. Users tion in the area of inspections. upon construction completion can also schedule appointments For example, in France, build- instead of requiring officers from with analysts from the municipality, ers must hire specialized firms the municipality to inspect the track the progress of their requests, (technical controllers) to conduct building and issue the certificate and submit corrections to their technical inspections during con- of occupancy. projects. Thanks to this platform, struction. Other economies have issuing a building license takes 25 gone further. In Australia, pri- Authorities that opt to pursue this days in Mato Grosso do Sul—one of vate building surveyors directly strategy should consider the bene- the shortest times in Brazil for this oversee building design, control, fits and costs. While the efficiency procedure. and inspection. In both cases, of the process may improve, the these professionals must meet the costs borne by builders can also Online platforms have proved technical and experience require- increase. The authorities should successful in other countries. ments according to the law and be also ensure that transparency In Denmark, since 2014, the certified by the authorities. In case and accountability standards–and national platform Byg og Miljø of noncompliance with the regu- strict oversight and qualification (Construction and Environment) lations, they are subject to legal safeguards–are in place to protect allows builders to submit appli- liability and disciplinary action. the public interest. cations for permits online in an integrated process that includes Reliance on private firms can Risk-based approach for examining the area plan, checking bring benefits in terms of process building licensing plans and drawings, checking the efficiency, particularly in con- site plan, securing fire department texts where local governments Risk-based systems for the analysis permissions, issuing a temporary have reduced resources related to and approval of building licenses building permit, issuing the struc- budgetary constraints and insuf- specify how projects are evaluated tural engineer certificate, check- ficient qualified staff. Colombia and inspected depending on the ing the rainwater drainage, and introduced the role of the urban level of risk they represent. With checking building compliance with curator in 1995 to expedite the this, authorities can focus their real estate registry regulations. plan approval permitting process. resources and time on analyzing Thanks to this platform, builders in Urban curators are private profes- high-risk buildings such as those Copenhagen can obtain a building sionals responsible for evaluating, located in challenging terrain, permit in 21 days. processing, and issuing con- environmentally sensitive areas, struction licenses. They must be or built for certain purposes that Increased private sector licensed professionals in the areas require stricter safety guidelines participation of architecture, engineering, or (such as hospitals or schools). urban planning with a minimum With more stringent reviews The lack of sufficient munici- number of years of experience. applied to more complex projects, pal staff to review construction Since their establishment, the the authorities can implement 66 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 fast-track approval procedures for to the law in 2017 allowed the the architect or engineer, the lower-risk buildings. A risk-based classification of construction proj- professional responsible for the approach could also lower costs ects into three categories depend- supervision, and the construction without compromising safety as ing on their potential dangers to company—obtain decennial lia- more complicated or risky projects the occupants’ well-being and bility insurance for buildings with can be required to go through the associated material and social a plot area of 750 square meters additional approvals or inspec- damage of potential building and above. tions, while low-risk projects are integrity problems.18 Less com- automatically exempted from cer- plex buildings now have a more tain clearances. This approach also streamlined approval process; the helps to differentiate costs for proj- construction permit was replaced ect approvals, with riskier building with a requirement to notify the projects paying higher fees for the authority of the start of the con- additional time dedicated to their struction works. analysis. Medium and low-risk projects would benefit from lower Mandatory liability insurance fees reducing the overall cost of requirements regulatory compliance. In Brazil, architects of record The Economic Freedom Act, and building engineers must be together with Resolution No. registered with their respective 64/2020, which addresses inte- professional councils and issue a grated urban licensing, moves in responsibility term for each con- this direction at the national level struction they design or oversee. by establishing streamlined con- This procedure—recorded in all struction license and occupancy benchmarked locations—makes permit approvals, among other them liable automatically for procedures, for lower-risk proj- eventual structural flaws or ects. The implementation of this building problems for five years initiative is pending, and discus- after the end of construction.19 sions are ongoing with relevant However, Brazil does not require stakeholders to refine its details that any of the parties involved and ensure that safeguards remain in the construction process obtain in place. latent defect liability (or decennial liability) insurance. Brazil could None of the 27 locations analyzed consider adopting legislation in this study use a risk-based that would make getting such system for approvals of building insurance mandatory, covering licenses. While some municipali- the building and professionals ties allow simplified processes for involved in its design and execu- small constructions up to a certain tion. Doing so would not only ben- size, a risk-based approach goes efit these professionals but would beyond this, taking into account also decrease liability risk in new additional elements such as occu- projects, potentially impacting the pancy and use, which are used to construction industry in a posi- develop a classification that deter- tive manner. Brazil could follow mines the level of scrutiny a proj- the example of India (Delhi and ect receives. Ukraine implemented Mumbai), which since 2018 has a risk-based system for building required that all parties held lia- approvals in 2012. Amendments ble for structural flaws—namely Dealing with construction permits 67 12. The total cost includes notaries charge (this service is online). Notes fees, court fees, Public Ministry Porto Alegre is seeking to fees, and General Attorney include more layers of data into 1. Câmara Brasileira da Indústria Office fees. the digital platform from other da Construção, 13. Articles 618 and 622 of Law suppliers, such as gas, electricity http://www.cbicdados.com 10,406 of 2002 (Brazilian Civil and telecommunications. .br/menu/pib-e-investimento Code). 18. Article 32 of Law of Ukraine of /pib-brasil-e-construcao-civil. 14. The name of the certificate varies February 17, 2011 No. 3038-VI. 2. Câmara Brasileira da Indústria across municipalities in Brazil: On the regulation of town- da Construção. 2014. O Custo da certidão de diretrizes, consulta planning activity. https://zakon Burocracia no Imóvel. São Paulo: prévia de obras, consulta de .rada.gov.ua/laws/show/3038 Câmara Brasileira da Indústria viabilidade para construção, -17#Text. da Construção. http://www among others. It may include 19. Rizzo, Melina. 2015. .cbicdados.com.br/media/anexos information about the “Responsabilidade civil do /Custo_da_Burocracia_no_Imovel construction feasibility and land engenheiro.” Jusbrasil, Salvador. .pdf. use depending on the activity https://melinarizzo.jusbrasil.com 3. Conselho de Arquitetura e of the new construction. It can .br/artigos/249955488/ Urbanismo. https://www.caubr be issued as a single certificate responsabilidade-civil-do .gov.br/pesquisa2015/. or separated into different -engenheiro. 4. ART stands for Anotação de certificates. Responsabilidade Técnica, 15. All the municipalities covered RRT stands for Registro de by this study have a digitized Responsabilidade Técnica. cadaster; in 23 locations, the 5. Acre, Alagoas, Amapá, Ceará, cadaster also has georeferenced Espírito Santo, Goiás, Maranhão, data; IBGE (Instituto Brasileiro Mato Grosso, Minas Gerais, Pará, de Geografia e Estatística). 2020. Paraná, Piauí, Rio Grande do Perfil dos municípios brasileiros: Sul, Rondônia, Santa Catarina, 2019. Rio de Janeiro: IBGE, Sergipe, and Tocantins. Coordenação de População e 6. Ceará, Espírito Santo, Minas Indicadores Sociais. Gerais, Paraná, and Rio Grande https://biblioteca.ibge.gov.br do Sul. /index.php/biblioteca-catalogo? 7. This commonly includes the view=detalhes&id=2101770. preliminary license, installation 16. SINTER was created by Decree license, and operating license. 8,764 of May 10, 2016, and 8. Alagoas, Amazonas, Espírito placed under the management of Santo, Maranhão, Mato Grosso, the Federal Revenue Service. Pará, Paraíba, Pernambuco, 17. The information includes: zoning, Piauí, Rondônia, and Sergipe. building indexes, permitted 9. Except for Bahia, Ceará, heights, urban conditions for Mato Grosso do Sul, Paraíba, land use and occupation, urban Pernambuco, Roraima, and São planning (density, activity, index Paulo. of utilization and volumetry), 10. Data are from the Sistema administrative restrictions/ Nacional de Informações limitations, building alignments, sobre Saneamento (SNIS). and water and sewage network 2019. Diagnóstico dos Serviços location (water, cloacal sewage, de Água e Esgotos – 2018. rainwater sewage), eliminating Ministério de Desenvolvemento the need for viability certification Regional: Brasília. Only 2,639 by the DMAE (Municipal municipalities are registered Department of Water and at SNIS; the data come from a Sewage). The DMI also provides representative sample of water information about environmental companies. http://www.snis.gov and cultural areas, and their .br/diagnosticos. protection; listed or inventoried 11. Acre, Amapá, Mato Grosso, goods; and airport restrictions. Paraná, Piauí, Rio Grande do It is required for obtaining the Sul, Rondônia, and São Paulo. building approval and free of CHAPTER 5 Registering property MAIN FINDINGS Transferring property in Brazil takes on average 15 procedures, 39 days, and costs 3.2% of the property value. The process is the most procedurally complex globally but is faster and less expensive than its regional peers. It is easier to transfer property in São Paulo and more challenging in Amapá. São Paulo stands out for having the most streamlined and fastest process as it centralizes most of the due diligence procedures in an online one-stop shop. On the quality of land administration index, Brazil scores 14 out of 30 possible points—slightly above the Latin America and the Caribbean regional average (12 points). Rio de Janeiro scores the highest (17 points) within Brazil. Even so, ample room remains to improve in terms of geographic coverage in land ownership registration and cadastral mapping, as well as in transparency of land-related information. Brazil’s main challenges lie in streamlining processes and reducing time. Future initiatives could target strengthening electronic systems that integrate the agencies involved in the registration process and better coordination among stakeholders, including the automation of property assessments and taxpayer records updates. 68 Registering property 69 B razil, the fifth-largest coun- registration and foster land ten- As measured by Doing Business try in the world, has con- ure informality. An environment (box 5.1), Brazil’s property trans- tinental dimensions. Of its where property rights are secure fer process is procedurally the 8.5 million square kilometers of creates incentives to invest in most bureaucratic in the world. territory, 98% is rural.1 Despite one’s property and facilitates Most steps involve gathering its vast rural area, Brazil is an access to credit. Property titles information on the property and urban country with 87% of the can serve as a valuable insurance the seller, reflecting the persistent population living in urban cen- and savings tool for families, pro- legal uncertainties surrounding ters.2 However, roughly half of the viding protection during difficult property rights. Despite its proce- urban population lacks legal own- economic times.6 A 2016 study dural complexity, Brazil’s process ership rights of their homes.3 With shows that urban land titling is faster and less expensive than its secure land and property rights programs in Brazil positively Latin American peers. This relative widely recognized as important to impact access to credit from for- efficiency is largely because many wealth creation—and at the heart mal institutions, increase durable certificates checked as part of the of the Sustainable Development goods consumption, and reduce due diligence process are issued Goals4—providing an efficient, child labor.7 For governments, instantly online and at no charge. high-quality land administration having a reliable, integrated, system is critical to supporting and updated system of territorial At the subnational level, register- investment, productivity, and eco- information––both registry and ing a property transfer is easiest nomic growth.5 cadastral––is not only essential in São Paulo and most difficult in to assess and collect tax revenues Amapá. São Paulo is the fastest Legal uncertainty, bureaucratic correctly; it also facilitates stra- and most procedurally efficient barriers, and prohibitive costs tegic planning for urban services location thanks to the widespread discourage formal real estate and infrastructure. use of an online one-stop shop BOX 5.1  What do the registering property indicators measure? Doing Business records the full sequence of procedures, time, and cost necessary for a business (the buyer) to purchase a commer- FIGURE B 5.1.1  Registering property: land cial property from another business (the seller) and to formally administration system efficiency and quality transfer the property title to the buyer’s name. The process starts Rankings are based on scores for four components with obtaining the necessary documents, such as a recent copy of the seller’s title, if necessary, and conducting due diligence as Days to transfer Cost to transfer property between property, as % of required. The transaction is considered complete when it is op- two local companies property value posable to third parties and when the buyer can use the property for expanding his or her business, as collateral for a bank loan or resell it. Every procedure required by law or necessary in practice Time Cost is recorded, whether it is the responsibility of the seller or the 25% 25% buyer and even if it must be completed by a third party on their 25% 25% Procedures Quality of land behalf. In addition, Doing Business assesses the quality of the administration index land administration system (figure B 5.1.1) through an index that has five dimensions: reliability of infrastructure, transparency of Steps to transfer property Reliability, transparency, and coverage information, geographic coverage, land dispute resolution, and so that it can be sold or of land administration system; used as collateral protection against land disputes; and equal ownership rights to property. equal access to property rights The Doing Business 2021 data for Rio de Janeiro and São Paulo, Source: Doing Business database. as well as for comparator economies and regional averages, are Note: For more information, see the chapter About Doing Business and not considered official until published by the Doing Business Subnational Doing Business in Brazil 2021 and the data notes. 2021 report. 70 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 that connects government agen- of property assessments and tax- The property transfer process cies and centralizes obtaining payer records updates. involves three main institutions: many due diligence certificates. (i) the property registry (Cartório Conversely, entrepreneurs in de Registro de Imóveis), which Amapá conduct each search sep- operates at the city level and is arately and back-office operations How does registering responsible for maintaining own- at the tax authority are fully paper- property work in Brazil? ership records under its assigned based, delaying transfer tax pay- geographical jurisdiction; (ii) the ment. Together with Rio Grande Brazil’s legal framework governing public notary (Tabelionato de do Norte, Amapá also scores the property registration is national— Notas), responsible for formalizing lowest nationwide for the quality mainly the Civil Code and the agreements;9 and (iii) the munici- of land administration. Brazil’s Federal Laws on Public Registry and pality, charged with maintaining recent reform efforts include the Notary and Registry Services.8 States the fiscal cadastre, collecting the implementation of electronic have leeway to adapt these laws to property transfer tax, and assessing systems integrating the agencies local conditions. At the federal level, property values. Both the property involved in the registration pro- the National Council of Justice issues registry and the public notary are cess. Future reforms could target general guidelines for the provision private entities offering a public better coordination among stake- of registry and notary services, and function on concession by the holders, including the automation state courts enforce them. Federal Constitution10 (box 5.2). BOX 5.2  Property registration in Brazil: from local parishes to electronic registration Brazil’s land governance has come a long way since the arrival of the Portuguese in 1500 when the vast territory became part of the Portuguese Crown. In colonial times, the King granted titles to massive land plots along the coast through “sesmarias”, a judicial instrument for allocating land with productive purposes, which later constituted the basis of property ownership in Brazil. The current registry system derives from the system originally adopted by the Catholic Church’s local parishes to record sesmarias.a After independence, the government abolished sesmarias, and the Land Law of 1850 (Law 601) was passed to regulate the granting of land tenure rights, acknowledging private property and establishing purchase as the only mean of acquiring unoccupied lands. Law 1,237 of 1864 instituted the land occupation and ownership registries, evolving the purely declarative system kept by the church’s vicars. Nevertheless, the institutionalization of land tenure records in 1973 (Law 6,015) is perhaps the most important development for the system of property registration in effect today, in which ownership is recognizable only if registered at the property registry. Brazil’s current property registration system is decentralized—more than 3,400 registry offices across the country keep property records under their jurisdiction.b Recent efforts have concentrated on launching the Sistema de Registro Eletrônico de Imóveis (SREI, Electronic Real State Registry System), which was first introduced by law in 2017 and regulated in 2019 by the National Council of Justice.c The SREI aims to create a national electronic repository of property records databases and assign a unique national iden- tification number to all properties (Código Nacional de Matrícula, CNM). Brazil has taken two major steps in this direction. First, it implemented a national property registration portal, the Portal Nacional do Registro de Imóveis,d integrating the online services of state registrars associations. Second, Brazil established a national body for property registrars, the Operador Nacional do Sistema de Registro Eletrônico de Imóveis (ONR), which will facilitate the implementation of the SREI.e a. World Bank. 2014. Brazil Land Governance Assessment. Washington, DC: World Bank. b. Information extracted from “Cartórios na era digital” at http://www.brregistradores.com.br/noticia.aspx?id=4. c. Article 76 of Law 13,465/2017, regulated by Provision 89/2019, issued by the National Council of Justice. d. The platform centralizes requests for electronic services nationwide and distributes them to the competent property registry. For more information, see https://www.registrodeimoveis.org.br/servicos. e. In April 2020, the Property Registrars General Assembly was held to approve the ONR’s statute and elect members of the management, administration, and inspection bodies. For more information, see https://www.registrodeimoveis.org.br/onr. Registering property 71 Transferring property in Brazil law also states that only liens and the property transfer tax (Imposto follows a general scheme compris- encumbrances registered in the Sobre a Transmissão de Bens ing five main phases (figure 5.1). title record files are opposable to Imóveis, ITBI) and submits proof The initial phase—in which the third parties.13 In practice, how- of payment to the public notary, parties’ representatives or a public ever, a commercial property trans- who then (3) prepares the public notary (1) conduct comprehensive fer between two companies—such deed for the parties’ signatures. due diligence on the property and as the Doing Business case—typi- Next, the buyer (4) registers the the seller—is the most complex. cally involves the simultaneous deed at the competent property Due diligence ensures that legal assessment of several certificates registry to record the transfer of requirements are met, limiting the issued separately by 12 municipal, ownership15 and (5) updates the buyer’s exposure to potential risks. state, and federal agencies. This is taxpayer records at the municipal- The law11 only requires two types a widespread practice across the ity to reflect the new ownership. of certificates to draft public deeds country since such certificates pro- of purchase and sale: the property vide further legal assurance to the How does the process tax clearance12 and the ownership sale and are easily accessible and compare? and no-lien certificates. The former relatively inexpensive—two-thirds checks if property taxes are paid of the certificates most-commonly Doing Business measures the full to date, while the latter checks consulted are issued at no charge.14 sequence of procedures, time, and for liens and encumbrances on cost necessary for a business to the property and ensures that the After completing the due dili- purchase a property from another seller is the rightful owner. The gence phase, the buyer (2) pays business and formally transfer the FIGURE 5.1  Transferring property takes five main phases involving 12 agencies PREREGISTRATION AGENCY Obtain certificate(s) of dispute Dispute registry *Obtain state justice certificate(s) State Justice Court *Obtain federal justice certificate(s) Federal Justice Court *Obtain labor justice certificate Regional Labor Court *Obtain certificate of good standing on labor debts High Labor Court *Obtain ownership and no-lien certificate(s) Property registry 1 Conduct due diligence *Obtain municipal taxes clearance certificate and cadastral certificate Municipal tax authority *Obtain state taxes clearance certificate State tax authority *Obtain federal taxes clearance certificate Federal Revenue Service & Office of the Attorney General of the National Treasury *Obtain workers fund certificate Federal Savings Bank *Obtain company certificate of good standing Commercial registry 2 Pay property transfer tax (ITBI) Municipal tax authority 3 Prepare public deed Public notary REGISTRATION AGENCY 4 Register public deed Property registry POSTREGISTRATION AGENCY 5 Update municipal taxpayer records Municipal tax authority * Simultaneous with previous procedure Takes place in 15 out of 27 locations Online procedure in most locations Federal agencies State agencies Municipal agencies Source: Doing Business and Subnational Doing Business database. Note: These stages are common to all benchmarked locations, but implementation varies. For detailed information about each location, see the State profiles chapter and visit https://www.doingbusiness.org/brazil. 72 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 property title to the buyer’s name, land transactions are available to steps of the property transfer pro- along with the quality of the land the public. Conversely, register- cess in São Paulo and 4 in Rio de administration system. On aver- ing property is most difficult in Janeiro—the first locations where age, in Brazil, an entrepreneur typ- Amapá, where the same process the system was successfully piloted. ically undertakes 15 procedures, requires eleven additional proce- The platform was launched nation- waits 39 days, and pays 3.2% dures, takes almost seven weeks wide in August the same year, but of the property value to transfer longer, and is 7% more expensive. its use is yet to become widespread property (figure 5.2). Procedurally, With only 11.5 points, Amapá is in the remaining 25 federative Brazil’s property transfer process is also among the locations with the units. the most bureaucratic in the world lowest score on the quality of land because it comprises extensive due administration index, together Depending on the location, com- diligence checks to ensure legal cer- with Rio Grande do Norte (table pleting the due diligence process tainty. Still, it is less expensive on 5.1). Among the main weaknesses can take between 4 and 14 proce- average than in other BRICS econ- reflected by its score are the lack dures, accounting for three-quar- omies,16 its regional neighbors in of transparency of information ters of the total steps to transfer LAC, and the OECD high-income regarding cadastral records, the property on average. Beyond São economies. Transferring property absence of a property registration Paulo and Rio de Janeiro, this vari- takes 9 and 11 more procedures complaint mechanism, and the ation’s main driver is the degree of and around two weeks longer than lack of full geographic coverage coordination between local dispute the average for the BRICS and of the property registry and the registries (Tabelionatos de Protesto OECD high-income economies, municipal cadastre. de Títulos) in issuing the dispute respectively; however, it is 26 days certificate. Dispute registries main- faster than the LAC regional aver- How does the process vary tain public records of companies age. On the quality of land admin- within Brazil? and individuals defaulting on bill istration index, Brazilian locations payments or loans. Like property score 14 out of 30 possible points Entrepreneurs in São Paulo com- registries and public notaries, in on average, outperforming the plete the fewest procedures to reg- Brazil dispute registries are private LAC regional average and India ister property (8), whereas those entities offering a public service.18 but trailing other BRICS and OECD in Amapá complete the most (19). Because the seller’s creditors may high-income economies. Although the overall process is be able to place a lien on the prop- similar across all locations bench- erty to secure payment, real estate The locations benchmarked across marked in Brazil, variations stem experts recommend assessing the Brazil show notable differences in from due diligence checks and seller’s financial health through all aspects of the efficiency of the municipal tax authority require- dispute certificates (even though registering property process and ments to pay the ITBI and update not required by law). A com- the quality of the land administra- the taxpayer records (figure 5.3). prehensive evaluation requires tion system. Registering property is an analysis of certificates from easiest in São Paulo, where it takes São Paulo is the most procedur- all dispute registries in the city 8 procedures and 21 days and costs ally efficient location primarily where the seller and the prop- 3.6% of the property value. São due to the widespread use of an erty are located. In all locations Paulo stands out because it stream- online one-stop shop, Guichê de except Cuiabá (Mato Grosso), lines and integrates most of the Certidões,17 launched in January Palmas (Tocantins), and Vitória due diligence procedures in a one- 2020 by the National Association (Espírito Santo), there is more stop shop. São Paulo also scores of Real Estate Registries (Colégio than one dispute registry. In the relatively high on the quality of de Registro de Imóveis do Brasil, city of São Paulo, for example, land administration index—16.5 CORI-BR). As it centralizes obtain- there are 10. Dispute registries in points, together with Amazonas ing the due diligence certificates Belo Horizonte (Minas Gerais), and Paraná—mainly because all issued free of charge by govern- Brasília (Federal District), Curitiba private land in the state capital ment agencies, such a platform (Paraná), Maceió (Alagoas), is mapped and statistics about was responsible for eliminating 7 Manaus (Amazonas), and Porto Registering property 73 FIGURE 5.2  Brazilian states are globally competitive on cost but lag in other aspects of efficiency and quality of land administration EFFICIENCY OF TRANSFERRING PROPERTY Procedures Time Cost (number) (days) (% of property value) 4 economies (global best)* 1 Georgia 0 Saudi Arabia 0 (global best) (global best) China, Russian Federation 4 Russian Federation OECD high income China average 5 1 Alagoas 10 6 Russian Federation BRICS average Argentina, South Africa 7 2 Roraima LAC average 20 Mexico 8 São Paulo South Africa São Paulo 9 locations OECD high income 9 average 6 locations 3 BRICS average Brazil average India 10 30 12 locations 10 locations 11 Rio de Janeiro OECD high income 4 Bahia average Amazonas 12 Brazil average Maranhão China Paraíba 40 Mexico BRICS average 13 3 locations 5 14 4 locations LAC average 50 Argentina Rio Grande do Sul Mexico 6 15 6 locations Rio Grande do Sul Brazil average Paraná Pernambuco 16 9 locations Argentina India Mato Grosso do Sul, 60 17 7 Santa Catarina Piauí India 18 3 locations LAC average Acre Amapá South Africa 19 Amapá 70 8 QUALITY OF LAND ADMINISTRATION Index (0–30) 30 29 4 economies (global best)** 28 25 Russian Federation China 24 OECD high income average 23 BRICS average 19 South Africa 17 Rio de Janeiro 3 locations Mexico 16 Espírito Santo 3 locations 15 Federal District, Minas Gerais Brazil average 14 Pará Argentina 4 locations 13 5 locations 3 locations LAC average 12 Alagoas, Paraíba India Amapá, Rio Grande do Sul 11 0 BRICS = Brazil, Russian Federation, India, China, and South Africa; LAC = Latin America and the Caribbean; OECD = Organisation for Economic Co-operation and Development Source: Doing Business and Subnational Doing Business database. Note: LAC averages are based on economy-level data for its 32 economies. Chile, which is part of the OECD high-income economies, is not included in LAC averages. OECD high-income averages are based on economy-level data for 34 economies. BRICS averages are based on economy-level data for Brazil, the Russian Federation, India, China, and South Africa. The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. Other economies are represented by their main business cities. China, India, Mexico, and the Russian Federation are represented by their two largest cities. Brazil's averages are based on the 27 locations measured in this study, including São Paulo and Rio de Janeiro. * Georgia, Norway, Portugal, and Sweden. ** Netherlands; Lithuania; Rwanda; Taiwan, China. 74 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 TABLE 5.1  Registering property in Brazil—where is it easier? Registering Cost Quality of land property score Procedures Time (% of the administration index Location Ranking (0–100) (number) (days) property value) (0–30) BRICS average 68.0 6.7 26.6 4.7 18.8 LAC average 55.7 7.2 64.8 5.5 12.1 OECD high income average 77.3 4.6 23.7 4.2 23.3 Brazil average (27 locations) 52.4 15.4 38.6 3.2 13.9 São Paulo (São Paulo) 1 65.8 8 21 3.6 16.5 Rio de Janeiro (Rio de Janeiro) 2 57.4 11 41.5 3.7 17 Goiás (Goiânia) 3 55.8 15 22 2.8 15.5 Santa Catarina (Florianópolis) 4 55.6 17 30.5 2.3 15.5 Espírito Santo (Vitória) 5 54.9 16 34.5 2.7 16 Mato Grosso do Sul (Campo Grande) 6 54.7 17 29.5 2.9 15.5 Alagoas (Maceió) 7 53.8 15 37 1.1 12 Amazonas (Manaus) 8 53.6 14 26 4.3 16.5 Pará (Belém) 9 53.5 16 23.5 3.3 14 Federal District (Brasília) 10 53.3 14 34 3.1 15 Roraima (Boa Vista) 11 53.3 16 38 1.9 13 Minas Gerais (Belo Horizonte) 12 53.3 14 27.5 3.6 15 Tocantins (Palmas) 13 52.8 16 26.5 2.7 12.5 Paraná (Curitiba) 14 52.5 16 53 3.0 16.5 Ceará (Fortaleza) 15 52.4 15 37 2.5 13 Mato Grosso (Cuiabá) 16 51.9 14 43.5 2.6 13.5 Rondônia (Porto Velho) 17 51.3 16 30.5 3.3 12.5 Sergipe (Aracaju) 18 51.3 15 32 3.3 12.5 Pernambuco (Recife) 19 50.3 16 55.5 2.6 13.5 Maranhão (São Luís) 20 50.2 16 39 3.7 13 Piauí (Teresina) 21 49.7 18 62.5 2.3 13 Bahia (Salvador) 22 49.4 15 44.5 4.0 13.5 Paraíba (João Pessoa) 23 49.0 15 30.5 4.5 12 Rio Grande do Sul (Porto Alegre) 24 49.0 18 51.5 3.5 13 Acre (Rio Branco) 25 48.3 18 66.5 3.1 13.5 Rio Grande do Norte (Natal) 26 45.5 16 35.5 6.0 11.5 Amapá (Macapá) 27 45.2 19 68 3.8 11.5 BRICS = Brazil, Russian Federation, India, China, and South Africa; LAC = Latin America and the Caribbean; OECD = Organisation for Economic Co-operation and Development Source: Doing Business and Subnational Doing Business database. Note: Rankings are calculated on the basis of the unrounded scores, while scores with only one digit are displayed in the table. Rankings are based on the average ease of doing business score for the number of procedures, time, and cost associated with registering property as well as for the quality of the land administration index. The score is normalized to range from 0 to 100, with 100 representing the best regulatory performance (the higher the score, the better). For more information, see the chapter About Doing Business and Subnational Doing Business in Brazil 2021 and the data notes. The average for Brazil is the average of the 27 locations measured. Averages for the OECD high-income economies, LAC economies, and BRICS are based on economy-level data for those economies, as measured by Doing Business. The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. Registering property 75 Lastly, updating taxpayer records FIGURE 5.3  Due diligence checks and municipal tax authority formalities to reflect new ownership is an account for variations in procedural efficiency additional step that increases the Procedures time and complexity in 15 of the (number) 15 benchmarked locations. In the oth- Santa Catarina ers, taxpayer records are updated 14 automatically—either upon pay- 13 ment of the ITBI or registration. 12 By municipal mandate, property 11 registries in Natal (Rio Grande do 10 Norte) and São Luis (Maranhão) 9 must inform the municipality of 8 property transactions using the 7 tax authority’s electronic system, 6 ensuring that both databases stay 5 Amapá up to date. Tax authorities in 4 São Paulo Brasília, Campo Grande (Mato 3 Grosso do Sul), Porto Velho, 2 Recife, and São Paulo have also 1 implemented systems for regis- 16 locations 12 locations 0 trars to report ownership updates. Conduct Pay property Prepare Register Update due diligence transfer tax public deed public deed taxpayer records However, because of a lack of coordination between registrars Maximum number of procedures Minimum number of procedures Brazil average (27 locations) and municipalities, tax records are often not updated promptly. Source: Doing Business and Subnational Doing Business database. Note: The Doing Business 2021 data for Rio de Janeiro and São Paulo are not considered official until As a result, the parties continue published by the Doing Business 2021 report. to request it in person. Registrars in Campo Grande report real Velho (Rondônia) joined efforts to electronic systems to automatically state ownership updates monthly. provide a consolidated certificate determine the property value and However, even with informa- in a single step and at a reduced fee. issue the ITBI payment slip in a sin- tion at hand, the municipality Similarly, in Recife (Pernambuco), gle online step. The same request does not automatically update its Rio de Janeiro (Rio de Janeiro), in Macapá (Amapá), Rio Branco records because taxpayers must Salvador (Bahia), and São Paulo (Acre), and Rio de Janeiro, on the pay a nominal fee. Local experts in (São Paulo), a distribution service other hand, takes between three Recife report that they do not rely provided by local dispute registries and four procedures because appli- on the electronic system because gathers all the certificates from the cations and back-office operations updates can take anywhere from a city in question and delivers them are paper-based. Consequently, few days to several months. in a single bundle. In contrast, in the taxpayer must (1) request the the remaining locations, obtaining assessment and payment slip in How does the time vary? such certificates requires up to four person, (2) pay the ITBI at a com- separate in-person interactions. mercial bank, and (3) return to The time to transfer property the tax office to collect the proof varies from 21 days in São The level of automation of the of payment. In the other locations, Paulo—faster than in Mexico property value assessment and the notary can verify this informa- and South Africa—to 68 days in the extent to which taxpayer tion online. In Macapá, technicians Amapá, mainly due to variations records are updated at the munic- from the municipal tax authority in efficiency at the respective ipal tax authority also determine must carry out an inspection to property registries and munici- the number of required steps. In estimate the property value, gen- pal tax authorities (figure 5.4). 16 locations, municipalities have erating an additional step. Recording the property transfer 76 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 and complying with municipal tax average. According to the Public Amapá, Paraná, Piauí, and Rio de authority requirements take over Registry Law, public deed registra- Janeiro. Anecdotal evidence points three times longer in Amapá than tion must be carried out within 30 to differences in workloads, staff- in São Paulo. days from the date of submission.19 ing, and back-office management Although all property registries as the main factors underlying time The time to record the transfer at comply with the legal deadline, variations. According to private the property registry is the main their efficiency varies significantly sector practitioners, a lack of uni- factor slowing the overall process, across locations—from 10 days in form application evaluation crite- taking half of the total time on Goiás and Pará to up to 30 days in ria leads to a high rate of rejection, FIGURE 5.4  The time to record the property transfer and comply with municipal tax authority formalities varies significantly across Brazil São Paulo Goiás Pará Amazonas Tocantins Minas Gerais Mato Grosso do Sul Rondônia Paraíba Santa Catarina Sergipe Federal District Espírito Santo Rio Grande do Norte Alagoas Ceará Roraima Brazil average Maranhão Rio de Janeiro Mato Grosso Bahia Rio Grande do Sul Paraná Pernambuco Piauí Acre Amapá 0 10 20 30 40 50 60 70 Time (days) Conducting due diligence Prepare public deed Register public deed Pay property transfer tax Update taxpayer records (various agencies) (public notary) (property registry) (municipal tax authority) Source: Doing Business and Subnational Doing Business database. Note: In Boa Vista (Roraima), Palmas (Tocantins), Rio Branco (Acre), Salvador (Bahia), and São Paulo (São Paulo), the municipal taxpayer records are updated simultaneously with the transfer registration at the property registry. The Doing Business 2021 data for Rio de Janeiro and São Paulo are not considered official until published by the Doing Business 2021 report. Registering property 77 slowing the process. In Piauí, for tax authority takes from half a an onsite inspection and, owing example, high registrar and staff day in Aracaju (Sergipe) and 10 to a shortage of inspectors, such turnover in the largest property other locations20 to 25.5 days in inspections can only take place registries in Teresina contribute to Recife. In the 16 locations with once a week. In Salvador, updat- service delivery delays due to con- electronic systems to automat- ing taxpayer records takes up to a stant operational disruptions. ically determine the property month due to a lack of technical value, the payment slip is issued personnel that can process appli- Due diligence takes the second-lon- within minutes of its request, and cations quickly. gest time on average—one-fifth of payment can be made online. In the total. Complying with due dili- São Luis, Recife, Rio de Janeiro, As of August 2020, private sec- gence requirements can take from Teresina, Natal, Porto Alegre, and tor practitioners did not report two and a half days in São Paulo Palmas, applications are submit- significant delays in the process to 10 days in Pará, Rio Grande do ted online but reviewed man- of registering a property transfer Sul, and Santa Catarina. Many ually, creating a lag in releasing during the COVID-19 pandemic certificates checked as part of the the payment slip. Rio Branco, lockdown. Notary and registry due diligence process are issued Macapá, Maceió, and Vitória services were considered essen- instantly online, except for three are the only locations that have tial businesses by the federal key certificates in most locations in not yet implemented electronic government21 and allowed to Brazil: (i) certificates of dispute; (ii) tools. In Macapá and Rio Branco, continue operating. Moreover, certificates of ownership and non- ITBI-related procedures take 14 these agencies took the opportu- lien; and (iii) certificates of good and 23 days, respectively, mainly nity to reinvent their operations standing for the buyer and seller. due to staffing shortages and and started offering new online cumbersome back-office oper- services and expanding com- Paying the ITBI and updating ations. In addition, in Macapá munication channels with their taxpayer records at the municipal the property valuation requires clients (box 5.3). BOX 5.3  E-Notariado: transforming the way Brazilian public notaries serve the public Brazil turned to digital solutions to keep public notaries and property registries operating safely and efficiently during the COVID-19 pandemic. In May 2020, the National Council of Justice issued Provision 100, which provided guidelines for carrying out notarial services by electronic means and regulated the Electronic Notarial Acts System (Sistema de Atos Notariais Eletrônicos, e-Notariado). Among other features, it allows public notaries to use video conferencing and digital signatures to notarize documents remotely, transforming the way they serve the public.a The shift toward digital technologies for notarial services, which had been underway for years, was accelerated by the public health emergency. In July 2018, the National Council of Justice issued Provision 74, paving the way for the use of digital technologies at public notaries nationwide. Subsequently, in April 2019, the Brazilian Notarial College’s Federal Council (Colégio Notarial do Brasil/Conselho Federal, CNB/CF) developed the e-Notariado platform. These efforts could not have been timelier. When the COVID-19 hit Brazil and cit- izens found themselves unable to visit agencies in person, public notaries could smoothly meet the surge in demand for online solutions. According to the CNB/CF, the number of public deeds of purchase and sale issued—both on paper and electronically—increased by 43% (from 63,248 to 90,314) between May and July 2020,b immediately after electronic notarial services became available nationwide as an alternative to the traditional in-person interactions. The president of CNB/CF pointed out that e-Notariado came to play a crucial role in boosting the Brazilian economic recovery by facilitating legally-secure business transactions.c a. See the website at https://www.e-notariado.org.br/customer. b. Diário de Petrópolis. 2020. “Cartórios de Notas registram crescimento de 43% na compra e venda de imóveis com início de atos online.” Diário de Petrópolis, January 12. https://www.diariodepetropolis.com.br/integra/cartorios-de-notas-registram-crescimento-de-43-na-compra-e-venda-de-imoveis -com-inicio-de-atos-online-184758. c. Alves, Aluísio. 2020. “Registro de imóveis dispara após escrituras online em cartórios.” Uol.com.br, August 20. https://economia.uol.com.br/noticias /reuters/2020/08/20/registro-de-imoveis-dispara-apos-escrituras-online-em-cartorios.htm. 78 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 What are the main drivers of transfer property; it can vary branch and calculated based on a cost? nearly five-fold across locations. sliding scale that reflects the prop- Regulated and levied by the erty value. The cost of these services The cost of transferring property var- municipality where the property comprises (i) either the notary or ies substantially across Brazil, rang- is located, tax rates range from the registrar fees, as remuneration ing from 1.1% of the property value 0.66% of the property value in for the services rendered, and (ii) in Alagoas—on par with Chile—to Maceió to 3% in eight locations taxes collected to raise revenues of 6% in Rio Grande do Norte—higher measured. Maceió was the only municipal and state authorities— than the LAC regional average and state capital to temporarily reduce such as the judiciary, the prosecu- among the 68 highest globally. All the ITBI rate—in an effort to boost tor’s office, the legislative assembly, cost components, from ITBI rates to tax revenue collection—during and the public defender’s office. professional service fees for registrars the COVID-19 pandemic.22 Across the locations measured, and notaries to the cost of due dil- those taxes comprise one-quarter igence certificates, vary across loca- Together, registration and notary on average of the registration and tions (figure 5.5). services account for the sec- notary costs together (figure 5.6). ond-largest share of the cost to In Paraná, they represent more The ITBI alone accounts for 71% transfer property in Brazil. Both are than half of such cost, whereas in on average of the total cost to set by the competent state judiciary Mato Grosso it is barely 2.3%. FIGURE 5.5  The composition of costs for registering property varies across locations Alagoas Brazil average Roraima 3.2% Santa Catarina Piauí Ceará Mato Grosso Pernambuco Espírito Santo Tocantins Goiás Mato Grosso do Sul* Paraná Notary Property service Acre* transfer tax 15% Federal District 71% Sergipe Registration Pará 13% Rondônia Rio Grande do Sul São Paulo Due diligence Minas Gerais 1% Rio de Janeiro Maranhão Type of cost as a share of Amapá total cost across Brazil Bahia (%) Amazonas Paraíba Rio Grande do Norte 0 1 2 3 4 5 6 Cost breakdown (% of property value) Source: Doing Business and Subnational Doing Business database. Note: Costs are based on the assumed Doing Business property, valued at R$1,674,131 ($456,500). The Doing Business 2021 data for Rio de Janeiro and São Paulo are not considered official until published by the Doing Business 2021 report. * Location where municipal tax office charges a nominal fee for updating owner’s name on taxation records. Registering property 79 also expensive—tripling the cost of FIGURE 5.6  Municipal and state taxes account for one-quarter on average notarizing and registering the pub- of the overall cost of registration and notary services lic deed. Paraná 33.7 66.3 Bahia 48.3 51.7 Quality of land Minas Gerais 52.0 48.0 administration index Pernambuco 54.8 45.2 São Paulo 59.7 40.3 A good land administration system Goiás 66.4 33.6 should be efficient but also ensure Rio Grande do Norte 69.7 30.3 legal certainty and provide com- Tocantins 69.9 30.1 prehensive physical identification Mato Grosso do Sul of immovable property. A reliable, 74.0 26.0 transparent, complete, and secure Rondônia 74.3 25.7 land administration system is Brazil average 75.6 24.4 associated with greater access to Espírito Santo 76.9 23.1 credit, lower income inequality, Pará 77.4 22.6 and lower incidence of bribery at Amazonas 78.1 21.9 the land registry.25 Doing Business Santa Catarina 78.6 21.4 assesses the quality of this system Paraíba 79.4 20.6 through five main dimensions: Roraima 79.9 20.1 reliability of infrastructure (0–8 Rio de Janeiro 80.4 19.6 points), transparency of informa- Piauí 81.6 18.4 tion (0–6), geographic coverage Ceará 82.3 17.7 (0–8), land dispute resolution Sergipe 83.3 16.7 (0–8), and equal access to property Acre 84.7 15.3 rights (-2–0). Their sum provides Federal District 88.0 12.0 the overall score on the quality of Maranhão 90.1 9.9 land administration index. Amapá 90.9 9.1 Rio Grande do Sul 93.6 6.4 A close look at Brazil’s scores on the Alagoas 94.9 5.1 quality of land administration index Mato Grosso 97.7 2.3 reveals ample room to advance toward international good practices Share of total cost of registration and notary services (%) and a significant gap in perfor- Notary and registrar fees Municipal and state taxes mance across the locations bench- marked. Rio de Janeiro performs Source: Doing Business and Subnational Doing Business database. best, scoring 17 out of 30 possible Note: The Doing Business 2021 data for Rio de Janeiro and São Paulo are not considered official until published by the Doing Business 2021 report. points—on par with South Africa. Meanwhile, Amapá and Rio Grande Drafting the public deed and record- low—12% of both services’ total do Norte score only 11.5 points (the ing the property transfer is the least cost—which is less than half the lowest). The main differences lie expensive in the Federal District national average. Notary and regis- in the accessibility of land-related (0.12% of the property value) and trar fees in the Federal District have information and whether all private the most expensive in Rio Grande not been updated in over 50 years23 land is properly mapped in the state do Norte, where the same services because, reflecting constitutional capitals and Brasília (figure 5.7). cost 25 times more. The Federal limitations, Congress must pass and District benefits from having the enact any fee changes.24 In contrast, Reliability of infrastructure lowest notary and registry fees besides having among the highest nationwide and a set of associ- notary and registrar fees, associated To ensure legal certainty and ated taxes that are comparatively taxes in Rio Grande do Norte are prevent potentially fraudulent 80 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 FIGURE 5.7  Brazil scores less than half the possible points for quality of land administration Global best (4 economies)* 7.8 4.9 8 7.9 Rio de Janeiro 5 5.5 2 4.5 Amazonas 5 5 2 4.5 Paraná 5 5 2 4.5 São Paulo 5 5 2 4.5 Espírito Santo 5 4.5 2 4.5 Goiás 5 4 2 4.5 Mato Grosso do Sul 5 4 2 4.5 Santa Catarina 5 4 2 4.5 Federal District 5 3.5 2 4.5 Minas Gerais 5 3.5 2 4.5 Pará 4 3.5 2 4.5 Brazil average 4.8 3.8 0.8 4.5 Acre 5 4 4.5 Bahia 5 4 4.5 Mato Grosso 5 4 4.5 Pernambuco 5 4 4.5 Ceará 5 3.5 4.5 Maranhão 5 3.5 4.5 Piauí 4 2.5 2 4.5 Rio Grande do Sul 5 3.5 4.5 Roraima 5 3.5 4.5 Rondônia 4 4 4.5 Sergipe 5 3 4.5 Tocantins 4 4 4.5 Alagoas 5 2.5 4.5 Paraíba 5 2.5 4.5 LAC average BRICS average OECD high income average Amapá 4 3 4.5 12.1 18.8 23.3 Rio Grande do Norte 4 3 4.5 0 5 10 15 20 25 30 Score on the quality of land administration index (0–30) Reliability of infrastructure (0–8) Transparency of information (0–6) Geographic coverage (0–8) Dispute resolution (0–8) BRICS = Brazil, Russian Federation, India, China, and South Africa; LAC = Latin America and the Caribbean; OECD = Organisation for Economic Co-operation and Development Source: Doing Business and Subnational Doing Business database. Note: The average for Brazil is the average of the 27 locations measured. Averages for the OECD high-income economies, LAC economies, and BRICS are based on economy-level data for those economies, as measured by Doing Business. The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. * Lithuania; Netherlands; Rwanda; Taiwan, China. operations, a land administration are working toward scanning his- 21 have implemented a geographic system must provide clear, reli- torical property records. Moreover, information system (GIS) that cap- able information about property property registries across Brazil tures, stores, and analyzes cadas- tenure. The most reliable systems keep records in electronic data- tral and geospatial data (1 point). have land registries and cadastres bases, making it possible to search However, the two main agencies that are completely digitalized encumbrances on any given prop- involved in urban land manage- and whose databases are intercon- erty (1 point). ment—municipalities and property nected. Property registries across registries—do not use a common Brazil keep property records in Regarding cadastral records, which number to uniquely identify each scanned format (1 point), except are managed at the municipal property (0 points), nor do they for Piauí, which relies on paper level, all locations have digitized share databases (0 points). copies (0 points). Registries in Piauí their cadastral maps (2 points) and Registering property 81 The GIS in Manaus, Ambiente de of required documents to com- Cadastral records are accessible by Geocolaboração, has been recog- plete property transactions on its anyone in all locations (0.5 points) nized for its technological support website (0.5 points). By law, time- except Aracaju and Porto Velho, to land management decision-mak- frames for property transactions where such information is limited ing.26 The system facilitates the are applicable nationwide and eas- to the property owner or their interoperability of databases from ily accessible online29 (0.5 points). legal representative (0 points). In municipal, state, and federal agen- Brazil, a comprehensive review of cies and public service conces- Information on fee schedules cadastral records of a property typ- sionaires. Among other features, for property registry services is ically involves cross-checking two it integrates such databases into available online from state courts, complementary documents: (i) the visualization using dynamic and which set and levy fees. However, cadastral certificate describing the interactive mapping tools of the this information is only clear and land plot, the property’s physical entire territory and individual easily accessible for customers in characteristics (used for valuation plots, available online and free of Acre, Amapá, Amazonas, Bahia, and taxation), and its owner infor- charge. Such accurate and detailed Espírito Santo, Rio de Janeiro, Rio mation; and (ii) maps (plans) of information allowed the munici- Grande do Norte, Rondônia, São land plots showing the property’s pality to increase its taxpayer base Paulo, Tocantins, and the Federal location. Both are issued by the by 80% between 2010 and 2012.27 District (0.5 points). Public fee municipality and are important Similarly, GeoPortal in Brasília schedules are mostly incomplete resources for landowners who want improved the efficiency and trans- and not transparent in the other to determine their property bound- parency of tax assessment. The tax 16 states (0 points). They do not aries or access other information on authority used the GIS to identify include the total fees applicable properties of interest. Yet, they are several locations that were taxed as to the property transfer, such as not integrated into a single file. The vacant plots despite the existence municipal and state taxes, adding municipalities of Curitiba, Manaus, of multistory buildings on the sites. to the service’s overall cost. For and Rio de Janeiro publish fee As a result, it was able to increase example, although Pernambuco’s schedules (0.5 points) and service property tax collections (Imposto registration fees are published standards for delivering updated Predial e Territorial Urbano, IPTU) online, they only represent half cadastral records (0.5 points) on by 40% between 2016 and 2017.28 the total cost of the service. their websites. São Paulo makes Taxpayers can use the same system fee schedules publicly available to challenge the government assess- São Paulo and Rio de Janeiro publish (0.5 points), but not timeframes ment of the property’s built area for official statistics tracking the number (0 points). Conversely, in Brasília, tax purposes. of property transactions (0.5 points) Curitiba, Goiânia (Goiás), Porto following a December 2018 part- Velho, and Vitória, timeframes are Transparency of information nership between their state regis- publicly available (0.5 points), but trars associations and the Fundação fee schedules are not (0 points). No Facilitating transparency in access Instituto de Pesquisas Econômicas other locations benchmarked make to information related to land reg- (FIPE, the Institute of Economic this information available to the istry and cadastral records helps Research Foundation).30 In mid- public (0 points). to simplify and expedite the reg- 2020, the registrar associations in istration process, avoiding delays Mato Grosso do Sul, Pernambuco, In 21 of the 27 locations, property due to information asymmetries. Paraná, and Santa Catarina joined registries have an independent, In Brazil, anyone who pays the this partnership and began publish- specific mechanism for clients to required fees can obtain infor- ing statistics online (0.5 points).31 file complaints online (1 point) mation on land ownership at the Additionally, the Mato Grosso reg- through the portal of the National property registry (1 point), and the istrars association publishes statistics Association of Real Estate Brazilian Association of Notaries dating back to 1976 on its website32 Registries (Colégio de Registro and Registrars (Associação dos (0.5 points). None of the other loca- de Imóveis do Brasil, CORI-BR). Notários e Registradores do Brasil, tions measured have this feature in This mechanism does not cover ANOREG/BR) publishes the list place (0 points). complaints in Amapá, Alagoas, 82 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Paraíba, Piauí, Rio Grande do and efficient court system to han- in Brazil. However, the time and Norte, and the Federal District (0 dle land disputes and provides procedures required to transfer points) because their state associa- statistics on the number of such property are higher than in econ- tions are not part of CORI-BR. The disputes in courts of first instance. omies like China, Mexico, and same portal has a mechanism to The Civil Code mandates the regis- the Russian Federation. Areas for collect complaints about issues at tration of all property transactions improvement exist, as do opportu- the municipal cadastre. However, for them to be opposable by third nities to learn from international experts in real estate transactions, parties (1.5 points). Although the and local good practices. including municipal employees property registry provides legal working in the cadastre, were certainty regarding property rights Automated or unified systems either unaware of its existence or (0.5 points), there is no specific to enhance coordination did not know how to use the com- compensation mechanism to cover between municipalities and plaints mechanism. For this rea- losses in a transaction carried out property registries son, this assessment considers it in good faith but based on errone- not fully implemented (0 points). ous information (0 points). Public At the local level, agencies involved notaries and property registrars are in property transfers work in silos. Geographic coverage in charge of ensuring that transac- Each agency completes its part of tion documents comply with the the process, often without coor- Roughly one-quarter of the law (0.5 points) and checking the dination and with limited under- world’s economies have a land identity of the parties (0.5 points). standing of the process as a whole. registry and cadastre with com- However, there is no national The property registry and the plete coverage. When coverage database to check the accuracy municipality (through its tax and does not extend to 100% of the of identity documents (0 points). urban development offices) man- territory, companies and individ- Legal disputes over property own- age property-related information. uals cannot have legal assurance ership are heard in the relevant However, there is no single doc- or certainty regarding the physical state court’s civil section, and cases ument incorporating all cadastral data related to the property. Not typically take two to three years and legal ownership information. all privately held land plots are to resolve (1 point). Disaggregated Property buyers and sellers must formally registered at property statistics on the number of first consult various sources of infor- registries (0 points) or mapped by instance land disputes are publicly mation—certificates of ownership, municipalities (0 points) in the available online (0.5 points). cadastral certificates, and maps country as a whole. At the city (plans) of land plots, for example— level, none of the state capitals Equal access to property to obtain comprehensive informa- or Brasília has registered every rights tion regarding land ownership, privately held land plot (0 points), value, boundaries, characteristics, although 13 cities33 achieved com- Doing Business also assesses and precise property location. plete mapping coverage (2 points). whether a person’s gender has a bearing on access to property A lack of coordination and com- Land dispute resolution rights. In Brazil, married and munication means that property unmarried women in Brazil have owners often must act as mes- An economy with a model land the same property ownership sengers between agencies. In 15 administration system minimizes rights as their male counterparts.34 locations, the buyer must update the number of land disputes the taxpayer records at the munici- by ensuring that clients receive pality to reflect the new ownership accurate information, provides after registering the property trans- a guarantee for registration, and What are the challenges fer. Some locations are working to compensates parties for losses and good practices? improve communication between incurred as a result of errors by the municipality and the property the property registry. In addition, it A number of good practices in the registries. In Natal and São Luis, for ensures the existence of an effective area of transferring property exist example, property registries inform Registering property 83 the municipality of property trans- the property transfer process by value and communicates the sale actions using the tax authority’s integrating all stakeholders into to the municipality, which then electronic system, ensuring that one step (box 5.4). generates the payment slip. The both databases stay up to date. buyer can make the payment However, these links are still man- Simple mechanisms for online. In the remaining locations, ual—registry officials must enter property transfer tax completing the property valuation data directly to the tax authority payment process takes several days, and system—increasing the likelihood confirmation of the base value for of errors. Connecting the munici- Property transfer taxes are an ITBI calculation is a major bot- pal cadastre and mapping systems important source of municipal tax tleneck. Municipal tax authority with the property registries, and revenue. A streamlined and simple technicians calculate and issue the enabling databases to automati- ITBI payment process maximizes payment slip; they must conduct cally update each other’s records, revenue and reduces compliance an analysis of the market price in would make it possible to detect all burdens. In Brazil, paying the ITBI a process that may even include an physical property changes as well can take anywhere from half a day inspection. In Macapá, Rio Branco, as title changes, even if the parties to 2 weeks in Macapá and 23 days and Rio de Janeiro—where this fail to notify the municipality of in Rio Branco. In 16 of the bench- process is most difficult—after the change in ownership. marked locations, the ITBI is paid paying in a commercial bank, the electronically, the payment slip is buyer must return to the munici- An integrated and computerized obtained online, and the notary pality to obtain proof of payment land administration system—with verifies the tax collection online to bring to the notary. clear titles and an interconnected to prepare the public deed. In the registry and cadastre—increases city of São Paulo, for example, Initiatives to improve the efficiency of property registra- the ITBI is calculated based on the geographic coverage of tion. Fully digital and integrated or assessed property value (as deter- property registry and linked property registry and cadas- mined by the municipality) or the cadastre tral mapping systems allow staff transaction value, whichever is to search and update records elec- higher. Using the municipality’s Even the most reliable and tronically. Portugal has simplified portal,35 the buyer consults this transparent land administration BOX 5.4  Casa Pronta: Portugal’s one-stop shop for property registration The Portuguese government began the implementation of an administrative reform program, SIMPLEX, in January 2009. The program introduced changes designed to reduce bureaucracy, modernize public services, and ease the administrative burden. Property registra- tion became mandatory, and the public deed requirement was eliminated and replaced by a standard form for property transfers. The reform abolished the territorial jurisdiction of land registries, allowing citizens and firms to transfer property from anywhere in the coun- try. A one-stop shop, Casa Pronta, simplified the process for transfer registration, tax payment, and other formalities. Casa Pronta users can, within minutes, (i) settle and pay stamp tax, registration tax, and fees; (ii) review ownership records and view any encumbrances; (iii) update tax authority records; (iv) access building plan records; (v) request property tax exemptions; and (vi) submit a declaration of registration or an ownership update for urban property. Casa Pronta unifies the land registry, notary, cadastre, and tax authority and provides centralized access to their databases. It also provides registrars and clerks with access to civil and business registries, eliminating the need to obtain multiple certificates for due diligence (including the land registry certificate, certificate of incorporation, certificate of civil registration, and any clearance certificates from preemption rights). The reform ensures that the registrar can perform all acts and access all property-related information through a single point of contact. By interconnecting the databases of the property registry, cadastre, municipality, tax authority, and civil and company registries, the authorities strengthened communication between these agencies. They also provide the buyer with access to reliable information, allowing them to proceed with the property transfer with confidence and in one single interaction. Today, Portugal is one of the easiest places in the world to transfer a property. 84 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 system’s usefulness is diminished surveying and mapping could real estate transactions.45 The if it covers only part of an econ- unlock the country’s economic lack of georeferencing and certain omy’s territory. Where land regis- potential by increasing access to about the physical characteristics tries and cadastres do not provide finance for Brazilian entrepre- of the land and its boundaries complete geographic coverage, neurs. The challenges to title for- raises trustworthiness questions companies and individuals cannot malization are numerous. They and generates several problems be sure whether areas not covered range from disputes over indig- such as overlapping and duplicate might be relevant to their inter- enous land rights39 to difficulties titles, false claims, and registration ests. This also undermines the registering property in cities built of nonexistent assets. It also pre- legitimacy of the institutions that on vast swathes of land donated to vents the implementation of fairer ensure property rights. catholic saints in the late 1800s (a and more effective land policies common practice among devoted and increases fraud and illegal Given the country’s sheer size, in Christians in Minas Gerais, for appropriation of land.46 Brazil it is no easy task to provide example).40 The federal govern- complete geographic coverage. ment is aiming to implement more Recognizing that the lack of legal It requires considerable financial cohesive public policies and better certainty about property rights is resources, high administrative and urban planning at the national a major obstacle to investment, a technical capacity, and long-term level through title distribution pro- 2015 legislative reform47 sought to commitment. Brazil could look to grams. The Papel Passado program, simplify the process of transferring Thailand, which between 1984 for example, has helped thou- property. The reform was two-fold: and 2004 implemented one of the sands of families transition out it reduced the number of required world’s largest land titling pro- of informal settlements and into certificates to draft a deed and grams using efficient, systematic the formal economy since 2003.41 stipulated that third parties could land titling procedures and issu- Similar initiatives are ongoing at oppose only registered encum- ing more than 8.5 million titles.36 the local level. In Bahia,42 Minas brances, pending legal actions, The program, which emphasized Gerais,43 and Maranhão,44 among and liens. Nevertheless, persistent strengthening and extending the other locations, task forces led by issues of legal uncertainty over survey and map infrastructure the government and local notary land rights strengthen the deep- and building a strong systematic and registrar associations grant title rooted culture of cautiously gath- registration capability, has served deeds for free or at a reduced fee ering information on the property, as a model for other countries in to settlers that could not otherwise as parties and their representatives East Asia and the Pacific.37 At the afford it. In Bahia, the Casa Legal find that the potential benefits of national level, coverage is nearly program has targeted the formal- producing all the supporting doc- complete, but 3% of private land ization of more than 60,000 urban umentation, however numerous, plots remained unmapped by the properties in Salvador since 2013. outweigh its costs. Department of Lands. As a result of the program, some studies Streamlined due diligence Recent initiatives aim to address have shown that titled land was consultation process this issue by creating online one- 75% to 197% more valuable than stop shops for local and federal land without any documents, the The due diligence process in certificates. In Rio de Janeiro, incidence of land transactions Brazil is the most bureaucratic in the e-cartorioRJ platform issues increased for titled land, and the world. Factors such as com- dispute, state justice, and own- the access to institutional credit plexity of the land governance, ership and non-lien certificates. increased by 27% for those with lack of coverage of property reg- The Guichê de Certidões—a plat- legal titles.38 istries and cadastres, and lack of form that consolidates requests coordination and integration of for online certificates issued free Half of the real estate in Brazil’s records between land manage- of charge—was launched nation- urban centers remains unregis- ment agencies have been widely wide in August 2020 following a tered. Policy measures to expand recognized as obstacles to secure successful pilot in Rio de Janeiro formal land titling and cadastral well-defined property rights in and São Paulo. Users across the Registering property 85 country can also access the Central transfers tends to be more effi- Nacional de Serviços Eletrônicos cient.49 States could follow the Notes dos Tabeliães de Protesto de example of Tocantins, where the 1. Statistics from https://data. Títulos (CENPROT), operational registrars association publishes worldbank.org/country/brazil. since September 2019,48 to obtain an online calculator to estimate 2. Statistics from https://data dispute certificates from any dis- the full range of costs, along with .worldbank.org/indicator/SP. pute registry across Brazil and all legislation regulating such URB.TOTL.IN.ZS?locations=BR. 3. Ministry of Regional query the existence of disputes fees.50 Registrars associations in Development in a presentation nationwide (although the query Amazonas, Rio Grande do Norte, from the Ministry of Economy. is for information only and has and Rondônia, also publish con- Public hearing hold at the no legal validity). E-cartorioRJ is solidated, comprehensive fee Federal Senate, before the widely known and used in Rio de schedules on their respective web- Committee on Climate Change, Janeiro, but the use of Guichê de sites.51 And São Paulo has a ded- on October 10, 2019 to debate about land formalization in Certidões and CENPROT is yet to icated portal where information Brazil. Available (in Portuguese become widespread. This points on fee schedules for all services only) at https://www12.senado to the need to raise awareness of can be consulted easily, ensuring .leg.br/ecidadania/visualizacao these tools among the commu- predictability. audiencia?id=17007. nity of prospective users for such 4. See https://www.land-links.org reforms to succeed. /global-policy/sdgs/. 5. Deininger, Klaus. 2003. Land Policies for Growth and Poverty Easily accessible and Reduction. World Bank Policy complete fee schedules Research Report. New York: for registration and notary Oxford University Press. services 6. UN-Habitat. 2013. Tools to Support Transparency in the Land Administration. Nairobi: Deed registration and notari- UN-Habitat. zation costs in Brazil comprise 7. Piza, Caio, and Mauricio José many taxes collected by notaries Serpa Barros de Moura. 2016. and registrars not associated with “The Effect of a Land Titling their functions. Such taxes raise Programme on Households’ Access to Credit.” Journal of revenue for municipal and state Development Effectiveness 8 (1): authorities and fund public ser- 129–55. vices. Registrar and notary fees 8. See Law 10,406/2002, are easily accessible online in most Law 6,015/1973, and Law locations, but these additional 8,935/1994, respectively, and taxes, which add to the total cost their amendments. 9. Under Article 108 of the of services, are rarely published. Brazilian Civil Code, any real Examples of these taxes include estate transaction with a value those to ensure access to public that is at least three times the defender services for those who current minimum wage shall be cannot afford it, providing civil performed through a public deed registry services at no charge, drawn up by a public notary. 10. See Article 236 of the Brazilian and improving and modernizing Federal Constitution. judicial services by increasing the 11. See Law 13,097/2015, which State Judicial Branch’s budgetary amends Law 7,433/1985. allocation. In economies where 12. Yet, according to Article 1 of comprehensive information on Decree 93,240/1986, the buyer fees and documentary require- can waive the presentation of the property tax clearance ments is easily available, the certificates and agree to become process of completing property 86 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 responsible for the sellers’ debts 25. World Bank. 2014. “Registering of land administration index when buying the property–– property: Measuring the quality could be –2 if the score obtained which is not common practice in of land administration systems.” in the equal access to property transactions between companies. In Doing Business 2015: Going rights index was –2 because 13. This is known as Princípio da Beyond Efficiency. Washington, equal access to land is not Concentração, as established in DC: World Bank Group. granted by law, and the scores Article 54 of Law 13,097/2015. 26. Related information is available obtained on the other indexes 14. Due diligence includes, but is not at https://amazonasatual.com were 0. limited to, the financial soundness .br/tecnologia-da-informacao 35. Available at https://www of the seller, judicial and -da-prefeitura-de-manaus-e .prefeitura.sp.gov.br/cidade administrative lawsuits in progress -referencia-nacional/ and /secretarias/fazenda/servicos/itbi/. involving the property and the https://www.negociosdisruptivos 36. Burns, Anthony. 2004. seller, labor debts, cadastral .com/cidade-inteligente-da “Thailand’s 20 Year Program surveys outlining the property -premio-internacional-para to Title Rural Land.” World boundaries and characteristics, -manaus/. Development Report Background and the parties’ legal registration 27. A Crítica. 2012. “Tecnologia Paper. World Bank, Washington, and good standing. For more da informação da Prefeitura de DC. details on each location, see the Manaus é referência nacional.” 37. Brits, Anne-Marie, Chris Grant State profiles chapter. Acrítica.com, August 16. and Anthony Burns. 2002. 15. Under Brazilian legislation, https://www.acritica.com/ “Comparative Study of Land ownership is transferred by channels/manaus/news/sistema- Administration Systems with means of a transfer deed, which de-georeferenciamento Special Reference to Thailand, must be drawn up by a notary -utilizado-em-manaus-e Indonesia and Karnataka and registered at the competent -apontado-como-referencia. (India).” Synthesis paper property registry to be effective. 28. Maia, Flavia. 2017. “GDF eleva prepared for Asia Region. World 16. The BRICS are Brazil, the IPTU de 112 mil imóveis.” Correio Bank, Washington, DC. Russian Federation, India, China, Braziliense, August 25. 38. Burns, Anthony. 2004. and South Africa. https://blogs.correiobraziliense 39. See Supreme Court. ACO 2,224. 17. Available at .com.br/consumidor/gdf-eleva November 11, 2013. https://www.registrodeimoveis -iptu-de-112-mil-imoveis/. 40. See Superior Court of Justice. .org.br/guiche-certidoes. 29. Law 6,015/1973 and its Recurso Especial (Resp) 1.269.544 18. Law 9,492/1997 regulates their amendments. MG 2011/0124395-8. May 29, services. 30. For more details, see 2015. 19. See Article 188 of Law https://www.registrodeimoveis 41. Ministério das Cidades. 6,015/1973. .org.br/portal-estatistico-registral. 2013. Papel Passado: Manual 20. The 10 other locations are Belém, 31. As of August 2020, statistics for da Ação Programática 8866. Belo Horizonte, Boa Vista, Ceará are also available but are Brasília: Secretaria Nacional Cuiabá, Fortaleza, Florianópolis, incomplete, with only five of de Acessibilidade e Programas Goiânia, João Pessoa, Manaus, Fortaleza’s six property registries Urbanos. and São Paulo. To update the included. 42. Secretaria de Comunicação. municipal taxpayer records in 32. See the website at https://cei 2017. “Prefeitura deverá conceder Boa Vista and São Paulo takes -anoregmt.com.br/index.php mais 30 mil escrituras em Salvador five business days. However, as /registro-de-imoveis. até 2020.” http://comunicacao. it occurs simultaneously with 33. A coverage rate of over 95% salvador.ba.gov.br/index.php the transfer registration at the has been achieved in Aracaju, /todas-as-noticias-4/50496 property registry, it does not add Belém, Belo Horizonte, Brasília, -prefeitura-devera-conceder time to the overall process. Campo Grande, Curitiba, -mais-30-mil-escrituras-em 21. See Decree 10,282/2020 which Florianópolis, Goiânia, Manaus, -salvador-ate-2020. regulates Law 13,979/2020. Rio de Janeiro, São Paulo, 43. Associação dos Notários 22. Article 7 of Municipal Law Teresina, and Vitória. e Registradores do Brasil 6,989/2020 lowered the rate 34. The equal access to property (ANOREG). 2019. “TJ/MG: from 3% to 0.66% between rights index ranges from –2 to 0 Mutirão vai regularizar registros de June and August 2020. points and detracts a maximum imóveis em Belo Horizonte.” 23. Decree-Law 115/1967 continues of 2 points when there is a https://www.anoreg.org.br/site to be the legislation in force, solely differential treatment for men /2019/08/30/tj-mg-mutirao-vai adjusted for the rate of inflation. and women in the law in the -regularizar-registros-de-imoveis 24. See Article 21 of the Brazilian property regime. Therefore, the -em-belo-horizonte/. Federal Constitution. lower overall score in the quality Registering property 87 44. Prefeitura de Imperatriz. 2019. "Mutirão da Regularização Fundiária entregará 700 títulos de propriedade no dia 12 de julho." https://www.imperatriz.ma.gov .br/noticias/imperatriz-167-anos /mutirao-da-regularizacao -fundiaria-entregara-700-titulos -de-propriedade-no-dia-12 -dejulho.html. 45. World Bank. 2014. Brazil Land Governance Assessment. Washington, DC: World Bank. 46. Damasceno, Rita. 2016. "Insecure Land Rights in Brazil: Consequences for Rural Areas and Challenges for Improvement." Climate Policy Initiative. 47. Law 13,097/2015 introduced reforms to streamline the process of property transfer. 48. See Provision 87/2019 issued by the National Council of Justice. 49. World Bank. 2017. “Registering Property: Using information to curb corruption.” In Doing Business 2018: Reforming to Create Jobs. Washington, DC: World Bank Group. 50. Available at https://anoregto. com.br/emolumentos. The State Court of Alagoas has also available a cost simulation tool at https://cgj.tjal.jus.br/ simuladorEmolumentos/ but, depending on the service consulted, estimates of total costs are not always accurate. 51. Available at https://anoregam .org.br/wp-content/uploads /2019/05/tabela-de-emolumentos -capital.pdf, http://www.anoregrn .org.br/_private/upload/conteudo _arquivos/2/tabela-de-custas-01 -2020.pdf, and http://www .anoregro.org.br/inc/home _tabelas.php, respectively. CHAPTER 6 Paying taxes MAIN FINDINGS Paying taxes can be difficult in Brazil. Taxes are filed and paid online, but entrepreneurs face obstacles to comply with one of the world’s most complex tax systems, high tax rates and lengthy postfiling procedures. Across Brazil’s 27 locations, companies spend between 1,483 and 1,501 hours a year to prepare, file, and pay taxes—more than anywhere else worldwide. Complex laws and filing obligations, cumbersome tax calculations, and multiple taxes that apply to the same tax base are among the main challenges. Existing good practices include joint municipal tax payments and simpler local tax compliance rules. In Espírito Santo—Brazil’s top performer—and Paraná, companies make 9 payments per year, compared to 12 in Bahia and Pará. Federal taxes, which are similar across locations, comprise the bulk of the tax burden. Due to lower local tax rates, the medium-size industrial firm measured by Doing Business would pay a total tax and contribution rate of 64.4% of profits in Espírito Santo, Mato Grosso, and Tocantins; that burden rises to 66.4% in Rio de Janeiro. The tax and contribution rate is higher than the regional average in Latin America and the Caribbean (48.1%) in all 27 locations benchmarked. Companies in Brazil face difficulties in dealing with the processes that take place after taxes are paid. Postfiling processes are standardized and applied nationally. Refund of VAT-like taxes (ICMS, IPI, PIS, and COFINS) is restricted, and the time to complete a corporate income tax correction is among the world’s longest. 88 Paying taxes 89 T axes are often the main taxes, more than anywhere else in source of funding for essen- the world. In all locations, entre- How does paying taxes tial government services, preneurs must cope with an array work in Brazil? such as schools, roads, and public of obligations imposed by fed- safety. Some argue that taxes are eral, state, and city tax agencies. The Constitution of 1988 grants also key for mitigating inequality, However, local governments play the federal, state, and municipal addressing market failures, and a role in fostering a more compet- governments the power to levy and reinforcing democracy by hold- itive business environment. While regulate taxes. The Doing Business ing the government accountable the bulk of taxes and compliance paying taxes indicators record all for how it collects and spends tax requirements is federal, munic- taxes and mandatory contributions revenues.1 Brazilian society relies ipal taxation also impacts each paid by a medium-size company on taxes to function—taxes and location’s performance on the in a year (box 6.1). Federal taxes, contributions fund 42% of the ease of paying taxes. Businesses which are mostly levied by the country’s annual fiscal budget.2 in Brazil’s best-performing loca- Federal Revenue Service, include However, high tax rates and cum- tions—Vitória (Espírito Santo), corporate income tax (IRPJ), social bersome administrative obligations Porto Velho (Rondônia), and contributions on net profits (CSLL), can be an obstacle to economic Maceió (Alagoas)—make fewer social contributions on sales (PIS growth. payments and are subject to lower and COFINS, similar to VAT), tax local tax costs (table 6.1).6 on industrial products (IPI, similar Studies show that high tax burdens to VAT), and tax on interest earn- and onerous obligations negatively The government is seeking to ings. Companies also pay a social impact entrepreneurship and reform aspects of the tax system, security contribution (INSS) and investment and increase informal- both locally and nationally, to payroll tax (‘Sistema S’) to the ity.3 High compliance costs encour- streamline and simplify the process Instituto Nacional do Seguro Social age tax avoidance and evasion.4 of paying taxes. Some states are (National Social Security Institute) Not surprisingly, economies that eliminating an overlapping state- and a severance contribution perform best on the Doing Business level ICMS tax return and innovat- (FGTS) to the Caixa Econômica ease of paying taxes indicators tend ing on audit procedures through Federal (Federal Savings Bank).7 to have modest tax rates but also measures such as allowing self-cor- State tax agencies levy two taxes: simple compliance requirements. rection without penalties follow- the tax on circulation of goods and Brazil has both a high tax burden ing notification of an irregularity services (ICMS, similar to VAT) and and one of the world’s most com- from the tax authority. However, the vehicle tax (IPVA).8 Municipal plex tax systems. About 80% of impactful reforms are still under taxes include the property tax Brazilian firms view tax rates as a discussion. Across all locations, (IPTU) and a variety of local fees.9 major constraint to their business the total tax and contribution rate They are managed by municipal activities; 70% consider tax com- and the time to comply with tax tax agencies or, in some cases, by pliance as a major constraint, more obligations and postfiling proce- municipal departments for urban than twice the average of firms in dures remain among the highest planning or environmental protec- Latin America and the Caribbean.5 globally. Complex laws, cumber- tion. The most common municipal some tax requirements, multiple fees are for operating licenses, Brazil’s tax burden is one of the overlapping taxes, and high tax garbage collection, and advertising highest worldwide. Subnational bills are the main constraints. Most fees. Other municipal fees include Doing Business in Brazil 2021 finds taxes and contributions are fed- those for public cleaning services, that, across the 26 Brazilian states eral; even where they have limited environmental licenses, sanitary and the Federal District, firms sim- room for action, states and cities inspections, or the use of machin- ilar to the Doing Business case study can still contribute to a better tax ery (table 6.2). pay on average 65.3% of their environment by simplifying laws profits in taxes each year. In addi- and enacting competitive local tax Brazilian firms pay their taxes tion, they spend between 1,483 rates. online and file them electronically and 1,501 hours to comply with through the national public digital 90 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 TABLE 6.1  Paying taxes in Brazil—where is it easiest? Paying taxes score Payments Time TTCR Postfiling index Location Rank (0–100) (number) (hours per year) (% of profit) (0–100) BRICS average 71.4 8.5 437.2 47.0 60.6 LAC average 60.7 30.9 325.3 48.1 47.1 OECD high income average 84.7 10.2 155.7 38.8 86.5 Brazil average (27 locations) 34.1 10.2 1,492.6 65.3 7.8 Espírito Santo (Vitória) 1 34.9 9 1,483 64.4 7.8 Rondônia (Porto Velho) 2 34.5 10 1,483 64.5 7.8 Alagoas (Maceió) 3 34.5 10 1,501 64.6 7.8 Paraná (Curitiba) 4 34.4 9 1,483 65.7 7.8 Amapá (Macapá) 5 34.4 10 1,483 64.8 7.8 Goiás (Goiânia) 6 34.4 10 1,483 64.8 7.8 Amazonas (Manaus) 7 34.3 10 1,501 64.9 7.8 Mato Grosso do Sul (Campo Grande) 8 34.3 10 1,483 65.0 7.8 Federal District (Brasília) 9 34.3 10 1,483 65.0 7.8 Maranhão (São Luís) 10 34.2 10 1,501 65.1 7.8 Rio Grande do Norte (Natal) 11 34.2 10 1,483 65.1 7.8 Rio Grande do Sul (Porto Alegre) 12 34.2 10 1,501 65.1 7.8 Santa Catarina (Florianópolis) 13 34.2 10 1,501 65.2 7.8 Paraíba (João Pessoa) 14 34.1 10 1,483 65.3 7.8 Tocantins (Palmas) 15 34.1 11 1,501 64.4 7.8 Mato Grosso (Cuiabá) 16 34.1 11 1,483 64.4 7.8 Minas Gerais (Belo Horizonte) 17 34.0 10 1,501 65.6 7.8 Roraima (Boa Vista) 18 34.0 11 1,501 64.7 7.8 São Paulo (São Paulo) 19 33.9 10 1,501 65.8 7.8 Pernambuco (Recife) 20 33.9 10 1,501 66.0 7.8 Ceará (Fortaleza) 21 33.9 10 1,483 66.0 7.8 Acre (Rio Branco) 22 33.8 10 1,501 66.0 7.8 Piauí (Teresina) 23 33.8 11 1,501 65.2 7.8 Sergipe (Aracaju) 24 33.7 10 1,483 66.3 7.8 Rio de Janeiro (Rio de Janeiro) 25 33.7 10 1,489 66.4 7.8 Bahia (Salvador) 26 33.2 12 1,501 65.7 7.8 Pará (Belém) 27 33.0 12 1,501 66.0 7.8 BRICS = Brazil, Russian Federation, India, China, and South Africa; LAC = Latin America and the Caribbean; OECD = Organisation for Economic Co-operation and Development Source: Doing Business and Subnational Doing Business database. Note: Rankings are calculated on the basis of the unrounded scores, while scores with only one digit are displayed in the table. Rankings are based on the average score for payments (number per year); time to prepare, file, and pay taxes (in days); and total tax and contribution rate (measured as a percentage of the company’s profits), as well as for the postfiling index (0–100 points, based on the time to comply with and obtain a VAT refund, and the time to comply with and complete a corporate income tax correction). The score for the ease of paying taxes is normalized to range from 0 to 100, with 100 representing the best practice (the higher the score, the better). Throughout this study, averages for Latin America and the Caribbean (LAC) are based on economy-level data for 32 economies; averages for OECD high income are based on economy-level data for 34 economies; averages for BRICS are based on data for Brazil, India, China, Russia, and South Africa. Data for all states and economies in this chapter are updated as of December 31, 2019. The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. For more information, see the chapter About Doing Business and Subnational Doing Business in Brazil 2021 and the data notes. Paying taxes 91 BOX 6.1  What does paying taxes measure? Doing Business records the taxes and contributions that a medium-size industrial company must pay throughout its second year of op- eration, as well as measures of the administrative burden of complying with tax obligations and postfiling procedures. The measurement includes four components: number of payments per year, time to comply with taxes (total hours per year to prepare, file, and pay taxes and contributions), total tax and contribution rate (expressed as a percentage of the firm’ profits), and the postfiling index (figure B 6.1.1). Doing Business goes beyond the FIGURE B 6.1.1  What are the time, total tax and contribution rate, and traditional definition of a tax. As number of payments necessary for a local medium-size company to comply defined for the purposes of gov- with taxes? How efficient are the postfiling processes? ernment national accounts, taxes Total tax and include only compulsory payments contribution rate Time Postfiling index made to the government. However, Doing Business measures taxes Hours To prepare, file, and and contributions that affect busi- per year pay value added or sale tax, profit tax, ness accounts. For example, taxes % of profit and labor taxes and before all taxes that are not borne by the compa- contributions ny (VAT-like taxes such as ICMS, IPI, PIS, and COFINS) are excluded from the total tax and contribution Efficiency of Payments (number per year) postfiling processes rate. Four components comprise the Source: Doing Business database. postfiling index: time to comply Note: For more information, see the chapter About Doing Business and Subnational Doing Business in Brazil 2021 and the data notes. with a VAT refund (in hours); time to obtain a VAT refund (in weeks); time to comply with a corporate income tax correction (in hours); and time to complete a corporate income tax correction (in weeks). Taxes and contributions that are similar to VAT (ICMS, IPI, PIS, COFINS) are analyzed in the case of Brazil. The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report, and are updated until December 31, 2019. bookkeeping system, the Sistema requires companies to prepare Onerous filing obligations also Público de Escrituração Digital and file a monthly tax return, the exist to comply with other taxes (SPED).10 However, compliance Escrituração Fiscal Digital (EFD- and contributions. Filing returns is burdensome. Tax compliance ICMS/IPI), which contains 10 for social contributions requires in the 27 locations benchmarked different sections, each needing detailed information on employ- takes 1,493 hours on average. The specific information on invoices, ees and their dependents. And to SPED platform is complex, requir- production, and inventory, as well comply with tax obligations, all ing a high level of user knowledge as other transactions. Companies companies need to keep electronic and specialization, and necessitates must also file another monthly tax books. Companies often purchase inputting large amounts of infor- return (EFD-Contribuições) for PIS costly software programs to make mation, increasing compliance and COFINS, two social contribu- their bookkeeping systems com- time. For example, whereas most tions charged on sales, which also patible with SPED. In addition, countries apply a single value added comprise 10 sections requiring frequent changes to both tax laws tax, companies in Brazil must com- detailed data. In addition to the and the SPED platform reduce ply with filing obligations for up to typical fiscal aspects, tax compli- legal certainty. Finally, local bene- four taxes and contributions levied ance in Brazil also requires detailed fits and tax incentives exist across on sales. Compliance with ICMS accounting and general business the country but taking advantage and IPI-related obligations in SPED information. of these means complying with 92 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 TABLE 6.2  Taxes and mandatory contributions paid by a medium-sized company in Brazil Total tax and contribution rate Payments Tax Level Type Statutory rate (% of profit) (number) Corporate income tax (IRPJ) federal profit tax 15% + 10%a 16.11–16.85 1 Social contribution on net profits (CSLL) federal profit tax 9% 5.80–6.07 1 Social contributions on sales (PIS and COFINS) federal value added tax 9.25% not included 1 Tax on industrial products (IPI) federal value added tax 20% not included 1 Tax on interest federal interest tax 20% b not included 0 Employer-paid severance contribution (FGTS) federal labor tax 8% 8.72 1 Employer-paid social security contributions (INSS) federal labor tax 20% 22.56 1 Employee-paid social security contributions (INSS) federal labor tax 11% withheld 0 Employer-paid payroll tax federal labor tax 8.8% 9.59 0 (‘Sistema S, Salário-educação, RAT’) Tax on the circulation of goods and services (ICMS) state value added tax 17%–20% c not included 1 Vehicle tax (IPVA) state other 1%–2% c 0.07–0.17 1 Property tax (IPTU) municipal property tax 0.4%–2.5%d 0.43–3.44 1 Operating license fee e municipal other fee schedule d 0.01–0.26 1 Garbage collection feef municipal other fee scheduled 0.01–0.50 0–1 Advertising feeg municipal other fee scheduled not included 0–1 Other local fees h municipal other fee scheduled 0.005–0.12 0–1 Source: Subnational Doing Business database. Note: This table shows the taxes and contributions paid by a company located in each of Brazil’s 27 capital cities. Only the taxes and contributions that represent a cost to the case study company are included in the total tax and contribution rate. Local tax payments vary per state and city, since in some cities it is not possible to pay jointly (payments are considered as ‘zero’ if a tax is filed and paid jointly with another tax; it includes taxes withheld by the company; payments are considered as ‘one’ if the payment and filing are done entirely online, regardless of the number of payments required by law). Some companies in Brazil also pay a tax on services (ISS), although it does not apply to the Doing Business case study. a. The additional 10% applies only to income over R$240,000. b. The tax on interest varies between 15% and 22.5%, depending on the length of the investment. c. Varies by state. d. Varies by city. e. Charged in 21 cities. In some cities, it has other names, such as establishment inspection fee. f. Charged in 20 cities. g. Charged in 10 cities. The cost of the advertising fee is not included in the total tax and contribution rate because this is a small fee, usually based on the type and size of the signboard. h. Ten cities charge a variety of other fees, including the urbanization fee (Belém, Pará), public cleaning fee (Brasília, Federal District), environmental license fee (Belém, Pará; Teresina, Piauí), use of machinery fee (Recife, Pernambuco; Natal, Rio Grande do Norte), sanitary license fee (Belém; Palmas, Tocantins; Salvador, Bahia; Maceió, Alagoas and Rio de Janeiro), and data update fee (charged annually in Boa Vista, even if the company’s information does not change). The total tax and contribution rate does not include the use of machinery fee (a minor fee determined by the number of machines and their weight). even more obligations (box 6.2). corporate income tax correction—is Correcting a mistake on an income In view of the complexity of the also poor. Restrictive rules govern tax return can also be cumbersome tax system, the government cre- VAT cash refunds for both federal in Brazil. If the mistake led to a tax ated Simples Nacional, an optional and state VAT-related taxes. IPI (tax underpayment, it could raise the simplified tax regime for micro on industrial products) credits on likelihood of the company being and small firms, and there are dis- capital purchases are not permit- selected for a federal tax audit.12 cussions underway to reform or ted, and the federal government The taxpayer must correct the tax potentially expand it.11 only allows PIS and COFINS (social return through SPED, make the contributions on sales) refunds in additional payment, and prepare Brazil’s performance on the postfil- limited cases, such as for interna- documents and information for ing index—measuring the time to tional traders. Cash refunds for the audit, which takes 39 hours in this comply and obtain a VAT refund and state ICMS are allowed only in rare case study. In the case of an audit, the time to comply and complete a cases, such as for tax overpayments. it may take 1 year for it to begin Paying taxes 93 BOX 6.2  Tax incentives in Brazil: promoting competitiveness or causing a ‘tax war’? Tax incentives exist at all levels of government in Brazil. Although created to promote competition, develop the country’s smaller states, and attract investment, in practice tax incentives generate distortions and render the legislation more complex. A company that benefits from a tax incentive may pay lower taxes but may also face additional requirements, including navigating legislation, performing more complex tax calculations, and filing additional documents. As a result, tax benefits—such as those from the Zona Franca de Manaus (ZFM, Manaus free trade zone) or the ICMS incentive programs offered in some states—do not necessarily translate into easier tax compliance. This study found no decrease in the number of payments or the time to comply with taxes, and only some municipal tax benefits had an impact on the company’s tax burden.a The ZFM highlights how tax incentives reduce tax costs but increase compliance and bureaucratic hurdles. Created in 1967, the ZFM targeted the development of industry and trade in Manaus and was later extended to other areas in the Brazilian Amazon. The government established a special federal agency, the Superintêndencia da Zona Franca de Manaus (SUFRAMA, the free trade zone superintendency), to manage incentives. To qualify, firms must comply with requirements including submitting an initial project plan and filing special tax returns every month (for example, the Declaração de Controle de Internação), in addition to regular tax returns. Approved firms receive exemptions for three VAT-like taxes (IPI, PIS and COFINS), import tax rate reductions of up to 88%, and ICMS benefits. Upon additional approvals, income taxes can be reduced by as much as 75% for some sectors. Since its inception, the ZFM has had an important impact on regional development, creating roughly 500,000 direct and indirect jobs. In 1970, the income per capita in São Paulo was 7 times higher than in Amazonas; by 2010, it was only 1.8 times higher.b As the economy continues to evolve, discussions on how to reform and update the region’s incentives program are ongoing. Most states offer ICMS incentive programs to promote local industry. Examples include DESENVOLVE in Bahia, PRODEIC in Mato Grosso, and PRODEPE in Pernambuco. But incentives can increase complexity and create economic distortions and conflicts among states, dragging them into a “race to the bottom.” Big firms with many employees typically receive more benefits, especially in less developed regions. As a result, small firms become less competitive. Incentives are in many cases negotiated with each taxpayer, creating further inequities among firms. Some states grant incentives unilaterally despite a federal law stating that incentives must be approved by all states through an agreement with the National Council of Fiscal Policy (CONFAZ). Judicial disputes have emerged as a result. To put an end to this ‘tax war’, in 2017 Congress validated all existing ICMS incentives, allowing them to continue through 2032, depending on the sector. States were required to disclose all incentives and were barred from granting new ones. Incentives at the municipal level benefit firms but also increase complexity. Companies must study the legislation to understand whether they can benefit and, in some cases, they need to submit a request and negotiate with the tax authorities. City governments normally provide incentives to promote less developed areas or to encourage startups or high-tech firms. Most municipal incentives consist of exemptions or discounts to property tax or other local fees. Some cities also grant payment deferrals and discounts for services tax (ISS). For example, Cuiabá (Mato Grosso) offers discounted operating license fees depending on the firm’s location; in the industrial district, these discounts can be as high as 70%. Teresina (Piauí) provides exemptions for property tax and municipal fees for certain categories of firms.c a. The ZFM and other federal and state tax incentives did not impact the number of payments, the time to comply with taxes, or the total tax and contribution rate, as measured by this case study. IPI (tax on industrial products) exemptions apply for companies located in Amapá, Amazonas, and Roraima (part of the ZFM and the free trade areas in Boa Vista and Macapá, as foreseen in Decree No. 7,212 of June 15, 2010) and, to a more restricted level, also to Acre and Rondônia (classified as part of the Western Amazon region by Decree-Law No. 356 of August 15, 1968). These exemptions are considered in the data. However, they do not affect the total tax and contribution rate because the cost of these taxes is borne by the customer; they also do not affect the number of payments and tax compliance time since tax returns still must be filed. b. Holland, Márcio et al. 2019. Zona Franca de Manaus: Impactos, Efetividade e Oportunidades. FGV EESP Escola de Economia de São Paulo. c. The methodology only considers the benefits for firms similar to the Doing Business case study that are located in the most common industrial area of the city. and another 8 months for the audit Reforming the country’s tax Three bills aimed at merging taxes process to be completed—a total system is a top priority for the and reducing compliance costs of almost 20 months. State and Brazilian government—the cur- were under debate in Congress municipal tax agencies can also rent system is widely considered as of mid-2020. The first bill pro- initiate audits relating to local taxes. an obstacle to doing business. poses replacing five VAT-related 94 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 taxes with a goods and services proposed in July 2020, would represent potential obstacles for tax. Revenues would be shared replace PIS and COFINS with a the adoption of such reforms.14 among the federal, state, and flat 12% federal goods and ser- municipal levels. The bill would vices contribution (CBS), which With these reforms under dis- also add a federal tax on alcohol would have simplified compliance cussion, tax agencies across and cigarettes. The second bill pro- rules. The bill would also expand Brazil have adopted temporary poses merging corporate income options to use tax credits with the emergency measures to support taxes (IRPJ and CSLL) and replace aim of reducing judicial disputes.13 businesses during the COVID-19 nine taxes with a state goods and However, the concerns of states crisis (box 6.3). The legislature also services transactions tax (IBS) and cities, which could see their approved a social security reform and a federal goods and services tax powers reduced, and of sec- in November 2019 to stabilize tax for specific cases. A third bill, tors that could face higher taxes Brazil’s strained pension system. BOX 6.3  Tax measures to support businesses during the COVID-19 crisis in Brazil In 2020 the COVID-19 pandemic caused a major disruption to the global economy. In response, economies took drastic lockdown measures to prevent the spread of the virus. By the end of the year, Brazil was one of the countries most affected by the pandemic, both in terms of cases and economic impact.a In addition to federal measures, at least 23 locations across the country implemented legal reforms and made changes to tax processes to counter the pandemic-related economic crisis. These measures included replac- ing in-person interactions with new online channels, introducing more flexible tax payment options, and extending deadlines for tax filing and administrative and judicial processes. The federal government, along with most cities and states, approved deadline extensions for filing tax returns and paying taxes and offered payments in installments to ease the financial pressures faced by companies experiencing a sudden drop in revenues. At the national level, in April 2020 the tax payment deadline was extended for 90 days for ICMS and ISS and 180 days for the remaining taxes for small firms under the Simples National tax regime. Most cities also extended deadlines to pay property taxes and other fees. Cities such as Cuiabá, Macapá (Amapá), and Rio de Janeiro allowed payment rescheduling, with installments spread throughout the year. In Belo Horizonte (Minas Gerais), deadlines were postponed specifically for companies that had to suspend their business activities during the COVID-19 crisis. State authorities also enacted changes to tax processes. Sergipe, Alagoas, Bahia, and Rio Grande do Norte extended vehicle tax payment deadlines; these and nine other states postponed ICMS payments. Paraná temporarily suspended a rule that excludes companies with overdue taxes from benefiting from the Paraná Competitivo tax incentive program. Local administrative and judicial tax processes were also halted or postponed throughout the country. In all locations, city authorities extended the validity of debt clearance certificates (certidões negativas de débitos), most commonly for 90 days. Many cities also ex- tended procedural deadlines. Teresina postponed audit procedure deadlines and Vitória extended deadlines for administrative appeals. Finally, to reduce in-person customer service interactions, several cities enhanced virtual channels for taxpayer services. City govern- ments in Cuiabá and Porto Alegre (Rio Grande do Sul) created a WhatsApp account to answer taxpayers’ questions. Authorities in Natal (Rio Grande do Norte) launched an online chat service. In Rio de Janeiro, the Municipal Secretariat of Finance offered online taxpayer service appointments via videoconference. Most locations implemented alternative communication methods using email or telephone hotlines. These actions may have long-term impacts: many governments plan to keep them operational after the crisis. In Curitiba (Paraná), face-to-face taxpayer services restarted in June 2020, but 90% of customer service remained online in the following months.b It is likely that some online services initiatives launched during the pandemic will become permanent, leading to an improvement in government services and interactions with taxpayers. a. According to the Brazilian Institute for Geography and Statistics (Instituto Brasileiro de Geografia e Estatística, IBGE), the Brazilian economy contracted by 4.1% in 2020 (https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/30165-pib-cai-4-1-em-2020-e -fecha-o-ano-em-r-7-4-trilhoes#:~:text=O%20PIB%20totalizou%20R%24%207,2019%20(15%2C4%25)). b. According to data provided to the Subnational Doing Business team by local officials. Paying taxes 95 Among other changes to labor face a substantial tax burden and some taxes are not paid online. legislation, the reform updated spend a significant amount of time However, room for improvement salary ranges for social contribu- complying with taxes and dealing remains—firms make 6 payments tions, with rates changing from with postfiling procedures. in Mexico and 6.5 payments in 8%–11% to 7.5%–14%. China. These two economies facil- Thanks to the use of electronic itate paying taxes by making all systems for filing and paying taxes, payments and filing online, and Brazilian companies do not make by combining several payments How does paying taxes a high number of payments.15 (figure 6.1). in Brazil compare On average, they make 10.2 tax regionally and globally? payments, which is on par with Although Brazilian firms make OECD high-income economies relatively few tax payments, they If considered as individual econ- and one-third the LAC regional face the highest tax compliance omies, all of Brazil’s 27 locations average. Firms in neighboring time worldwide. Out of 191 econ- would score in the bottom 10 countries like Bolivia, Paraguay, omies, it takes more than 1,000 economies measured by Doing and Uruguay make more pay- hours a year for a medium-size Business on the ease of paying ments than those in Brazil (42, firm to comply with taxes in only taxes. Companies in all locations 16, and 20, respectively) since two: Brazil (at 1,493 hours) and FIGURE 6.1  Despite the use of digital technology for tax filing and payments, the time to comply with taxes in Brazil is the highest in the world Total tax and Payments Time contribution rate Postfiling index (number per year) (hours per year) (% of profits) (0–100) 1 0 0 Solomon Islands, 100 Turkey (global best) Hong Kong SAR,China Hong Kong SAR, (global best) 5 China; Saudi Arabia 3 50 Vanuatu China (global best) (global best) 90 10 Russian Federation 100 OECD high income Mexico 6 China 25 average OECD high income China average 150 80 South Africa South Africa 7 Russian Federation 30 South Africa 200 35 70 8 India, Mexico OECD high income 250 average 40 BRICS average South Africa Russian Federation Argentina, Russian 9 Espírito Santo, 300 India 45 Federation BRICS average 60 Paraná Argentina BRICS average LAC average LAC average 350 50 India 10 19 locations China Brazil average Mexico India 50 OECD high income 55 400 Argentina average 11 4 locations BRICS LAC average average 60 450 3 locations Mexico 40 12 Pará, Bahia Brazil average 65 23 locations 1,450 Rio de Janeiro 70 12 locations 10 30 Brazil average 1,500 Rio de Janeiro Brazil 27 locations 14 locations Argentina 135 LAC average 31 1,550 140 0 BRICS = Brazil, Russian Federation, India, China, and South Africa; LAC = Latin America and the Caribbean; OECD = Organisation for Economic Co-operation and Development Source: Doing Business and Subnational Doing Business database. Note: The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. Averages for LAC and OECD high income are based on economy-level data for their respective 32 and 34 economies (data for Chile was included in the averages for OECD high income economies). Averages for the BRICS are based on data for Brazil, China, India, Russian Federation and South Africa. Other economies are represented by their largest cities. China, India, and the Russian Federation are represented by their two largest cities. Averages for Brazil are based on data from the 27 locations analyzed in this report, including São Paulo and Rio de Janeiro. 96 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Bolivia (1,025 hours). In compar- Mexico and Russia, allow firms to payments drive variations in the ison, it takes less than 300 hours request a VAT refund. However, in number of tax payments. First, to comply with tax obligations Brazil, VAT-related taxes are not some locations require fewer in large federal countries like refunded in most cases. Brazilian payments owing to fewer taxes Mexico, India, and the Russian taxpayers also undergo lengthy or fee exemptions. For example, Federation, and 156 hours in procedures to correct errors in an advertising fee exists in most the average OECD high-income their tax returns, spending 39 benchmarked locations, but for economy (figure 6.3). Even if hours on average to comply with this case study, it is charged in electronic filing reduces the num- requirements. This process takes 10 cities due to common exemp- ber of payments in Brazil closer significantly less time in other tions based on the type and size of to that of the OECD high-income economies: just 3 hours in India the company signboard.16 Seven economies, the large difference in and 6 in Argentina. Similarly, cities apply this fee to all types time underscores the complex- completing the entire income and sizes of signboards but allow ity of the Brazilian tax system. tax correction process—which in it to be paid jointly. However, Numerous taxes on the same tax Brazil and many other economies Palmas (Tocantins), Salvador, and base (for example, two taxes and may involve an audit—can take Teresina (Piauí) apply it to all cases contributions on income and four as long as 20 months in Brazil, and require an extra payment. on sales), particularly onerous about eight times the global aver- compliance requirements, and age. It takes longer in only four Second, the frequency of pay- frequent changes to tax laws and economies, all of them in the LAC ments varies. Depending on the regulations all raise tax compli- region (Mexico, Jamaica, Panama, location, firms can pay the same ance time in Brazil. and Puerto Rico). tax annually, every few years, or even only once (at company Across the 27 Brazilian locations registration). For example, firms benchmarked, the total tax and in 21 cities must pay a municipal contribution rate amounts to an How does paying taxes operating license fee annually; average of 65.3% of profits for a vary within Brazil? in Boa Vista (Roraima), Curitiba, medium-size industrial company Florianópolis (Santa Catarina), similar to the Doing Business sce- Number of payments João Pessoa (Paraíba), and Rio nario. In the LAC region, this com- de Janeiro (Rio de Janeiro), firms pany would pay 48.1% of profits In Brazil, a medium-size industrial pay this fee only once, at company in taxes on average; this falls to company makes between nine registration; in Vitória, it is paid 38.8% in the OECD high-income and 12 tax payments each year, every five years.17 economies. The burden for a sim- depending on the company’s loca- ilar firm is also lower in Mexico, tion. Firms make 9 tax payments Third, some municipalities allow China, and India, where it ranges in Espírito Santo and Paraná, and joint payment of local taxes and from 45% to 53% of profits. Out 12 in Bahia and Pará. In all states, fees. Companies pay property of 191 economies, only 12 impose companies make six federal tax tax—one of the most important a higher tax burden than Brazil on payments, including income, VAT- municipal taxes—and, in most a medium-size firm. One of these related, and labor taxes, plus social locations, they also pay a garbage is Argentina, where taxes cost contributions. States require two collection fee.18 Although firms 135.2% of profits. payments: ICMS and vehicle tax. typically pay these taxes together, City tax payments range from the authorities require separate Entrepreneurs in Brazil also face four in Belém (Pará) and Salvador payments in Boa Vista, Cuiabá difficulties when dealing with (Bahia), to only one in Curitiba (Mato Grosso), Florianópolis, and processes after taxes are paid. (Paraná) and Vitória (figure 6.2). João Pessoa. The same is true for Its postfiling index score of 7.8 other local taxes. For example, points out of 100 is the sixth-low- The number of taxes in each in Belém, Maceió, Palmas, Rio de est globally. Most economies, city, the payment frequency, Janeiro, and Salvador, companies including large economies like and the possibility to make joint pay a sanitary license fee. This fee Paying taxes 97 FIGURE 6.2  The number of tax payments varies at the municipal level Number of payments 1 Corporate income tax (IRPJ) and tax on interest Income taxes 2 Social contribution on net profits (CSLL) 3 Tax on industrial products (IPI) VAT-related taxes 4 Social contributions on sales (PIS and COFINS) 5 Severance contribution (FGTS) Labor taxes 6 Social security contributions (INSS) and payroll tax 7 Tax on the circulation of goods and transportation and communication services (ICMS) VAT-related taxes 8 Vehicle tax (IPVA) Property tax (IPTU) + Garbage collection fee 9 Property tax (IPTU) Curitiba, Vitória Operating license fee Sanitary fee Operating Operating Operating Operating Garbage Garbage Garbage Aracaju*, Belo Horizonte, Rio de Janeiro license fee + license fee + license fee + license fee + collection fee collection fee collection fee Brasília**, Fortaleza*, Advertising fee/ Advertising fee + Sanitary fee/ Advertising fee Florianópolis, 10 Goiânia*, Macapá, Sanitary fee Machinery fee Environmental João Pessoa Manaus*, Porto Alegre, Campo Grande, Natal, fee São Luís*, São Paulo* Maceió, Porto Recife Velho, Rio Branco Advertising Environmental Operating Data update fee fee license fee + fee 11 Palmas, Advertising fee Boa Vista Federal Teresina Cuiabá State Municipal Sanitary fee 12 Belém***, Salvador Source: Doing Business and Subnational Doing Business database. Note: The Doing Business 2021 data for Rio de Janeiro and São Paulo are not considered official until published by the Doing Business 2021 report. + Paid jointly * There is no a garbage collection fee in these cities. ** In Brasília there is a public cleaning fee which includes garbage collection, among other public cleaning services. *** In Belém there is an urbanization fee which is paid jointly with the property tax and the garbage collection fee. can be paid with the municipal calculating the taxes due, filling 867 hours in 13 locations to 885 operating license fee in Maceió and submitting tax returns, and hours in the 14 locations that and Palmas, but not in Belém, Rio making the required payments. require taxpayers to file a separate de Janeiro, or Salvador. As mentioned, complex tax calcu- state-level tax return for ICMS, lations and onerous filing obliga- in addition to the ICMS-related Time tions are partially responsible for tax return filed through the SPED the lengthy time to comply with system.19 This involves inputting A medium-size industrial firm in taxes in Brazil. information that was previously Brazil spends between 1,483 and filed, generating additional work 1,501 hours preparing, filing, The time needed to comply and adding 18 hours on average to and paying the main income and with federal taxes is the same tax compliance time (figure 6.3). sales taxes, labor taxes, and social nationwide: 361 hours for cor- Paraíba and Pernambuco elimi- contributions. Tax compliance porate income taxes and 255 nated the state ICMS requirement activities include extracting, orga- hours for labor taxes and social in October 2019 and January nizing, and analyzing the account- contributions. Compliance with 2020, respectively. But even in the ing data needed for tax purposes, VAT-related taxes varies from states that no longer require the 98 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 FIGURE 6.3  Brazil has the highest time to comply with taxes, but some states cut time by abolishing ICMS tax returns OECD high income average 40 51 66 156 LAC average 64 150 111 325 BRICS average 106 233 98 437 Amapá, Ceará, Espírito Santo, Federal District, Goiás, Mato Grosso, Mato Grosso do Sul, 361 867 255 1,483 Paraíba, Paraná, Rio Grande do Norte, Rondônia, Sergipe 6 hours to comply with the ICMS tax return Rio de Janeiro 361 873 (867 + 6) 255 1,489 18 hours to comply with the ICMS tax return Acre, Alagoas, Amazonas, Bahia, Maranhão, Minas Gerais, Pará, Pernambuco, 361 885 (867 + 18) 255 1,501 Piauí, Rio Grande do Sul, , Roraima, Santa Catarina, São Paulo, Tocantins Time (hours per year) Time to comply with CIT Time to comply with VAT Time to comply with labor taxes Source: Doing Business and Subnational Doing Business database. Note: The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. additional ICMS tax return, com- city’s size or income per capita.20 lowest municipal taxes are Palmas pliance is cumbersome owing to Federal labor taxes and social con- (0.56% of profits) and Vitória the level of detail that is required. tributions21 and corporate income (0.57%). Companies face the taxes amount to 40.9% and 22.5% highest costs in Rio de Janeiro Total tax and contribution rate of profits, respectively.22 The state (3.55%) and Aracaju (Sergipe) vehicle tax costs 0.09% of profits, (3.31%). Property tax is the cost- Because most taxes are federal, and municipal taxes cost 1.8% of liest local tax. For an industrial the tax burden varies only slightly profits on average. property valued at roughly R$2.8 across Brazil. For the Doing Business million ($770,000), companies case, this burden ranges from At the state level, the vehicle tax23 in Rio de Janeiro would pay 64.4% of profits in Espírito Santo, for a mid-size truck ranges from R$65,649 ($17,986) per year. In Mato Grosso, and Tocantins, to 0.07% of a firm’s profits (R$1,364; Palmas, the cost would be eight 66.4% in Rio de Janeiro. State and $372) in Pará and Piauí to 0.17% of times less—R$8,132 ($2,216).25 municipal taxes represent less than profits (R$3,209; $874) in Roraima, Discounts for early payment or 10% of the total tax and contri- which has the highest vehicle tax payment in one installment, bution rate. Interestingly, there is rate, along with Mato Grosso do which apply in all cities, can reach a weak relationship between the Sul and Amazonas. All states except 20% of taxes due. total tax and contribution rate Roraima, Santa Catarina, and Goiás and economic factors such as local offer discounts for early payment or In addition to property tax, other income per capita, population, payment in a single installment.24 municipal fees cost roughly 0.11% or city tax revenue per capita. In of profits, although rates vary other words, municipal taxes are Greater variations exist in munic- widely (figure 6.4). One exam- not necessarily determined by a ipal taxes. The cities with the ple of this variation is garbage Paying taxes 99 FIGURE 6.4  Most of the tax burden is federal, but local taxes vary considerably among cities Brazil total tax and contribution rate 5 5 (65.3%) 4 Rio de Janeiro 4 Rio de Janeiro 3.55% 3.44% 3 3 2 Brazil average (1.79%) 2 Brazil average (1.65%) Palmas (Tocantins) Palmas (Tocantins) 1 0.56% 1 Labor taxes 0.43% and social 0 0 TTCR (%) contributions Municipal taxes Property tax (FGTS, INSS, payroll) 0.5 0.5 Rio Branco (Acre) 40.9% 0.50% Federal 0.4 0.4 taxes Fortaleza (Ceará) 0.3 0.3 0.26% Campo Grande Boa Vista (Roraima), (Mato Grosso do Sul), 0.2 Cuiabá (Mato Grosso), 0.2 Porto Alegre Macapá (Amapá) Brazil (Rio Grande do Sul) Brazil 0.01% average 0.01% average 0.1 (0.05%) 0.1 (0.05%) Corporate 0.0 0.0 income taxes State vehicle tax Garbage collection fee Operating license fee (IRPJ, CSLL) (IPVA) 0.09% 22.5% State and municipal taxes Local taxes 1.8% Source: Doing Business and Subnational Doing Business database. Note: The Doing Business 2021 data for Rio de Janeiro and São Paulo are not considered official until published by the Doing Business 2021 report. collection, which costs R$9,562 standardized for VAT-related tax audit typically lasts from three ($2,606) in Rio Branco (Acre); refunds and for completing an to six months and is reported to the same company in Macapá income tax correction. But if the happen once in three years; audits (Amapá) pays just R$111 ($30) methodology used by the pay- occur more frequently in smaller a year. The operating license ing taxes indicators were also to states. fee ranges from R$142 ($39) in capture audits for the state ICMS Campo Grande (Mato Grosso tax, the story would be different. Brazilian states, as well as the do Sul) to R$5,000 ($1,362) in Audit procedures vary when they federal tax authorities, are adopt- Fortaleza (Ceará). Calculation involve ICMS. Typically, author- ing innovative approaches to tax methods also vary. Cities charge ities carry out audits either ran- audits. Many state tax agencies fixed fees or percentages based on domly or when they discover an are working to improve commu- variables including location, sec- irregularity in a company’s taxes. nication and foster collaborative tor, number of employees, area, With the increasing automation of interactions with taxpayers. and turnover; discounts can apply tax systems, almost all states now Among other measures, at least based on the location and other use electronic systems to detect 15 state tax authorities now notify factors. Some locations have com- irregularities in taxpayer data, taxpayers of an irregularity and plex tax calculations, making pay- relying less on random audits. On allow them to self-correct with- ing and contesting taxes difficult. the other hand, data verification is out a formal audit or penalty.26 still manual in Acre and Tocantins. Alagoas, Mato Grosso, Rio Grande Postfiling index and state tax State audits also differ in their do Norte, and São Paulo imple- audits frequency and duration. States mented a complete tax self-cor- monitor larger taxpayers or firms rection system. Other states, Postfiling procedures involving in certain sectors more closely; in including Amazonas and Rio de federal taxes are homogeneous small states, medium-size firms are Janeiro, allow this only in specific throughout Brazil. Rules are monitored more carefully. A state circumstances, mostly in cases of 100 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 minor mistakes. Self-correction allowing electronic filing and pay- goods and services tax, replacing 17 options are being piloted in Pará ment and integrating companies federal and state taxes and levies, and at the federal level. with tax agencies. But the system including excise duty, services tax, remains complex; as mentioned additional customs duty, and a state States are also abolishing financial earlier, some tax returns contain VAT. Over the past 15 years, more incentives for auditors to impose many sections with a large amount than 60 economies worldwide fines. At least six states do not use of information, from details on have eliminated or merged taxes to financial incentives as motivators invoices, production, and inven- reduce compliance costs. for auditors, considering them tory control, to employees’ data for suboptimal solutions for ensuring social security purposes. Brazilian legislation includes more proper tax collection.27 Certain than 90 taxes, and many apply to targets can promote efficiency, but To simplify state-level compliance, the same tax base. As mentioned, specific incentives for increasing many locations have been abol- whereas most economies have penalties can create challenges for ishing the requirement to file an a single tax on the value-added taxpayers if auditors are encour- additional state ICMS tax return, of goods and services, firms in aged to apply heavy penalties to relying instead on information Brazil must pay from three to four meet their targets. Examples of filed through SPED. As mentioned, separate taxes and contributions incentives include a percentage in 2019, 13 locations no longer on sales.29 Each tax can entail of the fines applied to audited required the additional ICMS tax additional obligations; in fact, the companies—as is the practice in return. Others, including São Paulo, largest share of compliance time Amapá, Pará, or Sergipe—or an plan to abolish it in the future. If is spent on VAT-related taxes. additional salary bonus for audi- all states removed this additional The reforms under discussion tors when certain targets are met, requirement, they would save in Congress could contribute to like in Pernambuco. Financial taxpayers 18 hours in compliance reducing the number of tax pay- incentives for auditors at the fed- time. Other reforms simplifying ments and compliance costs if an eral level are stipulated in Law No. SPED and other filing obligations agreement is reached. 13,464 of 2017, but as of late 2020 could further reduce the time to the regulations to apply them in comply with taxes. Such an effort Clear, simple and stable tax practice were on hold pending a would require close coordination legislation legal challenge to their validity. between federal, state, and munic- ipal tax authorities. Companies must deal with a large and unstable body of tax regula- Merging taxes that apply to tions. A new entrepreneur would What are the the same tax base have to understand how to comply challenges and good with up to 97 tax obligations and practices? Multiple taxes mean a higher cost multiple rules governing national, of doing business for entrepreneurs, state, and city taxes—an average Streamlined tax filing but they also raise tax administra- of 4,377 regulations, according obligations tion costs for the government. To to the Brazilian Institute of Tax simplify the tax system, at least Planning (Instituto Brasileiro de Arguably, complying with all tax 46 economies measured by Doing Planejamento e Tributação, IBPT). filing obligations is more difficult Business apply one tax per tax In addition, rules are constantly than actually paying taxes in Brazil. base.28 This reduces administra- being updated: roughly 36 legal Companies spend long hours on tive and compliance costs—for the changes are made every day— compliance and significant sums government and companies—and more than one per hour.30 Experts to pay penalties and lawyers in facilitates better tax collection consulted for this study report litigation involving compliance monitoring. India, a large federal that this ambiguity and lack of procedures. The adoption of the country with a complex tax system, stability lead not only to a higher SPED system contributed to the reformed its tax system in 2017. time to pay taxes but can even modernization of the tax system, The government launched the cause irregularities and problems Paying taxes 101 for taxpayers, who end up spend- 2019, between face-to-face audits authorities that adopted these ing large sums on tax litigation. and data verification through initiatives report that audits have electronic systems, the federal become more efficient, increasing The amount of tax litigation can tax authority carried out 30,624 tax collection and improving the serve as a proxy for the complex- audits among companies, generat- authorities’ relationship with tax- ity and ambiguity of tax laws. In ing R$190 billion ($52 billion) in payers. Firms and the government Argentina, Colombia, and Mexico, tax credits.33 From the perspective both stand to benefit by avoiding taxes that are under litigation at of taxpayers, the audit process in lengthy audits and even longer the administrative level represent Brazil—one of the world’s lon- judicial disputes over audit out- 0.09%, 0.19%, and 0.54% of gest—can take considerable time comes. Other states may follow as GDP, respectively. In Brazil, the and effort. As part of a strategy to agencies continue to learn from taxes that are subject to federal improve audit efficiency, state and good practices elsewhere. administrative litigation alone federal tax authorities are increas- represent 13.91% of GDP. Adding ingly moving toward an approach Simple municipal tax all spheres of tax litigation, includ- centered on education instead of compliance requirements ing administrative and judicial punishment to improve their rela- litigation at the federal, state, tionship with taxpayers. Municipalities regulate local tax- and city levels, this figure rises ation in Brazil, giving them the to R$4.9 billion ($1.4 billion), or Santa Catarina was one of the first power to simplify regulation and 73% of GDP.31 Tax litigation also states to reform audit practices, promote a business-friendly tax has an enormous impact on court starting in 2009. Instead of launch- environment. Ensuring that munic- congestion. Tax matters, which ing a formal audit, the tax agency ipal taxes and fees are harmonized, account for 70% of all pending contacts taxpayers when irregular- transparent, competitive, and easy judicial enforcements in Brazil, ities are found and allows them to to calculate and pay can avoid a are routinely identified as a major correct the errors without penalty. situation where local taxes are par- cause of judicial delays.32 Contrary to traditional policies, ticularly high or rules are onerous. auditors in the state have no finan- Cities can help businesses spend less Resources allocated to tax mat- cial incentives to impose fines or time complying with taxes. ters—hiring a qualified accoun- minimum penalty targets. They tant, expenses for lawyers’ fees must avoid delays, as audit proce- Facilitating municipal tax com- and litigation, implementing dures must be completed within pliance faces several challenges updated tax systems—could be a legal deadline of 180 days.34 in Brazil. For example, obtaining better used if the legislation was The authorities promote taxpayer updated fee and tax rate informa- simpler, clearer, and more stable. education with seminars and tion can be difficult. Fee sched- Companies would have more other events. Finally, to increase ules should be clear and easily capital to invest, and easier rules transparency, audit activities are accessible. Many Brazilian cities, would benefit entrepreneurs, par- published in online reports, along including Recife (Pernambuco) ticularly small entrepreneurs that with data on tax revenues, unpaid and Salvador, make their annual- cannot afford to hire a tax spe- taxes, and litigation cases.35 ly-updated fee schedules available cialist. Simplifying tax laws would online. In contrast, in Belém, São help companies to understand Such practices are filtering across Luís (Maranhão), and Teresina, their obligations better, eventually to other states, which often col- taxpayers must contact the local boosting compliance rates and tax laborate through state tax agency tax agency to obtain an up-to-date revenues. associations such as the National fee schedule. Even when infor- Committee of Secretaries of mation is at hand, calculations Efficient and transparent tax Treasury, Finance, Revenue or often involve complex formulae. audit processes Taxation of the States and the The garbage collection fee is a Federal District (COMSEFAZ) good example. Whereas Curitiba Tax audits are an important com- and the Fiscal Management applies a fixed fee for garbage col- ponent of taxation in Brazil. In Commission (COGEF). State lection of R$471.60 ($129) for all 102 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 companies, João Pessoa uses a for- three invoices, one for property so it can produce and sell its goods mula involving factors determined tax, another for garbage collection to incur a tax debt and then use by law, which are, in turn, based fee, and a combined invoice for the ICMS credits to reduce the tax on collection frequency, time both. debt. Tax credits can be used to period, building distance and type, reduce taxes due gradually, over and type of garbage collected. An equally important issue is the 48 installments. Refund restric- high cost of local taxes. The property tions also apply to federal taxes, The lack of clear, common stan- tax, the most important municipal including IPI, PIS, and COFINS. dards also complicates the appli- tax, accounts for the high local tax cation of local taxes. For example, costs in some locations. Rates are Reforms elsewhere could inspire some locations only apply the calculated based on the property’s Brazil to amend its laws— sanitary license fee to companies official value and vary consider- although budget limitations must deemed high risk, while others ably. For instance, property tax for also be considered. The govern- apply it to companies of all risk an industrial building in Maceió, ment could assess if it would be levels. The same company—a the mid-size capital of Alagoas, is feasible, in budgetary terms, to ceramics factory, for example— charged at 1%, compared to 2.4% follow the example of econo- can be classified as low or high for the same building in Aracaju, mies like Armenia and the Arab risk depending on the city. Most a smaller city in neighboring Republic of Egypt, which recently cities, including Curitiba and Sergipe. Other local fees also show amended legislation to permit VAT Fortaleza, classify firm activities significant variations. Companies cash refunds, giving firms more according to the risk levels defined in Natal, for example, pay R$5,436 flexibility in handling cash flows by the National Agency for ($1,482) for garbage collection in and operations. Clearer rules for Sanitary Surveillance (ANVISA).36 this case study scenario, more than refunds and the use of tax credits However, Cuiabá, Florianópolis, five times the cost in João Pessoa could also mean less legal uncer- and Rio de Janeiro use local (in neighboring Paraíba); the oper- tainty and fewer tax-related court criteria. In Palmas, a ceramics ating license fee costs R$4,766 cases. factory will always be deemed ($1,300) in Salvador, six times the high risk, while Belém, Maceió, cost in Recife, another large city and Salvador charge the sanitary located in the same region. license fee regardless of the com- pany’s determined risk level. Increased possibilities for VAT refund Some cities do not allow firms to pay local taxes jointly, forcing them A company can accumulate tax to make extra payments every credits when it makes a capital year. Municipalities could make it investment. In most other econ- easier to pay taxes by allowing joint omies, firms can request a VAT payments. In Natal (Rio Grande do refund—but not in Brazil. A cash Norte) and Recife, companies must refund is not allowed for any of the pay five taxes, but they can be federal or state VAT-related taxes. done in just two payments. Some For the state ICMS tax, national municipal tax authorities that laws only allow compensation for participated in this study raised a tax credit deriving from a cap- concerns about tying payments ital investment with future tax of different taxes together, which debts.37 To illustrate this, consider makes contesting an individual fee the case of a machine acquisition, difficult. Taxpayers in Porto Velho which results in ICMS tax cred- can decide whether to make a joint its. After the purchase, the com- payment or make separate pay- pany would have to wait for the ments. They receive a letter with machine to become operational, Paying taxes 103 the methodology, the time to contributions: IPI, PIS, COFINS, Notes comply with income, labor and ICMS, ISS, IOF, civil servants’ consumption taxes is recorded, wealth program (PASEP), ‘salário- 1. Baker, Andrew, and Richard and it is mostly related to federal educação’ (a social contribution to Murphy. 2020. “Modern taxes (which do not vary among fund education), and ‘Cide-fuels’ Monetary Theory and the states). (a social contribution for transport Changing Role of Tax in Society.” 7. Other federal taxes and infrastructure investment). Social Policy and Society 19 (3): contributions—including 14. Zugman, Daniel Leib. 2016. 454–69; Owens, Jeffrey, and the rural property tax (ITR), “Reflexões sobre as possíveis Richard Parry. 2009. “Why Tax financial operations tax (IOF), razões para não ocorrer uma Matters for Development.” OECD import tax (II), and export tax reforma tributária no Brasil.” Observer 273, June. (IE)—do not apply to the Doing Revista Direito GV 12 (3): 2. 2020 Budget of the Federal Business case study. 610–31; Orair, Rodrigo, and Government of Brazil. Available 8. The property inheritance and Sérgio Gobetti. 2018. “Reforma at https://www.gov.br/economia donation tax (ITCMD) is a state Tributária no Brasil: Princípios /pt-br/assuntos/orcamento tax that does not apply to the norteadores e propostas em /orcamento/orcamentos-anuais Doing Business case study. debate.” Novos estudos CEBRAP /2020/mensagem-modificativa 9. Another important municipal 37 (2): 213–44. -do-ploa/volume1_ploa_2020 tax is the ISS (tax on services), 15. The Doing Business 2021 data for _mensagem_modificativa.pdf. which does not apply in this Rio de Janeiro and São Paulo, as 3. Braunerhjelm, Pontus, and scenario because it is paid mostly well as for comparator economies Johan E. Eklund. 2014. “Taxes, by service providers. and regional averages, are not Tax Administrative Burdens and 10. Brazil’s national bookkeeping considered official until published New Firm Formation.” KYKLOS system, the Sistema Público de by the Doing Business 2021 report. 67 (February) 1–11; Djankov, Escrituração Digital (SPED), Per the methodology, a tax Simeon, Tim Ganser, Caralee was created by Decree No. payment is counted as ‘1’ if the McLiesh, Rita Ramalho, and 6,022 of 2007. It was gradually tax is entirely filed and paid Andrei Shleifer. 2010. “The Effect implemented, becoming online, regardless of the payment of Corporate Taxes on Investment mandatory for most companies frequency. and Entrepreneurship.” American under the actual profits and 16. In some cities, companies need Economic Journal: Macroeconomics 2 presumed profits tax regimes, to pay an advertising fee for the (3): 31–64. and some under Simples display of the company name 4. Deutsche Gesellschaft fur Nacional, in 2014. It encompasses or logo on their premises. Local Internationale Zusammenarbeit companies’ accounting and tax laws grant exemptions based (GIZ) GmbH, Federal Ministry books, including e-invoices, on certain types and sizes of for Economic Cooperation and labor records and tax returns. All signboards in Aracaju, Belo Development (BMZ). 2010. federal taxes and contributions Horizonte, Curitiba, Florianópolis, “Addressing Tax Evasion and are filed through SPED, as well Fortaleza, João Pessoa, Maceió, Tax Avoidance in Developing as the state ICMS, in addition Rio de Janeiro, and São Luís. Countries.” Eschborn December; to information relating to the 17. Recife is another exception. Krause, Kate. 2000. “Tax municipal tax on services (ISS). The operating license fee is Complexity: Problem or 11. For more information, please paid twice a year, but because Opportunity?” Public Finance consult chapter 9 of this report, electronic payment is permitted Review 28 (5): 395–414. which showcases a pilot study on and most companies choose this 5. Based on answers collected paying taxes under the Simples option, one payment is counted, by World Bank Enterprise Nacional tax regime. according to the Doing Business Surveys from business owners 12. For more information on the methodology. and top managers in 1,802 methodology of the postfiling 18. The garbage collection fee is firms in several states in Brazil, index, including the criteria used not required in some cases. In interviewed from May 2008 to assess VAT refunds, income Fortaleza, this fee is paid once through June 2009. For more tax corrections and audits, please every five years. In Aracaju and information, visit https://www consult the data notes. São Luís, garbage collection .enterprisesurveys.org/en/data 13. The bills under discussion services are financed with other /exploreeconomies/2009/brazil. in Congress are: Proposed public resources; in Goiânia 6. This study recorded variations Constitutional Amendments (Goiás), the fee applies only in state and city tax rates and in No. 110/2019 and No. 45/2019 for ‘large garbage producers’; the number of payments across and Legislative Proposal No. in São Paulo, it is applied to locations. However, the time 3,887/2020. They would merge as companies in the health sector. variation is minimal because, per many as the following taxes and In Brasília (Federal District), 104 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 the public cleaning fee covers the sum of employer-paid social 29. These five taxes are ICMS, IPI, garbage collection and other security contribution (22.56%), PIS, COFINS, and ISS (which services. Manaus (Amazonas) payroll tax (9.59%), and applies only to services). had previously eliminated and severance contribution (8.72%). 30. Breda, Zulmir Ivânio. 2018. recreated this fee, but it was 22. The deductibility of local taxes “Estrutura tributária e a qualidade under judicial dispute and was for the purpose of corporate dos gastos públicos.” Federal not charged in 2019. income tax calculation leads to Council of Accounting (Conselho 19. Under the Doing Business differences when calculated as a Federal de Contabilidade, CFC). methodology, only changes percentage of profits. August 3. https://cfc.org.br made in the 2019 calendar year 23. State vehicle tax rates are 1%, /destaque/estrutura-tributaria are reflected in this report’s 1.25%, 1.5%, or 2% of the -e-a-qualidade-dos-gastos results. The additional ICMS tax vehicle’s value. -publicos/; Amaral, Gilberto return had different names in 24. Discounts vary from 3% in São Luiz do, et al. 2020. Quantidade the 14 states which required it Paulo, Paraná, and Rio de Janeiro de normas editadas no Brasil: 32 as of December 2019: DIEF in to up to 30% in Amazonas, anos da Constituição Federal de Maranhão, Pará, Pernambuco, which offers a 10% discount 1988. Brazilian Institute of Tax and Piauí; GIA in Rio Grande for early payment plus 20% for Planning (Instituto Brasileiro de do Sul and São Paulo; DAM in drivers with no traffic violations. Planejamento e Tributação, IBPT). Amazonas and Acre; DAC in There are also differences in https://ibpt.com.br/estudo Alagoas; DIME in Santa Catarina; invoicing methods. Only Acre, -sobre-a-quantidade-de-normas DMA in Bahia; GIM in Roraima; Alagoas, Mato Grosso do Sul, -editadas-no-brasil-desde-a DAPI in Minas Gerais; and GIAM Paraná, and the Federal District -ultima-constituicao-2020/. in Tocantins. Paraíba eliminated still issue an invoice in both paper 31. Vasconcelos, Breno, Lorreine the GIM in stages during 2019; and electronic format. Others Messias, and Larissa Longo. companies similar to the Doing issue only electronic invoices 2020. Contencioso tributário Business case no longer had to (which can be downloaded no Brasil. Relatório 2019 - Ano file it since January. The Federal online). de referência 2018. Núcleo de District adopted the SPED system 25. Local laws apply different rates Tributação do Insper. Julho. in June 2019, and no additional based on the property’s type and 32. National Justice Council ICMS tax return was required value, among other factors. This (Conselho Nacional de Justiça). since. Rio de Janeiro eliminated study considers an industrial 2020. Justiça em Números 2020. the requirement to file the GIA property of R$2.8 million Ano-base 2019. Brasília: CNJ. tax return in May 2019 (per the ($770,000). 33. Secretaria Especial da Receita methodology, the time to file 26. According to state tax agencies Federal do Brasil. 2020. Relatório this tax return is counted from that participated in this study, Anual da Fiscalização da Receita January to May 2019 in this taxpayers can correct mistakes Federal do Brasil – 2019/2020. state, adding 6 hours to the 867 in their tax returns (at least Brasília: Receita Federal do Brasil. hours needed to comply with in some cases) in at least the 34. As foreseen in art. 46, paragraph consumption taxes). They joined following locations: Alagoas, 1 of Complementary Law No. the list of 10 other states that did Amapá, Amazonas, the Federal 313 of December 31, 2005. not require an ICMS tax return District, Maranhão, Mato Grosso, 35. For more information, see in 2019: Amapá, Ceará, Espírito Minas Gerais, Rio de Janeiro, Rio http://www.sef.sc.gov.br Santo, Goiás, Mato Grosso do Sul, Grande do Norte, Rio Grande do /transparencia/relatorios. Mato Grosso, Paraná, Rio Grande Sul, Rondônia, Roraima, Santa 36. The Doing Business paying taxes do Norte, Rondônia, and Sergipe. Catarina, São Paulo, and Sergipe. indicators look at a medium-size 20. Regressions of each city’s total 27. State tax agencies from Espírito light manufacturing industrial tax and contribution rate on Santo, the Federal District, Goiás, firm. This case study is focused local factors such as income Maranhão, Rio Grande do Norte, on this company, which in this per capita, number of firms per and Santa Catarina participated case produces ceramic pots, an person, population, city tax in this study and reported that activity classified in Brazil under revenues per capita, controlling financial incentives or targets for CNAE code 2349-4/99. According for these same variables, showed auditors to impose fines are not to the ANVISA classification, this no significant results. None of used in those states. activity is considered low risk if the coefficients is significant at 28. For more information on these the products are not used to store the 5% level or below. They are and other international good food items. very close to zero, indicating a practices, visit https://www 37. The rules for the use of ICMS weak relationship. .doingbusiness.org/en/data credits are set at the national 21. Labor taxes and social /exploretopics/paying-taxes level by Complementary Law contributions were calculated as /good-practices. No. 87 of September 13, 1996. CHAPTER 7 Enforcing contracts MAIN FINDINGS Resolving a commercial dispute in Brazil’s civil courts takes on average 32 months and costs 27.2% of the claim value (estimated at R$66,965 or $ 18,260), which is longer and more expensive than the OECD high-income average. Across the 27 locations benchmarked, the time and cost of enforcing contracts vary considerably, especially at the trial and judgment phases. Enforcing contracts is easier in Sergipe and the Federal District thanks to shorter processing times, lower costs, and efficient case workflow at the courts. The time from filing of claim until enforcement of judgment ranges from 18 months to over 4 years. Advances in case file digitalization and case management, and adequate resources to ensure court performance, are factors affecting court efficiency. Brazilian courts have adopted various international good practices, and they enjoy a higher level of court automation than most other LAC economies. Brazilian courts could continue reaping the benefits of automation by streamlining their procedures even further. Better case management and more out-of-court settlements could alleviate issues such as lengthy trials and judicial backlogs. 105 106 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 I mplementing electronic case economic relationships, often and state courts.7 Each state has files—processos eletrônicos— benefiting the defaulting party. a court of appeals (Tribunal de was one of Brazil’s most impact- In contrast, efficient courts that Justiça Estadual),8 courts of first ful judicial system reforms. By promptly and predictably resolve instance (varas), and special courts early 2020, the number of pending cases are associated with a lower that process simple, low-value court cases nationwide exceeded share of informal economic activ- cases (Juizados Especiais). State 70 million.1 The country’s shift ity, greater investor confidence, constitutions9 and laws affirm their to online case management was and increased bank financing of jurisdiction, outlining the orga- timely. When the COVID-19 pan- new investment for firms.6 nization of the courts and their demic hit in March 2020, Brazil’s competencies. existing electronic systems allowed The time and cost of enforcing a its courts to continue operating contract vary considerably across Considering its subject matter remotely2 (box 7.1). the 27 locations benchmarked and monetary threshold,10 the for Subnational Doing Business in competent courts to hear and The country’s transition to e-jus- Brazil 2021, with the most notable adjudicate the Doing Business case tice began in 2006 with a law differences at the trial and judg- study is the state civil court (Vara allowing digital case files and ment phases. Some courts resolve Cível),11 which follows the rules electronic platforms to process a typical commercial case in as established in the Federal Code of them.3 Brazil has since become a little as 18 months, while others Civil Procedure for ordinary trial regional leader in court automa- take over 4 years. As measured by procedures and enforcement of tion. Although case digitalization Doing Business, enforcing contracts judgments.12 The number of courts is not complete in all jurisdictions, is easier in Sergipe and the Federal of first instance varies by location, electronic case files are helping District due to shorter processing and each is presided over by a judge to improve judicial efficiency and times, lower costs, and efficient with the support of judicial assis- transparency. case workflow at the courts; it is tants (gabinete) and court clerks more difficult in Santa Catarina (secretarias and cartórios). The Court modernization—via auto- and Espírito Santo. Civil courts in same court that decides the case mation-supported business pro- Espírito Santo lack the automated at trial conducts the enforcement cess reengineering—is just one of tools required for lawyers to man- proceedings. Court clerks perform the many ways Brazil’s judiciary is age and file claims electronically. the attachment and appraisal responding to the country’s high The Brazilian courts have adopted of debtor assets, and courts and levels of litigation. The Federal various international good prac- private auctioneers organize and Constitution of 1988 granted cit- tices—performance on the quality conduct both in-person and online izens greater court access, but the of judicial processes index is high public auctions. judicial system was ill-prepared and relatively even across loca- to meet the subsequent increase tions. Full court automation, bet- All state courts have electronic in demand for judicial services.4 ter case management, and more platforms to manage cases. In Litigation rates in the country out-of-court settlements could most locations, these systems remain high—in theory, there alleviate issues such as lengthy also support electronic case files. is one judicial case in the courts trials and judicial backlogs. Through the National Council for every two people in Brazil.5 of Justice (Conselho Nacional Although additional financial de Justiça, CNJ), the judiciary is resources have been allocated encouraging courts to operate to the courts, clearing case back- How does contract a single electronic platform, the logs, enhancing court manage- enforcement work in Processo Judicial Eletrônico (elec- ment, and increasing uptake of Brazil? tronic judicial process). Roughly alternative dispute resolution one-third of Brazil’s jurisdictions mechanisms remain challenges The Federal Constitution of Brazil currently use this platform; oth- to reducing lengthy trials. Legal divides the judiciary into branches, ers opt for alternatives such as delays impact the dynamics of separating the courts into federal ProJudi, SAJ, and E-Proc. Enforcing contracts 107 BOX 7.1  Weathering COVID-19: How advances in automation prepared Brazil’s judiciary to respond According to Doing Business 2021 data, the coronavirus pandemic has forced the partial or full closure of courts around the world since March 2020. In Brazil, court staff were ordered to work remotely. A sudden lack of face-to-face interaction had to be countered with improvements to case workflow and communication, both within the courts and with the public. The judicial system responded swiftly. Procedural deadlines were suspended through administrative order by the CNJ for only 1.5 months, and the courts continued hearing urgent matters. Proceedings resumed in May 2020, mainly for parties with electronic case files. Procedural deadlines for cas- es with paper files remained suspended until August or beyond. Certain proceedings (appraisals, expert opinions, and attachments) were suspended when virtual alternatives were not available, or courts lacked online capabilities. To accelerate case digitalization during the pandemic, state courts in Mato Grosso, Minas Gerais, Pernambuco, Rio Grande do Sul, and São Paulo established procedures and special task forces to digitalize physical files. They also allowed lawyers to scan files and send them to the courts to facilitate their conversion to electronic format.a Under the leadership of the CNJ, all of Brazil’s state judiciaries adopted measures to track pandemic-related court cases and en- sure judicial service continuity, including making greater use of technology to allow court users to request information, exchange correspondence with the courts, and attend hearings. Although an enabling legal environment was in place and the Code of Civil Procedure allowed judges to conduct hearings by videoconference before the pandemic, the use of virtual hearings took off during lockdown. To aid the courts, in April 2020, the CNJ made a national Webex platform—a web-based conferencing software—avail- able to the entire judiciary. Through this platform, judicial personnel could register and manage their hearing schedules, invitations to parties, and recordings and broadcasts of public hearings.b The courts also began using other mainstream web conferencing platforms (MS Teams, Google Meet, Zoom) and even allowed parties to communicate with the courts using instant messaging applications. Most states also established special procedures for conciliation and mediation hearings using videoconferencing. State courts in Paraná, Rio Grande do Sul, and Santa Catarina created virtual court-annexed mediation centers—Centros Judiciários de Solução de Conflitos e Cidadania (CEJUSCs)c—allowing the entire proceeding (from filing to conclusion) to take place electronically. Espírito Santo issued guidelines to pilot virtual dispute conciliation hearings during COVID-19.d São Pauloe and Pernambucof went further, establishing special conciliation proceedings for commercial COVID-19–related disputes. Finally, as part of assessing the pandem- ic’s impact on society and business transactions, the CNJ created a new category of cases classified as “Assunto COVID-19,” or COVID-19–related. Under this new category, courts began tracking disputes related to breach or revision of contracts, insurance claims, collective actions, and enforcement proceedings, among others. Nine statesg and the Federal District also created dedicated websites to publish statistics on COVID-19–related cases. Electronic filing of claims was already in place before the pandemic, but electronic service was reserved for court-registered users. In October 2020, the CNJ took steps to expand electronic services of process to all court users. It announced plans to grant plaintiffs in future claims the option of choosing 100% electronic proceedings, with defendants maintaining the right to oppose electronic proceedings until filing the statement of defense with the courts.h a. In Minas Gerais, Projeto de Virtualização de Processos (http://www.tjmg.jus.br/portal-tjmg/servicos/faq-covid-19/virtualizacao-de-processos/#.X5BDy2hKg2y); in Mato Grosso, by Joint Ordinance 371 of June 8, 2020; in Pernambuco, by Act 462/20 of August 6, 2020; in Rio Grande do Sul, by Service Order 5/20 of May 18, 2020; in São Paulo, by Communication 466/2020 of June 4, 2020. b. CNJ Ordinance 61 of March 31, 2020. c. CEJUSCs are court-annexed conciliation and mediation centers designed to be the venue for conciliation and mediation hearings before and during trial. d. Ordinance 01/2020, from the State Court of Espírito Santo published on April 23, 2020. e. Provision CG 11/2020, from the State Court of São Paulo issued in April 2020. f. Joint Instruction Nº 15 by the State Court of Pernambuco issued in June 2020. g. These nine states are Amapá, Amazonas, Bahia, Goiás, Pará, Paraíba, Pernambuco, Rio Grande do Norte, and Rondônia. See the CNJ report “Avaliação dos Impactos da Pandemia Causada pela Covid-19 nos Processos de Trabalho dos Tribunais.” h. Resolution 345 of October 9, 2020. 108 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 behind Argentina and slightly more than 2 years. Espírito Santo’s How does the process above the OECD high-income performance is also attributable to compare? average (11.8). infrastructure: it is the only loca- tion that, as of September 2020, The enforcing contracts indicator How does enforcing had yet to implement automated set measures the time and cost contracts vary? tools at the civil courts to facilitate for resolving a commercial dis- electronic filing and claims man- pute through a local first-instance The time and cost to resolve a com- agement (table 7.1). court and the quality of judicial mercial dispute and performance processes index (box 7.2). on the quality of judicial processes How does the time vary? index vary across all locations Significant variations in perfor- benchmarked for Subnational Doing Several factors affect court effi- mance exist across the locations Business in Brazil 2021. Enforcing ciency. Some relate to the demand benchmarked for Subnational Doing contracts is easier in Sergipe and for judicial services, and others are Business in Brazil 2021. On average, the Federal District thanks to linked to the courts’ specializa- resolving a commercial dispute in shorter processing times (18 and tion, productivity, and resources Brazil takes 32 months and costs 21 months, respectively), lower (human and technological).13 In 27.2% of the claim value, which costs, and efficient case workflow Brazil, the time to enforce a con- is longer and more expensive than at the courts. Conversely, delays— tract varies widely depending upon the OECD high-income average particularly at the trial stage— location, ranging from 18 months (figure 7.1). On the quality of make enforcing contracts more in Sergipe to more than 4 years in judicial processes index, which difficult in Santa Catarina and Espírito Santo, mainly owing to ranges from 0 to 18 points, Brazil Espírito Santo, where the trial and differing degrees of court automa- has an average score of 12.1 points, judgment phase alone can take tion. Civil courts in Sergipe began BOX 7.2  What does enforcing contracts measure? Doing Business measures the time and cost for resolving a com- FIGURE B 7.2.1  Enforcing contracts: efficiency mercial dispute between two local businesses. It considers three to resolve a commercial dispute and quality of main phases of a court proceeding: filing and service process, judicial processes trial and judgment, and judgment enforcement. The case study Rankings are based on scores assumes that a company (seller) delivers custom-made goods to of three indicators another company (buyer) that refuses to pay, alleging that the Days to resolve a Attorney, court and goods are of inadequate quality. To enforce the sales agreement, commercial dispute enforcement costs, the seller files a claim with a local court, which hears arguments through the courts as % of claim value on the case’s merits. The value of the claim is equal to 200% of the economy’s income per capita or $5,000, whichever is greater. 33.3% 33.3% Before a decision is reached in favor of the seller, an expert is Time Cost appointed to provide an opinion on the quality of the goods in 33.3% dispute, which distinguishes the case from simple debt enforce- Quality of judicial processes ment. Besides the time and the cost, Doing Business also builds a index quality of judicial processes index, measured through adherence to certain international good practices in four areas: court struc- Court structure and proceedings; case management, ture and proceedings, case management, court automation, and court automation and alternative dispute resolution alternative dispute resolution (figure B 7.2.1). Source: Doing Business database. Data for Rio de Janeiro and São Paulo, as well as for comparator Note: For more information, see the chapter About Doing Business and economies and regional averages, are not considered official un- Subnational Doing Business in Brazil 2021 and the data notes. til published by the Doing Business 2021 report. Enforcing contracts 109 FIGURE 7.1  The efficiency of contract enforcement varies widely, but most locations have good judicial practices in various areas of court operations EFFICIENCY OF CONTRACT ENFORCEMENT QUALITY OF JUDICIAL PROCESSES Time Cost Index (days) (% of claim value) (0–18) 0 0 18 100 Singapore 17 (global best) 200 China 5 (global best) 300 16 Russian Federation Mexico 400 Iceland (global best) 10 15 China 500 OECD high income Sergipe average 600 14 South Africa Federal District Rondônia 15 700 Acre BRICS average China 13 LAC average 6 locations Russian Federation 800 Tocantins Argentina 17 locations Brazil average 12 900 Mato Grosso 2 locations OECD high income 20 Federal District OECD high income Brazil average São Paulo average 9 locations Argentina 1000 average Rio Grande do Norte BRICS average 11 6 locations 6 locations BRICS average India 1,100 Alagoas 25 Mexico 10 Bahia 1,200 Brazil average 8 locations Russian Federation Espírito Santo 2 locations LAC average 1,300 Santa Catarina 9 30 8 locations South Africa 1,400 India India LAC average Paraíba 8 1,500 Espírito Santo Mexico Piauí South Africa Alagoas 1,600 35 0 BRICS = Brazil, Russian Federation, India, China, and South Africa; LAC = Latin America and the Caribbean; OECD = Organisation for Economic Co-operation and Development Source: Doing Business and Subnational Doing Business database. Note: LAC averages are based on economy-level data for its 32 economies. Chile, which is part of the OECD high-income economies, is not included in LAC averages. OECD high-income averages are based on economy-level data for 34 economies. BRICS averages are based on economy-level data for Brazil, the Russian Federation, India, China, and South Africa. The Doing Business 2021 data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. Other economies are represented by their main business cities. China, India, Mexico, and the Russian Federation are represented by their two largest cities. Brazil's averages are based on the 27 locations measured in this study, including São Paulo and Rio de Janeiro. implementing electronic case files Case management and strategies (Alagoas) received in the same in 2013, whereas Espírito Santo’s that courts put in place to expe- period (1,300 to 1,400 cases each (Vitória) civil courts have not dite case workflow can also make on average per court).17 Yet, resolv- begun the process of transition- a significant difference in the time ing a commercial dispute from trial ing to digital files.14 Entering and to enforce a contract. The time to to enforcement at the civil courts in updating documentation manu- resolve a dispute varies signifi- Aracaju and Porto Velho takes 1.4 ally to track paper files reduces cantly within Brazil, even among and 1.8 years, respectively, while efficiency. In Rio Grande do Sul, jurisdictions with similar char- in Maceió it takes 3 years (figure 23% of cases have been digitalized. acteristics. For example, within 7.2). Attorneys from Aracaju and Enforcing a contract in Rio Grande small jurisdictions,16 the courts in Porto Velho agree that judges and do Sul takes 5 months longer than Aracaju (Sergipe) and Porto Velho court personnel are qualified and in Paraná, where 98% of case (Rondônia) are the fastest. In 2018 efficient; in addition, judges’ per- files are electronic.15 Nevertheless, and 2019, each of Aracaju’s 13 formance is closely monitored to judges in Rio Grande do Sul are civil courts received 1,900 cases on avoid backlogs. In 2019 the state still productive by CNJ metrics average, roughly 30% more new courts of Sergipe and Rondônia compared to judges from other filings than what the 10 courts were named Brazil’s top-perform- states with full case automation. in Porto Velho and 13 in Maceió ing courts by the CNJ.18 110 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 TABLE 7.1  Enforcing contracts in Brazil—where is it easier? Enforcing Cost Quality of judicial contracts score Time (% of claim processes index Location Rank (0–100) (days) value) (0–18) BRICS average 62.4 749 23.9 11.5 LAC average 54.0 780 32.0 9.2 OECD high income average 67.8 595 21.6 11.8 Brazil average (27 locations) 56.2 953 27.2 12.1 Sergipe (Aracaju) 1 69.7 538 23.3 12.5 Federal District (Brasília) 2 68.4 632 19.9 12.5 São Paulo (São Paulo) 3 65.4 731 20.7 12.5 Rondônia (Porto Velho) 4 63.8 670 29.5 12.5 Roraima (Boa Vista) 5 63.6 787 21.4 12.5 Acre (Rio Branco) 6 62.9 704 29.4 12.5 Maranhão (São Luís) 7 62.3 753 27.3 12.5 Minas Gerais (Belo Horizonte) 8 60.7 798 23.4 11.5 Tocantins (Palmas) 9 59.8 811 29.9 12.5 Goiás (Goiânia) 10 59.6 725 31.6 11.5 Piauí (Teresina) 11 59.1 781 33.8 12.5 Paraná (Curitiba) 12 57.7 919 22.5 11.5 Amapá (Macapá) 13 56.5 922 30.5 12.5 Mato Grosso (Cuiabá) 14 56.0 874 30.5 11.5 Amazonas (Manaus) 15 54.8 1,049 25.7 12.5 Rio Grande do Norte (Natal) 16 54.7 1,017 23.4 11.5 Mato Grosso do Sul (Campo Grande) 17 54.3 1,095 23.9 12.5 Rio de Janeiro (Rio de Janeiro) 18 53.9 1,085 25.5 12.5 Ceará (Fortaleza) 19 53.2 1,070 28.6 12.5 Paraíba (João Pessoa) 20 51.7 1,076 32.0 12.5 Rio Grande do Sul (Porto Alegre) 21 51.7 1,078 27.1 11.5 Alagoas (Maceió) 22 49.6 1,125 34.0 12.5 Bahia (Salvador) 23 48.9 1,149 29.3 11.5 Pará (Belém) 24 47.8 1,261 29.1 12.5 Pernambuco (Recife) 25 46.6 1,262 27.2 11.5 Santa Catarina (Florianópolis) 26 44.8 1,316 28.1 11.5 Espírito Santo (Vitória) 27 40.4 1,516 28.1 9.5 Source: Doing Business and Subnational Doing Business database. Note: Rankings are calculated on the basis of the unrounded scores, while scores with only one digit are displayed in the table. Rankings are based on the average ease of doing business score for the time and cost associated with enforcing a contract as well as for the quality of judicial processes index. The score is normalized to range from 0 to 100, with 100 representing the best regulatory performance (the higher the score, the better). For more information, see the chapter About Doing Business and Doing Business in Brazil 2021. The average for Brazil is the average of the 27 locations measured. Averages for BRICS, LAC, and OECD high income are based on economy-level data for those economies. Data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. Enforcing contracts 111 the defendant to attend a concilia- FIGURE 7.2  Performance varies within jurisdictions of similar size tion hearing. For disputes between Time to enforce a two small and medium enterprises, contract (days) the court usually sends the first Espírito Santo 1,600 1,516 summons to the defendant by mail (carta com Aviso de Recebimento, Alagoas or AR); they can also be delivered Rio Grande do Sul 1,200 1,125 in person by court officers. 1,078 São Paulo Federal Locating the defendant and serving 800 731 District 632 Sergipe the claim takes about one month 538 in locations where the process 400 is faster (Maranhão, Rio Grande do Sul, Roraima, São Paulo, and Sergipe) and up to three months 0 in Paraíba and Espírito Santo. The Large courts Medium courts Small courts first attempted service is most com- Longest Fastest monly delivered by certified mail. In Boa Vista (Roraima), service is Source: Doing Business and Subnational Doing Business database. mostly performed by court officers Note: According to the classification of courts established by the CNJ, state courts in Minas Gerais, Paraná, because officials view postal ser- Rio de Janeiro, Rio Grande do Sul, and São Paulo are considered “Tribunais de Grande Porte,” or large courts. Bahia, Ceará, the Federal District, Espírito Santo, Goiás, Maranhão, Mato Grosso, Pará, Pernambuco, vices as expensive and less efficient and Santa Catarina are “Tribunais de Médio Porte,” or medium courts. Acre, Alagoas, Amapá, Amazonas, at finding addresses. Since 2009, 12 Mato Grosso do Sul, Paraíba, Piauí, Rio Grande do Norte, Rondônia, Roraima, Sergipe, and Tocantins are considered “Tribunais de Pequeno Porte,” or small courts. The classification is based on various criteria such state courts have allowed courts to as expenditures, number of incoming and pending cases, number of judges, and workforce. Data for Rio de receive digital proof of service (AR Janeiro and São Paulo are not considered official until published by the Doing Business 2021 report. Digital) instead of paper receipt confirmations.22 To aid the courts Adequate resources are import- capital, nearly as many as in larger in Aracaju, in 2018, the State Court ant to ensure court performance. jurisdictions.20 of Sergipe established a centralized Courts in Brasília (Federal District), printing, labeling, and packaging the fastest-performing nationally Filing and service center to process physical docu- after Aracaju, benefit from a bal- Across locations, it takes nearly 2.5 ments.23 In other locations—Goiás, anced allocation of resources. Local months on average—over a month Rio Grande do Sul, Santa Catarina, attorneys and outside lawyers longer than the global average of and São Paulo—the courts send who litigate in the Federal District 42 days—to request out-of-court summonses online for the postal concur that the 25 civil courts in payment, prepare and file the com- service to print and dispatch. Brasília are well-staffed, organized, plaint with an attorney, and serve Currently, the State Court of Acre and have systems in place that the defendant. The first two steps is considering recognizing digital allow for their proper function- take about 24 days. Lawyers from proof of service. Together with ing and effective monitoring. The all locations except Vitória (Espírito Sergipe and Tocantins, Acre will capital’s small size allows for the Santo) file the complaint using also pursue the implementation of equitable allocation of resources. the courts’ electronic systems; in an online system, Oficial de Justiça By contrast, Salvador (Bahia), also Vitória, they file in person. Once online, which will allow court a populous city, has 10 civil courts they file the case and pay the initial officers to manage correspondence and a smaller resource allocation.19 fees, the claim is assigned to a judge using tablet computers instead of Enforcing a contract there takes according to the courts’ specializa- printed documents. significantly longer (3 years). In tion and their caseload. After the Goiás—where enforcing a con- judge confirms the filing require- In locations where service of tract takes almost 2 years—there ments, the clerk prepares the sum- process takes longer, delays exist are 31 civil courts in the state mons to serve the claim and orders both in the courts and the postal 112 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 service. In addition to challenges across the 27 locations bench- the rules for ordinary trials and in locating the defendant, there marked (figure 7.3). This encourage conciliation. As a result, are often delays for judges to period takes under one year in all trials start with a conciliation issue summonses (Bahia, Espírito Sergipe, the Federal District, and hearing unless the parties agree to Santo), for court clerks to pre- Rondônia—similar to OECD skip it. Conciliation hearings can pare and dispatch them (Alagoas, high-income economies like occur at the courts or court-an- Paraíba), and for the post office France or the United Kingdom. In nexed mediation centers, Centros to return proof of service to the contrast, it can take more than 2 Judiciários de Solução de Conflitos courts (Acre, Rio Grande do years in Pernambuco and Espírito e Cidadania (CEJUSC). From the Norte). Santo, similar to Guatemala and service of claim to conciliation Colombia. hearing, the waiting period ranges Trial and judgment from 1.5 to 4 months. In Brasília The trial and judgment period The 2015 Code of Civil Procedure (Federal District), scheduling the shows the largest time variations was conceived to streamline CEJUSC hearing is relatively fast. FIGURE 7.3  There are significant variations in the trial and judgment period across locations Sergipe OECD high income average Federal District Rondônia Acre Goiás São Paulo Maranhão LAC average Piauí Roraima Minas Gerais Tocantins Mato Grosso Paraná Amapá Rio Grande do Norte Amazonas Ceará Paraíba Rio Grande do Sul Rio de Janeiro Mato Grosso do Sul Alagoas Bahia Pará Pernambuco Santa Catarina Espírito Santo 0 200 400 600 800 1,000 1,200 1,400 1,600 Time (calendar days) Filing and service period Trial and judgment period Enforcement period Source: Doing Business and Subnational Doing Business database. Note: Data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. Enforcing contracts 113 In areas with few conciliators— Even though the Code of Civil Procedural rule amendments Manaus (Amazonas), Natal (Rio Procedure establishes that judges in 2005 and the Code of Civil Grande do Norte), and Vitória should render judgments within Procedure in 2015 streamlined (Espírito Santo)—most hearings 30 days, none of the courts com- enforcement proceedings to make either do not happen or take place ply with this deadline. Court them easier, faster, and auto- at the courts, increasing the courts’ congestion has a notable impact mated. Enforcing a judgment does workload. Several attorneys con- on the time it takes for a judge to not require starting a separate sulted for this report indicated that render a judgment. For example, process. Instead, the plaintiff files the parties often lack incentives to in Florianópolis (Santa Catarina), a petition with the court to urge conciliate, and delays to scheduled obtaining a first-instance judgment the defendant to comply with the hearings ultimately benefit the takes 1 year. There are only 8 civil judgment. The court then links party in default. courts in the city—6 of which are the petition to the original case downtown—tasked with process- file and, if the defendant refuses If there is no settlement after ing between 13,000 and 14,000 to pay, the process continues the first conciliation hearing, the incoming cases annually, in addi- under the classification of “sen- defendant files the statement of tion to those already pending.26 tence compliance” (cumprimento defense together with the evi- Procedural rules also influence de sentença). dence. Two additional hearings efficiency. According to the Code, (saneamento and instrução) can once pleadings are closed, judges Thanks to advances in automation, occur during the trial; it is at the should aim to dispose of cases in all courts have access to central- judges’ discretion whether to con- chronological order. However, ized databases that allow searches duct proceedings in writing. At the even though most judges comply of financial assets and vehicles;28 evidentiary stage, securing expert with this rule in general, they they can also make electronic witness testimony is a significant must also prioritize cases involving deposits (of sales’ proceeds, for source of delay. Cases involving minors, the elderly, or the sick,27 example) to the creditors’ account such witnesses usually take lon- resulting in additional delays in (alvará de pagamento eletrônico). ger, mainly due to court experts’ adjudicating ordinary cases. Despite these advantages, locating limited availability and willing- and attaching the debtors’ mov- ness to serve. Multiple exchanges Enforcement of judgment able assets is a continuing chal- between the parties to oppose the The average time to enforce a lenge and source of delay, taking experts’ fees or testimony also judgment is less than 1 year (333 from 5 to 8 months in half of the cause delays. Since 2018 the CNJ days) in Brazil, a month shorter benchmarked locations. has recommended that courts cre- than in Argentina (Buenos Aires), ate a unified database to register but almost twice as long as in Public sales are mostly held by experts and make them easily Mexico (Mexico City). Because court-registered private agents, accessible.24 In Pernambuco, for the same court that adjudicates the although there are court auc- example, courts are still consol- case also carries out enforcement tioneers as in Belém (Pará) and idating the registry. In Acre, it proceedings, many of the factors Manaus (Amazonas). Public auc- remains incomplete even though that cause delays at the trial phase tions can occur in person or online; the State Court approved its cre- impact enforcement. Enforcement most online auctions take place ation in 2018.25 The evidentiary proceedings also involve multiple on private auctioneers’ websites. period can conclude in as fast as agents (judge, court officers, and Depending on the type of assets two months (Aracaju, Sergipe) or auctioneers) and authorizations and their marketability, auction- as long as six months (Salvador, from judges to move processes eers may need to organize more Bahia). forward, which can result in addi- than one auction to complete the tional delays. Like the trial phase, sale. Auctions happen in vari- The trial phase ends with the the duration of enforcements var- ous ways in state courts. In Natal parties’ closing arguments and ies across locations, ranging from (Rio Grande do Norte), a central- the judges’ adjudication, which over 5 months in Sergipe to 18 ized unit, Central de Avaliação e is also often a source of delay. months in Espírito Santo. Arrematação, supports the courts 114 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 by conducting appraisals and car- What are the main drivers of in Piauí. Expert fees are also low rying out public auctions. Brasília cost? in Rio Grande do Norte as they (Federal District) and Cuiabá (Mato are set in practice following limits Grosso) also have centralized units The cost of enforcing contracts in established by local regulation.30 that coordinate and schedule Brazil ranges from 19.9% of the Conversely, expert fees are high auctions with private auction- claim value in the Federal District in locations with costly filing fees eers. Most auctions are online to 34.0% in Alagoas, higher than (Maranhão, Paraíba, Piauí). In in Aracaju (Sergipe), Boa Vista the LAC regional average (32%). some locations, hiring a private (Roraima), Florianópolis (Santa expert (assistente técnico) is a com- Catarina), Maceió (Alagoas), and State courts in Brazil regulate mon practice; their fees, paid by Recife (Pernambuco). In Curitiba their court fees.29 As a result, trial the hiring party, range from about (Paraná), Fortaleza (Ceará), Natal costs can vary substantially across one-half to the same amount as (Rio Grande do Norte), Porto Velho locations (figure 7.4). Total court the court expert’s fee. (Rondônia), Rio Branco (Acre), costs—including fees for filing, and Vitória (Espírito Santo), auc- notifications, and experts—vary Enforcement costs comprise court tions take place both online and in from 3.7% of the claim value in fees, filing fees, seizures, and person. Rio Grande do Norte to 13.4% appraisal orders. In Amazonas, FIGURE 7.4  Court costs are lowest in Rio Grande do Norte and highest in Piauí Brazil average Rio Grande do Norte 3.7% (lowest) 8.4% Pernambuco (R$66,965) Roraima Federal District Rondônia Mato Grosso São Paulo Paraná Amazonas Sergipe Santa Catarina Filing fee Attorney fees Tocantins 67% Expert fee Bahia Other costs Court fees Rio de Janeiro 31% Pará Amapá Acre Espírito Santo Enforcement fees 2% Ceará Minas Gerais Alagoas Rio Grande do Sul Cost as share (%) Goiás of the total cost Mato Grosso do Sul (average of 27 locations) Maranhão Paraíba Piauí 13.7% (highest) 0 2 4 6 8 10 12 14 Court costs (% of claim value) Source: Doing Business and Subnational Doing Business database. Note: Data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. Enforcing contracts 115 Bahia, Goiás, Mato Grosso, What are common initiatives —that service several courts is a ris- Minas Gerais, Pará, Paraná, Piauí, among courts? ing trend in Brazil. Mato Grosso do Rondônia, and Sergipe, plaintiffs Sul, Ceará, Pernambuco, and São also pay additional fees to conduct Across locations, judiciaries have Paulo were the first states to estab- database searches (BACENJUD, adopted various strategies to lish these units for civil courts. Other RENAJUD). The state courts pub- improve service delivery (table locations have recently followed lish auction details electronically 7.2). In all jurisdictions, court com- the same path (Amazonas, Amapá, in official gazettes at no fee (except pliance offices—Corregedorias de Bahia, Maranhão, Rondônia, Rio in Bahia, Goiás, Paraná, Roraima, Justiça32—monitor court perfor- Grande do Sul, Sergipe, Federal and Sergipe, where there is a fee). mance. They provide guidance District, Piauí, and Tocantins41). The There is no requirement that they and ensure that courts comply initiative is in the pipeline in Rio be published in commercial news- with the general performance Grande do Norte, Pará, and Paraná. papers. Private auctioneers, who goals established by the CNJ. organize and advertise auctions at Some corregedorias have created Quality of judicial processes their own expense, are allowed to focus groups to assist judges in index—gains through charge a 5% commission on the disposing of cases (the Federal improving case management sale proceeds. There is no cost to District33 and Santa Catarina34), enforce a judgment in Amapá and to expedite clerical activities in For court users, efficiency and Rio Grande do Norte; in locations the courts (Ceará35), or to support quality are both important. To with enforcement costs, 70% of both (Paraná36). Some state courts complement the indicators on courts do not charge filing fees.31 have established reward mecha- efficiency, the quality of judicial In locations that charge filing nisms for good performance. For processes index measures the fees to begin enforcement pro- example, in Pará the court created presence of international good ceedings, the fees are lower than a productivity index to recognize practices in four areas: (i) court what plaintiffs would pay at the the courts with the highest scores. structure and proceedings; (ii) trial stage, except in Pernambuco In Paraíba, the court provides staff case management; (iii) court (where the filing fees at trial and with financial incentives for good automation; and (iv) alternative enforcement are low but are the performance. dispute resolution. The index is same). scored from 0 to 18 points.42 To Court reorganization to balance date, no economy has attained Attorney fees, which average caseloads is another common full points—the six top-perform- 18.2% of the claim value, make reform among the benchmarked ing economies on the index score up the bulk of the total cost. In locations. In 2014, Pernambuco between 16.5 to 15.5 points. In most locations, legal fees range divided Recife’s 34 courts in half, Brazil, the judicial good practices from 10% to 20%, according creating separate working shifts assessed by the index depend to fee schedules established by that increased the roster of judges on federal and local regulations. local branches of the Ordem dos and maximized the use of phys- Although there is little variation Advogados do Brasil (OAB, the ical space.37 More recently, the in the index across locations, with Brazilian bar association). Because courts of Minas Gerais and Pará 12.1 points on average, Brazil the schedules are only for guid- reassigned competencies among scores better than most LAC econ- ance, attorneys can charge more. the courts in Belo Horizonte38 and omies; Espírito Santo (9.5 points) In most locations, attorney fees Belém39 to increase the number scores the lowest nationally but fall within the OAB’s suggested of courts hearing civil cases. In above the LAC regional average. range. In Mato Grosso, Alagoas, July 2020, Roraima dedicated Rondônia, Amapá, and Tocantins, one of Boa Vista’s civil courts to Court structure and legal fees are slightly higher. process enforcement proceedings proceedings Competition tends to drive down exclusively.40 Specialized courts operate across attorney fees for simple cases in Brazil. Since 2010, to address larger cities like São Paulo, Rio de Consolidating court clerk offices into the need for commercial spe- Janeiro, and Brasília. single units—cartórios unificados cialization in the courts, several 116 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 TABLE 7.2  State courts have adopted similar strategies to improve performance Enhancing case management Restructuring courts Targeted support Consolidation of Redistribution of to courts from Performance awards clerical work into Increased number of competences among Location compliance offices for court staff single units civil courts* courts** Acre P P Alagoas P P Amapá P Amazonas P P Bahia P P P P Ceará P P P P Espírito Santo P P Federal District P P P Goiás Maranhão P P P P Mato Grosso P P Mato Grosso do Sul P P Minas Gerais P P Pará P P Paraíba P P Paraná P P Pernambuco P P P Piauí P P P Rio de Janeiro P P Rio Grande do Norte P P Rio Grande do Sul P Rondônia P P P Roraima P P P P Santa Catarina P São Paulo P P P Sergipe P P P Tocantins P P P Source: Subnational Doing Business database. Note: Table reflects information gathered during the data collection period and consultation meetings with state judiciaries. Data for Rio de Janeiro and São Paulo, as well as for comparator economies and regional averages, are not considered official until published by the Doing Business 2021 report. * Creation of civil courts since 2015. ** Specialization of general civil courts since 2015 to exclusively hear matters related among other civil matters to banking law, insolvency, and enforcement proceedings. (mostly large) jurisdictions have (São Paulo). Their competence is All locations have small claims established specialized courts defined by law or regulation; they courts (Juizados Especiais Cíveis) (varas empresariais). Such courts mostly process bankruptcies and that allow for self-representation.43 operate in Belo Horizonte (Minas corporate proceedings. In 2019, Moreover, in the capitals of Amapá Gerais), Brasília (Federal District), the CNJ issued a recommendation and Rio Grande do Norte, specialized Porto Alegre (Rio Grande do Sul), encouraging the creation of these courts are dedicated solely to cases Rio de Janeiro (Rio de Janeiro), types of specialized varas where filed by small companies (Juizados Salvador (Bahia), and São Paulo needed. Especiais da Pequena Empresa). Enforcing contracts 117 By law, parties can request pretrial judicial decisions on their websites than in other large economies attachments,44 and in all locations, and electronic official gazettes. The like China, Mexico, the Russian automated systems assign new cases Code of Civil Procedure allows elec- Federation, and the United States. randomly among the courts. tronic service of process and makes This suggests that there are still it mandatory for large and public areas for improvement and oppor- Case management companies to register with the tunities to learn from interna- The index’s case management courts for this purpose.50 Because tional and local good practices. aspects refer to principles that aim small and medium enterprises are to improve caseflow and reduce exempted, and therefore few regis- Case management court backlog. Brazil’s Code of ter, service of claims naming them Civil Procedure sets time stan- as defendants continue in person, Backlog reduction programs dards for two court events, filing either through the mail or court Although the Brazilian courts’ the statement of defense45 and officers. After the first notification, productivity has risen by 33.9% submitting the final judgment.46 however, attorneys receive all sub- since 2008,54 a considerable However, deadlines for judges are sequent notices electronically. backlog of cases remains. The not met in practice, and courts CNJ estimates that the judiciary are congested. Although the Code Alternative dispute resolution would need to work for two years sets rules for adjourning hearings, Domestic commercial disputes straight—without receiving any the number of adjournments can be settled through arbitration new cases—to clear its case back- is not limited nor reserved to or voluntary mediation. Across log. Efficiency gaps in the courts exceptional circumstances. There Brazil, disputes can be subject to are slowing the backlog clearing is a pretrial proceeding to plan arbitration, and arbitration clauses process and the prompt resolution the trial and narrow down the are usually enforced by the courts. of incoming cases. issues,47 but for cases of relatively Both types of alternative dispute low value and complexity, most resolution mechanisms are avail- Court congestion and case back- judges do not summon the parties able and are governed by com- logs are not unique to Brazil. In to a conference and decide the prehensive regulation.51 There are Italy, where contract enforcement proceedings in chambers (decisão financial incentives for parties to is lengthy (averaging over three de saneamento e organização do attend mediation or conciliation— years), the city of Turin became processo). In all locations, courts parties that successfully attempt the country’s fastest location in produce performance statistics conciliation or mediation do not 2019 thanks in part to a backlog and reports, and these are publicly have to pay final court fees (custas reduction program implemented available in more than half. Some finais).52 Both Acre and Rondônia between 2001 and 2010.55 Local locations even apply business established an additional incen- courts were required to sort pend- intelligence software48 to analyze tive by allowing plaintiffs to pay ing cases by their filing date and caseloads and track court compli- 50% of the filing fees, with the prioritize older cases for resolu- ance with CNJ goals.49 Automated remaining payment contingent tion, particularly those pending case management tools assist on the conciliation or mediation for more than three years. Judges both courts and attorneys in all hearing’s outcome.53 were instructed to set a timetable locations except Vitória (Espírito during first hearings, grant fewer Santo), where such tools are and shorter adjournments, and available only to judges. issue shorter judgments. By the What are the end of the program, cases three Court automation challenges and good years or older represented just 5% Brazil’s courts enjoy a high level practices? of the total caseload. The initiative of automation. Users can file was expanded to include other cases electronically in all locations Brazilian courts have numerous jurisdictions. except Espírito Santo; they can good practices in place. However, pay court fees electronically in all the time to enforce a contract is To reduce its backlog of cases, 27 locations, and courts publish two to three times higher in Brazil Slovenia launched the Lukenda 118 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 project, comprising a series of deadlines that apply to various try to balance caseload and effi- measures to eliminate backlogs. processes. However, these internal ciency, they often resolve pretrial These measures included (i) the guidelines do not supersede nor matters in writing.59 Only a few provision of adequate courtrooms, replace the main procedural law. judges in Campo Grande (Mato (ii) an increase in the number of Grosso do Sul), Teresina (Piauí), judges and clerks involved in Of the main court events con- and Vitória (Espírito Santo) are complex litigation cases, (iii) the sidered by Doing Business, the conducting pretrial hearings on awarding of productivity rewards Brazilian Code of Civil Procedure their own initiative. According for success, and (iv) the introduc- only contains time limits for two: to these judges, preparing for the tion of special electronic markings (i) the filing of the statement of hearings is time-consuming, but for cases not resolved within the defense and (ii) the judge’s dead- they facilitate rapid case disposi- time limits set by national law. line to submit the judgment. For tion. Globally, countries with civil other proceedings, time limits are and common law systems like Procedural rules in Argentina, set in reference to events that do Argentina, Mexico, and South Colombia, and Uruguay allow not have a set schedule. Other LAC Africa have put in place pretrial judges to dismiss inactive cases economies, including Argentina conferences to streamline pro- under certain circumstances and and Chile, establish time limits ceedings and focus judgments. In within a certain timeline.56 In for at least three court events. In Argentina and Mexico, these pre- Brazil, courts could study the effec- both countries, procedural dead- trial conferences are preliminary tiveness of their own remedies to lines are respected in most cases. hearings that occur as part of civil dismiss inactive cases. They could Besides establishing legal time lim- or commercial proceedings. also analyze what kinds of cases are its, case management techniques responsible for the judicial backlog like differentiated case manage- Increasing court automation to identify and address their root ment allow courts to process and causes. dispose of different categories of Brazil’s level of court automation is cases based on their complexity, higher than that of most LAC econ- Time standards urgency, or relevance for court omies. Neighboring economies Establishing realistic, traceable, users and society. Establishing have just begun implementing and enforceable time standards time standards and reasonable electronic case files. But e-justice for the courts is at the core of timeframes of resolution that is only as good as its underlying effective case management. To consider the type of case and its business processes. Brazilian courts assess the quality of justice sys- complexity could further facilitate could continue reaping the bene- tems, the 2020 European Union courts managing their caseload fits of automation by streamlining Justice Scoreboard groups and and parties foresee how long their their procedures even further. They measures time standards related cases will remain in court. could also make electronic notifi- to quantitative deadlines, backlog cations mandatory for all compa- metrics, and projected timeframes Pretrial conferences nies, reducing unnecessary delays for case resolution.57 According The effective use of case and pro- in locating physical addresses and to Doing Business data, most (23) cedural categories and enforce- making multiple attempts to serve European Union economies have ment of time standards require processes on companies that were established time standards in their that judges participate actively in not required to register with the laws, with 80% complying with managing cases. One way of doing courts. In Italy, all companies must them in practice. it is by conducting more pretrial register official email addresses to conferences. During pretrial con- receive notifications via certified Per CNJ goals, court compliance ferences, the judge works with the electronic correspondence. Since offices in each jurisdiction moni- parties to plan the trial, narrow 2017, every newly-incorporated tor all cases inactive for more than down the issues in dispute, address company in Slovakia is provided 100 days and set targets for case evidentiary questions, and discuss, with an electronic mailbox—a disposals. They also compile a set among other things, the possibility “databox”—at no cost through of administrative guidelines with of settlement.58 As judges in Brazil the central government portal, Enforcing contracts 119 Slovensko.sk. The databox stores an electronic platform for online In addition to exempting parties electronic communications and auctions, allowing lower courts to from paying final court costs, var- documents from public offices (or hear appeals related to enforce- ious economies worldwide opted the platform administrators) and ment decisions, and establishing to reduce fees or partially refund can facilitate electronic services of enforcement time limits. parties for successful conciliation. process. In the states of Acre and Rondônia, Many European Union countries claimants pay half of the initial Similarly, firms in the Czech have eased court congestion by filing fees if they settle disputes Republic can communicate elec- dividing tasks between the courts during the conciliation/mediation tronically with the court after and enforcement agents so that hearing. Further studies could obtaining their company databox. courts need to intervene only to assess the impact of these mea- As part of Brazil’s business incor- resolve potential disputes or issue sures to incentivize conciliation in poration process, small and medi- legal authorizations.62 these states. The specialization of um-size companies could record CEJUSCs is already widely adopted their electronic addresses with Solving cases through in all states (for family, consumer, the commercial registry (Junta alternative dispute resolution and tax collection cases). A special- Comercial) to receive judicial ized CEJUSC for companies and notifications. The ability to send Courts in every Brazilian state and commercial matters would create notifications through the court’s the Federal District have estab- additional incentives for more e-filing system allows obtaining lished court-annexed conciliation businesses to resolve disputes out reliable proof of service, which and mediation facilities (CEJUSCs) of court.69 can be a major challenge for elec- since 2010.63 However, the aver- tronic notifications. age conciliation/mediation success rate in 2019 for first-instance cases Speedy and effective was low—just 12.3%64—suggest- enforcement ing potential room for improving their effectiveness. Enforcement proceedings in Brazil can last as long, or even longer, A review of the standards of ser- than trials. Enforcements are con- vice and the qualifications of the ducted with interventions from conciliators and mediators could judges, court officers, and private improve results. For example, auctioneers. Despite advances in CNJ regulations do not require systems for automated searches, conciliators to have a university the process still combines in-per- degree; they need only to com- son and online interactions. plete a training course. Judges and Databases to search for seizable attorneys in Amazonas and Rio assets, although advanced, remain Grande do Norte identified the fragmented and not fully auto- lack of qualified personnel at the mated. Courts began using an CEJUSCs as one reason why the improved system in September courts sometimes carry out con- 2020 that searches a wider array ciliation and mediation hearings.65 of financial assets.60 In Portugal, In Amazonas, the Federal District, where enforcement agents have and Roraima,66 conciliators are stu- more autonomy, asset searches dents or volunteers who perform and seizures occur through a sin- an unremunerated public service.67 gle platform connecting more than In OECD high-income economies, 20 databases.61 In 2015, Croatia mediators must have at least a streamlined enforcement proceed- university degree or comply with ings through a law introducing minimum age requirements.68 120 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Working Paper 4296, World implementation of electronic Notes Bank, Washington, DC; Ahlquist, case files to some civil courts John, and Aseem Prakash. 2010. (Regulatory Act N. 106/ 2020). 1. Estimated noncriminal cases “FDI and the Costs of Contract 15. Share of processos eletrônicos by pending in the courts at the end Enforcement in Developing State Court. See CNJ (Conselho of 2019. See CNJ (Conselho Countries.” Policy Sciences 43 (2): Nacional de Justiça). 2020. Nacional de Justiça). 2020. 181–200; Love, Inessa. 2011. “Avaliação dos Impactos da Justiça em Números. Brasília: “Settling Out of Court: How Pandemia causada pela COVID- Conselho Nacional de Justiça. Effective is Alternative Dispute 19 nos processos de trabalho dos https://www.cnj.jus.br Resolution.” Viewpoint No. 329, Tribunais.” Brasília: Conselho /pesquisas-judiciarias World Bank, Washington, DC. Nacional de Justiça. /justica-em-numeros/. 7. Besides federal and state courts 16. The CNJ establishes the 2. The State Judiciary reported (Justiça Estadual), the Brazilian classification of courts using that 78% of their staff worked Federal Constitution (Art. 92 various criteria such as remotely. See CNJ (Conselho onwards) established special expenditures, number of Nacional de Justiça). 2020. electoral, labor, and military incoming and pending cases, “Avaliação dos Impactos da courts. The federal courts have number of judges, and workforce. Pandemia causada pela COVID- competence over matters that 17. Based on the information 19 nos processos de trabalho dos involve the federal government, provided by state judiciaries Tribunais.” Brasília: Conselho federal government agencies, during “right of reply” Nacional de Justiça. and public federal enterprises, consultations, civil courts in 3. Law 11,419 “Da Informatização among others. Aracaju (Sergipe) received 24,842 do Processo Judicial” of 8. Referred to hereafter as “state cases in 2018 and 25,377 in 2019. December 19, 2006. courts.” Maceió (Alagoas) received 15,739 4. Federação do Comércio de Bens, 9. The Federal District is ruled by cases in 2018 and 18,196 new Serviços e Turismo do Estado de a constitutional law, the Lei cases in 2019, distributed among São Paulo (FecomercioSP). 2017. Orgânica do Distrito Federal. its 13 civil courts. Porto Velho “Um Brasil. Modernização do 10. Claim value that is equivalent (Rondônia) received 13,566 and Judiciário. Análises e Discussões to 200% of the country’s 15,099 cases in 2018 and 2019, sobre um Povo em Busca de uma income per capita, R$66,965.00 respectively, among its 10 civil Identidade.” Feloniuk, Wagner. ($18,260). For details on the courts (an average of over 1,300 2018. “Números do Poder enforcing contracts case study cases per court). The number of Judiciário brasileiro: expansão and methodology, see the data cases per court is equivalent to de atuação e comparação com notes. cases per judge, since every court sistemas europeus.” In Processo, 11. Data collected correspond to the is staffed with one judge. Jurisdição e Efetividade da Justiça III, civil courts of the states’ capitals 18. For more information, see 1 ed. Florianópolis, SC: Conpedi. and Brasília, which are referred https://www.tjse.jus.br/agencia 5. Federação do Comércio de Bens, to hereafter as “civil courts” or /noticias/item/11725-premio-cnj Serviços e Turismo do Estado de “courts.” -de-qualidade-tjse-e-o-melhor São Paulo (FecomercioSP). 2017. 12. Titles I and II of Book I of the -tribunal-de-justica-estadual-do “Um Brasil. Modernização do Special Part of the Brazilian Code -brasil and https://tjro.jus.br Judiciário. Análises e Discussões of Civil Procedure. According /noticias/item/11819-tjro-recebe sobre um Povo em Busca de uma to the standard classification -premio-diamante-de-qualidade Identidade.” 16–17. of cases enacted by the CNJ, -do-cnj. 6. See Mueller, Bernardo, Mariana the Doing Business case would 19. According to statistics from the Iootty, and Nauro Campos. fall under the categories of Instituto Brasileiro de Geografia 2013. “Legal Institutions and “Procedimento Comum Cível” e Estatística (IBGE) Salvador’s Firm Performance in Brazil.” and “Cumprimento de Sentença.” estimated 2020 population is Economic Analysis of Law 13. OECD (Organisation for 2,886,698—4th most populated Review 3 (1); Ramello, G.B., Economic Co-operation city after São Paulo, Rio de and S. Voigt, 2012. “The and Development). 2013. Janeiro and Brasília. According Economics of Efficiency and the “Judicial Performance and its to data from the CNJ, the Judicial System.” International Determinants: a Cross-Country average state judiciary budget Review of Law and Economics 32: Perspective.” OECD Economic per resident in 2020 was R$973 1–2; Safavian, Mehnaz, and Policy Papers No. 5, June 2013. in the Federal District and R$178 Siddharth Sharma. 2007. “When Paris: OECD. in Bahia. See https://www.cnj Do Creditor Rights Work?” 14. The State Court of Espírito .jus.br/transparencia-cnj World Bank Policy Research Santo announced plans in /orcamento/estados/. Salvador, November 2020 to expand the Enforcing contracts 121 however, has 19 courts of first vehicles, and INFOJUD for fiscal 39. Resolution 11/2019 of November instance specialized in consumer information. 27, 2019, issued by the State affairs; in other locations, 29. Article 24 of the Federal Court of Pará. consumer affairs cases are Constitution stipulates that 40. Resolution 20/2020 of July 1, processed by general civil courts. the union, the states, and the 2020, issued by the State Court 20. Belo Horizonte (Minas Gerais) has Federal District control all of Roraima. 36 civil courts, Curitiba (Paraná) lawmaking powers governing 41. In Tocantins, it was created on has 25, and Porto Alegre (Rio the cost of judicial acts. July 16, 2020 (Resolution No. Grande do Sul) has 27. These 30. Resolution 05/2018 of February 36) but as of September 2020 three state courts are considered 28, 2018, issued by the State had not been implemented. “Tribunais de Grande Porte” under Court of Rio Grande do Norte. 42. For the methodology and scoring the CNJ’s classification. 31. Acre, Alagoas, Amazonas, of the index, refer to the data 21. Generally, the civil courts have Bahia, Espírito Santo, Goiás, notes. general competence to hear all Mato Grosso do Sul, Minas 43. Law 9,099 of September 26, matters that do not correspond Gerais, Pará, Paraíba, Paraná, 1995. According to Article 9, to other courts (competência Piauí, Rio de Janeiro, Rondônia, self-representation is allowed in residual), such as family or Roraima, São Paulo, Sergipe, and cases with a claim value of below tax courts. However, within Tocantins do not charge fees for 20 times the minimum wage the civil courts there could filing the enforcement petition. (R$20,900 on September 1, 2020). be sub-specializations; for 32. Corregedorias de Justiça are 44. Articles 300 and 301 of the Code instance, civil courts that are also administrative sections within of Civil Procedure. competent to hear cases related each of the state courts that 45. Article 335 of the Code of Civil to arbitration or bankruptcy provide guidance and exercise Procedure. (falência e recuperação judicial e disciplinary and supervision 46. Article 226 of the Code of Civil extrajudicial). functions. They are composed Procedure. 22. These are the courts of Santa of court staff and presided over 47. Article 357 of the Code of Civil Catarina, Amazonas, Rio Grande by a senior judge who serves a Procedure. do Sul, Bahia, São Paulo, 2-year term. They coordinate 48. Business intelligence refers to Sergipe, Mato Grosso do Sul, the and receive guidance from the technologies to collect, analyze, Federal District, Paraná, Alagoas, National Court Compliance and present information to Goiás, and Rio de Janeiro. Office (Corregedoria Nacional de facilitate decision making. 23. “Central de Envelopamento” Justiça), which is part of the CNJ. Brazilian courts are using these established by Ordinance 33. Núcleo Permanente de Gestão technologies to analyze courts’ 48/2018 issued by the State de Metas do Primeiro Grau– caseloads and performance Judiciary of Sergipe. NUPMETAS-1 regulated by Joint through “painéis estatísticos”. 24. Resolution 233 issued July 2016 Ordinance 33 of May 13, 2013, 49. Ceará, the Federal District, by the CNJ. issued by the State Court of the Mato Grosso, Mato Grosso do 25. Resolution 227 issued October 10, Federal District. Sul, Pará, Paraná, Piauí, Rio 2018, by the State Court of Acre. 34. Programa de Cooperação Grande do Sul, Rondônia, Santa 26. The information provided by the implemented by Resolution Catarina, and Tocantins. State Court during consultation 7/2018 of May 2, 2018, issued by 50. Article 246, § 1, of the Code of meetings refers to the number the State Court of Santa Catarina. Civil Procedure of new cases filed between 35. Núcleo de Produtividade Remota 51. Articles 165 to 175 of the Code of 2018 and 2019 in Florianópolis’ implemented by Resolution Civil Procedure (conciliation and six central civil courts (Foro 2/2019 of January 29, 2019, mediation), Law 13,140/2015 Central). There are two issued by the State Court of Ceará. (Mediation Law) and Law additional civil courts, for a total 36. Equipe Especial de Apoio à 9.307/96 (Arbitration Law). of eight civil courts in the city. Prestação Jurisdicional regulated 52. Article 90, § 3, of the Code of Civil 27. Article 1,048 of the Code of Civil by Provision 266/2017 of Procedure and Article 29 of Law Procedure. October 9, 2017, issued by the 13,140/2015 (Mediation Law). 28. The CNJ has established State Court of Paraná. 53. In Rondônia, the exemption was partnerships and created various 37. Complementary Law 279 of May established by Law 3,896/2016 electronic tools to simplify the 12, 2014. of August 24, 2016. In Acre, the seizure of the debtor’s assets 38. Resolution 906/2020 of January exemption was implemented by in courts, such as BACENJUD 14, 2020, issued by the State Law 3,517/2019 of September (and the new SISBAJUD) for Court of Minas Gerais. 23, 2019, which changed the bank accounts, RENAJUD for regulation governing cost (Law 1,422/2001). 122 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 54. CNJ (Conselho Nacional de 63. By the end of 2019, state courts Justiça). 2020. Justiça em had installed 1,284 CEJUSCs. Números. Brasília: Conselho See CNJ (Conselho Nacional Nacional de Justiça. https:// de Justiça). 2020. Justiça em www.cnj.jus.br/pesquisas Números. Brasília: Conselho -judiciarias/justica-em-numeros/. Nacional de Justiça. 55. World Bank Group. 2019. Doing 64. CNJ (Conselho Nacional de Business in the European Union Justiça). 2020. Justiça em 2020: Greece, Ireland and Italy. Números. Brasília: Conselho Washington DC: World Bank Nacional de Justiça. Group. 65. According to attorneys and 56. These mechanisms are similar to judges interviewed during right the “perempção” established in of reply consultation meetings Article 486 of the Brazilian Code conducted between July and of Civil Procedure. September of 2020. 57. See the Justice Scoreboard at 66. In Amazonas, according to https://ec.europa.eu/info/sites information received during /info/files/justice_scoreboard right of reply meetings and _2020_en.pdf. per Edital de Seleção 01/2016 58. Gramckow, Heike, Omniah Ebeid, – NUPEMEC. In the Federal Erica Bosio, and Jorge Luis Silva District, by Joint Ordinance 89 Mendez. 2016. “Good Practice of August 8, 2018. For Roraima, for Courts: Helpful Elements for information is available at Good Court Performance and the https://www.tjrr.jus.br/index World Bank’s Quality of Judicial .php/nupemec-ser-conciliador Process Indicators.” World Bank, #remuneracao. Washington, DC. 67. CNJ (Conselho Nacional de 59. According to judges interviewed Justiça). 2020. Diagnóstico – during right of reply consultation Remuneração dos mediadores e meetings conducted between conciliadores judiciais. Brasília: July and September of 2020. Conselho Nacional de Justiça. 60. Supra note 28. As of August 25, https://www.cnj.jus.br/ 2020, a new system, SISBAJUD, wp-content/uploads/2020/09 expanded the capabilities to the /Remuneracao_de_mediadores current BACENJUD to search _e_conciliadores_2020_09_14.pdf. and seize a wider array of 68. European Commission for the financial assets. Efficiency of Justice (CEPEJ). 61. Portugal implemented the 2019. European Handbook SISAAE (Sistema Informático for Mediation Lawmaking. de Suporte à Atividade dos Strasbourg: CEPEJ. https:// Agentes de Execução), a unified rm.coe.int/cepej-2019-9- system connecting more than 20 en-handbook/168094ef3c#_ databases to support asset search Toc9936429. and seizure by enforcement 69. CNJ issued a recommendation agents. See World Bank Group. for courts to implement 2018. Doing Business in the European “CEJUSCs Empresariais” to deal Union 2018: Croatia, Czech Republic, with disputes involving matérias Portugal and Slovakia. Washington empresariais of any nature and DC: World Bank Group. value, including those arising 62. European Commission for the from the COVID-19 pandemic Efficiency of Justice (CEPEJ). (Recommendation 71/2020). 2015. Good Practice Guide on Enforcement of Judicial Decisions. Strasbourg: CEPEJ. https:// rm.coe.int/european-commission -for-the-efficiency-of-justice -cepej-good-practice-/16807477bf. CHAPTER 8 Registering as an Individual Microbusiness Owner (MEI) MAIN FINDINGS The Individual Microbusiness Owner (Microempreendedor Individual, MEI) is the most common business classification in Brazil. Of the five locations measured in this pilot study, four (all except Minas Gerais) require a municipal operations license to establish a MEI, even if the activity is considered low risk. Minas Gerais is the easiest place to set up a MEI, in one procedure and 0.5 day. In Ceará, Federal District and Rio Grande do Sul, entrepreneurs must comply with 2 additional requirements and wait 3 days more. On average, to register as a MEI, requires 2.4 steps that applicants can complete in 2.1 days. The entire process is free of charge, and there is no upfront startup capital requirement. 123 124 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 A s shown in the starting a contributes to a more inclusive However, recent studies suggests business chapter, starting business environment and can help that the MEI has been most effec- a business in Brazil can reduce poverty and inequality. tive in formalizing firms that were be challenging. Entrepreneurs previously operating informally; the must comply with many require- impact on new company formaliza- ments—11 on average across the tion has been relatively small.7 27 locations—wait 3 weeks and MEI, an important step pay the equivalent of 5.1% of to tackle informality in The MEI’s popularity is likely due income per capita to register and Brazil to its simplified regulatory process formally operate a limited liability and favorable tax regime. To reg- company (LLC). This complexity is Brazil launched the Individual ister as a MEI, an entrepreneur mainly due to the involvement of Microbusiness Owner category must meet three simple require- six different public agencies at the in 2009.2 The MEI allowed those ments: (i) annual turnover must municipal, state, and federal levels. who already exercised their not exceed R$81,000 ($22,087); professional activities autono- (ii) the entrepreneur is not a Indicators covering business incor- mously—and often informally— partner, administrator, or holder poration procedures for medi- to formalize and obtain access to of another company; and (iii) the um-size businesses or LLCs do not legal support and judicial security entrepreneur must hire a maxi- tell the whole story. This study as well as benefits like retirement, mum of one employee. Moreover, includes a pilot analysis of regis- maternity leave, and financing. the MEI classification qualifies tering as a Microempreendedor Among more than 500 activities the entrepreneur for SIMEI, a Individual (MEI), an individual that can be performed under the system for collecting the taxes microbusiness owner who can MEI framework,3 those in low- covered by the Simples Nacional hire up to one employee—the value-added industries, such as tax regime.8 Under this simpli- most common business type in services and commerce are the fied and favorable tax regime, Brazil. This pilot analysis covers most common and include hair- the contribution to the National five locations: Amazonas, Ceará, dressers and clothing and accesso- Social Security Institute (INSS) the Federal District, Minas Gerais, ries retailers.4 and state and municipal taxes are and Rio Grande do Sul. It shows combined into a flat monthly fee, that setting up a MEI is consider- Since its establishment, the MEI which is filed through the Simples ably less complex than registering has become the most common type Nacional Collection Document an LLC and that there are tax of company in Brazil. By 2020, (Documento de Arrecadação do benefits associated with register- approximately 14 million entre- Simples Nacional, DAS).9 In 2020, ing as a MEI. However, depend- preneurs—55% of registered com- this fee was R$58.25 ($15.88, ing on where an entrepreneur panies nationwide—had registered roughly 5.6% of the minimum decides to incorporate, additional under MEI.5 By formalizing, indi- wage10) for a commercial or ser- requirements may apply (such as vidual microentrepreneurs have vice company. SIMEI exempts the a municipal operations license). been able to sell more products and MEI from federal taxes, unlike a negotiate better prices. They have limited liability company.11 The MEI makes it easier for entre- also gained the ability to sell to the preneurs with limited invest- government, a benefit enjoyed only MEIs are relatively diverse in terms ment capacity or qualifications by formalized businesses. The MEI of gender, age, race, and educa- to formalize their business. These categorization is not meant to solve tion. A little over half are men, entrepreneurs may otherwise be the issue of informality in Brazil. the median age is 42 years old, discouraged by the complexity and Instead, it is the first step into for- and roughly half (47%) report cost associated with registering a malization for many entrepreneurs. their race as white; the other half business. By supporting the for- The impact on formalization has (48%) report as mixed or black. malization of microentrepreneur- been significant: in 2012—just 4 The average monthly household ial activities—often, many peoples’ years after its creation—6 of every income of a MEI is about R$4,400 only source of income1—MEI 10 businesses created were MEIs.6 ($1,200). Although 31% of MEIs Registering as an Individual Microbusiness Owner (MEI) 125 have higher education, only 39% had no other source of income. report’s assessment of the country’s completed high school, and the This need became even more acute business environment, especially remaining 30% completed elemen- during the Covid-19 pandemic. in starting a business. Subnational tary school.12 Just 33% of men report starting Doing Business carried out a pilot their MEI out of necessity.13 study of five locations to collect The MEI classification significantly data on this specific legal business improved women’s participation in form by recording the number of the formal sector. Women account procedures, time, and cost needed for 34% of all business owners in What does the MEI to establish a MEI (box 8.1). This Brazil, and the MEI is the most case study measure? pilot study is separate from the common type of company (48% starting a business indicators set are women). Establishing a MEI Given its importance to the analyzed in this report (see start- out of necessity is even more prev- Brazilian economy, MEI is included ing a business chapter) and is not alent among women—40% report in Subnational Doing Business in included in the ranking or scoring starting their business because they Brazil 2021 to add value to the for starting a business.14 BOX 8.1  Adapting the Doing Business methodology for a MEI pilot study To highlight the MEI benefits and challenges for small-scale en- trepreneurs brought by MEI and examine its geographic imple- MAP B 8.1  Locations covered by this pilot study mentation. The MEI pilot study analyzes this study analyzed the process of establishing a MEI in each of Brazil’s five regions, from North to South, located in the states of Amazonas (North region), Ceará (Northeast), Minas Gerais (Southeast), and Rio Grande do Sul (South) and the Federal District (Central-Western region). Subnational Doing Business selected these locations in consulta- tion with Sebrae with the goal of having each of these regions represented by a large state in terms of population. States were analyzed through their capital cities, which are regional business hubs, and the Federal District was analyzed though Brasília. The MEI case study is based on the methodology of the Doing Business starting a business indicators. Doing Business records all procedures officially required, or commonly done in practice, for an entrepreneur to start and formally operate an LLC, as well as the associated time and cost and the paid-in minimum capi- tal requirement. These procedures include obtaining all necessary approvals, licenses, and permits and completing any required no- tifications, verifications, or inscriptions for the company and em- Source: Subnational Doing Business database. ployees with the relevant authorities. Under the assumptions of both the MEI and Doing Business case studies, the company does not perform foreign trade activities, handle products subject to a special tax regime, use heavily polluting production processes, or qualify for investment incentives or any special benefits. The MEI case study analyses a clothing and accessories retailer, to reflect the reality of this type of company in Brazil.a As with any methodological choice, the assumptions of the MEI case study come with certain limitations. The case study assumes that the a. The most common activities among MEI are hairdressers and clothing and accessories retailers. Sebrae (Serviço Brasileiro de Apoio às Micro e Pequenas Empresas). 2019. Perfil do MEI. Brasília: Sebrae. https://datasebrae.com.br/perfil-do-microempreendedor-individual/#atividades. 126 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 BOX 8.1  Adapting the Doing Business methodology for a MEI pilot study (...continued) The case study assumes that the microentrepreneur leases a commer- FIGURE B 8.1  Aspects measured by the starting a business indicators cial space and has no employee. The Cost vast majority of MEIs in Brazil (97%) (% of income per capita) have no employeesb and operate Formal operation from their own residence (40% in 2019)—only 28% of MEIs work at Paid-in Number of $ a commercial address of their own; minimum procedures capital 17% work in someone else’s res- idence or company. Working from their own residence is more preva- lent among women (55% compared Entrepreneur to 35% of men).c Time Preregistration Registration Postregistration (days) The MEI is significantly smaller than the LLC considered by the Doing Source: Doing Business database. Business. The pilot study assump- tions have been adjusted accordingly. When making comparisons between the two case studies, one should be aware of substantial differences, including company type, size, start-up capital, turnover and the existence of employees (please refer to the table below). TABLE B 8.1  What are the differences between the MEI and Doing Business case studies? Microempreendedor Individual (MEI) case study assumptions Starting a business case study assumptions Type of legal Individual Microbusiness Owner Limited liability company (LLC), (Sociedade Limitada,Ltda) company The owner is a Brazilian citizen (natural person) Has five business owners, all Brazilian citizens (none of whom is a legal entity) One business owner holds 30% of the company shares, two owners have 20% of shares each, and two owners have 15% of shares each Startup capital R$6,696 ($1,826) R$334,826 ($91,300) Turnover R$66,965 ($18,260) R$3,348,262 ($913,000) Employees No employees 10–50 employees, all Brazilian citizens, hired one month after the commencement of operations Activity Independent trader of nonhazardous products such as Performs general industrial or commercial activities, such as clothes, books, or shoes the production or sale to the public of goods and services Premises Leases commercial space and is not a real estate Leases the commercial plant or office and is not a real estate proprietor proprietor Has an annual lease equivalent to R$16,741 ($4,565) Has an annual lease for office space equivalent to R$33,483 ($9,130) Is in an office space of approximately 92.9 square meters Is in an office space of approximately 929 square meters Deed n.a. Has a company deed that is 10 pages long Source: Doing Business and Subnational Doing Business database. Note: The exchange rate USD/R$ is 3.66731908310579. In the starting a business, the start-up capital is 10 times and the turnover is 100 times the income per capita. b. According to DASN-SIMEI AC 2019, Declarações ativas. c. Sebrae (Serviço Brasileiro de Apoio às Micro e Pequenas Empresas). 2019. Perfil do MEI. Brasília: Sebrae. https://datasebrae.com.br/perfil-do-microempreendedor-individual/#atividades. Registering as an Individual Microbusiness Owner (MEI) 127 (Certificado da Condição do and municipal governments, state How does setting up a Microempreendedor Individual, and municipal registrations are MEI work? CCMEI), which contains the automatic in the five locations registry certificate of legal entity benchmarked. In contrast to LLCs, An entrepreneur must comply (Cadastro Nacional de Pessoas MEIs do not need to apply for the with at least one procedure to Jurídicas, CNPJ) and the state legal entity digital registry certifi- register as a MEI (figure 8.1). commercial registry company cate (e-CNPJ)—no digital certif- The entrepreneur (1) registers on identification number (Número icates are required for individual the Entrepreneur Portal (Portal de Identificação do Registro de entrepreneurs to start a business.16 do Empreendedor) to obtain the Empresas, NIRE). The CCMEI is MEIs are also not required to issue login and password required to a temporary license to operate for invoices when conducting busi- access the system. Once logged in, 180 days (for all except high-risk ness with private individuals (as is the entrepreneur enters their per- businesses).15 the case for LLCs).17 sonal data and those of the MEI (postal code, trade name, activi- Due to the integration of data- Four locations (all except Minas ties to be performed) and receives bases and systems between the Gerais) require one or two addi- the MEI registration certificate Entrepreneur Portal and state tional procedures: (2) checking the company’s location feasibility (at the municipality) through the FIGURE 8.1  Registering and operating a MEI requires between one and Redesim portal;18 and (3) obtain- three procedures depending on the location ing an operations license from Time the municipality if the entre- (days) Preregistration Registration Postregistration preneur wants to operate in a 4 physical location other than their Obtain residence. In Amazonas, these operations license procedures are merged and com- Register MEI M pleted simultaneously. Obtaining the CCMEI 3 Amazonas, Ceará, F Federal District, Check feasibility Rio Grande do Sul of location M Where is it easiest to 2 register a MEI? Across the five locations bench- Ceará, marked, it is easiest to register a 1 Federal District, MEI in Minas Gerais, where it Rio Grande do Sul takes only one procedure and 0.5 days. Entrepreneurs must comply with two additional requirements 0 and wait an additional 2.5 days in Municipality Entrepreneur Portal Municipality Procedures Ceará, the Federal District and Rio or Grande do Sul (table 8.1). F Federal level Procedure happening in all locations Completed online The main differences among the M Municipal level Completed in person five locations benchmarked stem from requirements at the munic- Source: Subnational Doing Business database. ipal level. The MEI registration Note: In Ceará, the Federal District and Rio Grande do Sul, the first step in the process is checking the certificate, the CCMEI, is granted feasibility of location. In Amazonas and Rio Grande do Sul, this step (‘’viabilidade de legado’’) is done after to the individual microentrepre- registration at the Entrepreneur Portal. In Amazonas, the procedure for obtaining the operations license is integrated with the ‘’viabilidade de legado’’. neur upon completion of company 128 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 TABLE 8.1  Registering an Individual Microbusiness Owner (MEI): where is it easiest? Procedures Time Cost Location Rank (number) (days) (% of income per capita) Minas Gerais (Belo Horizonte) 1 1 0.5 0.0 Amazonas (Manaus) 2 2 1 0.0 Rio Grande do Sul (Porto Alegre) 3 3 3 0.0 Ceará (Fortaleza) 3 3 3 0.0 Federal District (Brasília) 3 3 3 0.0 Source: Subnational Doing Business database. registration on the Entrepreneur In Ceará and the Federal District, Portal.19 The certificate is proof the first step in the MEI registration The importance that the company has been created process is checking the proposed of maintaining and acts as a temporary operations location’s feasibility of the—a convenience and license. Once registered, MEIs similar procedure as for LLCs.25 ensuring uniformity can start operating immediately.20 This check, which takes two days, According to the law, MEIs per- is required to obtain a definitive of MEI requirements forming low-risk activities do not operations license.26 In Amazonas nationwide require an operations license.22 and Rio Grande do Sul, this same step (‘’viabilidade de legado’’) The MEI was created to trans- The authorities automatically grant is done after registration at the form entrepreneurial activity in a a temporary operations license— Entrepreneur Portal and requires country where doing business has via the CCMEI—in the five loca- the registry certificate of legal entity proven to be burdensome. It has tions benchmarked. However, (CNPJ number). In Amazonas, the become a popular alternative for only Minas Gerais automatically procedure for obtaining the opera- entrepreneurs wishing to formalize converts the temporary license to tions license is integrated with the their businesses and those seeking a definitive one at expiration for ‘’viabilidade de legado’’whilst in Rio additional income sources. The MEIs performing low-risk activities. Grande do Sul, both steps are car- MEI has provided the simplicity In the other four locations—even ried out separately. and convenience that other types though not required by law—entre- of small firm classifications in Brazil preneurs must request a defini- In the Federal District, firms obtain could not. Across the five locations tive operations license from the the operations license directly from benchmarked, entrepreneurs can municipality during the temporary the district government (there is register and legally operate as a license’s six-month period of valid- no municipality).27 In all four loca- MEI in just 2.4 procedures and ity, regardless of the type of activity tions where an operations license 2.1 days on average on average; performed by the new MEI.23 By is needed, MEIs receive the opera- there is no associated cost. In con- law, in the 180 days after CCMEI tions license free of charge.28 trast, it takes 11.1 procedures, 15.4 issuance, the municipality has the days, and R$1,707 ($466, 5.1% right to request an update on the In all benchmarked locations, of income per capita) to establish company's status;24 if no issues there is no cost associated with as an LLC across the 27 locations emerge, the CCMEI converts to a setting up a MEI is free of charge, benchmarked in Subnational Doing definitive license after that period, and there is no paid-in minimum Business in Brazil 2021 (see the subject to inspection like any other capital requirement. chapter on starting a business and license. Extra steps are required figure 8.2). only if the business activity is clas- MEIs that hire an employee—and sified as medium or high risk or in therefore must comply with labor Most MEIs have no employees and the case of an allegation of irregu- and social obligations—have to do not rent or own an establish- larity (such as a deviation from the undergo three additional postreg- ment; hence, they are not required intended business activity). istration procedures (box 8.2). to comply with licensing and labor Registering as an Individual Microbusiness Owner (MEI) 129 BOX 8.2  Steps required when a MEI hires an employee In all five locations benchmarked, a MEI that hires one employee (the maximum allowed) must undergo three additional procedures (after completing the procedures shown in figure 8.1). First, the MEI registers the employee (or updates their details) with the social integration program (Programa de Integração Social, PIS) through the website of the Federal Savings Bank (Caixa Econômica Federal). Second, the MEI notifies the Ministry of Economy’s general cadaster of employed and unemployed workers (Cadastro Geral de Empregados e Desempregados, CAGED) of the employment relationship through the eSocial portal. Lastly, the MEI registers the employment with employers union (Sindicato Patronal) and the employees union (Sindicato dos Empregados).a Together, these three procedures take 1.5 days on average at no cost.b a. These procedures are similar to those in the Doing Business starting a business case study. b. These procedures are simultaneous. For more information, please see the list of procedures. registration. However, for those this policy—MEI activities are Research by Sebrae shows that a that do, the harmonization of considered low risk, and federal MEI has a survival rate of 87%.29 federal and municipal legislation law exempts them from opera- Between 2010 and 2014, the sur- across locations would facilitate tions licensing requirements. MEIs vival rate of companies in their and encourage entrepreneurship employing one worker would also second year of operations, rose in places where municipal-level benefit from the streamlining of from 54% to 77%%, a statistic bureaucratic obstacles are more labor procedures (for example, if that underscores the success of the prevalent. Those locations that they can be completed simultane- MEI. Excluding MEIs, the survival require a definitive municipal ously in a single procedure using rate rises by only 4 percentage operations license could review eSocial). points, from 54% to 58%. MEIs FIGURE 8.2  Registering a MEI involves fewer procedures and time than registering as an LLC and is free of charge MEI 0.6 1 0.8 LLC 2 2 7.1 Preregistration Registration Postregistration 15.4 11.1 No paid-in minimum capital 5.1 2.4 2.1 There is no cost for MEI Procedures Time Cost (number) (days) (% of income per capita) MEI case study LLC case study Source: Subnational Doing Business database. Note: ‘’LLC case study’’ refers to the assumptions of the Doing Business starting a business indicator (see box 8.1), where more than 50% of the total cost to start a business is related to the municipality. Registering a MEI through the Entrepreneur Portal is simpler than registering an LLC at the commercial registry. Registering at the Entrepreneur Portal requires no previous interaction or fee (except Ceará, the Federal District, and Rio Grande do Sul, where the MEI must comply with location feasibility requirements to obtain the operations license). The 27 benchmarked locations require the LLC to register with the commercial registry and the Federal Tax Authority (in separate procedures). The commercial registry also requires the LLC to pay a fee and submit a social contract signed by the business founders. 130 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 have a high survival rate because http://www8.receita.fazenda.gov they have a low tax burden and Notes .br/SimplesNacional/Documentos /Pagina.aspx?id=4. a flexible setup (no employees, no 1. Their activity as an entrepreneur 9. Through the DAS, MEIs must rent). But the fact that most MEIs is the only source of income for contribute: 5% of the minimum do not have employees and oper- 76% of MEIs. wage (R$52.25; $14.25) to the ate in low-value-added sectors 2. The MEI was instituted by National Social Security Institute in return hinders their ability to Federal Complementary Law (Instituto Nacional do Seguro 128 of December 19, 2008, Social, INSS), plus R$1.00 ($0.27) grow. When a MEI’s revenue rises which entered into force on of ICMS to the state (industry or above the qualifying threshold July 1, 2009. This law amended commerce activities), and R$5.00 of R$81,000 ($22,087), it needs Complementary Law 123 of ($1.36) of ISS to the municipality to graduate to a Microenterprise December 14, 2006, which (services activities). The values (Microempresa, ME).30 As a instituted the national statute of this collection document, result, the firm must begin paying on micro and small business, together with the minimum adding the possibility of the MEI. wage, are updated annually. taxes under Simples Nacional as Some rules of Complementary The values vary according to the a ME in the following year—at a Law 123 were not changed by commercial activity. For more monthly rate of 4%, 4.5%, or 6%, Complementary Law 128 and information on the DAS, see depending on its business activity apply to the MEI as well as micro http://www (commerce, industry and/or ser- and small businesses. .portaldoempreendedor.gov vices). As a result, the firm’s tax 3. For a list of permitted activities, .br/duvidas-frequentes/6 see the Entrepreneur Portal’s -pagamento-de-obrigacoes bill (which was previously fixed website at http://www -mensais/6.4-caso-o-mei-receba at R$58.25, or $16, a month) rises .portaldoempreendedor.gov.br -o-carne-da-cidadania-mas-ja significantly. Survival rates of MEs /temas/quero-ser/formalize-se -recolheu-a-guia-de-pagamento are the lowest of all companies, at /atividades-permitidas. -das-como-proceder. just 55%.31 4. Sebrae (Serviço Brasileiro de 10. The minimum wage in Brazil Apoio às Micro e Pequenas was set at R$1,045 ($285) by Empresas). 2019. Perfil do MEI. Provisional Measure 919 of https://datasebrae.com.br January 30, 2020, converted into /perfil-do-microempreendedor law by Law 14,013 of June 10, -individual/#atividades. 2020 5. Oliveira, Kelly. 2020. ‘’Abertura 11. For more information, see the de empresas cresce, enquanto annex about paying taxes on fechamento recua em 8 meses.’’ Simples Nacional. Agência Brasil, September 17. 12. Sebrae. 2019. Perfil do MEI. https://agenciabrasil.ebc.com Brasília: Sebrae. .br/economia/noticia/2020-09 https://datasebrae.com.br /abertura-de-empresas-cresce /perfil-do-microempreendedor -enquanto-fechamento-recua -individual/#atividades. -em-8-meses. 13. Ibid. 6. Sebrae. 2016. Sobrevivência das 14. For more information on the Empresas no Brasil. Brasília: starting a business methodology, Sebrae. https://datasebrae.com see https://www.doingbusiness .br/sobrevivencia-das-empresas. .org/en/methodology/starting 7. Rocha, Rudi, Gabriel Ulyssea, -a-business. and Laísa Rachter. 2018. “Do 15. According to Resolution 58 of Lower Taxes Reduce Informality? the Redesim steering committee, Evidence from Brazil.” Journal of Article 2, XVII: ‘’Economic Development Economics Elsevier 134 activity of risk level III or high (C): 28–49. risk: its operations presents 8. For more information on Simples a high level of risk to the Nacional and SIMEI, see chapter physical integrity of people, the 9 on paying taxes under the environment or the heritage, Simples Nacional tax regime, and: implying licensing through http://www8.receita.fazenda specific procedures and pre- .gov.br/SimplesNacional/; defined by the Fire Departments Registering as an Individual Microbusiness Owner (MEI) 131 according to the regulations of through CGSIM) exists and in Sebrae. https://www.sebrae the federative units.” The list of which case must be notified to .com.br/Sebrae/Portal%20Sebrae the risk level III activities can be the Ministry of Economy. As /Anexos/sobrevivencia-das found in Normative Instruction per this MEI study, both private -empresas-no-brasil-relatorio 66 of September 1, 2020. sector and public sector experts -2016.pdf. 16. Article 10 of Resolution 48 in the five locations classify it as 30. ME turnover is capped at of 2018 of the Committee for low-risk. R$360,000 ($98,164). Simplifying Registration and 23. For methodological reasons, the 31. See https://www.gov.br/empresas Legalization of Companies time to wait to obtain it (0.5 days -e-negocios/pt-br/empreendedor and Businesses (Comitê para in all locations) is not counted /perguntas-frequentes. Gestão da Rede Nacional para since the request happens when Simplificação do Registro e the company is already legally da Legalização de Empresas e operating, under the temporary Negócios, CGSIM). license. 17. See https://www.jusbrasil.com 24. Article 8 of Resolution CGSIM .br/topicos/11697919/artigo 16 of December 17, 2009. -47-da-lei-n-4502-de-30-de 25. Before establishing an LLC, -novembro-de-1964. business founders also need 18. Redesim is a federal online to check the availability of platform linking various the company name at the stakeholders at the federal, state, commercial registry along with and municipal levels involved in the feasibility of the company the business registration process. location. Both approvals can be 19. Resolution 48 of 2018 of the obtained in one step through Committee for Simplifying Redesim. Registration and Legalization 26. This step is not required in Minas of Companies and Businesses Gerais because the municipality (Comitê para Gestão da Rede of Belo Horizonte does not Nacional para Simplificação do require requires an operations Registro e da Legalização de license in addition to the Empresas e Negócios, CGSIM). CCMEI; in Amazonas, this step is 20. Article 46 of Resolution 48 of integrated within the definitive 2018. operations license procedure. 21. According to Article 2 of 27. Law 5,547 of October 6, 2015. Resolution N. 51 CGSIM of June 28. For an LLC, getting the 11, 2019, ‘’low risk’’ or ‘’low risk operations license in the 27 A’’: the classification of activities benchmarked locations, accounts for the purposes of Article 3, § 2, for the biggest amount of time, item II, of Provisional Measure and may be concluded in one 881 of April 30, 2019, whose or more procedures, depending specific and exclusive effect is to whether it (i) is partially or totally eliminate the requirement for integrated with the commercial all public acts to be released for registry (as explained above), (ii) operation of any establishment. involves a temporary license, or 22. The resolution also stipulates (iii) the existence of a fee. The that in the case of activities of time ranges from 0.5 day (where medium risk (“low-risk B“) registration and operations performed outside any building, license procedures occur the municipality may waive the together) to 10.5 days in four requirement for an operations locations and costs on average license (article 47). However, 41.4% of the total cost (R$704; under paragraph 1 of Article $192). 3 of Law 13,874 of September 29. For more information on MEI 20, 2019 (Economic Freedom survival rates, see Law), the risk classification may https://datasebrae.com.br vary according to the location— /sobrevivencia-das-empresas/ provided that local legislation and Sebrae. 2016. Sobrevivência (differing from the federal sphere das Empresas no Brasil. Brasília: CHAPTER 9 Paying taxes under the Simples Nacional tax regime MAIN FINDINGS Simples Nacional, a simplified tax regime for micro and small companies, combines eight taxes and contributions and is widely used across Brazil. This pilot study benchmarks five locations on the ease of paying taxes under the Simples Nacional tax regime for two scenarios: a microretail clothing shop and a small light manufacturing firm. Simples Nacional is applied homogeneously: the number of payments, tax compliance time, and postfiling processes are the same nationwide. The tax burden has only minor variations across locations, mostly due to differences in municipal taxes. For small and micro firms, tax compliance is easier under the simplified regime. Compared to a medium-size industrial firm under the actual profits regime (as measured by Doing Business), both the microretailer and the small industrial firm make fewer payments and spend considerably less time on tax compliance under Simples Nacional. They also benefit from more efficient postfiling procedures. The tax burden under Simples Nacional varies significantly based on each company’s situation. For this pilot study’s microenterprise, the total tax and contribution rate under this regime would be 59.1% of profits, whereas for the small industrial company it would be 228.0% of profits, making it a significantly less advantageous option for this type of firm. In a real scenario, this company would likely opt for another tax regime. 132 Paying taxes under the Simples Nacional tax regime 133 A s shown in Subnational lower compliance costs. At the regime in 1996 to simplify tax Doing Business in Brazil same time, this tax regime is procedures for micro and small 2021, paying taxes can costly for the government. Some companies.6 Companies with annual be difficult in Brazil. Companies question how impactful it is in revenues up to R$4.8 million spend more time on tax compli- promoting formalization, pro- ($1.3 million) can opt for the ance than anywhere else and face ductivity, and job creation—and Simples Nacional tax regime, with a high tax burden. But indicators whether it creates economic dis- some restrictions applying to sec- covering taxation for medium-size tortions. Simples Nacional costs tors such as banking or electricity businesses do not tell the full the government 1.2% of GDP generation. Since the adoption of story. For a broader perspective, annually, more than 10 times its current version in 2006, the this study includes a pilot analy- the tax expenditures targeted to main federal, state, and municipal sis of paying taxes under Simples small and medium enterprises in taxes are paid and filed jointly in Nacional, an optional simplified economies like Argentina, Chile, a single tax return. Its main fea- tax regime for micro and small France, India, Mexico, and South ture is to combine eight taxes and companies. Roughly 80% of eli- Africa (0.1% of GDP or less).2 contributions—on income (corpo- gible firms opt for this simplified If the authorities were to sim- rate income tax, IRPJ; and social regime.1 plify the entire tax system (for contribution on net profits, CSLL), taxpayers of all sizes), this could sales (social contributions on sales, This pilot analysis covers two reduce the distortions and costs of PIS and COFINS; tax on industrial business scenarios—a microretail Simples Nacional while address- products, IPI; tax on the circula- clothing shop and a small manu- ing the larger challenge of tax tion of goods and services, ICMS; facturing firm—in five locations compliance. and tax on services, ISS), and (Amazonas, Ceará, the Federal social security (the employer-paid District, Minas Gerais, and Rio social contribution replaces the Grande do Sul) (box 9.1). It sug- employers’ pension contribution, gests that this simplified regime Why create a simplified CPP)—into a single payment and significantly reduces compliance tax regime for micro filing.7 costs for companies and is applied and small firms? uniformly across the bench- The vast majority (86%) of micro marked locations. Compared to Small firms are the backbone of and small firms in Brazil now the actual profits regime as mea- most economies.3 Brazil is no choose Simples Nacional.8 Most sured by the paying taxes indi- exception: 90% of its 19 million business owners view it positively: cators, Simples Nacional entails businesses are either micro or around 80% of firms believe fewer payments and simpler tax small firms or individual micro- that Simples Nacional reduces compliance requirements. Many entrepreneurs. Together they are bureaucracy and the tax bur- taxpayers (including the microre- responsible for more than half of den. One-third of entrepreneurs tailer in this case study) also formal employment in the coun- believe they would have to close benefit from a lower tax burden. try.4 Encouraging small entre- their business without Simples However, the Simples Nacional preneurs and supporting their Nacional.9 Indeed, a study of regime can result in a higher tax businesses is thus vital for the manufacturing firms from 2007 to burden for firms with lower profit economy. One way of doing that is 2013 found that those filing their margins (like the case of the small creating easier tax rules for small taxes under Simples Nacional manufacturer) because companies firms. Many OECD countries have performed better than companies pay taxes based on gross revenues established special tax regimes under other tax regimes in terms and cannot deduct their costs. for such firms, usually with tax of jobs and longevity, with a 30% benefits, simpler rules, and fewer lower chance of going out of Given the complexity of Brazil’s compliance requirements.5 business.10 tax system, millions of entrepre- neurs are drawn to the Simples Given its burdensome tax com- Yet, the benefits of Simples Nacional regime because of its pliance, Brazil created a special Nacional for the economy remain 134 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 BOX 9.1  Adapting the Doing Business methodology for a Simples Nacional pilot study This pilot study was completed at the request of the Brazilian Micro and Small Enterprise Support Service (Sebrae) and Brazil’s Special Secretariat for State Modernization (Secretaria Especial de Modernização do Estado, SEME).a Its goal is to answer two central questions. First, is it easier to comply with tax obligations for companies using Simples Nacional than companies using the actual profits regime? And second, is the Simples Nacional tax regime applied homogeneously across Brazilian states in practice? To answer these questions and compare the results with the pay- ing taxes indicators, the Subnational Doing Business team modi- MAP B 9.1.1  Locations covered by the pilot fied the Doing Business methodology to fit the Simples Nacional study on paying taxes under Simples Nacional regime. This study benchmarks five locations on the ease of pay- ing taxes under Simples Nacional. It assesses two scenarios—a commercial microenterprise and a small industrial business—, recording the taxes and contributions paid by the company in each case, and their respective total tax and contribution rate (as a percentage of profits). It also measures administrative burden of tax compliance (measured by the number of payments per year and the total time to comply with taxes) and postfiling pro- cedures (time to request and obtain a VAT refund, and time to make and complete an income tax correction). In consultation with Sebrae, Subnational Doing Business se- lected the following five locations for this pilot analysis, in each of Brazil’s five geographic regionsb: Amazonas (North region), Ceará (Northeast), Minas Gerais (Southeast), Rio Grande do Sul (South), and the Federal District (Central-West) (map B 9.1.1). Each region is represented by a large state in terms of popula- tion. The study measures the five locations through their capital cities, which are all regional business hubs. Source: Subnational Doing Business. This pilot case study adapts the Doing Business paying taxes methodology to fit within the Simples Nacional thresholds. It adjusts the Doing Business case study assumptions in each scenario as follows: Commercial microenterprise (microempresa): a retail clothing shop with a turnover of R$336,910 (US$91,868), 4 employees, and a 12% profit margin (based on the listed company median in this sector). This case was designed to be representative of companies under this tax regime, since clothing retailers are the most common type of firms under Simples Nacional.c The turnover of the Doing Business case study company is divided by 100 to fit the threshold for a microenterprise (R$360,000). The other assumptions for this firm are also 100 times smaller than the Doing Business case, except for the profit margin and the number of employees, determined based on an analysis of the most common firms of this sector and size to ensure that the case is representative. a. SEME is a federal body within the General Secretariat of the Presidency, tasked with reforming public administration and the business environment. b. The Brazilian territory is officially divided into the North, Northeast, Southeast, South and Central-Western regions, based on natural, social, cultural and economic aspects. The Brazilian Institute of Geography and Statistics (Instituto Brasileiro de Geografia e Estatística, IBGE) is responsible for this classification. See IBGE. 2017. “Os Diversos Sentidos das Divisões Regionais ao Longo do Tempo.” Retratos. A Revista do IBGE. No. 6, December. c. Microenterprises (companies with a turnover of up to R$360,000) are the most common type of company opting for Simples Nacional (except for individual microbusiness owners, a type of sole proprietorship). As of May 11, 2020, out of 14.7 million businesses under this regime, 4.2 million were microenterprises. Regarding the sector, firms under Simples Nacional are mostly in the services (47%) and commercial (35%) sectors, while 8% are industrial firms. As for the type of activity, “retail clothing shop” is the most common activity among companies under Simples Nacional, amounting to 979,527 firms out of 14.7 million. The assumption on the number of employees was based on the fact that nearly three-quarters (69%) of micro and small commercial firms have 1–4 employees. Finally, in this scenario, profits were calculated based on the median profits of all listed retail clothing companies in Brazil as of December 2020 (given that data on microenterprise profits was not available). (https://datasebrae.com.br/totaldeempresas/; http://www.sebrae-sc.com.br/leis/default.asp?vcdtexto=4154; https://www.spcbrasil.org.br/uploads/st_imprensa/relatorio_perfil_mpe1.pdf). Paying taxes under the Simples Nacional tax regime 135 BOX 9.1  Adapting the Doing Business methodology for a Simples Nacional pilot study (...continued) Small-size industrial firm (empresa de pequeno porte, EPP): a light manufacturing industrial firm that produces and sells goods to domestic customers, with a turnover of R$3,369,100 ($918,681), 15 employees, and a 5.7% profit margin. This case was selected to facilitate a higher degree of comparability with the Doing Business paying taxes scenario. The turnover of the Doing Business company is divided by 10 to fit within the Simples Nacional threshold.d The other assumptions for this firm are also 10 times smaller than the Doing Business case, except for the number of employees, to make it compatible with wage levels (the firms’ total cost of salaries is divided by 10). The remaining pilot study case assumptions are similar to the Doing Business paying taxes indicators. The company owns two land plots and sells the second one at the beginning of the calendar year, thereby paying income tax on the capital gains derived from this sale. The property values are reduced in both scenarios. The company also pays income tax on the interest earned from an investment. As a result of this methodological adaptation, any comparison between these scenarios and the Doing Business case must consider substantial differences in company size, including turnover, net profits, expenses, employees, and assets, among other assumptions. As with any methodological choice, the option to consider these scenarios comes with certain limitations. This study is used as an indicator to analyze the ease of paying taxes under Simples Nacional, and is not meant to provide representative statistics of the tax environment for businesses under this tax regime. Looking at a small industrial firm allows a greater degree of comparability to the Doing Business case; looking at a microenterprise allows the case to be closer to the typical size of taxpayers under Simples Nacional. The type of activity undertaken by the company and its size do not significantly impact the number of payments. However, these do affect tax compliance time and postfiling processes. Most importantly, they have a sizeable impact on the total tax and contribution rate.e Microenterprises often pay significantly lower taxes under the simplified regime. However, the tax burden can be higher for firms engaged in industrial activities and those with lower profit margins. Under the simplified regime’s rules, the company cannot deduct expenses such as labor and inputs and must apply the tax rate over its gross revenue. Under this pilot study’s scenario of a small industrial firm, the total tax and contribution rate would exceed 220% of profits. This difference helps to explain why some companies opt not to use this regime. Given the different case study assumptions used in this pilot study, the scores of the Doing Business paying taxes indicators (pay- ments, time, total tax and contribution rate, and postfiling index) are not comparable and therefore are not considered in this study. The same applies to the postfiling index: instead of using the Doing Business scores, this analysis shows only the number of hours needed for companies to comply with a corporate income tax (CIT) correction (which, under Simples Nacional, involves making a correction to the combined tax return). d. Simples Nacional has an annual gross revenue limit of R$4.8 million. Within this limit, companies that exceed R$3.6 million must pay ICMS or ISS (services tax) separately, in addition to the taxes combined under the Simples Nacional regime. e. The total tax and contribution rate is a tool developed to provide a comprehensive measure of the cost of all taxes and mandatory contributions borne by a company in the second year of operation; it is expressed as a share of commercial profits. It differs from the statutory tax rates indicated in the law, which merely provide the factor to be applied to a tax base. To compute the total tax and contribution rate, the actual tax payable is divided by the firm’s profit (set based on each economy’s income per capita). This pilot study’s total tax and contribution rates are not directly comparable with the Doing Business paying taxes indicators due to variations in the case study assumptions. See the data notes for more details on the methodology. inconclusive, and it brings high reducing informality is mixed.12 represents a tax waiver for the costs for the government. Studies Furthermore, the benefits of government, which in 2021 is suggest it has positively impacted Simples Nacional should be forecast to reach R$74.3 billion Brazil’s business environment, weighed against its costs, which ($20.3 billion), about one-quarter supporting job growth and are significant. Because many of all federal tax expenditures in firm creation.11 However, evi- companies have a lower tax the 2021 budget bill.13 dence on the regime’s impact on burden with this tax regime, it 136 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 and differences in company size: differences exist among the bench- Simples Nacional larger firms tend to have more marked locations. Under both makes paying complex operations and account- company scenarios, compliance taxes easier—fewer ing records, and therefore must time and the number of payments spend longer hours complying are the same in all states. Minor payments, less with taxes. differences in the tax burden (as compliance time, and a percentage of profits) stem from simpler postfiling The tax burden also varies consider- local taxes, which are generally procedures ably, depending on the company’s applied to firms under all tax profits, size, sector, and operating regimes. In all five benchmarked Given its importance to the econ- costs. A commercial microenter- locations, paying taxes is easier omy, Subnational Doing Business prise (like the retail clothing shop under Simples Nacional (table 9.1). in Brazil 2021 includes this study this study analyzes) pays 59.1% Companies make fewer payments on Simples Nacional to provide a of profits in taxes. The tax burden and spend less time with com- broader perspective on the ease for this shop is lower with Simples pliance and postfiling processes. of paying taxes for a wider range Nacional than that of a larger com- Certain companies (like the micro- of companies. A pilot study of pany that falls under the actual enterprise analyzed in this case two companies of different sizes profits regime (across the Brazilian study) also benefit from a lower and sectors in five locations col- locations, the average total tax and tax burden. lected data on the number of contribution rate for a medium-size tax payments, time spent on tax industrial firm similar to the Doing compliance, the total tax and con- Business scenario is 65.3% of prof- tribution rate, and the postfiling its). However, for firms undertaking How does paying taxes procedures that apply to firms activities with large expenditures work with Simples under this tax regime. and smaller profit margins—like Nacional? How does the small manufacturing business it compare with the This analysis finds that the main considered in this study—the tax advantages of Simples Nacional burden is considerably higher with actual profits tax compared to the actual profits tax Simples Nacional. Measured at regime? regime for both microenterprises 228% of profits, it would make this and small industrial firms are sim- tax regime less beneficial to this Number of payments pler processes, fewer payments, firm. Therefore, when comparing and a substantial reduction in tax the findings for Simples Nacional Across Brazil, the two companies compliance time and the length of and the actual profits regimes, one studied under Simples Nacional postfiling procedures. Companies should bear in mind that tax com- make seven tax payments a year. make 7 tax payments per year with pliance (in terms of payments, time, In all locations, companies make Simples Nacional. The commercial and postfiling processes) is easier four federal tax payments. First, microenterprise spends 66.5 hours under Simples Nacional, but the tax they pay the taxes combined under annually with tax compliance; the burden varies depending on each Simples Nacional—including taxes small manufacturer requires sig- company’s situation and can be and contributions on income and nificantly more time (536 hours). either lower or higher with Simples sales, plus social contributions— In comparison, a medium-size firm Nacional (figure 9.1). This may help to the Federal Revenue Service, that falls under the actual profits explain why firms under Simples which then distributes the col- tax regime makes 10 payments on Nacional typically are smaller com- lected revenues from state and city average and spends considerably mercial firms and service providers, taxes to local governments. Firms more time—1,493 hours on aver- but rarely industrial businesses. also pay the severance contribu- age—complying with tax obliga- tion to the Federal Savings Bank tions. The difference in time can This study also finds that Simples (Caixa Econômica Federal) and be explained by Simples Nacional’s Nacional is applied consistently withhold and pay the employee’s easier compliance requirements across Brazil: no significant social security contribution to the Paying taxes under the Simples Nacional tax regime 137 FIGURE 9.1  Tax compliance is easier under Simples Nacional than the actual profits regime, but the tax burden depends on each company’s situation TTCR (% of profits) Payments (number per year) 250 12 200 10 8 150 6 228 10.2 100 4 7 7 50 2 59.1 65.3 0 0 Simples Nacional - Simples Nacional - Actual Profits regime - Simples Nacional - Simples Nacional - Actual Profits regime - Small firm Micro firm Medium firm Small firm Micro firm Medium firm Time to comply with Time to comply with taxes (hours per year) CIT correction (hours) 1,600 45 1,400 40 1,200 35 30 1,000 25 800 1,493 20 39 600 15 400 10 200 536 66.5 5 6 3.5 0 0 Simples Nacional - Simples Nacional - Actual Profits regime - Simples Nacional - Simples Nacional - Actual Profits regime - Small firm Micro firm Medium firm Small firm Micro firm Medium firm Source: Subnational Doing Business database. Note: Data for the two case study companies under the Simples Nacional tax regime are based on responses from experts in the five benchmarked locations. Data for the actual profits tax regime correspond to the average of responses from experts in each of the 27 locations covered in the Subnational Doing Business in Brazil 2021 study (using the Doing Business case study assumptions). Differences between scenarios are also due to variations in case study company size, number of employees, and type of activity. Also, the time to comply with a CIT correction under Simples Nacional considers the time of complying with a correction of all taxes that are paid and filed jointly under Simples Nacional. social security agency (Instituto separate payments for property tax obligations are simpler under Nacional do Seguro Social, INSS). tax and the operating license fee. Simples Nacional. The final federal tax is the corpo- Garbage collection fees are charged rate income tax over capital gains, and paid jointly with property taxes Time paid separately to the Federal in Belo Horizonte (Minas Gerais), Revenue Service (when the com- Porto Alegre (Rio Grande do Sul), In terms of time, complying with pany obtains income from a prop- and Brasília (Federal District) tax obligations is considerably erty sale). (table 9.2).14 These city taxes apply faster and easier under Simples to all companies regardless of their Nacional— companies prepare and Apart from ICMS, a tax paid tax regime. In comparison, com- file one tax return for eight taxes through Simples Nacional, state panies under the actual profits tax and contributions. Because users tax agencies require only one pay- regime make separate payments across Brazil file the taxes com- ment: vehicle tax. Municipalities for most federal and state taxes, bined under Simples Nacional require two payments in the five totaling 10.2 payments on average. through the same system, there cities (property tax and local fees). Firms file and pay taxes electron- is no variation across locations. In all cities, companies make ically under both regimes, but Commercial microenterprises spend 138 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 faster and more efficient postfiling TABLE 9.1  Small industrial firms spend more than 500 hours on tax compliance under Simples Nacional… procedures, which are the same in all five benchmarked locations. Small industrial firm Refund of taxes similar to VAT is Payments Time TTCR not allowed in either case scenario Location (number) (hours per year) (% of profit) (microenterprise or small manu- Amazonas (Manaus) 7 535.8 227.5 facturer). Under Simples Nacional, Ceará (Fortaleza) 7 535.8 228.2 firms cannot accumulate tax cred- Federal District (Brasília) 7 535.8 227.9 its for any of Brazil’s VAT-like taxes Minas Gerais (Belo Horizonte) 7 535.8 228.5 (IPI, ICMS, PIS, and COFINS). Rio Grande do Sul (Porto Alegre) 7 535.8 227.9 However, correcting a CIT return is simpler under the Simples Average for small industrial firm 7 535.8 228.0 Nacional regime; taxpayers need … While commercial microenterprises spend 66.5 hours with tax compliance only correct one tax return. If a Commercial microenterprise small industrial company finds a Payments Time TTCR mistake in their taxes, preparing Location (number) (hours per year) (% of profit) the documents and correcting the Amazonas (Manaus) 7 66.5 58.6 taxes combined under Simples Ceará (Fortaleza) 7 66.5 58.8 Nacional takes 6 hours on average. Federal District (Brasília) 7 66.5 58.9 The microenterprise would take 3.5 hours to correct a similar mis- Minas Gerais (Belo Horizonte) 7 66.5 60.0 take (mainly because smaller firms Rio Grande do Sul (Porto Alegre) 7 66.5 59.1 tend to have simpler operations Average for commercial microenterprise 7 66.5 59.1 and fewer documents to prepare, TTCR = total tax and contribution rate resulting in lower postfiling com- Source: Subnational Doing Business database. pliance time). A federal tax audit is more likely for a medium-size firm 66.5 hours annually preparing, fil- Compared with the tax compliance under the actual profits regime. ing, paying the main income and time for larger firms under the In that case, these firms also need sales taxes, labor taxes, and social actual profits regime, the time for a to prepare additional documents. contributions: they spend 48 hours small manufacturing firm to comply Complying with a CIT correction complying with taxes combined in under Simples Nacional is almost takes 39 hours on average, but it Simples Nacional and 18.5 hours three times shorter; commercial can take an additional 20 months on labor taxes and social contri- microenterprises spend just 5% to complete a CIT correction if an butions. As a result of differences of the time spent by medium-size audit is triggered. in size, number of employees, and firms. Differences in company size sector, manufacturing companies and complexity partially explain Micro and small firms under the spend significantly longer (536 this time variation. Regardless of Simples Nacional tax regime are hours) complying with taxes, of the company size, accountants less likely to be selected for a tax which 343 hours are for taxes and professionals agree that it is audit, partly because the under- combined in Simples Nacional less time-consuming to prepare, paid tax amount is small (in this and 193 hours for labor taxes and file, and pay taxes under Simples case scenario). When audits social contributions. The main Nacional, given that firms can file occur, they are faster, usually activities involved are prepar- several taxes and contributions lasting about 11 months for small ing accounting records, such as simultaneously on one tax return. industrial firms and 9 months for invoices and payroll data; calcu- microretailers.15 State and city tax lating the taxes due; and filing and Postfiling processes agencies are also less prone to paying the taxes combined under auditing these firms. Authorities the Simples Nacional tax regime Companies filing taxes under reported that they typically rely and other taxes. Simples Nacional also benefit from on the electronic monitoring of Paying taxes under the Simples Nacional tax regime 139 TABLE 9.2  Simples Nacional tax regime: taxes and mandatory contributions Commercial Small microenterprise: manufacturer: Level of TTCR TTCR Payments Tax government Type Statutory rate (% of profit) (% of profit) (number) Commercial microenterprise: 7.3% minus a deduction Simples Nacional of R$5,940 federal/state/ income, VAT, (Combines IRPJ, CSLL, PIS, ********** 46.14 215 1 municipal labor COFINS, IPI, ICMS, CPP)a Small manufacturer: 14.70% minus a deduction of R$85,500 Tax on interest federal interest tax 20%b 0.24 0.51 0 Employer paid severance federal labor tax 8% 10.16 9.05 1 contribution (FGTS) Employee paid social federal labor tax 11% withheld withheld 1 security contributions (INSS) Corporate income tax over federal profit tax 15% 0.71 1.52 1 capital gains Vehicle tax (IPVA) state other 1%–2% (varies by state) 0.37–0.56 0.08–0.12 1 Property tax (IPTU) municipal property tax around 1.5% (varies by city) 0.57–0.69 1.20–1.91 1 Operating license fee c municipal other fee schedule (varies by city) 0.05–0.57 0.02–0.30 1 Garbage collection feed municipal other fee schedule (varies by city) 0.66–1.47 0.25–0.31 0 Public cleaning feee municipal other fee schedule 0.52 0.30 0 TTCR = total tax and contribution rate Source: Subnational Doing Business database. Note: Only the taxes and contributions that represent a cost to the case study company are included in the total tax and contribution rate. The data considers the taxes and contributions paid in the following locations: Amazonas, Ceará, Minas Gerais, Rio Grande do Sul and the Federal District. a. Service providers and some other taxpayers must also pay the municipal services tax (ISS), which is usually paid and filed through the Simples Nacional tax. Also, commercial firms such as the one analyzed under scenario 1 do not pay the tax on industrial products (IPI). b. The statutory rate varies between 15% and 22.5%, depending on the length of the investment. c. Charged in all five locations. In some locations it is named as ‘establishment inspection fee’, among other names. d. Charged in Belo Horizonte and Porto Alegre (Rio Grande do Sul). e. Charged only in Brasília (Federal District). This fee covers general public cleaning services including garbage collection. firms’ transactions and rarely the small industrial company to Depending on a company’s size, select micro and small firms for a opt for this tax regime, as taxes sector, number of employees, and full audit procedure. would amount to roughly 228% operating costs, Simples Nacional of profits. Companies are divided could be more or less advanta- Total tax and contribution rate by type of activity, classified under geous. Given the different tax annexes of Complementary Law regimes that apply in Brazil and The tax burden varies significantly No. 123 of 2006, which stipulates their specific laws and tax rates, between the two pilot study firms. different statutory tax rates for companies usually carry out a In terms of tax costs, the microre- each sector and size.16 The shop simulation at the beginning of tailer would benefit from Simples would be under annex 1 (com- activities—and sometimes even Nacional, with a total tax and con- mercial firms), with a tax rate every year—to determine under tribution rate of 59.1% of profits, of 7.3% minus a deduction of which regime they would have a including the taxes combined in R$5,940. The factory would be lower tax burden. Simples Nacional and other local part of annex 2 (industries), and taxes—compared with 65.3% for since it has a different sector and A retail shop, as measured by this a medium-size factory under the size, its tax rate would be 14.7% pilot study, would reap more bene- actual profits regime. However, of the total turnover, minus fits from Simples Nacional. The tax it would be disadvantageous for R$85,500 (table 9.3).17 burden would be lower, and the tax 140 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 TABLE 9.3.  The tax burden under Simples Nacional depends on each firm’s sector, size, and profits Tax calculation under Simples Nacional: microenterprise in five locations Case study assumptions Gross revenue in 2019 (according to this case study) R$336,909.98 Taxes due in 2019 under Simples Nacional regime (statutory tax rate of 7.3% minus R$5,940 deduction) R$18,654.43 Commercial profits (12% of turnover, based on listed companies of retail clothing sector) R$40,429.20 Employees 4 Combined cost of taxes included in Simples Nacional (% of commercial profits) 46.14% Combined cost of taxes paid outside Simples Nacional (% of commercial profits, average for five locations) 12.94% Total tax rate (% of commercial profits, including all taxes paid through Simples Nacional and other taxes) 59.09% Tax calculation under Simples Nacional: small industrial firm in five locations Case study assumptions Gross revenue in 2019 (according to this case study) R$3,369,099.81 Taxes due in 2019 under Simples Nacional regime (statutory tax rate of 14.7% minus R$85,500 deduction) R$409,757.67 Commercial profits (5.7%, Doing Business case of medium-size light manufacturing industry) R$190,587.55 Employees 15 Combined cost of taxes included in Simples Nacional (% of commercial profits) 215.00% Combined cost of taxes paid outside Simples Nacional (% of commercial profits, average for five locations) 12.98% Total tax rate (% of commercial profits, including all taxes paid through Simples Nacional and other taxes) 227.98% Tax calculation under actual profits regime: medium-size industrial firm (average of Doing Business case studies in the same five locations) Case study assumptions Gross revenue in 2019 (according to this case study) R$33,690,998.11 Combined cost of taxes (including all taxes paid by the company) R$1,253,724.35 Commercial profits (5.7%, Doing Business case of medium-size light manufacturing industry) R$1,905,875.49 Employees 60 Total tax and contribution rate (% of commercial profits) 65.33% Source: Subnational Doing Business database. Note: The Simples Nacional case study firms’ gross revenues and commercial profits were determined based on the adjusted Doing Business paying taxes methodology. The total tax and contribution rate is a result of these assumptions, and would change for each different firm. Depending on each firm, paying taxes under Simples Nacional is either less or more costly than under the actual profits tax regime. compliance requirements would For the commercial microenter- as the customer—not the com- be simpler. However, Simples prise, the total tax and contribu- pany—bears this cost). For exam- Nacional would be less advanta- tion rate under Simples Nacional ple, in 2008 Rio Grande do Sul geous for the manufacturing com- ranges from 58.6% of profits in implemented benefits through the pany because the tax burden would Amazonas to 60.0% in Minas Simples Gaúcho program, which be significantly higher than under Gerais. This variation is mostly granted additional discounts on an alternative tax regime. A real due to differences in municipal the ICMS due from companies company in this case would most taxes and fees. For example, the under Simples Nacional.18 likely opt for another tax regime, case study company would pay such as the presumed profits or 0.57% of profits in property tax in actual profits regimes. The actual Manaus (Amazonas) compared to profits regime allows deductions of 0.69% in Porto Alegre (Rio Grande operating costs from the tax base, do Sul). Differences also exist in but it brings more cumbersome tax local tax benefits—states have the compliance requirements. autonomy to grant additional ben- efits regarding a state tax similar to The tax burden for each company VAT, ICMS (which does not impact studied is similar across regions. the total tax and contribution rate Paying taxes under the Simples Nacional tax regime 141 threshold compared to other coun- companies under the tax regime. What are the cons? A tries.19 Moreover, to some, Simples Another proposal is to stop classi- potentially higher tax Nacional is a regressive policy, fying benefits to companies under burden for some firms supporting less productive small Simples Nacional as “tax waivers,” firms, some of which are high-in- increasing the government’s abil- and a high cost for the come self-employed professionals. ity to grant them. However, some government It may also lead firms to not grow view Brazil’s $1.3 million thresh- beyond the allowed threshold, to old—and the costs incurred by the Despite its simpler tax compliance set up suboptimal production units government—as too high.23 requirements, Simples Nacional instead of benefitting from scale brings high costs for both the gov- gains, or even create artificial com- The authorities could consider ernment and certain taxpayers. pany divisions to be able to remain initiatives to simplify compliance Based on the sector and firm size, in this tax regime. Combined with Simples Nacional and other tax rates under Simples Nacional with tax incentives provided to tax regimes. It may be easier to range from 4% to 33% of com- large firms, this can leave medi- prepare, file, and pay taxes under pany turnover. They apply to um-size companies at a substantial Simples Nacional than under the gross revenues, so operation costs disadvantage.20 actual profits regime, but com- cannot be deducted. Therefore, pliance requirements are still some companies—like the small time-consuming. This case study’s industrial firm of this case study— small industrial business spends face a higher tax burden under Simples Nacional and more than 500 hours complying Simples Nacional than under the the future of taxation with tax obligations, longer than actual profits regime. This also of micro and small larger firms analyzed by Doing means that companies have to pay Business in most other countries. firms in Brazil taxes even if they have no profits Firms spend a significant amount or register a loss. The example of Given its importance to small of time preparing support docu- the small industrial firm demon- firms, reforming Simples National ments to file taxes and prepar- strates that this tax regime is is at the center of tax policy dis- ing and filing labor taxes. Even costlier for some companies with cussions. Congress is reviewing microretailers spend more than 60 lower profit margins and of a a bill to expand the regime’s hours annually complying with tax certain size or sector. As a result, threshold and sectors.21 The bill obligations. Streamlining the infor- from the entrepreneur’s perspec- raises the turnover by R$600,000 mation that firms must submit to tive, choosing the appropriate tax ($160,000) to include companies the authorities and simplifying tax regime for their particular busi- with a turnover of up to R$5.4 obligations could reduce compli- ness is essential. million ($1.47 million). This would ance time under Simples Nacional. increase an already wide gap Simples Nacional has signifi- between the threshold in Brazil Future reforms would benefit from cant costs, and some argue that and other countries. The simplified a broad consideration and careful it causes economic distortions. tax regimes in Mexico, Portugal, analysis of the benefits and costs Furthermore, the Federal Revenue and South Africa apply to compa- of Simples Nacional. From the Service (Receita Federal do Brasil, nies with significantly lower turn- government’s perspective, striking RFB) suspects that there is a high overs—$105,000, $26,500, and the appropriate balance between degree of tax evasion with Simples $75,000, respectively.22 offering a simpler tax system and Nacional. According to a 2015 RFB ensuring tax collection is vital for study, microenterprises’ financial Other changes are also under a thriving business environment. transactions exceeded official- discussion, including making An alternative would be to sim- ly-reported gross revenues by 2.3 real estate brokers eligible for plify Brazil’s entire tax system times, indicating a high level of Simples Nacional and allowing by merging taxes and reducing underreported turnover. The study legal entities not taxed under compliance requirements for all also points to the tax regime’s high Simples Nacional to own shares in tax regimes.24 A simplified regime 142 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 is arguably only a crucial mat- 8. Sebrae. 2017. Relatório Especial. Os ter when general taxation is too Notes Impactos do Simples Nacional. 9. Sebrae. 2017. Relatório Especial. Os cumbersome for micro and small 1. Sebrae (Serviço Brasileiro de Impactos do Simples Nacional. firms. The government could Apoio às Micro e Pequenas 10. Conceição, Otavio Canozzi, seek not only to improve Simples Empresas). 2017. Relatório Maurício Vitorino Saraiva, Nacional but to make paying taxes Especial. Os Impactos do Simples Adelar Fochezatto, Marco Tulio, easier for everyone. The ongoing Nacional. Unidade de Gestão and Aniceto França. 2018. Estratégica, Núcleo de Estudos e “Brazil’s Simplified Tax Regime discussions for a broad reform of Pesquisas. Brasília: Sebrae. and the Longevity of Brazilian the tax system are important steps 2. Dutz, Mark. 2017. “Business Manufacturing Companies: A in that direction. Support Policies: Large Spending, Survival Analysis based on RAIS Little Impact.” World Bank, Microdata.” EconomiA 19 (2): Washington, DC. 164–86. 3. OECD (Organisation for 11. Fajnzylber, Pablo, William Economic Co-operation and Maloney, and Gabriel Development). 2015. Taxation of Montes-Rojas. 2011. “Does SMEs in OECD and G20 Countries. Formality Improve Micro-firm Paris: OECD Publishing. Performance? Evidence from the https://doi.org/10.1787 Brazilian SIMPLES Program.” /9789264243507-en. Journal of Development Economics 4. Sebrae (Serviço Brasileiro de 94 (2): 262–76; Courseuil, Carlos Apoio às Micro e Pequenas Henrique, and Rodrigo Leandro Empresas). https://datasebrae de Moura. 2009. “O SIMPLES .com.br/totaldeempresas/; Federal e a geração de empregos https://m.sebrae.com.br/sites na indústria.” Congresso ANPEC. /PortalSebrae/ufs/sp/sebraeaz 12. Fajnzylber, Pablo, William /pequenos-negocios-em-numeros Maloney, and Gabriel ,12e8794363447510Vgn Montes-Rojas. 2011. “Does VCM1000004c00210aRCRD. Formality Improve Micro-firm 5. OECD. 2015. Taxation of SMEs in Performance? Evidence from the OECD and G20 Countries. Brazilian SIMPLES Program.” 6. The Simples Federal tax regime Journal of Development was created by Federal Law No. Economics 94 (2): 262–76; 9,317 of December 5, 1996, Courseuil, Carlos Henrique, and under the official name of Rodrigo Leandro de Moura. Sistema Integrado de Pagamento 2009. “O SIMPLES Federal de Impostos e Contribuições das e a geração de empregos na Microempresas e das Empresas indústria.” Congresso ANPEC; de Pequeno Porte (Integrated Piza, Caio. 2018. “Out of the System for Payment of Taxes Shadows? Revisiting the Impact and Contributions by Micro of the Brazilian SIMPLES and Small Enterprises). Initially Program on Firms’ Formalization involving only federal taxes and Rates.” Journal of Development contributions, it was replaced by Economics 134: 125–32. the current version of Simples 13. Federal Revenue Service. 2020. Nacional by Complementary Law Demonstrativo dos Gastos Tributários No. 123 of December 14, 2006. PLOA 2021. Quadro X. Principais 7. The taxes that are filed and paid gastos tributários – projeções through Simples Nacional vary PLOA 2021. Centro de Estudos according to the company's type Tributários e Aduaneiros. of activity: six taxes are included August. Version 1.01. Brasília: for commercial firms (IRPJ, CSLL, Ministry of Economy. https:// PIS, COFINS, CPP and ICMS); receita.economia.gov.br/dados seven taxes for industrial firms /receitadata/renuncia-fiscal (IRPJ, CSLL, PIS, COFINS, CPP, /previsoes-ploa/dgt-ploa. IPI and ICMS) and six taxes for 14. Companies in Brasília are service providers (IRPJ, CSLL, charged a public cleaning fee, PIS, COFINS, CPP and ISS). Paying taxes under the Simples Nacional tax regime 143 which covers garbage collection 13,036 of September 19, 2008. 24. Examples of good practices that among other public services. The discounts vary according could be adopted to improve the 15. Doing Business uses the postfiling to turnover, ranging from 40% tax environment in Brazilian index to measure postfiling for companies with turnover states are mentioned in the processes. The index includes of between R$360,000 and Subnational Doing Business in (i) time to comply with a VAT R$720,000 to 3% for turnover Brazil 2021 paying taxes chapter. refund; (ii) time to obtain VAT between R$3,420,000 and refund; (iii) time to comply with R$3,600,000. a CIT correction; and (iv) time to 19. Federal Revenue Service. 2015. complete a CIT correction. The Arrecadação do Simples Nacional last component is included if, in em 2015 – Inclusão de novos setores, 25% or more of cases, the pool efeitos no Lucro Presumido/Lucro of companies that were exposed Real e Impactos do PLP 25/2007. to additional review included Receita Federal do Brasil. companies that self-reported an Brasília, August 24. error in the corporate income tax 20. Dutz, Mark. 2017. “Business return, which resulted in their Support Policies: Large Spending, owing more in corporate income Little Impact.” World Bank, tax because of underpayment. Washington, DC. This is the case of a medium- 21. Bill No. 558 of 2018 proposes size company under the actual a Complementary Law on profits regime but not of the Simples Nacional. As of early two scenarios under Simples 2021 it was under discussion in Nacional. If an audit would take Brazil’s lower chamber (House place for the companies under of Representatives), where it Simples Nacional, according was waiting for the statement to the data collected, the audit of the rapporteur in the tax and would take 8 months to start finance committee (“Comissão and 1 month to complete, for de Finanças e Tributação, CFT). the case of the microenterprise. The bill was approved by the For the small manufacturer, it economic development, industry, would take 8 months to start and trade and services committee 14 weeks to complete. For more in December 2019. If approved information on the postfiling by the CFT, it will be analyzed index, see the data notes. by the constitution, justice, and 16. Taxpayers are classified into citizenship committee. Only the following annexes by after those approvals will the Complementary Law No. 155 bill be voted on by the House of October 27, 2016: annex 1 of Representatives. Under this (commercial firms); annex 2 bill, turnover thresholds for the (factories and industrial firms); following types of companies annex 3 (installation, repair, would be increased: for a ‘micro and maintenance services company’ from R$360,000 to providers); annex 4 (cleaning, R$480,000; for a ‘small-size firm’ security, construction and legal from R$4.8 million to R$5.4 services providers); and annex million; and for an individual 5 (audit, media, technology, microbusiness owner (MEI) from advertisement, engineering, and R$81,000 to R$120,000. other services providers). 22. Cesarino Pessôa, Leonel, and 17. The current tax rates for each Samuel Pessôa. 2020. Qualidade group are set by Complementary dos gastos tributários no Brasil: o Law No. 155 of October Simples Nacional. FGV Direito SP: 27, 2016, which updated São Paulo. Complementary Law No. 123 of 23. Cesarino Pessôa, Leonel, and December 14, 2006. Samuel Pessôa. 2020. Qualidade 18. Rio Grande do Sul implemented dos gastos tributários no Brasil: o the Simples Gaúcho program Simples Nacional. FGV Direito SP: by means of State Law No. São Paulo. C H A P T E R 10 Data notes 144 Data notes 145 T he five indicators presented standard assumptions are used in and analyzed in Subnational METHODOLOGY the data collection, comparisons and Doing Business in Brazil 2021 benchmarks are valid across econo- measure business regulation, the The Subnational Doing Business in mies. Finally, the data not only high- quality and strength of legal frame- Brazil 2021 data were collected in light the extent of specific regulatory works, and the protection of prop- a standardized way. To start, the obstacles to business but also identify erty rights as well as their effect team customized the Doing Business their source and point to what might on businesses, especially small and questionnaires for the specific study. be reformed. medium-size domestic firms. First, The questionnaires use simple stan- the indicators document the com- dardized business cases to ensure For each indicator set, locations plexity of regulation, such as the comparability across locations and receive a score assessing their number of procedures to register a economies and over time—with proximity to the best performance transfer of commercial property or assumptions about the legal form recorded for that indicator set. start and operate a limited liability of the business, its size, its location, The ranking for each indicator set company. Second, they gauge the and the nature of its operations. is then determined by sorting the time and cost to achieve a regu- score obtained for each indicator latory goal or comply with regu- Questionnaires were administered to set. These data notes also include lation, such as the time and cost more than 1,500 local experts, includ- information on two pilot studies to deal with construction permits ing lawyers, business consultants, specifically designed to analyze or resolve a commercial dispute. accountants, architects, engineers, the processes of registering as an Third, they measure the extent government officials, and other pro- Individual Microbusiness Owner of legal protections of property, fessionals routinely administering (‘Microempreendedor Individual’, for example, the protections of or advising on legal and regulatory MEI), and paying taxes under the property rights. Fourth, a set of requirements. These experts have Simples Nacional tax regime. These indicators documents the tax bur- several rounds of interaction with the pilot case studies covered five loca- den on businesses. This report also project team, involving conference tions in Brazil and the data were includes two pilot studies, mea- calls, written correspondence, and not included in the aggregate ease suring the processes of registering online meetings with the team. For of doing business score for the five as an Individual Microbusiness this project, visits to each location, topics covered in this report. Owner and paying taxes under the normally conducted by the team to Simples Nacional tax regime. verify data and recruit respondents, were suspended because of the This study presents Doing Business COVID-19 crisis. The data from ques- LIMITS TO WHAT IS indicators for 27 federative units tionnaires were subjected to numer- MEASURED in Brazil. The data for the indica- ous rounds of verification, leading to tors in this study are current as revisions or expansions of the infor- The Doing Business methodology of September 1, 2020, except for mation collected. has limitations that should be con- the paying taxes and paying taxes sidered when interpreting the data. under Simples Nacional indicators, The Doing Business methodology offers First, the data often focus on a which are current as of December several advantages. It is transparent, specific business form—generally a 31, 2019. The data for 190 other using factual information about what limited liability company (or its legal economies used for comparison are laws and regulations say and allow- equivalent) of a specified size—and based on the Doing Business project. ing multiple interactions with local may not be representative of the The Doing Business 2021 data for Rio respondents to clarify potential mis- regulation on other businesses (for de Janeiro and São Paulo, as well interpretations of questions. Having example, sole proprietorships). as for comparator economies and representative samples of respon- Second, transactions described in a regional averages, are not consid- dents is not an issue; Doing Business is standardized case scenario refer to ered official until published by the not a statistical survey, and the texts a specific set of issues and may not Doing Business 2021 report. of the relevant laws and regulations represent the full set of issues that are collected and answers checked for a business encounters. Third, the accuracy. The methodology is easily measures of time and cost (where replicable, so data can be collected in fee schedules are lacking) involve an a large sample of economies. Because element of judgment by the expert 146 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Economy characteristics Gross national income per capita Subnational Doing Business in Brazil 2021 relies on 2019 income per capita data as published in the World Bank’s World Development Indicators. Income is calculated using the Atlas method (in current U.S. dollars). For cost indicators expressed as a percentage of income per capita, 2019 gross national income (GNI) per capita in current U.S. dollars is used as the denominator. Brazil’s income per capita for 2019 is $9,130. Region and income group Doing Business uses the World Bank regional and income group classifications, available at https://datahelpdesk.worldbank.org /knowledgebase/articles/906519. Exchange rate The exchange rate for the U.S. dollar used in Subnational Doing Business in Brazil 2021 is $1 = 3.66731908310579 Brazilian Real (R$). respondents. When sources indicate well as the time and cost to complete except that one company is owned different estimates for components these procedures and the paid-in by five married women and the based on actual practice, indicator minimum capital requirement other by five married men. The score sets reported in Doing Business rep- (figure 10.1). These procedures for each indicator is the average of resent the median values of several include the processes entrepreneurs the scores obtained for each of the responses given under the assump- undergo when obtaining all neces- component indicators for both of tions of the standardized case. sary approvals, licenses, and permits these standardized companies. and when completing any required Finally, the methodology assumes notifications, verifications, or inscrip- After a study of laws, regulations, that a business has full informa- tions for the company and employees and publicly available information tion on what is required and what with relevant authorities. The score on business entry, a detailed list institutions are responsible for a for starting a business is the simple of procedures is developed, along business process, complies with average of the scores for each of the with the time and cost to comply applicable regulation, and does component indicators (figure 10.2). with each procedure under nor- not waste time when completing mal circumstances and the paid-in procedures. In practice, complet- Two types of local limited liability minimum capital requirement. ing a procedure may take longer if companies are considered under Subsequently, local incorporation the business lacks information or the starting a business methodology. lawyers, notaries, and government is unable to follow up promptly. They are identical in all aspects, officials review and verify the data. Alternatively, the business may choose to disregard some burden- some procedures. For both reasons, FIGURE 10.1  What are the number of procedures, time, cost and paid-in the time delays reported in Doing minimum capital to get a local limited liability company up and running? Business would differ from the rec- Cost ollection of entrepreneurs reported (% of income per capita) in the World Bank Enterprise Formal Surveys or other firm-level surveys. operation Paid-in Number of $ minimum procedures capital STARTING A BUSINESS Doing Business records all procedures Entrepreneur officially required, or commonly Time done in practice, for an entrepre- Preregistration Registration Postregistration (days) neur to start and formally operate an industrial or commercial business, as Source: Doing Business database. Data notes 147 obtained from incorporation • Are married, and each marriage FIGURE 10.2  Starting a business: lawyers or the statistical office. is monogamous and registered getting a local limited liability • Operates in the selected location. with the authorities. company up and running • Performs general industrial or • Where the data may differ commercial activities such as the according to the legal system Rankings are based on scores for four indicators production or sale to the public applicable to the woman or 25% Time 25% Cost of goods or services. The busi- man in question (as may be the Preregistration, As % of income ness does not perform foreign case in economies where there registration and per capita, no postregistration bribes included trade activities and does not han- is legal plurality), the data refer (in calendar days) dle products subject to a special to the legal system that applies 12.5% 12.5% tax regime, for example, liquor to most of the female and male women men or tobacco. It is not using heavily population, respectively. 12.5% men 12.5% women polluting production processes. 12.5% 25% • Does not qualify for investment Procedures women Paid-in minimum incentives or any special benefits. A procedure is defined as any inter- 12.5% capital • Is 100% domestically owned. action of the company founders men • Has five business owners, none with external parties (for example, 25% Paid-in 25% Procedures minimum capital of whom is a legal entity. One government agencies, lawyers, Procedures are Funds deposited in a business owner holds 30% of auditors, or notaries) or spouses completed when bank or with a notary the company shares, two own- (if legally required). Interactions final document before registration (or is received up to three months after ers have 20% of shares each, between company founders or incorporation), as % of income per capita and two owners have 15% of company officers and employees shares each. are not counted as procedures. • Is managed by one local director. Procedures that must be completed Source: Doing Business database. • Has between 10 and 50 employ- in the same building but in differ- ees one month after the com- ent offices or at different counters Information is also collected on mencement of operations, all of are counted as separate procedures. the sequence in which procedures them domestic nationals. If founders have to visit the same are to be completed and whether • Has start-up capital of 10 times office several times for different procedures may be carried out income per capita. sequential procedures, each is simultaneously. It is assumed that • Has an estimated turnover of at counted separately. The founders any required information is readily least 100 times income per capita. are assumed to complete all pro- available and that the entrepreneur • Leases the commercial plant or cedures themselves, without mid- will pay no bribes. If answers by offices and is not a proprietor of dlemen, facilitators, accountants, local experts differ, inquiries con- real estate. or lawyers, unless the use of such tinue until the data are reconciled. • Has an annual lease for the a third party is mandated by law or office space equivalent to one solicited by the majority of entre- To make the data comparable income per capita. preneurs. If the services of profes- across economies, several assump- • Occupies an office space of sionals are required, procedures tions about the businesses and the approximately 929 square meters conducted by such professionals on procedures are used. (10,000 square feet). behalf of the company are counted • Has a company deed that is 10 as separate procedures. Each elec- Assumptions about the pages long. tronic procedure is counted as a business separate procedure. The business: The owners: • Is a limited liability company (or • Have reached the legal age of Approvals from spouses to own its legal equivalent). If there is majority and are capable of a business or leave the home are more than one type of limited making decisions as an adult. If considered procedures if required liability company in the econ- there is no legal age of majority, by law or if by failing to obtain such omy, the limited liability form they are assumed to be 30 years approval the spouse will suffer con- most common among domestic old. sequences under the law, such as firms is chosen. Information • Are in good health and have no the loss of right to financial main- on the most common form is criminal record. tenance. Obtaining permissions 148 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 only required by one gender for capital deposit—this transaction is practice to complete a procedure company registration and opera- included as a procedure. Shortcuts with minimum follow-up with tion, or getting additional docu- are counted only if they fulfill four government agencies and no unof- ments only required by one gender criteria: they are legal, they are avail- ficial payments. It is assumed that for a national identification card able to the general public, they are the minimum time required for are considered additional proce- used by the majority of companies, each procedure is one day, except dures. In that case, only procedures and avoiding them causes delays. for procedures that can be fully required for one spouse but not the completed online, for which the other are counted. Both pre- and Only procedures required for all minimum time required is recorded postincorporation procedures that businesses are included. Industry- as half a day. Although procedures are officially required or commonly specific procedures are excluded. may take place simultaneously, they done in practice for an entrepre- For example, procedures to comply cannot start on the same day (that neur to formally operate a business with environmental regulations are is, simultaneous procedures start on are recorded (table 10.1). included only when they apply to consecutive days). For online cases, all businesses conducting general each simultaneous procedure starts Procedures required for official cor- commercial or industrial activi- half a day after the previous one. respondence or transactions with ties. Procedures that the company A registration process is considered public agencies are also included. For undergoes to connect to electricity, completed once the company has example, if a company seal or stamp water, gas, and waste disposal ser- received the final incorporation is required on official documents, vices are not included in the start- document or can officially com- such as tax declarations, obtain- ing a business indicators. mence business operations. If a ing the seal or stamp is counted. procedure can be accelerated legally Similarly, if a company must open Time for an additional cost, the fastest a bank account in order to complete Time is recorded in calendar days. procedure is chosen if that option any subsequent procedure—such The measure captures the median is more beneficial to the economy’s as registering for value added tax duration that incorporation lawyers score. When obtaining a spouse’s (VAT) or showing proof of minimum or notaries indicate is necessary in approval, it is assumed that per- mission is granted at no additional cost unless the permission needs to TABLE 10.1  What do the starting a business indicators measure? be notarized. It is assumed that the Procedures to legally start and formally operate a company (number) entrepreneur does not waste time Preregistration (for example, name verification or reservation, notarization) and commits to completing each Registration in the selected citya remaining procedure without delay. The time spent by the entrepreneur Postregistration (for example, social security registration, company seal) preparing information to fill in Obtaining approval from spouse to start a business or to leave the home to register the company forms is not measured. It is assumed Obtaining any gender-specific document for company registration and operation or national that the entrepreneur is aware of identification card all entry requirements and their Time required to complete each procedure (calendar days) sequence from the beginning but Does not include time spent gathering information has had no prior contact with any of Each procedure starts on a separate day (two procedures cannot start on the same day)—though the officials involved. procedures that can be fully completed online are an exception to this rule Registration process considered completed once final incorporation document is received or company Cost can officially start operating Cost is recorded as a percentage of No prior contact with officials takes place the economy’s income per capita. Cost required to complete each procedure (% of income per capita) It includes all official fees and fees Official costs only, no bribes for legal or professional services if No professional fees unless services required by law or commonly used in practice such services are required by law Paid-in minimum capital (% of income per capita) or commonly used in practice. Fees for purchasing and legalizing com- Funds deposited in a bank or with a third party (for example a notary) before registration or up to three months after incorporation pany books are included if these a. For 11 economies the data are also collected for the second largest business city. transactions are required by law. Source: Doing Business database. Although VAT registration can be Data notes 149 counted as a separate procedure, was developed by Djankov and others of the building plans (for exam- VAT is not part of the incorpora- (2002) and is adopted here with minor ple, topographical surveys, loca- tion cost. The company law, the changes. tion maps, or soil tests). commercial code, and specific reg- • Obtain and submit all relevant ulations and fee schedules are used project-specific documents (for as sources for calculating costs. In example, building plans, site the absence of fee schedules, a gov- DEALING WITH maps and certificates of urban- ernment officer’s estimate is taken CONSTRUCTION ism) to the authorities. as an official source. In the absence PERMITS • Hire external third-party super- of a government officer’s estimate, visors, consultants, engineers, or estimates by incorporation experts Doing Business records all proce- inspectors (if necessary). are used. If several incorporation dures required for a business in • Obtain all necessary clearances, experts provide different estimates, the construction industry to build a licenses, permits, and certificates. the median reported value is used. warehouse, along with the time and • Submit all required notifications In all cases the cost excludes bribes. cost to complete each procedure. In for the start and end of con- addition, Doing Business measures struction and for inspections. Paid-in minimum capital the building quality control index, • Request and receive all necessary The paid-in minimum capital evaluating the quality of building inspections (unless completed requirement reflects the amount regulations, the strength of quality by a hired private, third-party that the entrepreneur needs to control and safety mechanisms, inspector). deposit in a bank or with a third liability and insurance regimes, and party (for example, a notary) before professional certification require- Doing Business also records proce- registration or up to three months ments. Information is collected dures for obtaining connections for after incorporation. It is recorded as a through a questionnaire admin- water and sewerage. Procedures percentage of the economy’s income istered to experts in construction necessary to register the warehouse per capita. The amount is typically licensing, including architects, civil so that it can be used as collateral specified in the commercial code or engineers, construction lawyers, or transferred to another entity are the company law. The legal provision construction firms, utility service also counted. needs to be adopted, enforced, and providers, and public officials who fully implemented. Any legal limita- deal with building regulations, To make the data comparable across tion of the company’s operations or including approvals, permit issu- economies, several assumptions decisions related to the payment of ance, and inspections. The score for about the construction company, the minimum capital requirement is dealing with construction permits recorded. In case the legal minimum is the simple average of the scores FIGURE 10.3  Dealing with capital is provided per share, it is mul- for each of the component indica- tiplied by the number of sharehold- tors (figure 10.3). construction permits: efficiency and ers owning the company. Several quality of building regulation economies require minimum capital Rankings are based on scores for four indicators but allow businesses to pay only a Days to comply Cost to comply with part of it before registration, with Efficiency of construction with formalities to formalities, as % of the rest to be paid after the first year permitting build a warehouse warehouse value of operation. In El Salvador in May 2020, for example, the minimum Doing Business divides the process of capital requirement was $2,000, of building a warehouse into distinct 25% 25% Time Cost which 5% needed to be paid before procedures in the questionnaire 25% 25% registration. Therefore, the paid-in and solicits data for calculating the Procedures Building quality minimum capital recorded for El time and cost to complete each control index Salvador is $100, or 2.5% of income procedure (figure 10.4). These pro- per capita. cedures include, but are not limited Steps to comply with Quality of building to, the following: formalities; completed when regulation and its The data details on starting a business • Obtain all plans and surveys final document is received implementation can be found at http://www required by the architect and .doingbusiness.org. This methodology the engineer to start the design Source: Doing Business database. 150 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 accurately registered in the cadas- FIGURE 10.4  What are the time, cost, and number of procedures to tre and land registry where free- comply with formalities to build a warehouse? hold titles exist. However, when Cost the land is owned by the gov- (% of warehouse value) ernment and leased by BuildCo, Completed it is assumed that BuildCo will warehouse register the land in the cadastre or land registry or both, whichever Number of is applicable, at the completion of procedures the warehouse. • Is valued at 50 times income per A business in the capita. construction • Will be a new construction (with industry Time no previous construction on the Preconstruction Construction Postconstruction and utilities (days) land), with no trees, natural water sources, natural reserves, Source: Doing Business database. or historical monuments of any kind on the plot. the warehouse project, and the insurance for construction work- • Will have complete architectural utility connections are used. ers and third-person liability). and technical plans prepared • Owns the land on which the by a licensed architect and a Assumptions about the warehouse will be built and will licensed engineer. If preparation construction company either sell the warehouse upon of the plans requires such steps as The construction company (BuildCo): its completion or hold it in lien obtaining further documentation • Is a limited liability company (or for mortgage. or getting prior approvals from its legal equivalent). external agencies, these steps are • Operates in the selected location. Assumptions about the counted as separate procedures. • Is 100% domestically and pri- warehouse • Will include all technical vately owned. The warehouse: equipment required to be fully • Has five owners, none of whom • Will be used for general storage operational. is a legal entity. activities, such as storage of • Will take 30 weeks to construct • Is fully licensed and insured to books or stationery. The ware- (excluding all delays due to carry out construction projects, house will not be used for any administrative and regulatory such as building warehouses. goods requiring special condi- requirements). • Has 60 builders and other tions, such as food, chemicals, employees, all of them nation- or pharmaceuticals. Assumptions about the utility als with the technical expertise • Will have two stories, both connections and professional experience aboveground, with a total con- The water and sewerage connections: necessary to obtain construction structed area of approximately • Will be 150 meters (492 feet) permits and approvals. 1,300.6 square meters (14,000 from the existing water source • Has a licensed architect and a square feet). Each floor will be 3 and sewer tap. If there is no licensed engineer, both regis- meters (9 feet, 10 inches) high. water delivery infrastructure in tered with the local associa- • Will have road access and be the economy, a borehole will tion of architects or engineers, located in the periurban area of be dug. If there is no sewerage where applicable. BuildCo is the selected location (that is, on infrastructure, a septic tank in not assumed to have any other the fringes of the city but still the smallest size available will employees who are technical or within its official limits). be installed or built. licensed specialists, such as geo- • Will not be located in a special • Will not require water for fire logical or topographical experts. economic or industrial zone. protection reasons; a fire extin- • Has paid all taxes and taken out • Will be located on a land plot guishing system (dry system) all necessary insurance appli- of approximately 929 square will be used instead. If a wet fire cable to its general business meters (10,000 square feet) that protection system is required by activity (for example, accidental is 100% owned by BuildCo and is law, it is assumed that the water Data notes 151 demand specified below also they are required for obtaining a spends on gathering information is covers the water needed for fire building permit (table 10.2). not taken into account. It is assumed protection. that BuildCo follows all building • Will have an average water use Time requirements and their sequence as of 662 liters (175 gallons) a day Time is recorded in calendar days. required. and an average wastewater flow The measure captures the median of 568 liters (150 gallons) a day. duration that local experts indicate Cost Will have a peak water use of is necessary to complete a procedure Cost is recorded as a percentage of 1,325 liters (350 gallons) a day in practice. It is assumed that the the warehouse value (assumed to and a peak wastewater flow of minimum time required for each be 50 times income per capita). All 1,136 liters (300 gallons) a day. procedure is one day, except for pro- official fees and costs associated with • Will have a constant level of cedures that can be fully completed completing the procedures to legally water demand and wastewater online, for which the minimum time build a warehouse are recorded, flow throughout the year. required is recorded as half a day. including those associated with • Connection pipes will be 1 inch Although procedures may take place obtaining land use approvals and in diameter for water and 4 simultaneously, they cannot start on preconstruction design clearances; inches in diameter for sewerage. the same day (that is, simultaneous receiving inspections before, during, procedures start on consecutive and after construction; obtaining Procedures days), again with the exception of utility connections; and registering A procedure is any interaction of procedures that can be fully com- the warehouse at the property regis- the building company’s employees, pleted online. For online cases, each try. The costs of professional services managers, or any party acting on simultaneous procedure starts half a from external parties, such as those behalf of the company with external day after the previous one. If a pro- related to obtaining topographical parties, including government agen- cedure can be accelerated legally for surveys and soil tests, are also taken cies, notaries, the land registry, the an additional cost, the fastest proce- into account. Deferred costs are also cadastre, utility companies, public dure is chosen if that option is more recorded. For example, if the cost inspectors, and any external private beneficial to the economy’s score. of obtaining the utility connection inspectors and technical experts It is assumed that BuildCo does not is paid with the first consumption hired where needed. Interactions waste time and commits to com- bill instead of at the time of connec- between company employees, pleting each remaining procedure tion, that cost is still fully recorded. such as development of the ware- without delay. The time that BuildCo Nonrecurring taxes required for the house plans and inspections by the in-house engineer, are not counted as procedures. However, TABLE 10.2  What do the indicators on the efficiency of construction interactions with external parties permitting measure? that are required for the architect Procedures to legally build a warehouse (number) to prepare the plans and drawings (such as obtaining topographic or Submitting all relevant documents and obtaining all necessary clearances, licenses, permits and certificates geological surveys), or to have such Submitting all required notifications and receiving all necessary inspections documents approved or stamped by external parties, are counted as Obtaining utility connections for water and sewerage procedures. Procedures that the Registering the warehouse after its completion (if required for use as collateral or for transfer of the company undergoes to connect the warehouse) warehouse to water and sewerage Time required to complete each procedure (calendar days) are included. All procedures that Does not include time spent gathering information are legally required and done in Each procedure starts on a separate day—though procedures that can be fully completed online are an practice by most companies to build exception to this rule a warehouse are recorded, even if Procedure is considered completed once final document is received they may be avoided in exceptional No prior contact with officials cases. For example, obtaining tech- Cost required to complete each procedure (% of warehouse value) nical conditions for electricity or a clearance of the electrical plans are Official costs only, no bribes counted as separate procedures if Source: Doing Business database. 152 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 completion of the warehouse proj- TABLE 10.3  What do the indicators on building quality control measure? ect are also recorded. Sales taxes (such as VAT) or capital gains taxes Quality of building regulations index (0–2) are not recorded, nor are deposits Accessibility of building regulations (0–1) paid upfront and later refunded. Clarity of requirements for obtaining a building permit (0–1) The building code, information Quality control before construction index (0–1) from local experts, specific regu- Whether licensed or technical experts approve building plans (0–1) lations, and fee schedules are used Quality control during construction index (0–3) as sources for costs. If several local partners provide different estimates, Types of inspections legally mandated during construction (0–2) the median reported value is used. Implementation of legally mandated inspections in practice (0–1) Quality control after construction index (0–3) Final inspection legally mandated after construction (0–2) Implementation of legally mandated final inspection in practice (0–1) Building quality control Liability and insurance regimes index (0–2) The building quality control index Parties held legally liable for structural flaws after building occupancy (0–1) is based on six indexes—the quality Parties legally mandated to obtain insurance to cover structural flaws after building occupancy or insurance is commonly obtained in practice (0–1) of building regulations; quality con- trol before, during, and after con- Professional certifications index (0–4) struction (three separate indexes); Qualification requirements for individual who approves building plans (0–2) liability and insurance regimes; and Qualification requirements for individual who supervises construction or conducts inspections (0–2) professional certifications indexes Building quality control index (0–15) (table 10.3). The indicator is based Sum of the quality of building regulations, quality control before construction, quality control during on the same case study assumptions construction, quality control after construction, liability and insurance regimes, and professional used for the measures of efficiency. certifications indexes Source: Doing Business database. Quality of building regulations index specifies the list of required doc- gives Malta a score of 2 on the qual- The quality of building regulations uments to submit, the fees to be ity of building regulations index. index has two components: paid, and all required preapprov- • Whether building regulations als of the drawings (for example, Quality control before are easily accessible. A score of 1 electrical, water and sewerage, construction index is assigned if building regulations environmental) or plans by the The quality control before construc- (including the building code) or relevant agencies; a score of 0 is tion index has one component: regulations dealing with con- assigned if none of these sources • Whether, by law, a licensed archi- struction permits are available specifies any of these require- tect or licensed engineer is part on a website that is updated as ments or if these sources specify of the committee or team that new regulations are passed; 0.5 fewer than the three require- reviews and approves building if the building regulations are ments mentioned above. permit applications and whether available free of charge (or for that person has the authority to a nominal fee) at the relevant The index ranges from 0 to 2, with refuse an application if the plans permit-issuing authority; or 0 higher values indicating clearer and are not in conformity with regu- if the building regulations must more transparent building regula- lations. A score of 1 is assigned if be purchased or if they are not tions. In Malta, for example, all rel- the national association of archi- made easily accessible anywhere. evant legislation can be found on an tects or engineers (or its equiv- • Whether the requirements for official government website (a score alent) must review the building obtaining a building permit are of 1). The legislation specifies the list plans, if an independent firm or clearly specified. A score of 1 is of required documents to submit, expert who is a licensed archi- assigned if the building regu- the fees to be paid, and all required tect or engineer must review the lations (including the building preapprovals of the drawings or plans, if the architect or engineer code) or any accessible website, plans by the relevant agencies (a who prepared the plans must brochure, or pamphlet clearly score of 1). Adding these numbers submit an attestation to the Data notes 153 permit-issuing authority stating conduct only technical inspec- • Whether a final inspection is that the plans are in compliance tions at different stages during mandated by law in order to ver- with the building regulations, or the construction or if an in-house ify that the building was built in if a licensed architect or engineer engineer (that is, an employee compliance with the approved is part of the committee or team of the building company), an plans and existing building regu- that approves the plans at the external supervising engineer, lations. A score of 2 is assigned if relevant permit-issuing author- or an external inspections firm an in-house supervising engineer ity; a score of 0 is assigned if no is legally mandated to conduct (that is, an employee of the build- licensed architect or engineer technical inspections at different ing company), an external super- is involved in the review of the stages during the construction vising engineer, or an external plans to ensure their compliance of the building and is required inspections firm is legally man- with building regulations. to submit a detailed inspections dated to verify that the building report at the completion of the has been built in accordance with The index ranges from 0 to 1, with construction. A score of 0 is the approved plans and existing higher values indicating better assigned if a government agency building regulations, or if a gov- quality control in the review of the is legally mandated to conduct ernment agency is legally man- building plans. In the Arab Republic unscheduled inspections, or if no dated to conduct a final inspection of Egypt, for example, the city hall technical inspections are man- upon completion of the building; in Cairo must review the building dated by law. a score of 0 is assigned if no final permit application, including the • Whether inspections during inspection is mandated by law plans and drawings, and a licensed construction are implemented in after construction and no third architect is part of the team that practice. A score of 1 is assigned party is required to verify that the reviews the plans and drawings. if the legally mandated inspec- building has been built in accor- Egypt, therefore, receives a score tions during construction always dance with the approved plans of 1 on the quality control before occur in practice; a score of 0 is and existing building regulations. construction index. assigned if the legally mandated • Whether the final inspection is inspections do not occur in prac- implemented in practice. A score Quality control during tice, if the inspections occur most of 1 is assigned if the legally man- construction index of the time but not always, or if dated final inspection after con- The quality control during construc- inspections are not mandated by struction always occurs in practice tion index has two components: law regardless of whether they or if a supervising engineer or • Whether inspections are man- commonly occur in practice. firm attests that the building has dated by law during the con- been built in accordance with struction process. A score of 2 The index ranges from 0 to 3, with the approved plans and existing is assigned if (i) a government higher values indicating better qual- building regulations; a score of 0 agency is legally mandated to ity control during the construction is assigned if the legally mandated conduct technical inspections process. In Antigua and Barbuda, final inspection does not occur in at different stages during the for example, the Development practice, if the legally mandated construction or an in-house Control Authority is legally man- final inspection occurs most of the engineer (that is, an employee dated to conduct phased inspections time but not always, or if a final of the building company), an under the Physical Planning Act of inspection is not mandated by external supervising engineer, or 2003 (a score of 1). However, the law regardless of whether or not external firm is legally mandated Development Control Authority it commonly occurs in practice. to conduct technical inspections rarely conducts these inspections in at different stages during the practice (a score of 0). Adding these The index ranges from 0 to 3, with construction of the building and numbers gives Antigua and Barbuda higher values indicating better is required to submit a detailed a score of 1 on the quality control quality control after the construc- inspections report at the comple- during construction index. tion process. In Haiti, for example, tion of the construction; and (ii) the Municipality of Port-au-Prince it is legally mandated to conduct Quality control after is legally mandated to conduct a risk-based inspections. A score construction index final inspection under the National of 1 is assigned if a government The quality control after construc- Building Code of 2012 (a score of agency is legally mandated to tion index has two components: 2). However, the final inspection 154 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 does not occur in practice (a score in the building once it is in use or • The qualification requirements of 0). Adding these numbers gives if a decennial liability insurance of the professional responsible for Haiti a score of 2 on the quality policy or a latent defect liability verifying that the architectural control after construction index. insurance is commonly obtained plans or drawings are in com- in practice by the majority of pliance with the building regu- Liability and insurance any of these parties even if not lations. A score of 2 is assigned regimes index required by law. A score of 0 is if national or state regulations The liability and insurance regimes assigned if no party is required mandate that the professional index has two components: by law to obtain either a decen- must have a minimum number • Whether any parties involved in nial liability insurance or a latent of years of practical experience, the construction process are held defect liability insurance policy, must have a university degree legally liable for latent defects and such insurance is not com- (a minimum of a bachelor’s) in such as structural flaws or prob- monly obtained in practice by any architecture or engineering, and lems in the building once it is in party, if the requirement to obtain must also either be a registered use. A score of 1 is assigned if at an insurance policy is stipulated member of the national order least two of the following parties in a contract, if any party must (association) of architects or are held legally liable for structural obtain a professional insurance engineers or pass a qualification flaws or problems in the building or an all risk insurance policy to exam. A score of 1 is assigned once it is in use: the architect or cover the safety of workers or any if national or state regulations engineer who designed the plans other defects during construction mandate that the professional for the building, the professional but not a decennial liability insur- must have a university degree or agency that conducted techni- ance or a latent defect liability (a minimum of a bachelor’s) in cal inspections, or the construc- insurance policy that would cover architecture or engineering and tion company; 0.5 if only one of defects after the building is in use, must also either have a mini- the parties is held legally liable for or if any party is required to pay mum number of years of practi- structural flaws or problems in for any damages caused on its cal experience or be a registered the building once it is in use; or own without having to obtain an member of the national order 0 if no party is held legally liable insurance policy. (association) of architects or for structural flaws or problems engineers or pass a qualification in the building once it is in use, The index ranges from 0 to 2, with exam. A score of 0 is assigned if the project owner or investor is higher values indicating more strin- if national or state regulations the only party held liable, if lia- gent latent defect liability and insur- mandate that the professional bility is determined in court, or if ance regimes. In Madagascar, for must meet only one of the above liability is stipulated in a contract. example, under article 1792 of the requirements, if they mandate • Whether any parties involved Civil Code both the architect who that the professional must meet in the construction process are designed the plans and the con- two of the requirements but nei- legally required to obtain a latent struction company are legally held ther of the two is to have a uni- defect liability—or decennial (10 liable for latent defects for a period versity degree, or if no national years) liability—insurance pol- of 10 years after the completion of or state regulation determines icy to cover possible structural the building (a score of 1). However, the professional’s qualification flaws or problems in the building there is no legal requirement for any requirements. once it is in use. A score of 1 is party to obtain a decennial liability • The qualification requirements of assigned if the architect or engi- insurance policy to cover structural the professional who conducts the neer who designed the plans for defects, nor do most parties obtain technical inspections during con- the building, the professional or such insurance in practice (a score struction. A score of 2 is assigned agency that conducted the tech- of 0). Adding these numbers gives if national or state regulations nical inspections, the construction Madagascar a score of 1 on the lia- mandate that the professional company, or the project owner bility and insurance regimes index. must have a minimum number or investor is required by law to of years of practical experience, obtain either a decennial liability Professional certifications must have a university degree insurance policy or a latent defect index (a minimum of a bachelor’s) liability insurance to cover possi- The professional certifications index in engineering, and must also ble structural flaws or problems has two components: either be a registered member of Data notes 155 the national order of engineers control after construction, liability conducting due diligence as required. or pass a qualification exam. A and insurance regimes, and profes- The transaction is considered com- score of 1 is assigned if national sional certifications indexes. The plete when it is opposable to third or state regulations mandate index ranges from 0 to 15, with parties and when the buyer can use that the professional must have higher values indicating better qual- the property as collateral for a bank a university degree (a minimum ity control and safety mechanisms in loan or resell it (figure 10.6). Every of a bachelor’s) in engineering the construction regulatory system. procedure required by law or neces- and must also either have a sary in practice is included, whether minimum number of years of The data details on dealing with it is the responsibility of the seller or practical experience or be a reg- construction permits can be found at the buyer or must be completed by istered member of the national http://www.doingbusiness.org. a third party on their behalf. Local order (association) of engineers property lawyers, notaries, and prop- or pass a qualification exam. A erty registries provide information score of 0 is assigned if national on procedures as well as the time or state regulations mandate that REGISTERING and cost to complete each of them. the professional must meet only PROPERTY one of the requirements, if they To make the data comparable across mandate that the professional Doing Business records the full economies, several assumptions must meet two of the require- sequence of procedures necessary about the parties to the transaction, ments but neither of the two is for a limited liability company (the the property, and the procedures to have a university degree, or buyer) to purchase a property from are used. if no national or state regulation another business (the seller) and determines the professional’s to transfer the property title to the Assumptions about the parties qualification requirements. buyer’s name so that the buyer can The parties (buyer and seller): use the property for expanding its • Are limited liability companies The index ranges from 0 to 4, with business, as collateral in taking out (or their legal equivalent). higher values indicating stricter pro- new loans, or, if necessary, to sell • Are located in the periurban fessional certification requirements. the property to another business. It area (that is, on the outskirts of In Albania, for example, the profes- also measures the time and cost to the city but still within its official sional conducting technical inspec- complete each of these procedures. limits) of the selected location. tions during construction must Doing Business also measures the have a minimum number of years quality of the land administration of experience, must have a relevant system in each economy. The quality FIGURE 10.5  Registering university degree, and must be a of land administration index has five property: efficiency and quality of registered architect or engineer (a dimensions: reliability of infrastruc- land administration system score of 2). However, the profes- ture, transparency of information, sional responsible for verifying that geographic coverage, land dispute Rankings are based on scores for four indicators the architectural plans or drawings resolution, and equal access to prop- Days to transfer Cost to transfer are in compliance with building reg- erty rights. The score for registering property between property, as % of two local companies property value ulations must only have a minimum property is the simple average of the number of years of experience and a scores for each of the component university degree in architecture or indicators (figure 10.5). 25% 25% engineering (a score of 1). Adding Time Cost these numbers gives Albania a score 25% 25% Procedures Quality of land of 3 on the professional certifica- administration tions index. Efficiency of transferring index property Steps to transfer Reliability, transparency, Building quality control index property so that it and coverage of land The building quality control index is As recorded by Doing Business, the can be sold or administration system; used as collateral protection against land the sum of the scores on the qual- process of transferring property disputes; and equal ity of building regulations, quality starts with obtaining the necessary access to property rights control before construction, quality documents, such as a recent copy control during construction, quality of the seller’s title if necessary and Source: Doing Business database. 156 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 • Has no occupants, and no other FIGURE 10.6  What are the time, cost, and number of procedures required party holds a legal interest in it. to transfer property between two local companies? Procedures Cost (% of property value) A procedure is defined as any inter- action of the buyer, the seller, or Buyer can use the property, their agents (if an agent is legally resell it or use it as collateral or in practice required) with exter- Number of nal parties, including government Land and two-story procedures agencies, inspectors, public nota- warehouse ries, architects, surveyors, and oth- Seller with property ers. Interactions between company registered and no title disputes Time officers and employees are not Preregistration Registration Postregistration (days) considered. All procedures that are legally or in practice required for registering property are recorded, Source: Doing Business database. even if they may be avoided in exceptional cases (table 10.4). • Are 100% domestically and pri- and a building, will be trans- Procedures that must be completed vately owned. ferred in its entirety. in the same building but in differ- • Perform general commercial • Will not be subject to renova- ent offices or at different counters activities. tions or additional construction are counted as separate procedures. following the purchase. If the same office is visited several Assumptions about the • Has no trees, natural water times for different sequential pro- property sources, natural reserves, or his- cedures, each visit is counted sep- The property: torical monuments of any kind. arately. Each electronic procedure • Has a value of 50 times income • Will not be used for special is counted as a separate procedure. per capita, which equals the sale purposes, and no special per- Payment of capital gains tax can be price. mits, such as for residential use, counted as a separate procedure • Is fully owned by the seller. industrial plants, waste storage, but is excluded from the cost mea- • Has no mortgages attached and or certain types of agricultural sure. If a procedure can be acceler- has been under the same own- activities, are required. ated legally for an additional cost, ership for the past 10 years. • Is registered in the land registry or cadastre, or both, and is free TABLE 10.4  What do the indicators on the efficiency of transferring of title disputes. property measure? • Is located in a periurban com- Procedures to legally transfer title on immovable property (number) mercial zone (that is, on the Preregistration procedures (for example, checking for liens, notarizing sales agreement, paying property outskirts of the city but still transfer taxes) within its official limits), and no Registration procedures in the selected citya rezoning is required. Postregistration procedures (for example, filing title with municipality) • Consists of land and a building. Time required to complete each procedure (calendar days) The land area is 557.4 square Does not include time spent gathering information meters (6,000 square feet). A Each procedure starts on a separate day—though procedures that can be fully completed online are an two-story warehouse of 929 exception to this rule square meters (10,000 square Procedure is considered completed once final document is received feet) is located on the land. The No prior contact with officials warehouse is 10 years old, is in good condition, has no heating Cost required to complete each procedure (% of property value) system, and complies with all Official costs only (such as administrative fees, duties and taxes) safety standards, building codes, Value added tax, capital gains tax and illicit payments are excluded and other legal requirements. a. For 11 economies the data are also collected for the second largest business city. The property, consisting of land Source: Doing Business database. Data notes 157 the fastest procedure is chosen if in economies where transfer tax resolution, and equal access to that option is more beneficial to the can be substituted by VAT, transfer property rights (table 10.5). economy’s score and if it is used by tax will be recorded instead. Costs most property owners. Although borne by both the buyer and the The quality of land administration the buyer may use lawyers or seller are included. If cost estimates index is the sum of the scores on other professionals where neces- differ among sources, the median the reliability of infrastructure, sary in the registration process, it reported value is used. transparency of information, geo- is assumed that the buyer does not graphic coverage, land dispute employ an outside facilitator in the resolution, and equal access to registration process unless legally property indexes. The index ranges or in practice required to do so. Quality of land from 0 to 30, with higher values administration indicating better quality of the land Time administration system.1 Time is recorded in calendar days. The quality of land administration The measure captures the median index is composed of five other Reliability of infrastructure duration that property lawyers, indexes: the reliability of infrastruc- index notaries, or registry officials indi- ture, transparency of information, The reliability of infrastructure cate is necessary to complete a geographic coverage, land dispute index has six components: procedure. It is assumed that the minimum time required for each procedure is one day, except for pro- TABLE 10.5  What do the indicators on the quality of land cedures that can be fully completed administration measure? online, for which the minimum Reliability of infrastructure index (0–8) time required is recorded as half a Type of system for archiving information on land ownership day. Although procedures may take place simultaneously, they cannot Availability of electronic database to check for encumbrances start on the same day (again except Type of system for archiving cadastral maps or cadastral plans for procedures that can be fully Availability of geographic information system completed online). For online cases, Link between property ownership registry and mapping system each simultaneous procedure starts Transparency of information index (0–6) half a day after the previous one. It is assumed that the buyer does not Accessibility of information on land ownership waste time and commits to com- Accessibility of cadastral maps or cadastral plans of land plots pleting each remaining procedure Publication of fee schedules, lists of registration documents, service standards without delay. It is assumed that Availability of a specific and separate mechanism for complaints the parties involved are aware of all requirements and their sequence Publication of statistics about the number of property transactions from the beginning. The time spent Geographic coverage index (0–8) preparing information to fill in Coverage of land registry at the level of the selected city and the economya forms is not measured. Coverage of mapping agency at the level of the selected city and the economya Cost Land dispute resolution index (0–8) Cost is recorded as a percentage of Legal framework for immovable property registration the property value, assumed to be Mechanisms to prevent and resolve land disputes equivalent to 50 times income per Equal access to property rights (-2–0) capita. Only official costs required by law are recorded, including fees, Unequal ownership rights to property between unmarried men and women transfer taxes, stamp duties, and Unequal ownership rights to property between married men and women any other payment to the property Quality of land administration index (0–30) registry, notaries, public agencies, or Sum of the reliability of infrastructure, transparency of information, geographic coverage, land dispute lawyers. Other taxes, such as capi- resolution, and equal access to property rights indexes tal gains tax or VAT, are excluded a. For 11 economies the data are also collected for the second largest business city. from the cost measure. However, Source: Doing Business database. 158 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 • In what format land title certifi- on property titles and boundaries. is easily accessible online or on cates are kept at the immovable In Turkey, for example, the land a public board free of charge; property registry of the selected registry offices in Istanbul main- a score of 0 is assigned if the city. A score of 2 is assigned if tain titles in a fully digital format schedule is not made available land title certificates are fully (a score of 2) and have a fully to the public or if it can be digital; 1 if they are scanned; electronic database to check for obtained only in person. or 0 if they are kept in paper encumbrances (a score of 1). The • Whether the immovable prop- format. Cadastral Directorate offices in erty agency formally specifies • Whether there is a comprehen- Istanbul have fully digital maps (a the time frame to deliver a sive and functional electronic score of 2), and the Geographical legally binding document prov- database for checking all encum- Information Directorate has a pub- ing property ownership. A score brances, charges, or privileges lic portal allowing users to check the of 0.5 is assigned if such service affecting a registered property’s plans and cadastral information on standard is accessible online or encumbrances. A score of 1 is parcels along with satellite images on a public board; a score of 0 is assigned if yes; or 0 if no. (a score of 1). Databases about land assigned if it is not made avail- • In what format cadastral plans ownership and maps are linked to able to the public or if it can be are kept at the mapping agency each other through the TAKBIS obtained only in person. of the selected location of the system, an integrated information • Whether there is a specific and economy. A score of 2 is assigned system for the land registry offices independent mechanism for if cadastral plans are fully digi- and cadastral offices (a score of 1). filing complaints about a prob- tal; 1 if they are scanned; or 0 if Finally, there is a unique identify- lem that occurred at the agency they are kept in paper format. ing number for properties (a score in charge of immovable prop- • Whether there is an electronic of 1). Adding these numbers gives erty registration. A score of 1 database for recording bound- Turkey a score of 8 on the reliability is assigned if there is a specific aries, checking plans, and pro- of infrastructure index. and independent mechanism viding cadastral information for filing a complaint; a score (geographic information sys- Transparency of information of 0 is assigned if there is only tem, a fully digital geographic index a general mechanism or no representation of the land plot). The transparency of information mechanism. A score of 1 is assigned if yes; or index has 10 components: • Whether there are publicly 0 if no. • Whether information on land available official statistics track- • Whether the land ownership ownership is made publicly ing the number of transactions registry and mapping agency are available without requiring the at the immovable property reg- connected and synchronized. A title certificate number. A score istration agency in the selected score of 1 is assigned if informa- of 1 is assigned if information on location for the past five years. tion about land ownership and land ownership is accessible by A score of 0.5 is assigned if sta- cadastral plans is kept in a single anyone; a score of 0 is assigned tistics are published at the latest database or in connected and if access is restricted. on May 1 for the past five years; synchronized databases; a score • Whether the list of documents a score of 0 is assigned if no of 0 is assigned if there is no required for completing all such statistics are made publicly connection between different types of property transactions is available. databases. made publicly available. A score • Whether cadastral plans are • Whether both the immovable of 0.5 is assigned if the list of made publicly available. A score property registry and the map- documents is accessible online of 0.5 is assigned if cadastral ping agency use the same iden- or on a public board; a score of 0 plans are accessible by anyone; tification number for properties. is assigned if the list is not made a score of 0 is assigned if access A score of 1 is assigned if yes; or available to the public or if it can is restricted. 0 if no. be obtained only in person. • Whether the fee schedule for • Whether the fee schedule for accessing cadastral plan is made The index ranges from 0 to 8, with completing all types of property easily available to the public. higher values indicating a higher transactions is made easily avail- A score of 0.5 is assigned if the quality of infrastructure for ensur- able to the public. A score of 0.5 fee schedule is easily accessible ing the reliability of information is assigned if the fee schedule online or on a public board Data notes 159 free of charge; a score of 0 is anyone who pays a fee can consult land plots are mapped in both cities assigned if the schedule is not online cadastral maps (a score of (a score of 2) and the economy as a made available to the public 0.5). It is also possible to get public whole (a score of 2). Adding these or if it can be obtained only in access to the fee schedule for map numbers gives Japan a score of 8 person. consultation (a score of 0.5), the on the geographic coverage index. • Whether the mapping agency service standards for delivery of an formally specifies the time updated plan (a score of 0.5), and Land dispute resolution index frame to deliver an updated a specific mechanism for filing a The land dispute resolution index cadastral plan. A score of 0.5 is complaint about a map (a score of assesses the legal framework for assigned if the service standard 0.5). Adding these numbers gives immovable property registration is accessible online or on a pub- the Netherlands a score of 6 on the and the accessibility of dispute res- lic board; a score of 0 is assigned transparency of information index. olution mechanisms. The index has if it is not made available to the eight components: public or if it can be obtained Geographic coverage index • Whether the law requires that only in person. The geographic coverage index has all property sale transactions • Whether there is a specific four components: be registered at the immovable and independent mechanism • How complete the coverage of property registry to make them for filing complaints about a the land registry is at the level opposable to third parties. A problem that occurred at the of the selected location. A score score of 1.5 is assigned if yes, or mapping agency. A score of 0.5 of 2 is assigned if all privately 0 if no. is assigned if there is a specific held land plots in the city are • Whether the formal system of and independent mechanism formally registered at the land immovable property registra- for filing a complaint; a score registry, or 0 if not. tion is subject to a guarantee. A of 0 is assigned if there is only • How complete the coverage of score of 0.5 is assigned if either a general mechanism or no the land registry is at the level a state or private guarantee over mechanism. of the economy. A score of 2 immovable property registra- is assigned if all privately held tion is required by law; a score The index ranges from 0 to 6, with land plots in the economy are of 0 is assigned if no such guar- higher values indicating greater formally registered at the land antee is required. transparency in the land adminis- registry, or 0 if not. • Whether there is a specific, out- tration system. In the Netherlands, • How complete the coverage of of-court compensation mecha- for example, anyone who pays a the mapping agency is at the nism to cover for losses incurred fee can consult the land ownership level of the selected location. A by parties who engaged in good database (a score of 1). Information score of 2 is assigned if all pri- faith in a property transaction can be obtained at the office, by vately held land plots in the city based on erroneous informa- mail, or online using the Kadaster are mapped, or 0 if not. tion certified by the immovable website (http://www.kadaster.nl). • How complete the coverage of property registry. A score of 0.5 Anyone can also easily access the the mapping agency is at the is assigned if yes, or 0 if no. information online about the list of level of the economy. A score of • Whether the legal system documents to submit for property 2 is assigned if all privately held requires verification of the legal registration (a score of 0.5), the fee land plots in the economy are validity of the documents (such schedule for registration (a score mapped, or 0 if not. as the sales, transfer or convey- of 0.5), and the service standards ance deed) necessary for a prop- (a score of 0.5). And anyone fac- The index ranges from 0 to 8, with erty transaction. A score of 0.5 ing a problem at the land registry higher values indicating greater is assigned if there is a review of can file a complaint or report an geographic coverage in land own- legal validity, either by the regis- error by filling out a specific form ership registration and cadastral trar or by a professional (such as online (a score of 1). In addition, mapping. In Japan, for example, a notary or a lawyer); a score of the Kadaster makes statistics about all privately held land plots are for- 0 is assigned if there is no review. land transactions available to the mally registered at the land registry • Whether the legal system requires public, reporting a total of 34,908 in Tokyo and Osaka (a score of 2) verification of the identity of the property transfers in Amsterdam and the economy as a whole (a parties to a property transaction. in 2019 (a score of 0.5). Moreover, score of 2). Also, all privately held A score of 0.5 is assigned if there 160 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 is verification of identity, either by error by the registry (a score of 0.5). assumed unless there is a general the registrar or by a professional In accordance with the Proceeds legal provision stating a differential (such as a notary or a lawyer); a of Crime Act 2002 and the Money treatment. score of 0 is assigned if there is no Laundering Regulations 2007, a verification. lawyer verifies the legal validity of The index ranges from –2 to 0, with • Whether there is a national data- the documents in a property trans- higher values indicating greater base to verify the accuracy of action (a score of 0.5) and the iden- inclusiveness of property rights. In government-issued identity doc- tity of the parties (a score of 0.5). Mali, for example, unmarried men uments. A score of 1 is assigned The United Kingdom has a national and unmarried women have equal if such a national database is database to verify the accuracy of ownership rights to property (a available, or 0 if not. identity documents (a score of 1). In score of 0). The same applies to mar- • How much time it takes for a land dispute between two British ried men and women who can use a court of first instance with companies over the tenure rights their property in the same way (a jurisdiction on a land dispute of a property, the Land Registration score of 0). Adding these numbers between two local businesses division of the Property Chamber gives Mali a score of 0 on the equal over tenure rights located in the (First-tier Tribunal) gives a decision access to property rights index— selected location to issue a final in less than one year (a score of 3). which indicates equal property decision (without any appeal Finally, statistics about land disputes rights between men and women. against the decision). A score of are collected and published; there By contrast, in Tonga unmarried 3 is assigned if it takes less than were a total of 1,013 land disputes men and unmarried women do one year; 2 if it takes between in the country in 2019 (a score of not have equal ownership rights to one and two years; 1 if it takes 0.5). Adding these numbers gives property according to the Land Act between two and three years; the United Kingdom a score of 8 on [Cap 132], Sections 7, 45, and 82 or 0 if it takes more than three the land dispute resolution index. (a score of –1). The same applies to years. married men and women who are • Whether there are publicly Equal access to property not permitted to use their property available statistics on the num- rights index in the same way according to the ber of land disputes at the The equal access to property rights Land Act [Cap 132], Sections 7, selected location in the first index has two components: 45, and 82 (a score of –1). Adding instance court for the past five • Whether unmarried men and these numbers gives Tonga a score years. A score of 0.5 is assigned unmarried women have equal of –2 on the equal access to prop- if statistics are published about ownership rights to property. A erty rights index—which indicates land disputes in the economy score of –1 is assigned if there unequal property rights between at the latest on May 1 for the are unequal ownership rights to men and women. past five years; a score of 0 is property; a score of 0 is assigned assigned if no such statistics are if there is equality. The data details on registering made publicly available. • Whether married men and property can be found at married women have equal http://www.doingbusiness.org. The index ranges from 0 to 8, with ownership rights to property. A higher values indicating greater score of –1 is assigned if there protection against land disputes. In are unequal ownership rights to the United Kingdom, for example, property; a score of 0 is assigned PAYING TAXES according to the Land Registration if there is equality. Act 2002 property transactions Doing Business records the taxes must be registered at the land reg- Ownership rights cover the ability and mandatory contributions that istry to make them opposable to to manage, control, administer, a local standardized manufacturing third parties (a score of 1.5). The access, encumber, receive, dispose company must pay in a given year property transfer system is guar- of, and transfer property. Each as well as measures of the admin- anteed by the state (a score of 0.5) restriction is considered if there is a istrative burden of paying taxes and has a compensation mechanism differential treatment for men and and contributions and complying to cover losses incurred by parties women in the law considering the with postfiling procedures (figure who engaged in good faith in a default marital property regime. For 10.7). The project was developed property transaction based on an customary land systems, equality is and implemented in cooperation Data notes 161 business accounts, not government FIGURE 10.7  What are the time, total tax and contribution rate, number accounts. One main difference of payments, and postfiling processes a local medium-size company must relates to labor contributions. The comply with and pay? Doing Business measure includes government-mandated contribu- Total tax and contribution rate Time Postfiling index tions paid by the employer to a requited private pension fund or Hours To prepare, file, and workers’ insurance fund. It includes, per year pay value added or sale tax, profit tax, for example, Australia’s compulsory % of profit and labor taxes and before all taxes superannuation guarantee and contributions workers’ compensation insurance. For the purpose of calculating the total tax and contribution rate Efficiency of Payments (number per year) postfiling processes (defined below), only taxes borne are included. For example, VATs are generally excluded (provided that Source: Doing Business database. they are recoverable) because they do not affect the accounting profits with PwC.2 Taxes and contributions the lower end of the distribution of the business—that is, they are not measured include the profit or of tax rates levied on a standard- reflected in the income statement. corporate income tax, social contri- ized case study company in the They are, however, included for the butions and labor taxes paid by the manufacturing sector as observed purpose of the compliance measures employer, property taxes, property through the paying taxes indicator (time and payments), because they transfer taxes, dividend tax, capital set. The threshold reduces the bias add to the burden of complying gains tax, financial transactions in the total tax and contribution with the tax system. tax, waste collection taxes, vehicle rate indicator toward economies and road taxes, and any other small that do not need to levy signifi- Doing Business uses a case scenario to taxes or fees. cant taxes on companies like the measure the taxes and contributions Doing Business standardized case paid by a standardized business and The score for paying taxes is the study company because they raise the complexity of an economy’s simple average of the scores for public revenue in other ways—for tax compliance system. This case each of the component indicators example, through taxes on for- scenario uses a set of financial state- (figure 10.8), with a threshold and eign companies, through taxes on ments and assumptions about the a nonlinear transformation applied sectors other than manufacturing, transactions made over the course to one of the component indicators, or from natural resources (all of of the year. In each economy, tax the total tax and contribution rate.3 which are outside the scope of the experts from a number of different The threshold is defined as the total methodology). firms (in many economies these tax and contribution rate at the firms include PwC) compute the 15th percentile of the overall distri- Doing Business measures all taxes and taxes and mandatory contributions bution for all years included in the contributions that are government due in their jurisdiction based on analysis up to and including Doing mandated (at any level—federal, the standardized case study facts. Business 2015: that rate is 26.1%. All state, or local) and that apply to the Information is also compiled on the economies with a total tax and con- standardized business and have an frequency of filing and payments, tribution rate below this threshold impact on its financial statements. the time taken to comply with tax receive the same score as the econ- In doing so, Doing Business goes laws in an economy, the time taken omy at the threshold. beyond the traditional definition of to request and process a VAT refund a tax. As defined for the purposes claim, and the time taken to com- The threshold is not based on any of government national accounts, ply with and complete a corporate economic theory of an “optimal tax taxes include only compulsory, income tax correction. To make the rate” that minimizes distortions or unrequited payments to general data comparable across economies, maximizes efficiency in an econo- government. Doing Business departs several assumptions about the busi- my’s overall tax system. Instead, it from this definition because it mea- ness and the taxes and contributions is mainly empirical in nature, set at sures imposed charges that affect are used. 162 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 shown in its balance sheet and are not added to or removed FIGURE 10.8  Paying taxes: hired all its workers. from the taxable gross salaries to tax compliance for a local • Operates in the selected arrive at the labor tax or contri- manufacturing company location. bution calculation. • Is 100% domestically owned • Pays an annual manager salary Rankings are based on scores for four indicators and has five owners, all of of 2.25 times income per capita, Number of hours per Firm tax liability as whom are natural persons. annual assistant salary of 1.25 year to prepare, file % of profits before • At the end of 2018, has a times income per capita, and returns, and pay taxes all taxes borne start-up capital of 102 times annual worker salary of 1 times 25% income per capita. income per capita. Total tax and • Performs general industrial or • Has a turnover of 1,050 times 25% contribution commercial activities. It pro- income per capita. Time rate 25% 25% duces a light manufacturing • Makes a loss in the first year of Postfiling Payments good and sells its product at operation. index retail. It does not participate • Has a markup (pretax) of 20% in foreign trade (no import or (that is, sales are 120% of the Number of hours to Number of tax export), does not have any sub- cost of goods sold). comply with VAT refund, payments per year number of weeks to obtain sidiaries or branches, and does • Distributes 50% of its net profits VAT refund,number of hours not handle products subject to as dividends to the owners at to comply with a corporate income tax correction, and a special tax regime—for exam- the end of the second year. number of weeks to complete ple, liquor or tobacco. • Sells one of its plots of land at a corporate income tax correction • At the beginning of 2019, owns a profit at the beginning of the two plots of land, one building, second year. machinery, office equipment, • Is subject to a series of detailed Source: Doing Business database. information technology (IT) assumptions on expenses and Note: All economies below the threshold (26.1%) equipment, and one truck, and transactions to further standard- receive the same score in the total tax and contribution rate component as the economies at leases one truck. ize the case. For example, the the threshold. If both value added tax (VAT) and • Does not qualify for investment owner who is also a manager corporate income tax apply, the postfiling index is incentives or any benefits apart spends 10% of income per cap- the simple average of the scores for each of the four components: time to comply with VAT refund, from those related to the age or ita on traveling for the company time to obtain VAT refund, time to comply with size of the company. (20% of this owner’s expenses a corporate income tax correction, and time to • Has 60 employees—four man- are purely private, 20% are for complete a corporate income tax correction. If only VAT or corporate income tax applies, the postfiling agers, eight assistants, and 48 entertaining customers, and index is the simple average of the scores for only workers. All are nationals, and 60% are for business travel). All the two components pertaining to the applicable one manager is also an owner. financial statement variables are tax. If neither VAT nor corporate income tax applies, The company pays for additional proportional to 2018 income the postfiling index is not included in the score for paying taxes. medical insurance for employ- per capita (this is an update ees (not mandated by any law) from the 2012 income per capita Assumptions about the as an additional benefit. In used in earlier publications from business addition, in some economies Doing Business 2015 through The business (TaxpayerCo.): reimbursable business travel and Doing Business 2020,4 and the • Is a limited liability, taxable com- client entertainment expenses 2005 income per capita used for pany. If there is more than one are considered fringe benefits. previous years). For some econ- type of limited liability company When applicable, it is assumed omies, if the 2018 income per in the economy, the limited lia- that the company pays the fringe capita was not sufficient to bring bility form most common among benefit tax on this expense or the salaries of all the case study domestic firms is chosen. The that the benefit becomes taxable employees up to the minimum most common form is reported income for the employee. The wage thresholds that exist in by incorporation lawyers or the case study assumes no addi- these economies, then for these statistical office. tional salary additions for meals, economies a multiple of two or • Started operations on January transportation, education, or three times income per capita 1, 2018. At that time the com- others. Therefore, even when has been used to estimate the pany purchased all the assets such benefits are frequent, they financial statement variables.5 Data notes 163 Assumptions about the taxes are allowed and are used by the Time and contributions majority of businesses similar to Time is recorded in hours per year. • All the taxes and contributions the case study company, the tax is The indicator measures the time recorded are those paid in the counted as paid once a year even if taken to prepare, file, and pay three second year of operation (cal- filings and payments are more fre- major types of taxes and contribu- endar year 2019). A tax or con- quent. For payments made through tions: the corporate income tax, tribution is considered distinct third parties, such as tax on interest value added or sales tax, and labor if it has a different name or is paid by a financial institution or taxes, including payroll taxes and collected by a different agency. fuel tax paid by a fuel distributor, social contributions. Preparation Taxes and contributions with only one payment is included even time includes the time to collect all the same name and agency, if payments are more frequent. information necessary to compute but charged at different rates the tax payable and to calculate depending on the business, Where two or more taxes or con- the amount payable. If separate are counted as the same tax or tributions are filed for and paid accounting books must be kept for contribution. jointly using the same form, each tax purposes—or separate calcula- • The number of times the com- of these joint payments is counted tions made—the time associated pany pays taxes and contribu- once. For example, if mandatory with these processes is included. tions in a year is the number of health insurance contributions and This extra time is included only if different taxes or contributions mandatory pension contributions the regular accounting work is not multiplied by the frequency are filed for and paid together, enough to fulfill the tax accounting of payment (or withholding) only one of these contributions requirements. Filing time includes for each tax. The frequency would be included in the number the time to complete all neces- of payment includes advance of payments. sary tax return forms and file the payments (or withholding) as well as regular payments (or withholding). TABLE 10.6  What do the paying taxes indicators measure? Tax payments for a manufacturing company in 2019 (number per year adjusted for Tax payments electronic and joint filing and payment) The tax payments indicator reflects Total number of taxes and contributions paid, including consumption taxes (VAT, sales tax, or goods the total number of taxes and and services tax) contributions paid, the method of Method and frequency of filing and payment payment, the frequency of pay- Time required to comply with three major taxes (hours per year) ment, the frequency of filing, and Collecting information and computing the tax payable the number of agencies involved for the standardized case study Completing tax return forms, filing with proper agencies company during the second year of Arranging payment or withholding operation (table 10.6). It includes Preparing separate mandatory tax accounting books, if required taxes withheld by the company, Total tax and contribution rate (% of profit before all taxes) such as sales tax, VAT, and employ- Profit or corporate income tax ee-borne labor taxes. These taxes are traditionally collected by the Social contributions and labor taxes paid by the employer company from the consumer or Property and property transfer taxes employee on behalf of the tax Dividends, capital gains, and financial transactions taxes agencies. Although they do not Waste collection, vehicle, road, and other taxes affect the income statements of the Postfiling index (0–100) company, they add to the admin- istrative burden of complying with Compliance time of a VAT refund process the tax system and so are included Time to receive a VAT refund in the tax payments measure. Compliance time of correcting an error in the corporate income tax return including compliance with an audit process if applicable The number of payments takes into Time to complete a corporate income tax correction account electronic filing. Where Source: Doing Business database. full electronic filing and payment Note: VAT = value added tax. 164 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 relevant returns at the tax author- requited pension fund), property firm are deductible. In computing ity. Payment time considers the taxes, turnover taxes, and other commercial profit, these taxes are hours needed to make the payment taxes (such as municipal fees and not deductible. Commercial profit online or in person. Where taxes vehicle taxes). Fuel taxes are no therefore presents a clear picture and contributions are paid in per- longer included in the total tax and of the actual profit of a business son, the time includes delays while contribution rate because of the before any of the taxes it bears in waiting. difficulty of computing these taxes the course of the fiscal year. in a consistent way for all econo- Total tax and contribution rate mies covered. The fuel tax amounts Commercial profit is computed The total tax and contribution rate are in most cases very small, and as sales minus cost of goods sold, measures the amount of taxes and measuring these amounts is often minus gross salaries, minus admin- mandatory contributions borne complicated because they depend istrative expenses, minus other by the business in the second on fuel consumption. Fuel taxes expenses, minus provisions, plus year of operation, expressed as a continue to be counted in the num- capital gains (from the property share of commercial profit. Doing ber of payments. sale) minus interest expense, plus Business 2021 reports the total tax interest income, and minus com- and contribution rate for calendar The total tax and contribution rate mercial depreciation. To compute year 2019. The total amount of is designed to provide a compre- the commercial depreciation, a taxes and contributions borne is hensive measure of the cost of all straight-line depreciation method the sum of all the different taxes the taxes a business bears. It differs is applied, with the following rates: and contributions payable after from the statutory tax rate, which 0% for the land, 5% for the build- accounting for allowable deduc- merely provides the factor to be ing, 10% for the machinery, 33% tions and exemptions. The taxes applied to the tax base. In comput- for the IT equipment (such as com- withheld (such as personal income ing the total tax and contribution puters), 20% for the office equip- tax) or collected by the company rate, the actual tax or contribution ment, 20% for the truck, and 10% and remitted to the tax authorities payable is divided by commercial for business development expenses. (such as VAT, sales tax, or goods and profit. Data for Iraq are provided as Commercial profit amounts to 59.4 service tax), but taxes not borne by an example (table 10.7). times income per capita. the company are excluded. The taxes included can be divided into Commercial profit is essentially The methodology for calculating five categories: profit or corpo- net profit before all taxes and con- the total tax and contribution rate income tax, social contribu- tributions borne. It differs from rate is broadly consistent with the tions and labor taxes paid by the the conventional profit before Total Tax Contribution framework employer (for which all mandatory tax, reported in financial state- developed by PwC and the calcu- contributions are included, even if ments. In computing profit before lation within this framework for paid to a private entity such as a tax, many of the taxes borne by a taxes borne. Although the work TABLE 10.7  Computing the total tax and contribution rate for Iraq Actual tax Commercial Total tax and Statutory rate Taxable base payable profita  contribution rate r (%) b (ID) a = r x b (ID) c (ID) t = a/c (%) Corporate income tax (taxable income) 15 406,599,494 60,989,924 407,252,225 14.98 Employer paid—Social security contributions 12 459,376,022 55,125,123 407,252,225 13.54 (taxable wages) Employee paid—Social security contributions 5 459,376,022 Not included (taxable wages) Stamp duty on contracts Fixed fee Varies Small amount Small amount Real Estate Ownership Transfer tax 0–6 Value of property 8,809,734 407,252,225 2.16 Total 124,924,781 30.68 Source: Doing Business database. ­ inar. Note: Commercial profit is assumed to be 59.4 times income per capita. ID = Iraqi d a. Profit before all taxes borne. Data notes 165 undertaken by PwC is usually based one additional machine for light time spent by TaxpayerCo. pre- on data received from the largest manufacturing good. paring any additional documents companies in the economy, Doing • The value of the machine is 65 that are needed to substantiate Business focuses on a case study for times income per capita of the the claim for the VAT refund; a standardized company. economy. time spent submitting the VAT • Sales are equally spread per refund claim and additional doc- month (that is, 1,050 times uments if that submission is done income per capita divided by 12). separately from the submission Postfiling index • Cost of goods sold is equally of the standard VAT return; time expensed per month (that is, spent making representation at The postfiling index is based on four 875 times income per capita the tax office if required; and components: time to comply with divided by 12). time spent by TaxpayerCo. com- VAT refund, time to obtain VAT • The seller of the machinery is pleting any other mandatory refund, time to comply with a corpo- registered for VAT. activities or tasks associated with rate income tax correction, and time • Excess input VAT incurred in the VAT refund. to complete a corporate income tax June will be fully recovered after • The process of a VAT audit. correction. If both VAT and corporate four consecutive months if the This is captured if companies income tax apply, the postfiling index VAT rate is the same for inputs with a request for a VAT cash is the simple average of the scores and sales, and the machine and refund due to a capital pur- for each of the four components. If the tax reporting period is every chase are pooled into additional only VAT or corporate income tax month. review in 50% or more of cases. applies, the postfiling index is the • Input VAT will exceed output Time includes time spent by simple average of the scores for only VAT in June 2019 (table 10.8). TaxpayerCo. on gathering infor- the two components pertaining to mation and preparing any doc- the applicable tax. If neither VAT nor Time to comply with VAT umentation (information such corporate income tax applies, the refund as receipts, financial statements, postfiling index is not included in the Time is recorded in hours. The indi- and pay stubs) as required by ranking of the ease of paying taxes. cator has two parts: the tax auditor and time spent • The process of claiming a VAT by TaxpayerCo. on submitting The four components include the refund. Time includes time spent the documents requested by the time to comply with and complete by TaxpayerCo. on gathering auditor. a tax audit when applicable (see VAT information from internal details in the section “Time to com- sources, including time spent A total estimate of zero hours is ply with VAT refund”). The defi- on any additional analysis of recorded if the process of claiming nition of a tax audit includes any accounting information and cal- a VAT refund is done automatically interaction between the taxpayer culating the VAT refund amount; within the standard VAT return and the tax authority after the fil- time spent by TaxpayerCo. on without the need to complete any ing of the tax return and payment preparing the VAT refund claim; additional section or part of the of the tax liability due, including informal inquiries, formal inqui- ries, and formal tax audits to ver- TABLE 10.8  Computing the value of the VAT input tax credit for Albania ify whether such taxpayers have VAT rate Output VAT Input VAT correctly assessed and reported R (%) R x Sales (R x A + R x B) their tax liability and fulfilled other Sales = 20 ALL 9,932,812.18 obligations. ALL 49,664,060.92 Capital purchase 20 ALL 7,378,660.48 The indicators are based on (A) = ALL 36,893,302.40 expanded case study assumptions. Raw material expenses 20 ALL 8,277,343.49 (B) = ALL 41,386,717.43 Assumptions about the VAT VAT refund ALL 5,723,191.78 refund process (R x A + R x B) – (R x Sales) • In June 2019, TaxpayerCo. Source: Doing Business database. Note: ALL = Albanian lek; VAT = value added tax. makes a large capital purchase: 166 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 return, if no additional documents the auditor including purchase and the VAT refund claim is filed semi- or tasks are required as a result of sales invoices, bills, bank transac- annually. The average waiting time the input tax credit, and if, in 50% tions, records on accounting soft- to submit the refund claim is six or more of similar cases, the com- ware, tax returns, and contracts. months if the VAT refund claim is pany is not subjected to an audit. Taxpayers submit the documents filed annually. to the auditor in person at the tax An estimate of half an hour is office (two hours for submission). Time includes the mandatory carry recorded for submission of doc- forward time before a VAT refund uments if the submission is done Time to obtain VAT refund in cash can be paid. The carry electronically and is a matter of Time is recorded in weeks. Time forward time is zero if there is no minutes. An estimate of zero hours measures the total waiting time mandatory carry forward period. is recorded in the case of a field to receive a VAT refund from the audit if documents are submitted moment the request has been sub- In Albania, for example, it takes in person and at the taxpayer’s mitted. If companies with a request 37 weeks to receive a VAT refund. premises. for a VAT cash refund due to a cap- The request for a VAT refund trig- ital purchase are pooled into addi- gers an audit by the tax author- In Kosovo, for example, taxpayers tional review in 50% or more of ities. It takes 30 days (4 weeks) spend 27 hours complying with cases, time includes time to start the for the tax authority to start the the process of claiming a VAT audit from the moment of claim- audit. Taxpayers spend 60 days refund. Taxpayers request the VAT ing the VAT refund; time spent by (8.6 weeks) interacting with the refund in the standard VAT return. TaxpayerCo. interacting with the auditor and wait four weeks until Taxpayers spend two hours gath- auditor from the moment an audit the final assessment is issued. ering information from internal begins until there are no further Taxpayers receive the VAT refund sources and accounting records to interactions between TaxpayerCo. only after the audit is completed. calculate the amount of the VAT and the auditor (including the vari- Taxpayers wait five weeks for the refund. There is no additional time ous rounds of interactions between release of the VAT refund payment. for preparing the refund claim TaxpayerCo. and the auditor); time In Albania the taxpayers must because taxpayers indicate in the spent waiting for the tax auditor to carry forward the VAT refund for online VAT return that they want issue the final audit decision from three consecutive VAT accounting the outstanding VAT balance to be the moment TaxpayerCo. has sub- periods (three months in the case refunded. Taxpayers must also pre- mitted all relevant information and of Albania) before a refund in cash pare and have available for review documents and there are no further can be requested. The three months all purchase and sales invoices for interactions between TaxpayerCo. (13 weeks) carry forward period is the past three months, a business and the auditor; and time spent included in the total time to receive explanation of VAT overpayment waiting for the release of the VAT a VAT refund. The VAT return is for large purchases or investments, refund payment from the moment filed monthly and thus 0.5 month bank statements, any missing tax the final audit decision has been (2.1 weeks) is included in the total declaration, and a copy of fiscal issued by the auditor. time to receive a VAT refund. and VAT certificates. Taxpayers spend four hours preparing these Time also includes an average If an economy does not have a VAT, additional documents, which are waiting time to submit the refund the economy will not be scored on submitted electronically at the claim. The average waiting time the two indicators for a VAT refund same time as the submission of the to submit the refund claim is half process—time to comply with VAT VAT return. Taxpayers must also a month if the VAT refund claim is refund and time to obtain VAT appear in person at the tax office to filed monthly. The average waiting refund. This is the case in Kuwait. explain the VAT refund claim and time to submit the refund claim is If an economy has a VAT and the the reasons for the excess input one month if the VAT refund claim purchase of a machine is not sub- VAT in the month of June. This step is filed bimonthly. The average ject to VAT, the economy will not takes three hours. Additionally, waiting time to submit the refund be scored on time to comply with the claim for a VAT refund would claim is one and a half months if the VAT refund and time to obtain VAT trigger a full audit at the tax office. VAT refund claim is filed quarterly. refund. This is the case in Sierra Taxpayers spend 16 hours prepar- The average waiting time to submit Leone. If an economy has a VAT ing the documents requested by the refund claim is three months if that was introduced in calendar Data notes 167 year 2019 and there is not sufficient • TaxpayerCo. discovered the resulting in an underpayment data to assess the refund process, error and voluntarily notified of the tax liability should only the economy will not be scored on the tax authority of the error in be an issue among a small sam- time to comply with VAT refund the corporate income tax return. ple of companies selected for a and time to obtain VAT refund. • The value of the underpaid tax audit. Unlike a corporate income tax liability is 5% of the income tax correction, it is com- If an economy has a VAT but the corporate income tax liability mon that a one-time request for ability to claim a refund is restricted due. a VAT cash refund be exposed to to specific categories of taxpayers • TaxpayerCo. submits the cor- a tax audit. Time includes time that do not include taxpayers sim- rected information after the spent by TaxpayerCo. on gath- ilar to the case study company, the deadline for submitting the ering information and preparing economy is assigned a score of 0 for annual tax return, but within any documentation (informa- time to comply with VAT refund the tax assessment period. tion such as receipts, financial and time to obtain VAT refund. In statements, and pay stubs) as Bolivia, for example, only export- Time to comply with a required by the tax auditor ers are eligible to request a VAT corporate income tax and time spent by TaxpayerCo. refund. As a result, Bolivia receives correction in submitting the documents a score of 0 for time to comply with Time is recorded in hours. The indi- requested by the auditor. VAT refund and time to obtain VAT cator has two parts: refund. If an economy has a VAT • The process of notifying the tax An estimate of half an hour is and the case study company is authorities of the error, amend- recorded for submission of docu- eligible to claim a refund but cash ing the return, and making addi- ments or payment of the income refunds do not occur in practice, tional payment. Time includes tax liability due if the submission the economy is assigned a score time spent by TaxpayerCo. gath- or payment is done electronically of 0 for time to comply with VAT ering information and preparing in several minutes. An estimate of refund and time to obtain VAT the documents required to notify zero hours is recorded in the case refund. This is the case in Central the tax authorities; time spent of a field audit if documents are African Republic. If an economy by TaxpayerCo. in submitting submitted in person and at the tax- has a VAT but there is no refund the documents; and time spent payer’s premises. mechanism in place, the economy by TaxpayerCo. in making the is assigned a score of 0 for time to additional tax payment if the In the Slovak Republic, for exam- comply with VAT refund and time payment is done separately from ple, taxpayers submit an amended to obtain VAT refund. This is the the submission of the amended corporate income tax return elec- case in Sudan. If an economy has corporate income tax return. tronically. It takes taxpayers one a VAT but input tax on a capital • The process of complying with hour to correct the error in the purchase is a cost on the business, a corporate income tax correc- return, half an hour to submit the the economy is scored 0 for time to tion. This is captured if, in 25% amended return online, and half comply with VAT refund and time or more of cases, the pool of an hour to make the additional to obtain VAT refund. This is the companies that were exposed payment online. Amending a cor- case in Myanmar. to additional review included porate income tax return per the companies that self-reported an case study scenario in the Slovak Assumptions about the error in the corporate income Republic would not be subject to corporate income tax tax return, which resulted in additional review, which brings the correction process their owing more in corporate total compliance time to two hours. • An error in the calculation of income tax because of under- the income tax liability (for payment. The threshold used Time to complete a corporate example, use of incorrect tax for assessing the corporate income tax correction depreciation rates, or incor- income tax audit is lower than Time is recorded in weeks. Time rectly treating an expense as tax the threshold used in the case includes the time to start an audit deductible) leads to an incorrect of the VAT cash refund. This is from the moment the tax authority income tax return and conse- because the case study scenario has been notified of the error in the quently an underpayment of of self-reporting an error in the corporate income tax return; time corporate income tax. corporate income tax return and spent by TaxpayerCo. interacting 168 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 with the auditor from the moment per capita or $5,000, whichever an audit begins until there are ENFORCING is greater. no further interactions between CONTRACTS • The dispute concerns a lawful TaxpayerCo. and the auditor transaction between two busi- (including the various rounds of Doing Business measures the time nesses (Seller and Buyer), both interactions between TaxpayerCo. and cost for resolving a commercial located in the selected location. and the auditor); and time spent dispute through a local first-in- Pursuant to a contract between waiting for the tax auditor to issue stance court (table 10.9) and the the businesses, Seller sells the final tax assessment from the quality of judicial processes index, some custom-made furniture moment TaxpayerCo. has submit- evaluating whether each city has to Buyer worth 200% of the ted all relevant information and adopted a series of good practices economy’s income per capita documents and there are no further that promote quality and efficiency or $5,000, whichever is greater. interactions between TaxpayerCo. in the court system. The data are After Seller delivers the goods and the auditor. collected through study of the codes to Buyer, Buyer refuses to pay of civil procedure and other court Time to complete a corporate regulations as well as through ques- income tax correction is recorded tionnaires completed by local litiga- TABLE 10.9  What do the as zero if less than 25% of compa- tion lawyers and judges. The score indicators on the efficiency of nies will not go through an addi- for enforcing contracts is the simple resolving a commercial dispute tional review. average of the scores for each of the measure? component indicators (figure 10.9). Time required to enforce a contract In Switzerland, for example, tax- through the courts (calendar days) payers with an amended corporate Time to file and serve the case income tax return per the case Time for trial and to obtain the judgment study scenario are subject to a sin- Efficiency of resolving a Time to enforce the judgment gle-issue audit conducted through commercial dispute correspondence with the taxpayer. Cost required to enforce a contract through the courts (% of claim) Taxpayers wait 30 days (4.3 weeks) The data on time and cost are until the tax authority starts the built by following the step-by-step Average attorney fees correspondence audit, interact for evolution of a commercial sale Court costs a total of four days (0.6 weeks) dispute (figure 10.10). The data Enforcement costs with the auditor, and wait for four are collected for a specific court Source: Doing Business database. weeks until the final assessment is for each location covered, under issued by the auditor, resulting in the assumptions about the case a total of 8.9 weeks to complete a described below. The “competent FIGURE 10.9  Enforcing contracts: corporate income tax correction. court” is the one with jurisdic- efficiency and quality of commercial tion over disputes worth 200% dispute resolution If an economy does not levy corpo- of income per capita or $5,000, rate income tax, the economy will whichever is greater. Whenever Rankings are based on scores for three indicators not be scored on the two indicators: more than one court has original Days to resolve Attorney, court and time to comply with a corporate jurisdiction over a case compara- commercial sale dispute enforcement costs as through the courts % of claim value income tax correction and time ble to the standardized case study, to complete a corporate income the data are collected based on tax correction. This is the case in the court that would be used by 33.3% 33.3% Vanuatu. litigants in most cases. Whenever Time Cost more than one court in the same 33.3% The data details on paying taxes can city has territorial competence over Quality of judicial processes be found at http://www.doingbusiness the dispute, the data are collected index .org. This methodology was developed based on all courts in that city. by Djankov and others (2010). Use of good practices promoting Assumptions about the case quality and efficiency • The value of the claim is equal to 200% of the economy’s income Source: Doing Business database. Data notes 169 FIGURE 10.10  What are the time and cost to resolve a commercial dispute through a local first-instance court? Quality of judicial Court processes index Time Cost Company A Company B Commercial dispute (Seller and plaintiff) (Buyer and defendant) Filing and service Trial and judgment Enforcement Use of good practices promoting quality and efficiency Source: Doing Business database. the contract price, alleging that independent expert, the judge the waiting periods in between. the goods are not of adequate does so. In this case the judge The average duration of the follow- quality. Because they were cus- does not allow opposing expert ing three different stages of dispute tom-made, Seller is unable to testimony. resolution is recorded: filing and sell them to anyone else. • Following the expert opinion, service, trial and judgment, and • Seller (the plaintiff) sues Buyer the judge decides that the goods enforcement. Time is recorded con- (the defendant) to recover the delivered by Seller were of ade- sidering the case study assumptions amount under the sales agree- quate quality and that Buyer detailed in the previous section and ment. The dispute is brought must pay the contract price. The only as applicable to the competent before the court with juris- judge thus renders a final judg- court. Time is recorded in practice, diction over commercial cases ment that is 100% in favor of regardless of time limits set by law worth 200% of income per Seller. if such time limits are not respected capita or $5,000, whichever is • Buyer does not appeal the judg- in most cases. greater in the selected location. ment. Seller decides to start • At the outset of the dispute, enforcing the judgment as soon The filing and service phase includes Seller decides to attach Buyer’s as the time allocated by law for • The time for Seller to try and movable assets (for example, appeal lapses. obtain payment out of court office equipment and vehicles) • Seller takes all required steps through a nonlitigious demand because Seller fears that Buyer for prompt enforcement of the letter, including the time to may hide its assets or otherwise judgment. The money is success- prepare the letter and the dead- become insolvent. fully collected through a public line that would be provided to • The claim is disputed on the sale of Buyer’s movable assets Buyer to comply; merits because of Buyer’s (for example, office equipment • The time necessary for a local allegation that the quality of and vehicles). It is assumed that lawyer to write the initial com- the goods was not adequate. Buyer does not have any money plaint and gather all supporting Because the court cannot in its bank account, making it documents needed for filing, decide the case on the basis of impossible for the judgment to including authenticating or nota- documentary evidence or legal be enforced through a seizure of rizing them, if required; title alone, an expert opinion the Buyer’s accounts. • The time necessary to file the is given on the quality of the complaint at the court; and goods. If it is standard practice Time • The time necessary for Buyer in the economy for each party Time is recorded in calendar days, to be served, including the pro- to call its own expert witness, counted from the moment Seller cessing time at the court and the the parties each call one expert decides to file the lawsuit in court waiting periods between unsuc- witness. If it is standard prac- until payment. It includes both the cessful attempts if more than tice for the judge to appoint an days when actions take place and one attempt is usually required. 170 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 The trial and judgment phase of the claim once the auction is better and more efficient judicial includes successfully completed. processes.6 • The time between the moment the case is served on Buyer Cost Court structure and and the moment a pretrial con- Cost is recorded as a percentage proceedings index ference is held, if such pretrial of the claim value, assumed to The court structure and proceed- conference is part of the case be equivalent to 200% of income ings index has five components: management techniques used by per capita or $5,000, whichever • Whether a specialized commer- the competent court; is greater. Three types of costs are cial court, section, or division • The time between the pretrial recorded: average attorney fees, dedicated solely to hearing com- conference and the first hearing, court costs, and enforcement costs. mercial cases is in place. A score if a pretrial conference is part of 1.5 is assigned if yes, or 0 if no. of the case management tech- Attorney fees are the fees that • Whether a small claims court or niques used by the competent Seller (plaintiff) must advance to a fast-track procedure for small court (if not, the time between a local attorney to represent Seller claims (or both) is in place. A the moment the case is served in the standardized case, regardless score of 1 is assigned if such a on Buyer and the moment the of final reimbursement. Court costs court or procedure is in place, first hearing is held); include all costs that Seller (plain- it is applicable to all civil cases, • The time to conduct all trial tiff) must advance to the court, and the law sets a cap on the activities, including exchanges regardless of the final cost borne by value of cases that can be han- of briefs and evidence, multi- Seller. Court costs include the fees dled through this court or pro- ple hearings, waiting times in that Seller (plaintiff) must pay to cedure. The point is assigned between hearings, and obtain- obtain an expert opinion, regard- only if this court applies a ing an expert opinion; less of whether they are paid to simplified procedure or if the • The time necessary for the judge the court or to the expert directly. procedure for small claims is to issue a written final judgment Enforcement costs are all costs simplified. An additional score once the evidence period has that Seller (plaintiff) must advance of 0.5 is assigned if parties can closed; and to enforce the judgment through represent themselves before this • The time limit for appeal. a public sale of Buyer’s movable court or during this procedure. assets, regardless of the final cost If no small claims court or fast- The enforcement phase includes borne by Seller. Bribes are not track procedure is in place, a • The time it takes to obtain an taken into account. score of 0 is assigned. enforceable copy of the judg- • Whether plaintiffs can obtain ment and contact the relevant a pretrial attachment of the enforcement office; defendant’s movable assets if • The time it takes to locate, iden- Quality of judicial they fear the assets may be tify, seize, and transport the processes moved out of the jurisdiction or losing party’s movable assets otherwise dissipated. A score of (including the time necessary to The quality of judicial processes 1 is assigned if yes; or 0 if no. obtain an order from the court index measures whether each • Whether cases are assigned to attach and seize the assets, if economy has adopted a series of randomly and automatically applicable); good practices in its court system in to judges throughout the com- • The time it takes to advertise, four areas: court structure and pro- petent court. A score of 1 is organize, and hold the auc- ceedings, case management, court assigned if the assignment of tion (if more than one auction automation, and alternative dis- cases is random and automated; would usually be required to pute resolution (table 10.10). The 0.5 if it is random but not auto- fully recover the value of claim quality of judicial processes index is mated; or 0 if it is neither ran- in a case comparable to the the sum of the scores on the court dom nor automated. standardized case study, then structure and proceedings, case • Whether a woman’s testimony the time between multiple auc- management, court automation, carries the same evidentiary tion attempts is recorded); and and alternative dispute resolution weight in court as a man’s. A • The time it takes for the winning indexes. The index ranges from 0 score of –1 is assigned if the party to fully recover the value to 18, with higher values indicating law differentiates between the Data notes 171 and (vi) submission of the final TABLE 10.10  What do the indicators on the quality of judicial processes judgment. A score of 1 is assigned measure? if such time standards are avail- Court structure and proceedings index (0–5) able and respected in more than Availability of specialized commercial court, division or section (0–1.5) 50% of cases; 0.5 if they are avail- Availability of small claims court or simplified procedure for small claims (0–1.5) able but not respected in more Availability of pretrial attachment (0–1) than 50% of cases; or 0 if there are time standards for fewer than Criteria used to assign cases to judges (0–1) three of these key court events or Evidentiary weight of a woman’s testimony (-1–0) for none. Case management index (0–6) • Whether there are any laws Regulations setting time standards for key court events (0–1) regulating the maximum num- Regulations on adjournments or continuances (0–1) ber of adjournments or con- Availability of performance measurement mechanisms (0–1) tinuances that can be granted, whether adjournments are Availability of pretrial conference (0–1) limited by law to unforeseen Availability of electronic case management system for judges (0–1) and exceptional circumstances, Availability of electronic case management system for lawyers (0–1) and whether these rules are Court automation index (0–4) respected in more than 50% of Ability to file initial complaint electronically (0–1) cases. A score of 1 is assigned if Ability to serve initial complaint electronically (0–1) all three conditions are met; 0.5 if only two of the three condi- Ability to pay court fees electronically (0–1) tions are met; or 0 if only one or Publication of judgments (0–1) none of the conditions is met. Alternative dispute resolution index (0–3) • Whether there are any publicly Arbitration (0–1.5) available performance measure- Voluntary mediation or conciliation (0–1.5) ment reports about the compe- Quality of judicial processes index (0–18) tent court to monitor the court’s Sum of the court structure and proceedings, case management, court automation and alternative performance, to track the progress dispute resolution indexes of cases through the court, and to Source: Doing Business database. ensure compliance with estab- lished time standards. A score of evidentiary value of a woman’s electronic case management system 1 is assigned if at least two of the testimony and that of a man in (a score of 1). A woman’s testimony following four reports are made any type of civil case, includ- carries the same evidentiary weight publicly available: (i) time to dis- ing family cases; a score of 0 is in court as a man’s (a score of 0). position report (measuring the assigned if it does not. Adding these numbers gives Bosnia time the court takes to dispose/ and Herzegovina a score of 5 on adjudicate its cases); (ii) clearance The index ranges from –1 to 5, the court structure and proceedings rate report (measuring the num- with higher values indicating a index. ber of cases resolved versus the more sophisticated and stream- number of incoming cases); (iii) lined court structure. In Bosnia Case management index age of pending cases report (pro- and Herzegovina, for example, a The case management index has viding a snapshot of all pending specialized commercial court is in six components: cases according to case type, case place (a score of 1.5), and small • Whether any of the applicable age, last action held, and next claims can be resolved through a laws or regulations on civil pro- action scheduled); and (iv) single dedicated division in which self-rep- cedure contain time standards for case progress report (providing a resentation is allowed (a score of at least three of the following key snapshot of the status of one sin- 1.5). Plaintiffs can obtain a pretrial court events: (i) service of process; gle case). A score of 0 is assigned if attachment of the defendant’s mov- (ii) first hearing; (iii) filing of the only one or none of these reports able assets if they fear dissipation statement of defense; (iv) com- is available. during trial (a score of 1). Cases pletion of the evidence period; • Whether a pretrial conference are assigned randomly through an (v) filing of testimony by expert; is among the case management 172 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 techniques used in practice receive notifications (for exam- competent court. A score of 1 before the competent court and ple, emails); (iv) to track the is assigned if such a platform is at least three of the following status of a case; (v) to view and available and litigants are not issues are discussed during the manage case documents (briefs, required to follow up with a hard pretrial conference: (i) sched- motions); (vi) to file briefs and copy of the complaint; a score of uling (including the time frame documents with the court; and 0 is assigned if not. Electronic for filing motions and other (vii) to view court orders and filing is acknowledged regard- documents with the court); (ii) decisions in a particular case. A less of the percentage of users, case complexity and projected score of 1 is assigned if an elec- as long as no additional in-per- length of trial; (iii) possibility tronic case management system son interactions are required of settlement or alternative dis- that lawyers can use for at least and local experts have used it pute resolution; (iv) exchange four of these purposes is avail- enough to be able to confirm of witness lists; (v) evidence; able; a score of 0 is assigned if that it is fully functional. (vi) jurisdiction and other pro- not. • Whether the initial complaint cedural issues; and (vii) nar- can be served on the defen- rowing down of contentious The index ranges from 0 to 6, with dant electronically, through a issues. A score of 1 is assigned higher values indicating a more dedicated system or by email, if a pretrial conference in which qualitative and efficient case man- fax, or short message service at least three of these events agement system. In Australia, for (SMS), for cases filed before the are discussed is held within the example, time standards for at least competent court. A score of 1 is competent court; a score of 0 is three key court events are estab- assigned if electronic service is assigned if not. lished in applicable civil procedure available and no further service • Whether judges within the instruments and are respected in of process is required; a score of competent court can use an more than 50% of cases (a score of 0 is assigned if not. Electronic electronic case management 1). The law stipulates that adjourn- service is acknowledged regard- system for at least four of the ments can be granted only for less of the percentage of users, following purposes: (i) to access unforeseen and exceptional circum- as long as no additional in-per- laws, regulations, and case law; stances, and this rule is respected in son interactions are required (ii) to automatically generate a more than 50% of cases (a score of and local experts have used it hearing schedule for all cases on 0.5). A time to disposition report, a enough to be able to confirm their docket; (iii) to send notifi- clearance rate report, and an age of that it is fully functional. cations (for example, emails) to pending cases report can be gener- • Whether court fees can be lawyers; (iv) to track the status ated about the competent court (a paid electronically for cases of a case on their docket; (v) to score of 1). A pretrial conference filed before the competent view and manage case docu- is among the case management court, either through a ded- ments (briefs, motions); (vi) to techniques used before the District icated platform or through assist in writing judgments; (vii) Court of New South Wales (a score online banking. A score of 1 to semiautomatically generate of 1). An electronic case manage- is assigned if fees can be paid court orders; and (viii) to view ment system is available to judges (a electronically and litigants are court orders and judgments in score of 1) and to lawyers (a score not required to follow up with a particular case. A score of 1 of 1). Adding these numbers gives a hard copy of the receipt or is assigned if an electronic case Australia a score of 5.5 on the case produce a stamped copy of the management system is available management index, the highest receipt; a score of 0 is assigned that judges can use for at least score attained by any economy on if not. Electronic payment is four of these purposes; a score this index. acknowledged regardless of the of 0 is assigned if not. percentage of users, as long as • Whether lawyers can use an Court automation index no additional in-person inter- electronic case management The court automation index has actions are required and local system for at least four of the four components: experts have used it enough to following purposes: (i) to access • Whether the initial complaint be able to confirm that it is fully laws, regulations, and case can be filed electronically functional. law; (ii) to access forms to be through a dedicated platform • Whether judgments rendered by submitted to the court; (iii) to (not email or fax) within the local courts are made available Data notes 173 to the general public through to arbitration. A score of 0.5 is if the process is successful (a score publication in official gazettes, assigned if yes; a score of 0 if no. of 0.5). Adding these numbers gives in newspapers, or on the inter- • Whether valid arbitration clauses Israel a score of 3 on the alternative net. A score of 1 is assigned if or agreements are enforced by dispute resolution index. judgments rendered in commer- local courts in more than 50% of cial cases at all levels are made cases. A score of 0.5 is assigned if The data details on enforcing con- available to the general public; yes; a score of 0 if no. tracts can be found at http://www 0.5 if only judgments rendered • Whether voluntary mediation, .doingbusiness.org. This methodology at the appeal and supreme court conciliation, or both are a rec- was initially developed by Djankov and level are made available to the ognized way of resolving com- others (2003) and is adopted here with general public; or 0 in all other mercial disputes. A score of 0.5 is several changes. The quality of judicial instances. No points are awarded assigned if yes; a score of 0 if no. processes index was introduced in Doing if judgments need to be individ- • Whether voluntary mediation, Business 2016. The good practices tested ually requested from the court conciliation, or both are gov- in this index were developed on the or if the case number or parties’ erned by a consolidated law or basis of internationally recognized good details are required in order to consolidated chapter or section practices promoting judicial efficiency. obtain a copy of a judgment. of the applicable code of civil procedure encompassing sub- The index ranges from 0 to 4, with stantially all their aspects (for higher values indicating a more example, definition, aim, and automated, efficient, and trans- scope of application; designa- parent court system. In Estonia, tion of mediator/conciliator; for example, the initial summons initiation of the process; princi- can be filed online (a score of 1), ples governing the process; and it can be served on the defendant enforcement). A score of 0.5 is electronically (a score of 1), and assigned if yes; a score of 0 if no. court fees can be paid electronically • Whether there are any financial as well (a score of 1). In addition, incentives for parties to attempt judgments in commercial cases at mediation or conciliation (for all levels are made publicly avail- example, if mediation or con- able through the internet (a score ciliation is successful, parties of 1). Adding these numbers gives receive a refund of court filing Estonia a score of 4 on the court fees, an income tax credit, or the automation index. like). A score of 0.5 is assigned if yes; a score of 0 if no. Alternative dispute resolution index The index ranges from 0 to 3, The alternative dispute resolution with higher values associated with index has six components: greater availability of alternative • Whether domestic commercial dispute resolution mechanisms. arbitration is governed by a In Israel, for example, arbitration consolidated law or consolidated is regulated through a dedicated chapter or section of the appli- statute (a score of 0.5), all rele- cable code of civil procedure vant commercial disputes can be encompassing substantially all its submitted to arbitration (a score of aspects. A score of 0.5 is assigned 0.5), and valid arbitration clauses if yes; a score of 0 if no. are usually enforced by the courts • Whether commercial disputes of (a score of 0.5). Voluntary media- all kinds—aside from those deal- tion is a recognized way of resolv- ing with public order, public pol- ing commercial disputes (a score of icy, bankruptcy, consumer rights, 0.5), it is regulated through a ded- employment issues, or intellec- icated statute (a score of 0.5), and tual property—can be submitted part of the filing fees is reimbursed 174 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 ADDITIONAL on business entry for MEI, a • Has an estimated turnover of RESEARCH: PILOT detailed list of procedures was 2 times the income per capita developed, along with the time ($18,260 or R$66,965). STUDIES and any costs to comply with • Leases an office space and is not each procedure under normal a proprietor of real estate. circumstances and the paid-in • Has an annual lease for the REGISTERING AS minimum capital requirement, if office space equivalent to 50% AN INDIVIDUAL any. Subsequently, local incorpo- of the income per capita ($4,565 MICROBUSINESS OWNER ration lawyers, accountants, and or R$16,741). (‘MICROEMPREENDEDOR government officials reviewed and • Occupies an office space of approx- INDIVIDUAL’, MEI) verified the data. Information was imately 92.9 square meters. also collected on the sequence in Subnational Doing Business in Brazil which procedures are to be com- The owner: 2021 includes a pilot study designed pleted and whether procedures • Has reached the legal age of to analyze the process of registering may be carried out simultaneously. majority and is capable of mak- as an Individual Microbusiness Owner It is assumed that any required ing decisions as an adult. (‘Microempreendedor Individual’, MEI), information is readily available and • Is in good health and has no the most common business type in that the entrepreneur will pay no criminal record. Brazil.7 This pilot study covered five bribes. If answers by local experts locations in Brazil: Amazonas, Ceará, differ, inquiries continue until the Procedures the Federal District, Minas Gerais, and data are reconciled. A procedure is defined as any inter- Rio Grande do Sul. These locations action of the business founder with were selected in collaboration with the To make the data comparable external parties (for example, gov- Brazilian Service of Support for Micro across locations, several assump- ernment agencies, lawyers, auditors, and Small Enterprises (Sebrae) to tions about the business and the or notaries). Procedures that must represent each of Brazil’s five admin- procedures are used. be completed in the same building istrative regions. This section describes but in different offices or at different the case study assumptions and meth- Assumptions about the counters are counted as separate odology used to collect these data. business procedures. If the founder has to Scores are not calculated for this pilot The business: visit the same office several times for study. The data were not included in • Is an Individual Microbusiness different sequential procedures, each the aggregate ease of doing business Owner (‘Microempreendedor is counted separately. The founder score for the five topics covered in this Individual’, MEI). is assumed to complete all proce- report. • Operates in the capital city of dures alone, without middlemen, each of the five locations cov- facilitators, accountants, or lawyers, This pilot study records all proce- ered in this pilot study. unless the use of such a third party dures officially required, or com- • Is an independent trader of is mandated by law or solicited by monly done in practice, for an nonhazardous products such the majority of entrepreneurs. If the entrepreneur to start and formally as clothes, books or shoes. The services of professionals are required, operate a MEI. The study also business does not perform for- procedures conducted by such pro- records the time and any costs to eign trade activities and does fessionals on behalf of the company complete these procedures and the not handle products subject to a are counted as separate procedures. paid-in minimum capital require- special tax regime, for example, Similarly, each electronic procedure ment, if any. These may include liquor or tobacco. is counted as a separate procedure. obtaining all necessary approvals, • Does not qualify for invest- licenses, and permits and com- ment incentives or any special Procedures required for official cor- pleting any required notifica- benefits, other than those pro- respondence or transactions with tions, verifications, or inscriptions vided to MEI in general. public agencies are also included. for the company with relevant • Is owned by a Brazilian citizen. For example, if a company seal authorities. • Does not hire an employee. or stamp is required on official • Has start-up capital of 20% the documents, such as tax declara- After a study of laws, regulations, income per capita ($1,826 or tions, obtaining the seal or stamp and publicly available information R$6,696). is counted. Similarly, if a company Data notes 175 must open a bank account in order It is assumed that the entrepreneur to complete any subsequent proce- does not waste time and commits to PAYING TAXES UNDER dure—such as registering for value completing each remaining proce- THE SIMPLES NACIONAL added tax (VAT) or showing proof dure without delay. The time spent TAX REGIME of minimum capital deposit—this by the entrepreneur preparing transaction is included as a proce- information to fill in forms is not Subnational Doing Business in Brazil dure. Shortcuts are counted only measured. It is assumed that the 2021 includes a second pilot study, if they fulfill four criteria: they entrepreneur is aware of all entry designed to analyze the process of are legal, they are available to the requirements and their sequence paying taxes under the Simples general public, they are used by the from the beginning but has had no Nacional tax regime. This pilot majority of companies, and avoid- prior contact with any of the offi- study covered the same five loca- ing them causes delays. cials involved. tions in Brazil (Amazonas, Ceará, the Federal District, Minas Gerais, Only procedures required for all Cost and Rio Grande do Sul), analyzing businesses are included. Industry- Cost is recorded as a percentage of two scenarios of firms that opt for specific procedures are excluded. the income per capita. It includes this tax regime: a micro commercial For example, procedures to comply all official fees and fees for legal or business and a small manufacturing with environmental regulations are professional services if such services business. These two scenarios were included only when they apply to are required by law or commonly selected to cover the situation of all businesses owners who are inde- used in practice. Fees for purchas- both micro and small firms under pendent traders of products such as ing and legalizing company books this regime. This section describes clothes, books or shoes. Procedures are included if these transactions the case study assumptions and that the business undergoes to are required by law. Although VAT methodology used to collect these connect to electricity, water, gas, registration can be counted as a data. Scores are not calculated for and waste disposal services are not separate procedure, VAT is not part this pilot study. This data was not included. of the incorporation cost. included in the aggregate ease of doing business score for the five Time The company law, the commercial topics covered in this report. Time is recorded in calendar days. code, and specific regulations and The measure captures the median fee schedules are used as sources This pilot study uses two scenarios duration that incorporation lawyers for calculating costs. In the absence of firms that opt for the Sistema or accountants indicate is necessary of fee schedules, a government Integrado de Pagamento de Impostos in practice to complete a procedure officer’s estimate is taken as an e Contribuições das Microempresas with minimum follow-up with official source. In the absence of e das Empresas de Pequeno Porte government agencies and no unof- a government officer’s estimate, (Integrated System for Payment of ficial payments. It is assumed that estimates by incorporation experts Taxes and Contributions by Micro the minimum time required for are used. If several incorporation and Small Enterprises) or Simples each procedure is one day, except experts provide different estimates, Nacional, a simplified tax regime for procedures that can be fully the median reported value is used. for micro and small firms in Brazil. completed online, for which the In all cases the cost excludes bribes. This study records the taxes and minimum time required is recorded mandatory contributions that the as half a day. Although procedures Paid-in minimum capital firms must pay in a given year, as may take place simultaneously, they The paid-in minimum capital well as measures of the adminis- cannot start on the same day (that requirement reflects the amount trative burden of paying taxes and is, simultaneous procedures start on that the entrepreneur needs to contributions and complying with consecutive days). For online cases, deposit in a bank or with a third postfiling procedures. Taxes and each simultaneous procedure starts party (for example, a notary) before contributions measured include half a day after the previous one. registration or up to three months the profit or corporate income tax, A registration process is considered after incorporation. It is recorded social contributions and labor taxes completed once the business has as a percentage of the income per paid by the employer, property received the final incorporation capita. The amount is typically taxes, property transfer taxes, divi- document or can officially com- specified in the commercial code or dend tax, capital gains tax, financial mence business operations. the company law. transactions tax, garbage collection 176 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 taxes, vehicle and road taxes, and a corporate income tax correction. client entertainment expenses any other small taxes or fees. To make the data comparable are considered fringe benefits, across locations, several assump- it is assumed that the company This study measures all taxes and tions about the businesses and the pays the fringe benefit tax on contributions that are govern- taxes and contributions are used. this expense or that the benefit ment mandated (at any level— becomes taxable income for federal, state, or municipal) and Assumptions about the the employee. The case study that apply to the two scenarios businesses assumes no additional salary and have an impact on the firms’ The commercial microenterprise: additions for meals, transpor- financial statements. It measures • Is a limited liability, taxable com- tation, education, or others. all imposed charges that affect pany that pays taxes under the Therefore, even when such business accounts. This measure Simples Nacional tax regime. benefits are frequent, they are may include, for instance, gov- • Started operations on January not added to or removed from ernment-mandated contributions 1, 2018. At that time the com- the taxable gross salaries to paid by the employer to a requited pany purchased all the assets arrive at the labor tax or contri- private pension fund or workers’ shown in its balance sheet and bution calculation. insurance fund. hired all its workers. • Pays an annual salary of • Operates in the capital city of R$12,835 ($3,656) for each For the purpose of calculating the each of the five locations cov- employee. total tax and contribution rate, ered in this pilot study. • Has a turnover of 10.5 times only taxes borne are included. • Is 100% domestically owned income per capita ($95,970 or For example, taxes similar to VAT and has five owners, all of R$336,910). are excluded (provided that they whom are natural persons. • Makes a loss in the first year of are recoverable) because they do • At the end of 2018, has a start-up operation. not affect the accounting profits capital of 1.02 times income per • Has a net profit margin of 12%. of the business—that is, they are capita ($9,323 or R$32,728). • Distributes 50% of its net profits not reflected in the income state- • Is a micro retail shop performing as dividends at the end of the ment. They are, however, included general commercial activities. It second year. for the purpose of the compliance sells products such as clothes or • Sells one of its plots of land at measures (time and payments), shoes at retail. It does not partic- a profit at the beginning of the because they add to the burden of ipate in foreign trade (no import second year. complying with the tax system. or export) and does not handle products subject to a special tax The small industrial business: Two case scenarios are used to mea- regime—for example, liquor or • Is a limited liability, taxable com- sure the taxes and contributions tobacco. pany that pays taxes under the paid by firms under the Simples • At the beginning of 2019, owns Simples Nacional tax regime. Nacional tax regime, and the com- two plots of land, one building, • Started operations on January plexity of this regime’s tax compli- machinery, office equipment, 1, 2018. At that time the com- ance system. These case scenarios information technology (IT) pany purchased all the assets use a set of financial statements and equipment, and one truck, and shown in its balance sheet and assumptions about the transactions leases one truck. hired all its workers. made over the course of the year. In • Does not qualify for investment • Operates in the capital city of each case, tax experts from a num- incentives or any benefits apart each of the five locations cov- ber of different firms compute the from those related to the age or ered in this pilot study. taxes and mandatory contributions size of the company, or the tax • Is 100% domestically owned due based on the standardized case regime applied by the firm. and has five owners, all of studies’ assumptions. Information • Has 4 workers, all are national whom are natural persons. is also compiled on the frequency citizens. The company pays for • At the end of 2018, has a of filing and payments, the time additional medical insurance start-up capital of 10.2 times taken to comply with tax laws, the for employees (not mandated income per capita ($93,228 or time taken to request and process by any law) as an additional R$327,284). a VAT refund claim, and the time benefit. If in this case reim- • Performs general industrial taken to comply with and complete bursable business travel and activities. It produces a light Data notes 177 manufacturing good and sells • Has a net profit margin of 5.7%. administrative burden of com- its product at retail. It does not • Distributes 50% of its net profits plying with the tax system and so participate in foreign trade (no as dividends to the owners at are included in the tax payments import or export), does not have the end of the second year. measure. any subsidiaries or branches, and • Sells one of its plots of land at does not handle products sub- a profit at the beginning of the The number of payments takes into ject to a special tax regime—for second year. account electronic filing. Where example, liquor or tobacco. full electronic filing and payment • At the beginning of 2019, owns Assumptions about the taxes are allowed and are used by the two plots of land, one building, and contributions majority of businesses similar to machinery, office equipment, • All the taxes and contributions the case study companies, the tax is information technology (IT) recorded are those paid in the counted as paid once a year even if equipment, and one truck, and second year of operation (cal- filings and payments are more fre- leases one truck. endar year 2019). A tax or con- quent. For payments made through • Does not qualify for investment tribution is considered distinct third parties, such as tax on interest incentives or any benefits apart if it has a different name or is paid by a financial institution or from those related to the age or collected by a different agency. fuel tax paid by a fuel distributor, size of the company. Taxes and contributions with only one payment is included even • Has 15 employees—one man- the same name and agency, if payments are more frequent. agers, two assistants, and 12 but charged at different rates workers. All are nationals. The depending on the business, Where two or more taxes or con- company pays for additional are counted as the same tax or tributions are filed for and paid medical insurance for employ- contribution. jointly using the same form, each ees (not mandated by any law) • The number of times the com- of these joint payments is counted as an additional benefit. In addi- panies pay taxes and contribu- once. For example, if mandatory tion, in some economies reim- tions in a year is the number of health insurance contributions and bursable business travel and different taxes or contributions mandatory pension contributions client entertainment expenses multiplied by the frequency are filed for and paid together, are considered fringe benefits. of payment (or withholding) only one of these contributions If applicable, it is assumed that for each tax. The frequency would be included in the number the company pays the fringe of payment includes advance of payments. benefit tax on this expense or payments (or withholding) as that the benefit becomes tax- well as regular payments (or Time able income for the employee. withholding). Time is recorded in hours per year. The case study assumes no addi- The indicator measures the time tional salary additions for meals, Tax payments taken by each of the two com- transportation, education, or This study records the total number pany scenarios to prepare, file, others. Therefore, even when of taxes and contributions paid, the and pay three major types of taxes such benefits are frequent, they method of payment, the frequency and contributions: the corporate are not added to or removed of payment, the frequency of fil- income tax, value added or sales from the taxable gross salaries ing, and the number of agencies tax, and labor taxes, including pay- to arrive at the labor tax or con- involved for each of the two case roll taxes and social contributions. tribution calculation. study companies, during their sec- Preparation time includes the time • Pays an annual manager salary ond year of operation. It includes to collect all information necessary of R$28,878 ($8,226), annual taxes withheld by the company, to compute the tax payable and assistant salary of R$16,403 such as sales tax, taxes similar to to calculate the amount payable. ($4,672), and annual worker VAT, and employee-borne labor If separate accounting books must salary of R$12,835 ($3,656). taxes. These taxes are traditionally be kept for tax purposes—or sep- • Has a turnover of 105 times collected by the companies from the arate calculations made—the time income per capita ($959,700 or consumer or employee on behalf of associated with these processes is R$3,369,100). the tax agencies. Although they do included. This extra time is included • Makes a loss in the first year of not affect the income statements only if the regular accounting work operation. of the companies, they add to the is not enough to fulfill the tax 178 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 accounting requirements. Filing taxes a business bears. It differs the filing of the tax return and time includes the time to complete from the statutory tax rate, which payment of the tax liability due, all necessary tax return forms and merely provides the factor to be including informal inquiries, file the relevant returns at the tax applied to the tax base. In comput- formal inquiries, and formal tax authority. Payment time considers ing the total tax and contribution audits to verify whether such tax- the hours needed to make the pay- rate, the actual tax or contribution payers have correctly assessed and ment online or in person. Where payable is divided by commercial reported their tax liability and ful- taxes and contributions are paid profit. Commercial profit is essen- filled other obligations. in person, the time includes delays tially net profit before all taxes while waiting. and contributions borne. It differs The indicators are based on the fol- from the conventional profit before lowing case study assumptions. Total tax and contribution rate tax, reported in financial state- The total tax and contribution rate ments. In computing profit before Assumptions about the ICMS, measures the amount of taxes and tax, many of the taxes borne by a IPI, PIS and COFINS refund mandatory contributions borne firm are deductible. In computing process by each of the two businesses in commercial profit, these taxes are • In June 2019, the companies their second year of operation, not deductible. Commercial profit under Simples Nacional make a expressed as a share of commer- therefore presents a clear picture of capital purchase. cial profit. This pilot study reports the actual profit of a business before • The value of the machine is 6.5 the total tax and contribution rate any of the taxes it bears in the course times income per capita of the for calendar year 2019. The total of the fiscal year. Commercial profit economy for the small indus- amount of taxes and contributions amounts to 5.7% of turnover for trial business and 0.65 for the borne is the sum of all the different the small industrial business and micro commercial business. taxes and contributions payable 12% of turnover of the micro com- • Sales are equally spread per after accounting for any allowable mercial business. month. deductions and exemptions. The • Cost of goods sold is equally taxes withheld (such as personal Postfiling processes under expensed per month. income tax) or collected by the Simples Nacional • The seller of the machinery is company and remitted to the tax Postfiling processes are measured registered for ICMS, IPI, PIS and authorities (such as VAT, sales based on four components: time COFINS. tax, or goods and service tax), but to comply with refund of taxes • Excess tax input incurred in taxes not borne by the company similar to VAT; time to obtain this June will be fully recovered are excluded. The taxes included refund; time to comply with a tax after four consecutive months can be divided into five categories: correction; and time to complete a if the tax rates are the same profit or corporate income tax, tax correction. For the refund com- for inputs and sales, and the social contributions and labor taxes ponents, this pilot study analyzes machine and the tax reporting paid by the employer (for which the taxes that apply in Brazil and period is every month. all mandatory contributions are are similar to VAT (ICMS, IPI, PIS • Input ICMS, IPI, PIS and included, even if paid to a private and COFINS). For the tax correc- COFINS will exceed output of entity such as a requited pension tion components, the combined tax these taxes in June 2019. fund), property taxes, turnover paid under the Simples Nacional taxes, and other taxes (such as method is considered. These com- Time to comply with ICMS, IPI, municipal fees and vehicle taxes). ponents are analyzed inspired on PIS and COFINS refund the Doing Business postfiling index, Time is recorded in hours. The indi- This pilot study uses the Doing but scores for these processes are cator has two parts: Business methodology for calculat- not calculated. • The process of claiming a tax ing the total tax and contribution refund. Time includes time rate, which is broadly consistent The four components include the spent by the firms on gathering with the Total Tax Contribution time to comply with and complete information on these taxes from framework developed by PwC. The a tax audit when applicable. The internal sources, including time total tax and contribution rate is definition of a tax audit includes spent on any additional analy- designed to provide a comprehen- any interaction between the tax- sis of accounting information sive measure of the cost of all the payer and the tax authority after and calculating the tax refund Data notes 179 amount; time spent on pre- Time to obtain an ICMS, IPI, If the ability to claim a refund for paring the refund claim; time PIS and COFINS refund taxes similar to VAT is restricted to spent preparing any additional Time is recorded in weeks. Time specific categories of taxpayers that documents that are needed to measures the total waiting time to do not include taxpayers similar to substantiate the claim for the receive a refund from the moment the case study companies the time refund; time spent submitting the request has been submitted. to comply with refund and time to the refund claim and additional If companies with a request for a obtain refund is not considered in documents if that submission cash refund for taxes similar to VAT this pilot study. is done separately from the (ICMS, IPI, PIS and COFINS) due submission of the standard tax to a capital purchase are pooled Assumptions about the tax return; time spent making rep- into additional review in 50% or correction process under resentation at the tax office if more of cases, time includes time Simples Nacional required; and time spent com- to start the audit from the moment • An error in the calculation of pleting any other mandatory of claiming the refund; time spent the income tax liability leads to activities or tasks associated interacting with the auditor from an incorrect Simples Nacional with the tax refund. the moment an audit begins until tax return and consequently a • The process of an audit for there are no further interactions tax underpayment. ICMS, IPI, PIS and COFINS. This between firm and the auditor; time • The firm discovered the error is captured if companies with a spent waiting for the tax auditor to and voluntarily notified the tax request for a cash refund due issue the final audit decision from authority of the error in the tax to a capital purchase are pooled the moment the firm has submitted return. into additional review in 50% all relevant information and doc- • The value of the underpaid tax or more of cases. Time includes uments and there are no further liability is 5% of the tax liability time spent gathering informa- interactions between the firm and due. tion and preparing any docu- the auditor; and time spent waiting • The firm submits the corrected mentation (information such as for the release of the refund pay- information after the dead- receipts, financial statements, ment from the moment the final line for submitting the annual and pay stubs) as required by audit decision has been issued by tax return, but within the tax the tax auditor and time spent the auditor. assessment period. submitting the documents requested by the auditor. Time also includes an average Time to comply with a tax waiting time to submit the refund correction under Simples A total estimate of zero hours is claim. The average waiting time to Nacional recorded if the process of claiming submit the refund claim is half a Time is recorded in hours. The indi- a tax refund is done automatically month if the refund claim is filed cator has two parts: within the standard tax return monthly. The average waiting time • The process of notifying the without the need to complete any to submit the refund claim is one tax authorities of the error, additional section or part of the month if the refund claim is filed amending the return, and mak- return, if no additional documents bimonthly. The average waiting ing additional payment. Time or tasks are required as a result time to submit the refund claim is includes time spent gathering of the input tax credit, and if, in one and a half months if the refund information and preparing the 50% or more of similar cases, the claim is filed quarterly. The average documents required to notify company is not subjected to an waiting time to submit the refund the tax authorities; time spent audit. An estimate of half an hour claim is three months if the refund submitting the documents; and is recorded for submission of doc- claim is filed semiannually. The time spent making the addi- uments if the submission is done average waiting time to submit the tional tax payment if the pay- electronically and is a matter of refund claim is six months if the ment is done separately from minutes. An estimate of zero hours refund claim is filed annually. Time the submission of the amended is recorded in the case of a field includes the mandatory carry for- Simples Nacional tax return. audit if documents are submitted ward time before a refund in cash • The process of complying with in person and at the taxpayer’s can be paid. The carry forward time a tax correction under Simples premises. is zero if there is no mandatory Nacional. This is captured if, in carry forward period. 25% or more of cases, the pool 180 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 of companies that were exposed interactions between the firm and the exercise of another member to additional review included the auditor; and time spent waiting firm’s professional judgment or bind another member firm or companies that self-reported an for the tax auditor to issue the final PwCIL in any way. error in the tax return, which tax assessment from the moment 3. The nonlinear score for the total resulted in their owing more in the firm has submitted all relevant tax and contribution rate is equal tax because of underpayment. information and documents and to the score for the total tax and The threshold used for assessing there are no further interactions contribution rate to the power of the tax audit is lower than the between the firm and the audi- 0.8. threshold used in the case of tor. Time to complete a corporate 4. Methodology updates are completed for two years of the cash refund for taxes similar income tax correction is recorded dataset to allow for a year-on to VAT. This is because the case as zero if less than 25% of compa- year comparison. The update study scenario of self-reporting nies will not go through an addi- would include Doing Business 2021 an error in the tax return and tional review. and Doing Business 2020 data. resulting in an underpayment 5. The economies for which a of the tax liability should only multiple of three times income be an issue among a small sam- per capita is used are the ple of companies selected for a Democratic Republic of Congo, Haiti, Honduras, Kenya, Liberia, tax audit. Unlike a tax correc- Mozambique, and Zimbabwe. tion, it is common that a one- Those for which a multiple of two time request for a cash refund times income per capita is used be exposed to a tax audit. Time Notes are Argentina, Benin; Bolivia, includes time spent gathering Burkina Faso, the Central African information and preparing 1. The equal access to property Republic, Chad, the Republic any documentation (informa- rights index ranges from –2 to 0 of Congo, Djibouti, Equatorial points and detracts a maximum Guinea, Guatemala, India, tion such as receipts, financial of 2 points when there is Lesotho, Madagascar, Malawi, statements, and pay stubs) as Mali, the Marshall Islands, the differential treatment for men required by the tax auditor and and women in the law in the Federated States of Micronesia, time spent by submitting the property regime. Therefore, the Morocco, Nepal, Nicaragua, Niger, documents requested by the lower overall score in the quality Pakistan, Papua New Guinea, the auditor. of land administration index Philippines, Sierra Leone, Togo, could be –2 if the score obtained Vanuatu, Vietnam, West Bank An estimate of half an hour is in the equal access to property and Gaza, and Zambia. rights index was –2 (because 6. The court structure and recorded for submission of docu- equal access to land is not granted proceedings index ranges from ments or payment of the income by law), and the scores obtained –1 to 5 points and detracts 1 tax liability due if the submission on the other indexes were 0. point when there is differential or payment is done electronically 2. PwC refers to the network treatment for the evidentiary in several minutes. An estimate of of member firms of value of the testimony of zero hours is recorded in the case PricewaterhouseCoopers men and women in the law. of a field audit if documents are International Limited (PwCIL) Therefore, the lower overall or, as the context requires, score in the quality of judicial submitted in person and at the tax- individual member firms of the processes index could be –1 if payer’s premises. the score obtained in the court PwC network. Each member firm is a separate legal entity and structure and proceedings index Time to complete a tax does not act as agent of PwCIL or was –1, and the scores obtained correction under Simples any other member firm. PwCIL on the other indexes were 0. Nacional does not provide any services to 7. Oliveira, Kelly. 2020. “Abertura Time is recorded in weeks. Time clients. PwCIL is not responsible de empresas cresce, enquanto includes the time to start an audit or liable for the acts or omissions fechamento recua em 8 meses.” of any of its member firms nor Agência Brasil, September 17. from the moment the tax authority can it control the exercise of their https://agenciabrasil.ebc.com. has been notified of the error in professional judgment or bind br/economia/noticia/2020-09/ the corporate income tax return; them in any way. No member abertura-de-empresas-cresce- time spent interacting with the firm is responsible or liable for enquanto-fechamento-recua- auditor from the moment an audit the acts or omissions of any other em-8-meses. begins until there are no further member firm nor can it control C H A P T E R 11 State profiles 181 182 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 ACRE RIO BRANCO Overall rank (1–27) 14 Aggregate score (5 topics) 54.9 Starting a business (rank) 24 Doing Business score (0–100) 77.6 Procedures (number) 13 Time (days) 17 Cost (% of income per capita) 4.9 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 11 Paying taxes (rank) 22 Doing Business score (0–100) 51.7 Doing Business score (0–100) 33.8 Procedures (number) 23 Payments (number) 10 Time (days) 295.5 Time (hours per year) 1,501 Cost (% of warehouse value) 0.7 TTCR (% of profit) 66.0 Building quality control index (0–15) 9.0 Postfiling index (0–100) 7.8 Registering property (rank) 25 Enforcing contracts (rank) 6 Doing Business score (0–100) 48.3 Doing Business score (0–100) 62.9 Procedures (number) 18 Time (days) 704 Time (days) 66.5 Cost (% of claim value) 29.4 Cost (% of property value) 3.1 Quality of judicial processes index (0–18) 12.5 Quality of land administration index (0–30) 13.5 Overall rank 6 11 Rank by indicator 14 22 24 25 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 54.9 Score by indicator 77.6 51.7 48.3 33.8 62.9 Source: Subnational Doing Business database. State profiles 183 STARTING A BUSINESS Acre Procedure 10*. Pay the operating fee LIST OF PROCEDURES Agency: Commercial bank Legal form: Limited Liability Company Time: Less than one day (online procedure) Paid-in minimum capital requirement: No minimum Cost: R$790.80 [6 UFMRB (Unidade Fiscal do Município de Rio Data as of: September 1st, 2020 Branco)*R$131.80] Procedure 1. Check the availability of the company name and Procedure 11*. Update employees’ information with Social the feasibility of the location Security (Programa de Integração Social - PIS) Agency: Municipality / Commercial Registry (via Redesim) Agency: Federal Savings Bank (Caixa Econômica Federal) Time: 2 days Time: 1 day Cost: No cost Cost: No cost Procedure 2. Apply for registration with the Federal Tax Procedure 12*. Notify the General Cadaster of Employed and Authority (Receita Federal) Unemployed Workers - CAGED - or eSocial Agency: Federal Tax Authority Agency: Ministry of Economy Time: 2 days Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 3. Pay registration fees Procedure 13*. Register with the Employers’ Union and with Agency: Commercial bank the Employees’ Union Time: Less than one day (online procedure) Agency: Employers’ Union and Employees’ Union Cost: No cost (fee included in procedure 4) Time: 1 day Cost: No cost Procedure 4. Register with the state commercial registry to Note: For detailed information on each procedure, see complete registration with the federal and state tax authorities https://www.doingbusiness.org/brazil. to obtain the National Corporate Taxpayer Registry (CNPJ) and the Company Registration Identification Number (NIRE) Agency: Commercial Registry Time: 3 days Cost: R$493.34 Procedure 5. Obtain a digital certificate (e-CNPJ) in order to issue electronic invoices Agency: Digital e-certifier Time: 2 days Cost: R$215 Procedure 6. Pay the state tax agency fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: R$14.28 Procedure 7*. Register with the municipal tax agency Agency: Municipal online services platform Time: Less than one day (online procedure) Cost: No cost Procedure 8. Obtain the operations license Agency: Municipality Time: 3 days Cost: R$131.80 [1 UFMRB (Unidade Fiscal do Município de Rio Branco)] Procedure 9. Pay the operations license fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 8) Source: Subnational Doing Business database. * Simultaneous with previous procedure 184 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 DEALING WITH CONSTRUCTION PERMITS Acre Procedure 9*. Request and obtain water and sewage LIST OF PROCEDURES feasibility declaration and project approval Agency: Water and Sewerage Agency Estimated value of warehouse: R$1,674,131 Data as of: September 1st, 2020 Time: 30 days Cost: R$448 Procedure 1. Request and obtain a land ownership certificate from the property registry Procedure 10. Register construction at the National Registry of Construction Works (CNO) Agency: Property registry Agency: Federal Revenue Service Time: 5 days Time: Less than one day (online procedure) Cost: R$27 (Property registry fee: R$22.87 + Compensation fund fee: Cost: No cost R$1.34 + Inspection fund fee: R$2.69) Procedure 11. Receive random inspection from Procedure 2. Perform consultation of suitability for Municipality construction Agency: Secretary of Infrastructure and Urban Mobility (Municipality) Agency: Secretary of Infrastructure and Urban Mobility (Municipality) Time: 1 day Time: 15 days Cost: No cost Cost: R$132 [(TU: Tax Units) Feasibility conditions certificate: 1 TU] Procedure 12. Receive inspection from Labor Public Procedure 3*. Obtain results of soil study Attorneys’ Office Agency: Private agency Agency: Labor Public Attorneys’ Office Time: 6 days Time: 1 day Cost: R$4,000 Cost: No cost Procedure 4*. Obtain a topographic survey Procedure 13. Request inspection from Fire Department Agency: Private licensed company Agency: Fire Department Time: 4 days Time: Less than one day (online procedure) Cost: R$1,350 Cost: No cost Procedure 5*. Obtain Technical Term of Responsibility (ART) Procedure 14. Receive inspection from Fire Department or Technical Report of Responsibility (RRT) Agency: Fire Department Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Time: 1 day Time: 2 days Cost: No cost Cost: R$234 (Fixed price for contracts over R$15,000.01) Procedure 15. Obtain Fire Department Certificate Procedure 6*. Request and obtain Debt Clearance Certificate Agency: Fire Department (CND) Time: 30 days Agency: Secretary of Finance (Municipality) Cost: R$466 [Inspection report fee: R$50 + Registration fee for businesses Time: 1 day (except for microbusinesses): R$100 + Fire Department inspection report Cost: No cost issuance: R$80 (up to 120 m²) + R$10 (per each 50 m² over 120 m²)] Procedure 7*. Submit project for analysis by Fire Department Procedure 16*. Receive inspection from water and sewage and obtain report company Agency: Fire Department Agency: Water and Sewerage Agency Time: 30 days Time: 1 day Cost: R$552 [Project analysis: R$80 (up to 120 m²) + R$20 (per each 50 m² Cost: No cost over 120 m²)] Procedure 17. Request and connect to water and sewage Procedure 8. Request and obtain project approval and Agency: Water and Sewerage Agency construction permit Time: 30 days Agency: Secretary of Infrastructure and Urban Mobility (Municipality) Cost: R$1,254 [Water connection: R$358.40 + Sewage connection: R$896] Time: 120 days Cost: R$923 [(TU: Tax Units) Project approval application fee (commercial Procedure 18*. Obtain Certificate of Tax Payment use over 500 m²): 0.5 TU + Architectural project approval (commercial use Agency: Secretary of Finance (Municipality) over 500 m²): 6 TU + Building permit issuance: 0.5 TU] Time: 1 day Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 185 Procedure 19. Request final inspection from Municipality BUILDING QUALITY CONTROL INDEX Agency: Secretary of Infrastructure and Urban Mobility (Municipality) Time: 1 day Score Cost: No cost Acre Building quality control index (0–15) 9.0 Quality of building regulations index (0–2) 2.0 Procedure 20. Receive final inspection from Municipality Agency: Secretary of Infrastructure and Urban Mobility (Municipality) Quality control before construction index (0–1) 1.0 Time: 1 day Quality control during construction index (0–3) 0.0 Cost: No cost Quality control after construction index (0–3) 3.0 Procedure 21. Obtain certificate of occupancy (“Habite-se”) Liability and insurance regimes index (0–2) 1.0 Agency: Secretary of Infrastructure and Urban Mobility (Municipality) Professional certifications index (0–4) 2.0 Time: 49 days Cost: R$92 [(TU: Tax Units) Certificate of occupancy inspection: 0.50 TU/unit Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. + Inspection request fee: 0.20 TU] Procedure 22. Close CNO registration and obtain debt clearance certificate Agency: Federal Revenue Service Time: Less than one day (online procedure) Cost: No cost Procedure 23. Register building with the property registry Agency: Property registry Time: 20 days Cost: R$2,874 [Registration fee for properties with total value over R$500,000: R$2,442.82 + Compensation fund: R$143.69 + Inspection fee: R$287.39] Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. REGISTERING PROPERTY Procedure 3*. Obtain certificate of dispute (Certidão de LIST OF PROCEDURES Protesto de Títulos e Outros Documentos de Dívida) Agency: Dispute registry (2º Tabelionato de Protesto de Títulos) Estimated property value: R$1,674,131 Data as of: September 1st, 2020 Time: 3 days Cost: R$42.30 [R$35.95 for registrar fees + R$2.12 for FECOM + R$4.23 for FUNEJ] Procedure 1. Obtain ownership and no-lien certificates (Certidão de Inteiro Teor de Matrícula, Certidão de Ônus Reais, and Certidão de Ações Reais e Pessoais Procedure 4*. Obtain company certificate of good standing Reipersecutórias) (Certidão Simplificada da Empresa) Agency: Property registry (Cartório de Registro de Imóveis) Agency: Commercial registry (Junta Comercial do Estado do Acre) Time: 5 days Time: 2 days Cost: R$88.70 [R$26.90 for each certificate (x3). The cost of each certificate Cost: R$93.55 is calculated as follows: R$22.87 for registrar fees + R$1.34 for FECOM + R$2.69 for FUNEJ] Procedure 5*. Obtain state justice certificates (Certidões Negativas Cível, Criminal, de Execução Fiscal e de Falências Procedure 2*. Obtain certificate of dispute (Certidão de e Recuperação Judicial) Protesto de Títulos e Outros Documentos de Dívida) Agency: State Justice Court (Tribunal de Justiça do Estado do Acre) Agency: Dispute registry (1º Tabelionato de Protesto de Títulos) Time: Less than one day (online procedure) Time: 3 days Cost: No cost Cost: R$42.30 [R$35.95 for registrar fees + R$2.12 for FECOM + R$4.23 for FUNEJ] Procedure 6*. Obtain labor justice certificate (Certidão de Ações Trabalhistas) Agency: Regional Labor Court (Tribunal Regional do Trabalho da 14ª Região) Time: Less than one day (online procedure) Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure 186 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 7*. Obtain certificate of good standing on labor Procedure 16. Prepare public deed of purchase and sale debts (Certidão Negativa de Débitos Trabalhistas) Agency: Public notary (Tabelionato de Notas) Agency: High Labor Court (Tribunal Superior do Trabalho) Time: 15 days Time: Less than one day (online procedure) Cost: R$11,495.60 (R$9,771.26 for notary fees + R$574.78 for FECOM + Acre Cost: No cost R$1,149.56 for FUNEJ] Procedure 8*. Obtain municipal taxes clearance certificates Procedure 17. Register public deed of purchase and sale (Certidão Negativa de Débitos de Cadastro Imobiliário Agency: Property registry (Cartório de Registro de Imóveis) and Certidão Negativa de Débitos de Pessoa Jurídica) and Time: 20 days cadastral certificate (Boletim de Cadastro Imobiliário) Cost: R$5,817.10 (R$4,885.63 for registration + R$42.40 for provisional Agency: Municipal tax authority (Secretaria Municipal de Finanças) registration + R$26.90 for issuing the Certidão de Matrícula Atualizada + Time: 1 day R$287.39 for FECOM + R$574.78 for FUNEJ) Cost: No cost Procedure 18*. Update municipal taxpayer records to the new Procedure 9*. Obtain state taxes clearance certificate (Certidão owner’s name (cadastro do contribuinte para fins de IPTU) Negativa de Débitos Estaduais) Agency: Municipal tax authority (Secretaria Municipal de Finanças) Agency: State tax authority (Secretaria da Fazenda do Governo do Estado Time: 15 days do Acre) Cost: R$26.36 (for administrative fees) Time: Less than one day (online procedure) Cost: No cost Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. Procedure 10*. Obtain federal taxes clearance certificate (Certidão de Débitos Relativos a Créditos Tributários Federais QUALITY OF LAND ADMINISTRATION INDEX e à Dívida Ativa da União) Agency: Federal Revenue Service & Office of the Attorney General of the Score National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- Quality of land administration index (0–30) 13.5 Geral da Fazenda Nacional) Time: Less than one day (online procedure) Reliability of infrastructure index (0–8) 5.0 Cost: No cost Transparency of information index (0–6) 4.0 Procedure 11*. Obtain workers fund certificate (Certidão de Geographic coverage index (0–8) 0.0 Regularidade do FGTS) Land dispute resolution index (0–8) 4.5 Agency: Federal Savings Bank (Caixa Econômica Federal) Time: Less than one day (online procedure) Equal access to property rights index (-2–0) 0.0 Cost: No cost Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. Procedure 12*. Obtain federal justice certificate (Certidão Cível e Criminal) Agency: Federal Justice Court (Tribunal Regional Federal da 1ª Região/Seção Judiciária do Acre) Time: Less than one day (online procedure) Cost: No cost Procedure 13. Request property tax payment slip (Imposto sobre a Transmissão de Bens Imóveis e de Direitos, ITBI) Agency: Municipal tax authority (Secretaria Municipal de Finanças) Time: 20 days Cost: No cost Procedure 14. Pay property transfer tax Agency: Commercial bank Time: 2 days Cost: R$33,548.52 (2% of the property value + R$65.90 for administrative fees) Procedure 15. Obtain property transfer tax proof of payment Agency: Municipal tax authority (Secretaria Municipal de Finanças) Time: 1 day Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 187 ENFORCING CONTRACTS Acre Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 84 Quality of judicial processes index (0–18) 12.5 Trial and judgment 365 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 255 Case management (0–6) 3.0 Total time 704 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 20.0 Note: For a list of all components, questions and results on this index, refer to Court fees 9.2 the “Quality indexes details” section. Enforcement fees 0.2 Total cost 29.4 Source: Subnational Doing Business database. 188 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 ALAGOAS MACEIÓ Overall rank (1–27) 18 Aggregate score (5 topics) 53.8 Starting a business (rank) 8 Doing Business score (0–100) 82.8 Procedures (number) 10 Time (days) 12.5 Cost (% of income per capita) 7.4 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 16 Paying taxes (rank) 3 Doing Business score (0–100) 48.0 Doing Business score (0–100) 34.5 Procedures (number) 21 Payments (number) 10 Time (days) 352.5 Time (hours per year) 1,501 Cost (% of warehouse value) 1.9 TTCR (% of profit) 64.6 Building quality control index (0–15) 9.0 Postfiling index (0–100) 7.8 Registering property (rank) 7 Enforcing contracts (rank) 22 Doing Business score (0–100) 53.8 Doing Business score (0–100) 49.6 Procedures (number) 15 Time (days) 1,125 Time (days) 37 Cost (% of claim value) 34.0 Cost (% of property value) 1.1 Quality of judicial processes index (0–18) 12.5 Quality of land administration index (0–30) 12.0 Overall rank 3 7 8 Rank by indicator 16 18 22 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 53.8 Score by indicator 82.8 48.0 53.8 34.5 49.6 Source: Subnational Doing Business database. State profiles 189 STARTING A BUSINESS Procedure 9*. Notify the General Cadaster of Employed and LIST OF PROCEDURES Alagoas Unemployed Workers - CAGED - or eSocial Agency: Ministry of Economy Legal form: Limited Liability Company Paid-in minimum capital requirement: No minimum Time: Less than one day (online procedure) Data as of: September 1st, 2020 Cost: No cost Procedure 1. Check the availability of the company name and Procedure 10*. Register with the Employers’ Union and with the feasibility of the location the Employees’ Union Agency: Municipality / Commercial Registry (via Redesim) Agency: Employers’ Union and Employees’ Union Time: 2 days Time: 1 day Cost: No cost Cost: No cost Note: For detailed information on each procedure, see Procedure 2. Apply for registration with the Federal Tax https://www.doingbusiness.org/brazil. Authority (Receita Federal) Agency: Federal Tax Authority Time: Less than one day (online procedure) Cost: No cost Procedure 3. Pay registration fees Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (Fee included in procedure 4) Procedure 4. Register with the state commercial registry to complete registration with the federal, state and municipal tax authorities to obtain the National Corporate Taxpayer Registry (CNPJ) and the Company Registration Identification Number (NIRE) Agency: Commercial Registry Time: 2 days Cost: R$295 Procedure 5. Obtain a digital certificate (e-CNPJ) in order to issue electronic invoices Agency: Digital e-certifier Time: 2 days Cost: R$222 Procedure 6. Pay the operations license fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 7) Procedure 7. Obtain the operations license Agency: Municipal Secretariat of Economy Time: 5 days Cost: R$1,963.10 Procedure 8*. Update employees’ information with Social Security (Programa de Integração Social - PIS) Agency: Federal Savings Bank (Caixa Econômica Federal) Time: 1 day Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure 190 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 DEALING WITH CONSTRUCTION PERMITS Procedure 10. Register construction at the National Registry LIST OF PROCEDURES Alagoas of Construction Works (CNO) Agency: Federal Revenue Service Estimated value of warehouse: R$1,674,131 Data as of: September 1st, 2020 Time: Less than one day (online procedure) Cost: No cost Procedure 1. Request and obtain a land ownership certificate from the property registry Procedure 11*. Receive inspection from Labor Public Agency: Property registry Attorneys’ Office Time: 3 days Agency: Labor Public Attorneys’ Office Cost: R$30 [Property registry fee: R$22.88 + Safety label (SAS): R$7.12] Time: 1 day Cost: No cost Procedure 2. Perform consultation of suitability for construction Procedure 12. Request inspection from Fire Department Agency: Secretary of Territorial Development and Environment (Municipality) Agency: Fire Department Time: 20 days Time: Less than one day (online procedure) Cost: R$350 Cost: No cost Procedure 3*. Obtain results of soil study Procedure 13. Receive inspection from Fire Department Agency: Private agency Agency: Fire Department Time: 19 days Time: 1 day Cost: R$3,750 Cost: No cost Procedure 4*. Obtain a topographic survey Procedure 14. Obtain Fire Department Certificate Agency: Private licensed company Agency: Fire Department Time: 7 days Time: 60 days Cost: R$3,175 Cost: R$441 Procedure 5*. Obtain Technical Term of Responsibility (ART) Procedure 15*. Receive the inspection from the sanitation or Technical Report of Responsibility (RRT) entity Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Agency: Water and Sewerage Agencies (Companhia de Saneamento de Time: 3 days Alagoas - CASAL) Cost: R$234 (Fixed price for contracts over R$15,000.01) Time: 1 day Cost: R$41 Procedure 6*. Approve waste management report Agency: Water and Sewerage Agencies (Companhia de Saneamento de Procedure 16. Request and connect to water and sewage Alagoas - CASAL) Agency: Water and Sewerage Agency Time: 7 days Time: 15 days Cost: R$1,315 (Low risk fee) Cost: R$1,556 (Water connection: R$621.25 + Sewage connection: R$934.36) Procedure 7*. Request and obtain environmental license Agency: Secretary of Territorial Development and Environment (Municipality) Procedure 17*. Request final inspection from Municipality Time: 60 days Agency: Secretary of Territorial Development and Environment (Municipality) Cost: R$2,854 (Preliminary license: R$475.69 + Installation license: Time: Less than one day (online procedure) R$1,189.23 + Operating license: R$1,189.23) Cost: No cost Procedure 8*. Submit project for analysis by Fire Department Procedure 18. Receive final inspection from Municipality and obtain report Agency: Secretary of Territorial Development and Environment (Municipality) Agency: Fire Department Time: 1 day Time: 45 days Cost: No cost Cost: R$294 Procedure 9. Request and obtain project approval permit and Procedure 19. Obtain certificate of occupancy (“Habite-se”) construction execution permit Agency: Secretary of Territorial Development and Environment (Municipality) Agency: Secretary of Territorial Development and Environment (Municipality) Time: 90 days Time: 90 days Cost: R$4,711 [R$250 (minimum) + R$3.43/m²] Cost: R$12,105.4 (Project permit file fee: R$250 + Execution works initial fee: R$150 + Building permit: R$9/m²) Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 191 Procedure 20. Close CNO registration and obtain debt BUILDING QUALITY CONTROL INDEX clearance certificate Agency: Federal Revenue Service Score Time: Less than one day (online procedure) Building quality control index (0–15) 9.0 Cost: No cost Alagoas Quality of building regulations index (0–2) 2.0 Procedure 21. Register building with the property registry Quality control before construction index (0–1) 1.0 Agency: Property registry Quality control during construction index (0–3) 0.0 Time: 25 days Cost: R$1,699 (Registration fee: 50% of R$3,398.56) Quality control after construction index (0–3) 3.0 Note: For detailed information on each procedure, see Liability and insurance regimes index (0–2) 1.0 https://www.doingbusiness.org/brazil. Professional certifications index (0–4) 2.0 Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. REGISTERING PROPERTY Procedure 6*. Obtain municipal taxes clearance certificates LIST OF PROCEDURES (Certidão de Regularidade Fiscal and Certidão Imobiliária) and cadastral certificate (Boletim de Cadastro Imobiliário) Estimated property value: R$1,674,131 Data as of: September 1st, 2020 Agency: Municipal tax authority (Secretaria Municipal de Economia) Time: Less than one day (online procedure) Cost: No cost Procedure 1. Obtain ownership and no-lien certificate (Certidão de Ônus Reais) Procedure 7*. Obtain state taxes clearance certificate (Certidão Agency: Property registry (Cartório de Registro de Imóveis) Negativa de Débitos Estaduais) Time: 3 days Cost: R$30 (R$22.88 for registrar fees + R$7.12 for authenticity stamp) Agency: State tax authority (Secretaria da Fazenda do Governo do Estado de Alagoas) Time: Less than one day (online procedure) Procedure 2*. Obtain consolidated certificate of dispute Cost: No cost (Certidão de Distribuição de Protesto de Títulos e Outros Documentos de Dívida) Procedure 8*. Obtain federal taxes clearance certificate Agency: Dispute registries distribution service (3º Ofício de Registro de (Certidão de Débitos Relativos a Créditos Tributários Federais Imóveis e Distribuição de Títulos para Protesto) e à Dívida Ativa da União) Time: 1 day Agency: Federal Revenue Service & Office of the Attorney General of the Cost: R$24.40 National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- Geral da Fazenda Nacional) Procedure 3*. Obtain state justice certificates (Certidão Time: Less than one day (online procedure) de Distribuição Cível, Certidão de Distribuição de Cost: No cost Execução Fiscal, and Certidão de Distribuição de Ações de Falência, Insolvência, Concordata e Recuperação Judicial e Procedure 9*. Obtain workers fund certificate (Certidão de Extrajudicial) Regularidade do FGTS) Agency: State Justice Court (Tribunal de Justiça do Estado de Alagoas) Agency: Federal Savings Bank (Caixa Econômica Federal) Time: Less than one day (online procedure) Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 4*. Obtain labor justice certificate (Certidão de Procedure 10*. Obtain federal justice certificate (Certidão de Ações Trabalhistas) Distribuição Cível, Criminal e Execução Fiscal) Agency: Regional Labor Court (Tribunal Regional do Trabalho da 19ª Região) Agency: Federal Justice Court (Tribunal Regional Federal da 5ª Região/Seção Time: Less than one day (online procedure) Judiciária de Alagoas) Cost: No cost Time: Less than one day (online procedure) Cost: No cost Procedure 5*. Obtain certificate of good standing on labor debts (Certidão Negativa de Débitos Trabalhistas) Procedure 11*. Obtain company certificate of good standing Agency: High Labor Court (Tribunal Superior do Trabalho) (Certidão Simplificada da Empresa) Time: Less than one day (online procedure) Agency: Commercial registry (Junta Comercial do Estado de Alagoas) Cost: No cost Time: Less than one day (online procedure) Cost: R$40 Source: Subnational Doing Business database. * Simultaneous with previous procedure 192 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 12. Request property tax payment slip (Imposto QUALITY OF LAND ADMINISTRATION INDEX sobre a Transmissão de Bens Imóveis e de Direitos, ITBI) Agency: Municipal tax authority (Secretaria Municipal de Economia) Score Time: 3 days Quality of land administration index (0–30) 12.0 Cost: No cost Alagoas Reliability of infrastructure index (0–8) 5.0 Procedure 13. Pay property transfer tax Transparency of information index (0–6) 2.5 Agency: Commercial bank Geographic coverage index (0–8) 0.0 Time: Less than one day (online procedure) Cost: R$11,049.27 (0.66% of the property value) Land dispute resolution index (0–8) 4.5 Equal access to property rights index (-2–0) 0.0 Procedure 14. Prepare public deed of purchase and sale Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. Agency: Public notary (Tabelionato de Notas) Time: 2 days Cost: R$4,426.13 (R$4,226.30 for notary fees + R$199.83 for authenticity stamp) Procedure 15. Register public deed of purchase and sale Agency: Property registry (Cartório de Registro de Imóveis) Time: 25 days Cost: R$3,398.56 (R$3,198.73 for registrar fees + R$199.83 for authenticity stamp) Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 99 Quality of judicial processes index (0–18) 12.5 Trial and judgment 571 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 455 Case management (0–6) 3.0 Total time 1,125 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 23.3 Note: For a list of all components, questions and results on this index, refer to Court fees 10.2 the “Quality indexes details” section. Enforcement fees 0.6 Total cost 34.0 Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 193 AMAPÁ MACAPÁ Overall rank (1–27) 25 Aggregate score (5 topics) 52.3 Amapá Starting a business (rank) 19 Doing Business score (0–100) 79.5 Procedures (number) 12 Time (days) 15.5 Cost (% of income per capita) 4.7 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 21 Paying taxes (rank) 5 Doing Business score (0–100) 46.2 Doing Business score (0–100) 34.4 Procedures (number) 22 Payments (number) 10 Time (days) 397.5 Time (hours per year) 1,483 Cost (% of warehouse value) 1.5 TTCR (% of profit) 64.8 Building quality control index (0–15) 9.0 Postfiling index (0–100) 7.8 Registering property (rank) 27 Enforcing contracts (rank) 13 Doing Business score (0–100) 45.2 Doing Business score (0–100) 56.5 Procedures (number) 19 Time (days) 922 Time (days) 68 Cost (% of claim value) 30.5 Cost (% of property value) 3.8 Quality of judicial processes index (0–18) 12.5 Quality of land administration index (0–30) 11.5 Overall rank 5 Rank by 13 indicator 19 21 27 25 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 52.3 Score by indicator 79.5 46.2 45.2 34.4 56.5 Source: Subnational Doing Business database. 194 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 STARTING A BUSINESS Procedure 10*. Update employees’ information with Social LIST OF PROCEDURES Security (Programa de Integração Social - PIS) Agency: Federal Savings Bank (Caixa Econômica Federal) Legal form: Limited Liability Company Amapá Paid-in minimum capital requirement: No minimum Time: 1 day Data as of: September 1st, 2020 Cost: No cost Procedure 1. Check the availability of the company name and Procedure 11*. Notify the General Cadaster of Employed and the feasibility of the location Unemployed Workers - CAGED - or eSocial Agency: Municipality / Commercial Registry (via Redesim) Agency: Ministry of Economy Time: 2 days Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 2. Apply for registration with the Federal Tax Procedure 12*. Register with the Employers’ Union and with Authority (Receita Federal) the Employees’ Union Agency: Federal Tax Authority Agency: Employers’ Union and Employees’ Union Time: Less than one day (online procedure) Time: 1 day Cost: No cost Cost: No cost Procedure 3. Pay registration fees Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 4) Procedure 4. Register with the state commercial registry to complete registration with the federal tax authority to obtain the National Corporate Taxpayer Registry (CNPJ) and the Company Registration Identification Number (NIRE) Agency: Commercial Registry Time: 2 days Cost: R$270 Procedure 5. Register with the state tax agency Agency: State Secretariat of Finance Time: 4 days Cost: No cost Procedure 6*. Register with the municipal tax agency Agency: Municipal Secretariat of Finance Time: 2 days Cost: No cost Procedure 7. Obtain a digital certificate (e-CNPJ) in order to issue electronic invoices Agency: Digital e-certifier Time: 2 days Cost: R$200 Procedure 8. Pay the operations license fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 9) Procedure 9. Obtain the operations license Agency: Municipality Time: 4 days Cost: R$1,097.54 [524 UFM*R$2.9922 (UFM value in 2020), with a 30% discount for small businesses - Empresa de Pequeno Porte (EPP)] Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 195 DEALING WITH CONSTRUCTION PERMITS Procedure 10. Register construction at the National Registry LIST OF PROCEDURES of Construction Works (CNO) Agency: Federal Revenue Service Estimated value of warehouse: R$1,674,131 Amapá Data as of: September 1st, 2020 Time: Less than one day (online procedure) Cost: No cost Procedure 1. Request and obtain a land ownership certificate from the property registry Procedure 11*. Receive inspection from Labor Public Agency: Property registry Attorneys’ Office Time: 4 days Agency: Labor Public Attorneys’ Office Cost: R$71 (Property registry fee: R$65.99 + Extrajudicial costs: R$4.62) Time: 1 day Cost: No cost Procedure 2. Perform consultation of suitability for construction Procedure 12. Request inspection from Fire Department Agency: Secretary of Urban Development and Housing (Municipality) Agency: Fire Department Time: 23 days Time: 1 day Cost: R$86 [(TU: Tax Unit) 30 TU] Cost: No cost Procedure 3*. Obtain results of soil study Procedure 13. Receive inspection from Fire Department Agency: Private agency Agency: Fire Department Time: 3 days Time: 1 day Cost: R$6,000 Cost: No cost Procedure 4*. Obtain a topographic survey Procedure 14. Obtain Fire Department Certificate Agency: Private licensed company Agency: Fire Department Time: 5 days Time: 60 days Cost: R$1,600 Cost: R$852 [R$106.48 (minimum) depending on the constructed area over 50 m²] Procedure 5*. Obtain Technical Term of Responsibility (ART) or Technical Report of Responsibility (RRT) Procedure 15*. Receive inspection from water and sewage Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) company Time: 1 day Agency: Water and Sewerage Agency Cost: R$234 (Fixed price for contracts over R$15,000.01) Time: 1 day Cost: No cost Procedure 6*. Request and obtain Debt Clearance Certificate (CND) Procedure 16. Request and connect to water and sewage Agency: Secretary of Finance (Municipality) Agency: Water and Sewerage Agency Time: 1 day Time: 15 days Cost: No cost Cost: R$128 [Water connection (industrial category): R$73.20 + Sewage connection: 0.75 * Water connection fee] Procedure 7. Request and obtain water and sewage feasibility declaration and project approval Agency: Water and Sewerage Agency Procedure 17*. Obtain Certificate of Tax Payment Time: 30 days Agency: Secretary of Finance (Municipality) Cost: R$239 Time: 15 days Cost: No cost Procedure 8*. Submit project for analysis by Fire Department and obtain report Procedure 18. Request final inspection from Municipality Agency: Fire Department Agency: Secretary of Urban Development and Housing (Municipality) Time: 68 days Time: Less than one day (online procedure) Cost: R$408 [R$99.99 (minimum) depending on the constructed area over 50 m²] Cost: No cost Procedure 9. Request and obtain construction permit Procedure 19. Receive final inspection from Municipality Agency: Secretary of Urban Development and Housing (Municipality) Agency: Secretary of Urban Development and Housing (Municipality) Time: 150 days Time: 1 day Cost: R$1,534 [(TU: Tax Unit) 532 TU (up to 500 m²) + 2 TU (each 50 m² Cost: No cost over 500 m²)] Source: Subnational Doing Business database. * Simultaneous with previous procedure 196 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 20. Obtain certificate of occupancy (“Habite-se”) BUILDING QUALITY CONTROL INDEX Agency: Secretary of Urban Development and Housing (Municipality) Time: 45 days Score Cost: R$7,889 [(TU: Tax Unit) Request fee: R$51.71 + Certificate of Building quality control index (0–15) 9.0 occupancy: 2.09 TU/m²] Quality of building regulations index (0–2) 2.0 Procedure 21. Close CNO registration and obtain debt Quality control before construction index (0–1) 1.0 Amapá clearance certificate Quality control during construction index (0–3) 0.0 Agency: Federal Revenue Service Time: Less than one day (online procedure) Quality control after construction index (0–3) 3.0 Cost: No cost Liability and insurance regimes index (0–2) 1.0 Procedure 22. Register building with the property registry Professional certifications index (0–4) 2.0 Agency: Property registry Note: For a list of all components, questions and results on this index, refer to Time: 25 days the “Quality indexes details” section. Cost: R$5,437 (Registration fee for properties with total value over R$500,000) Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. REGISTERING PROPERTY Procedure 5*. Obtain labor justice certificate (Certidão de LIST OF PROCEDURES Ações Trabalhistas) Agency: Regional Labor Court (Tribunal Regional do Trabalho da 8ª Região) Estimated property value: R$1,674,131 Data as of: September 1st, 2020 Time: 2 days Cost: R$5.53 [for issuing the Guia de Recolhimento da União (GRU)] Procedure 1. Obtain ownership and no-lien certificates (Certidão de Matrícula Atualizada, Certidão de Ônus Reais, Procedure 6*. Obtain state justice certificates (Certidão Cível e and Certidão de Ações Reais e Pessoais Reipersecutórias) Criminal and Certidão de Falência e Recuperação Judicial) Agency: Property registry (Cartório de Registro de Imóveis) Agency: State Justice Court (Tribunal de Justiça do Estado do Amapá) Time: 4 days Time: Less than one day (online procedure) Cost: R$171.51 [R$70.61 for issuing the Certidão de Matrícula Atualizada Cost: No cost (R$65.99 for registrar fees + R$4.62 for TFJ) + R$50.45 for issuing the Certidão de Ônus Reais (R$47.15 for registrar fees + R$3.30 for TFJ) + Procedure 7*. Obtain certificate of good standing on labor R$50.45 for issuing the Certidão de Ações Reais (R$47.15 for registrar fees debts (Certidão Negativa de Débitos Trabalhistas) + R$3.30 for TFJ)] Agency: High Labor Court (Tribunal Superior do Trabalho) Time: Less than one day (online procedure) Procedure 2*. Obtain company certificate of good standing Cost: No cost (Certidão Simplificada da Empresa) Agency: Commercial registry (Junta Comercial do Estado do Amapá) Procedure 8*. Obtain municipal taxes clearance certificate Time: 3 days (Certidão de Contribuinte Pessoa Jurídica) and cadastral Cost: R$32 certificate (Certidão Imobiliária) Agency: Municipal tax authority (Secretaria Municipal de Finanças) Procedure 3*. Obtain certificate of dispute (Certidão de Time: 1 day Protesto de Títulos e Outros Documentos de Dívida) Cost: No cost Agency: Dispute registry (1º Tabelionato de Protesto de Títulos) Time: 3 days Procedure 9*. Obtain state taxes clearance certificate (Certidão Cost: R$79.22 (R$56.59 for registrar fees + R$22.63 for filing) Negativa de Débitos Estaduais) Agency: State tax authority (Secretaria da Fazenda do Governo do Estado Procedure 4*. Obtain certificate of dispute (Certidão de do Amapá) Protesto de Títulos e Outros Documentos de Dívida) Time: Less than one day (online procedure) Agency: Dispute registry (2º Tabelionato de Protesto de Títulos) Cost: No cost Time: 3 days Cost: R$79.22 (R$56.59 for registrar fees + R$22.63 for filing) Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 197 Procedure 10*. Obtain federal taxes clearance certificate Procedure 16. Obtain property transfer tax proof of payment (Certidão de Débitos Relativos a Créditos Tributários Federais Agency: Municipality (Central de Atendimento ao Contribuinte) e à Dívida Ativa da União) Time: 1 day Agency: Federal Revenue Service & Office of the Attorney General of the Cost: No cost National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- Geral da Fazenda Nacional) Procedure 17. Prepare public deed of purchase and sale Time: Less than one day (online procedure) Agency: Public notary (Tabelionato de Notas) Amapá Cost: No cost Time: 5 days Cost: R$14,823.09 (R$13,475.53 for notary fees + R$673.78 for TSRN + Procedure 11*. Obtain workers fund certificate (Certidão de R$673.78 for TFJ) Regularidade do FGTS) Agency: Federal Savings Bank (Caixa Econômica Federal) Procedure 18. Register public deed of purchase and sale Time: Less than one day (online procedure) Agency: Property registry (Cartório de Registro de Imóveis) Cost: No cost Time: 30 days Cost: R$15,484.05 (R$14,076.41 for registrar fees + R$422.29 for TSRN + Procedure 12*. Obtain federal justice certificate (Certidão R$985.35 for TFJ) Cível e Criminal) Agency: Federal Justice Court (Tribunal Regional Federal da 1ª Região/Seção Procedure 19. Update municipal taxpayer records to the new Judiciária do Amapá) owner’s name (cadastro do contribuinte para fins de IPTU) Time: Less than one day (online procedure) Agency: Municipal tax authority (Secretaria Municipal de Finanças) Cost: No cost Time: 10 days Cost: No cost Procedure 13. Request property tax payment slip (Imposto sobre a Transmissão de Bens Imóveis e de Direitos, ITBI) Note: For detailed information on each procedure, see Agency: Municipality (Central de Atendimento ao Contribuinte) https://www.doingbusiness.org/brazil. Time: 1 day Cost: No cost QUALITY OF LAND ADMINISTRATION INDEX Procedure 14. Receive inspection to estimate the property Score value Quality of land administration index (0–30) 11.5 Agency: Municipal tax authority (Secretaria Municipal de Finanças) Time: 10 days Reliability of infrastructure index (0–8) 4.0 Cost: No cost Transparency of information index (0–6) 3.0 Geographic coverage index (0–8) 0.0 Procedure 15. Pay property transfer tax Agency: Commercial bank Land dispute resolution index (0–8) 4.5 Time: 2 days Equal access to property rights index (-2–0) 0.0 Cost: R$33,482.62 (2% of the property value) Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. ENFORCING CONTRACTS Claim value: R$66,965. Data as of: September 1st, 2020. INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 77 Quality of judicial processes index (0–18) 12.5 Trial and judgment 545 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 300 Case management (0–6) 3.0 Total time 922 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 21.6 Note: For a list of all components, questions and results on this index, refer to Court fees 9.0 the “Quality indexes details” section. Enforcement fees 0.0 Total cost 30.5 Source: Subnational Doing Business database. * Simultaneous with previous procedure 198 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 AMAZONAS MANAUS Overall rank (1–27) 16 Aggregate score (5 topics) 54.4 Amazonas Starting a business (rank) 18 Doing Business score (0–100) 79.5 Procedures (number) 11 Time (days) 20.5 Cost (% of income per capita) 6.1 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 14 Paying taxes (rank) 7 Doing Business score (0–100) 49.5 Doing Business score (0–100) 34.3 Procedures (number) 23 Payments (number) 10 Time (days) 298.5 Time (hours per year) 1,501 Cost (% of warehouse value) 2.3 TTCR (% of profit) 64.9 Building quality control index (0–15) 9.0 Postfiling index (0–100) 7.8 Registering property (rank) 8 Enforcing contracts (rank) 15 Doing Business score (0–100) 53.6 Doing Business score (0–100) 54.8 Procedures (number) 14 Time (days) 1,049 Time (days) 26 Cost (% of claim value) 25.7 Cost (% of property value) 4.3 Quality of judicial processes index (0–18) 12.5 Quality of land administration index (0–30) 16.5 Overall rank 7 8 Rank by indicator 14 15 18 16 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 54.4 Score by indicator 79.5 49.5 53.6 34.3 54.8 Source: Subnational Doing Business database. State profiles 199 STARTING A BUSINESS Procedure 9*. Update employees’ information with Social LIST OF PROCEDURES Security (Programa de Integração Social - PIS) Agency: Federal Savings Bank (Caixa Econômica Federal) Legal form: Limited Liability Company Paid-in minimum capital requirement: No minimum Time: 1 day Cost: No cost Amazonas Data as of: September 1st, 2020 Procedure 1. Check the availability of the company name and Procedure 10*. Notify the General Cadaster of Employed and the feasibility of the location Unemployed Workers - CAGED - or eSocial Agency: Municipality / Commercial Registry (via Redesim) Agency: Ministry of Economy Time: 2 days Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 2. Apply for registration with the Federal Tax Procedure 11*. Register with the Employers’ Union and with Authority (Receita Federal) the Employees’ Union Agency: Federal Tax Authority Agency: Employers’ Union and Employees’ Union Time: Less than one day (online procedure) Time: 1 day Cost: No cost Cost: No cost Note: For detailed information on each procedure, see Procedure 3. Pay registration fees https://www.doingbusiness.org/brazil. Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 4) Procedure 4. Register with the state commercial registry to complete registration with the federal and municipal tax authorities to obtain the National Corporate Taxpayer Registry (CNPJ) and the Company Registration Identification Number (NIRE) Agency: Commercial Registry Time: 3 days Cost: R$471.55 Procedure 5. Register with the state tax agency Agency: State Secretariat of Finance Time: 2 days Cost: No cost Procedure 6. Obtain a digital certificate (e-CNPJ) in order to issue electronic invoices Agency: Digital e-certifier Time: 2 days Cost: R$242 Procedure 7. Pay the operations license fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 8) Procedure 8. Obtain the operations license Agency: Municipality Time: 10 days Cost: R$1,317.50 [UFM (R$105.40)*12.5 UV] Source: Subnational Doing Business database. * Simultaneous with previous procedure 200 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 DEALING WITH CONSTRUCTION PERMITS Procedure 9. Request and obtain project approval and LIST OF PROCEDURES construction permit Agency: Institute of Urban Planning (Municipality) Estimated value of warehouse: R$1,674,131 Data as of: September 1st, 2020 Time: 90 days Cost: R$6,485 [(TU: Tax Unit) Building project analysis fee: R$1,020.24/m² + Amazonas Alignment analysis: R$12.42 + File fee: R$10.90 + Building Permit: Number Procedure 1. Request and obtain a land ownership certificate of months for execution works * 0.0048 TU/m² (constructed area)] from the property registry Agency: Property registry Procedure 10*. Submit project for analysis by Fire Time: 5 days Department and obtain report Cost: R$53 [Property registry fee: R$40.06 + Municipal service tax (ISS): Agency: Fire Department R$2.01 + Attorney General’s office fund fee (FUNDPGE): R$1.20 + Public Time: 30 days defender’s office fund fee (FUNDPAM): R$2.01 + Notary fund fee (FARPAM): Cost: R$182 (R$0.14/m²) R$2.01 + Justice special fund fee (FUNETJ): R$4.01 + Safety label: R$1.90] Procedure 11. Register construction at the National Registry Procedure 2*. Obtain results of soil study of Construction Works (CNO) Agency: Private agency Agency: Federal Revenue Service Time: 12 days Time: Less than one day (online procedure) Cost: R$4,000 Cost: No cost Procedure 3*. Obtain a topographic survey Procedure 12. Receive random inspection from Municipality Agency: Private licensed company Agency: Institute of Urban Planning (Municipality) Time: 15 days Time: 1 day Cost: R$2,500 Cost: No cost Procedure 4*. Obtain Technical Term of Responsibility (ART) Procedure 13. Receive inspection from Labor Public or Technical Report of Responsibility (RRT) Attorneys’ Office Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Agency: Labor Public Attorneys’ Office Time: 3 days Time: 1 day Cost: R$234 (Fixed price for contracts over R$15,000.01) Cost: No cost Procedure 5*. Receive an inspection from Municipality to Procedure 14. Request inspection from Fire Department verify the measures of the land plot Agency: Fire Department Agency: Institute of Urban Planning (Municipality) Time: Less than one day (online procedure) Time: 1 day Cost: No cost Cost: R$327 Procedure 15. Receive inspection from Fire Department Agency: Fire Department Procedure 6*. Request and obtain traffic analysis approval Time: 1 day Agency: Municipal Institute of Urban Mobility Cost: No cost Time: 15 days Cost: R$22 (Traffic analysis approval: R$10.90 + Road project execution declaration: R$10.90) Procedure 16. Obtain Fire Department Certificate Agency: Fire Department Time: 45 days Procedure 7*. Request and obtain water and sewage Cost: R$234 (R$0.18/m²) feasibility declaration and project approval Agency: Water and Sewerage Agency Procedure 17*. Receive inspection from water and sewage Time: 15 days company Cost: R$480 [Feasibility study: R$130 + Project analysis (category for single Agency: Water and Sewerage Agency family housing, commercial or mixed use up to 700 m²): R$350] Time: 1 day Cost: R$350 Procedure 8*. Request and obtain environmental license Agency: Secretary of Environment (Municipality) Procedure 18. Request and connect to water and sewage Time: 45 days Agency: Water and Sewerage Agency Cost: R$2,125 [Preliminary license: R$381.33 + Installation license: Time: 15 days R$762.65 + Operating license: R$980.55] Cost: R$2,586 (Water connection: R$620.97 + Sewage connection: R$1,964.96) Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 201 Procedure 19. Request final inspection from Municipality Procedure 23. Register building with the property registry Agency: Institute of Urban Planning (Municipality) Agency: Property registry Time: 1 day Time: 15 days Cost: No cost Cost: R$14,376 (Registration fee) Procedure 20. Receive final inspection from Municipality Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. Agency: Institute of Urban Planning (Municipality) Time: 1 day Amazonas Cost: No cost BUILDING QUALITY CONTROL INDEX Procedure 21. Obtain certificate of occupancy (“Habite-se”) Score Agency: Institute of Urban Planning (Municipality) Building quality control index (0–15) 9.0 Time: 75 days Cost: R$4,039 (Project analysis for certificate of occupancy: R$2,720.65 + Quality of building regulations index (0–2) 2.0 Final inspection: R$1,307.40 + File fee: R$10.90) Quality control before construction index (0–1) 1.0 Quality control during construction index (0–3) 0.0 Procedure 22. Close CNO registration and obtain debt clearance certificate Quality control after construction index (0–3) 3.0 Agency: Federal Revenue Service Liability and insurance regimes index (0–2) 1.0 Time: Less than one day (online procedure) Cost: No cost Professional certifications index (0–4) 2.0 Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. REGISTERING PROPERTY Cost: R$79.80 (R$60.00 for registrar fees + R$6.00 for FUNJEAM/ LIST OF PROCEDURES Extrajudicial + R$3.00 for FUNDPAM + R$1.80 for FUNDPGE + R$3.00 for FUNJEAM RCPN/SD + R$3.00 for ISS + R$3.00 for security stamp) Estimated property value: R$1,674,131 Data as of: September 1st, 2020 Procedure 4*. Obtain state justice certificates (Certidão de Procedure 1. Obtain ownership and no-lien certificates Distribuição Cível, Certidão de Distribuição de Execuções (Certidão Narrativa/de Inteiro Teor de Matrícula, Certidão Fiscais (Estadual e Municipal), and Certidão de Distribuição de Ônus Reais, and Certidão de Ações Reais e Pessoais de Falência e Recuperação de Crédito) Reipersecutórias) Agency: State Justice Court (Tribunal de Justiça do Estado do Amazonas) Agency: Sistema de Registro de Imóveis Eletrônico (e-RIDFT) Time: Less than one day (online procedure) Time: 5 days Cost: No cost Cost: R$143.20 [R$53.20 for issuing the Certidão Narrativa (R$40.06 for registrar fees + R$2.01 for ISS + R$1.20 for FUNDPGE + R$2.01 for FUNDPAM Procedure 5*. Obtain labor justice certificate (Certidão de + R$2.01 for FARPAM + R$4.01 for FUNETJ + R$1.90 for security stamp) + Ações Trabalhistas) R$36.80 for issuing the Certidão de Ônus Reais (R$27.23 for registrar fees + Agency: Regional Labor Court (Tribunal Regional do Trabalho da 11ª Região) R$1.36 for ISS + R$0.82 for FUNDPGE + R$1.36 for FUNDPAM + R$1.36 for Time: Less than one day (online procedure) FARPAM + R$2.72 for FUNETJ + R$1.90 for security stamp) + R$53.20 for Cost: No cost issuing the Certidão de Ações Reais e Pessoais Reipersecutórias (R$40.06 for registrar fees + R$2.01 for ISS + R$1.20 for FUNDPGE + R$2.01 for FUNDPAM Procedure 6*. Obtain certificate of good standing on labor + R$2.01 for FARPAM + R$4.01 for FUNETJ + R$1.90 for security stamp)] debts (Certidão Negativa de Débitos Trabalhistas) Agency: High Labor Court (Tribunal Superior do Trabalho) Procedure 2*. Obtain company certificate of good standing Time: Less than one day (online procedure) (Certidão Simplificada da Empresa) Cost: No cost Agency: Commercial registry (Junta Comercial do Estado do Amazonas) Time: 2 days Procedure 7*. Obtain municipal taxes clearance certificate Cost: R$88.88 (Certidão Negativa de Débitos Municipais) and cadastral certificate (Boletim de Cadastro Imobiliário) Procedure 3*. Obtain consolidated certificate of dispute Agency: Municipal tax authority (Secretaria Municipal de Finanças) (Certidão Unificada de Protesto de Títulos e Outros Time: Less than one day (online procedure) Documentos de Dívida) Cost: No cost Agency: Dispute registries distribution service (Serviço Distribuidor de Títulos para Protesto (SISPROT)) Time: Less than one day (online procedure) Source: Subnational Doing Business database. * Simultaneous with previous procedure 202 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 8*. Obtain state taxes clearance certificate (Certidão Procedure 13. Prepare public deed of purchase and sale Negativa de Débitos Estaduais) Agency: Public notary (Tabelionato de Notas) Agency: State tax authority (Secretaria da Fazenda do Governo do Estado do Time: 4 days Amazonas) Cost: R$20,528.50 (R$16,022.53 for notary fees + R$7.53 for data Time: Less than one day (online procedure) processing + R$801.50 for ISS + R$480.90 for FUNDPGE + R$801.50 for Cost: No cost FUNDPAM + R$801.50 for FARPAM + R$1,603.01 for FUNETJ + R$10.00 for security stamp) Procedure 9*. Obtain federal taxes clearance certificate (Certidão de Débitos Relativos a Créditos Tributários Federais Procedure 14. Register public deed of purchase and sale Amazonas e à Dívida Ativa da União) Agency: Property registry (Cartório de Registro de Imóveis) Agency: Federal Revenue Service & Office of the Attorney General of the Time: 15 days National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- Cost: R$20,528.50 (R$16,022.53 for registrar fees + R$7.53 for data Geral da Fazenda Nacional) processing + R$801.50 for ISS + R$480.90 for FUNDPGE + R$801.50 for Time: Less than one day (online procedure) FUNDPAM + R$801.50 for FARPAM + R$1,603.01 for FUNETJ + R$10.00 Cost: No cost for security stamp) Procedure 10*. Obtain workers fund certificate (Certidão de Note: For detailed information on each procedure, see Regularidade do FGTS) https://www.doingbusiness.org/brazil. Agency: Federal Savings Bank (Caixa Econômica Federal) Time: Less than one day (online procedure) Cost: No cost QUALITY OF LAND ADMINISTRATION INDEX Score Procedure 11*. Obtain federal justice certificate (Certidão de Quality of land administration index (0–30) 16.5 Distribuição Cível e Criminal) Agency: Federal Justice Court (Tribunal Regional Federal da 1ª Região/Seção Reliability of infrastructure index (0–8) 5.0 Judiciária do Amazonas) Transparency of information index (0–6) 5.0 Time: Less than one day (online procedure) Cost: No cost Geographic coverage index (0–8) 2.0 Land dispute resolution index (0–8) 4.5 Procedure 12. Pay property transfer tax (Imposto sobre a Transmissão de Bens Imóveis e de Direitos, ITBI) Equal access to property rights index (-2–0) 0.0 Agency: Municipal tax authority (Secretaria Municipal de Finanças) Note: For a list of all components, questions and results on this index, refer to Time: Less than one day (online procedure) the “Quality indexes details” section. Cost: R$30,134.36 (1.8% of the property value) ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 69 Quality of judicial processes index (0–18) 12.5 Trial and judgment 562 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 418 Case management (0–6) 3.0 Total time 1,049 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 17.5 Note: For a list of all components, questions and results on this index, refer to Court fees 7.3 the “Quality indexes details” section. Enforcement fees 0.9 Total cost 25.7 Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 203 BAHIA SALVADOR Overall rank (1–27) 24 Aggregate score (5 topics) 52.5 Starting a business (rank) 17 Doing Business score (0–100) 79.6 Bahia Procedures (number) 11 Time (days) 19.5 Cost (% of income per capita) 7.0 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 12 Paying taxes (rank) 26 Doing Business score (0–100) 51.5 Doing Business score (0–100) 33.2 Procedures (number) 22 Payments (number) 12 Time (days) 292.5 Time (hours per year) 1,501 Cost (% of warehouse value) 1.8 TTCR (% of profit) 65.7 Building quality control index (0–15) 9.0 Postfiling index (0–100) 7.8 Registering property (rank) 22 Enforcing contracts (rank) 23 Doing Business score (0–100) 49.4 Doing Business score (0–100) 48.9 Procedures (number) 15 Time (days) 1,149 Time (days) 44.5 Cost (% of claim value) 29.3 Cost (% of property value) 4.0 Quality of judicial processes index (0–18) 11.5 Quality of land administration index (0–30) 13.5 Overall rank Rank by 12 indicator 17 22 23 26 24 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 52.5 Score by indicator 79.6 51.5 49.4 33.2 48.9 Source: Subnational Doing Business database. 204 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 STARTING A BUSINESS Procedure 9*. Update employees’ information with Social LIST OF PROCEDURES Security (Programa de Integração Social - PIS) Agency: Federal Savings Bank Legal form: Limited Liability Company Paid-in minimum capital requirement: No minimum Time: 1 day Data as of: September 1st, 2020 Cost: No cost Procedure 1. Request the Location Feasibility Term Procedure 10*. Notify the General Cadaster of Employed and Bahia Agency: Municipal Secretariat of Development and Urbanism (SEDUR) Unemployed Workers - CAGED - or eSocial Time: 7 days Agency: Ministry of Economy Cost: No cost Time: Less than one day (online procedure) Cost: No cost Procedure 2. Pay the Location Feasibility Term fee Agency: Commercial bank Procedure 11*. Register with the Employers’ Union and with Time: Less than one day (online procedure) the Employees’ Union Cost: R$208.59 [fee for retail businesses: R$382.65, with 50% for small Agency: Employers’ Union and Employees’ Union businesses (Empresa de Pequeno Porte - EPP) + issuance fee of R$17.26] Time: 1 day Cost: No cost Procedure 3. Check the availability of the company name and integrate the feasibility of the location (TVL) with the Note: For detailed information on each procedure, see Redesim system https://www.doingbusiness.org/brazil. Agency: Commercial Registry (via Redesim) Time: Less than one day (online procedure) Cost: No cost Procedure 4. Apply for registration with the Federal Tax Authority (Receita Federal) Agency: Federal Tax Authority Time: 2 days Cost: No cost Procedure 5. Pay registration fees Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 6) Procedure 6. Register with the state commercial registry to complete registration with the federal, state and municipal tax authorities to obtain the National Corporate Taxpayer Registry (CNPJ), the Company Registration Identification Number (NIRE) and the operations license Agency: Commercial Registry Time: 5 days Cost: R$244 Procedure 7. Obtain a digital certificate (e-CNPJ) in order to issue electronic invoices Agency: Digital e-certifier Time: 1 day Cost: R$239.95 Procedure 8. Pay the operating fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: R$1,656.80 Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 205 DEALING WITH CONSTRUCTION PERMITS Procedure 9. Register construction at the National Registry of LIST OF PROCEDURES Construction Works (CNO) Agency: Federal Revenue Service Estimated value of warehouse: R$1,674,131 Data as of: September 1st, 2020 Time: Less than one day (online procedure) Cost: No cost Procedure 1. Request and obtain a land ownership certificate from the property registry Procedure 10. Receive random inspection from Municipality Bahia Agency: Property registry Agency: Secretary of Development and Urbanism (Municipality) Time: 3 days Time: 1 day Cost: R$94 (Property registry fee: R$84.72 + Electronic processing fee: Cost: No cost R$9.60) Procedure 11. Receive inspection from Labor Public Procedure 2. Obtain results of soil study Attorneys’ Office Agency: Private agency Agency: Labor Public Attorneys’ Office Time: 10 days Time: 1 day Cost: R$8,000 (Cost considers the drilling of six boreholes, each 10 m deep) Cost: No cost Procedure 3*. Obtain a topographic survey Procedure 12. Request inspection from Fire Department Agency: Private licensed company Agency: Fire Department Time: 7 days Time: 1 day Cost: R$6,000 (Cost considers crew transportation, in-field technical work Cost: R$1,340 (Inspection fee according to State Law 11,631/2009) and project development at company’s offices) Procedure 13. Receive inspection from Fire Department Procedure 4*. Obtain Technical Term of Responsibility (ART) Agency: Fire Department or Technical Report of Responsibility (RRT) Time: 1 day Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Cost: No cost Time: 3 days Cost: R$234 (Fixed price for contracts over R$15,000.01) Procedure 14. Obtain Fire Department Certificate Agency: Fire Department Procedure 5*. Request and obtain Debt Clearance Certificate Time: 60 days (CND) Cost: No cost Agency: Secretary of Finance (Municipality) Time: Less than one day (online procedure) Procedure 15*. Request and connect to water and sewage Cost: No cost Agency: Water and Sewerage Agency Time: 35 days Procedure 6. Request and obtain exemption from Cost: R$115 (Fixed water connection fee. No cost for sewage connection) environmental licensing Agency: Secretary of Development and Urbanism (Municipality) Procedure 16. Receive inspection from water and sewage Time: Less than one day (online procedure) company Cost: R$725 (Fixed cost defined by Municipal Decree 29,921/2018: R$707.4 Agency: Water and Sewerage Agency + Staffing fee: R$17.26) Time: 15 days Cost: No cost Procedure 7. Request and obtain construction permit Agency: Secretary of Development and Urbanism (Municipality) Procedure 17*. Request and obtain property’s geolocation Time: 120 days plant Cost: R$8,350 [R$6.39/m² of total built area + R$22.06 (construction Agency: Secretary of Development and Urbanism (Municipality) license fee) + R$17.26 (staffing fee)] Time: 3 days Cost: No cost Procedure 8*. Submit project for analysis by Fire Department and obtain report Procedure 18. Request final inspection from Municipality Agency: Fire Department Agency: Secretary of Development and Urbanism (Municipality) Time: 60 days Time: 1 day Cost: R$1,275 (Project analysis fee: R$0.98 per m²) Cost: R$872 [R$0.53/m² of total built area + R$33.30 (permit fee) + R$132.51 (inspection fee) + R$17.26 (staffing fee)] Source: Subnational Doing Business database. * Simultaneous with previous procedure 206 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 19. Receive final inspection from Municipality BUILDING QUALITY CONTROL INDEX Agency: Secretary of Development and Urbanism (Municipality) Time: 1 day Score Cost: No cost Building quality control index (0–15) 9.0 Procedure 20. Obtain certificate of occupancy (“Habite-se”) Quality of building regulations index (0–2) 2.0 Agency: Secretary of Development and Urbanism and Secretary of Finance Quality control before construction index (0–1) 1.0 (Municipality) Time: 59 days Quality control during construction index (0–3) 0.0 Cost: No cost Quality control after construction index (0–3) 3.0 Liability and insurance regimes index (0–2) 1.0 Bahia Procedure 21. Close CNO registration and obtain debt clearance certificate Professional certifications index (0–4) 2.0 Agency: Federal Revenue Service Note: For a list of all components, questions and results on this index, refer to Time: Less than one day (online procedure) the “Quality indexes details” section. Cost: No cost Procedure 22. Register building with the property registry Agency: Property registry Time: 18 days Cost: R$3,488 (Deed fee: R$2,114 + Registration fee: R$1,374) Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. REGISTERING PROPERTY Procedure 5*. Obtain labor justice certificate (Certidão de LIST OF PROCEDURES Ações Trabalhistas) Agency: Regional Labor Court (Tribunal Regional do Trabalho da 5ª Região) Estimated property value: R$1,674,131 Data as of: September 1st, 2020 Time: Less than one day (online procedure) Cost: No cost Procedure 1. Obtain ownership and no-lien certificate (Certidão de Inteiro Teor de Matrícula com Positiva ou Procedure 6*. Obtain certificate of good standing on labor Negativa de Ônus) debts (Certidão Negativa de Débitos Trabalhistas) Agency: Property registry (Cartório de Registro de Imóveis) Agency: High Labor Court (Tribunal Superior do Trabalho) Time: 5 days Time: Less than one day (online procedure) Cost: R$84.72 Cost: No cost Procedure 2*. Obtain company certificate of good standing Procedure 7*. Obtain municipal taxes clearance certificates (Certidão Simplificada da Empresa) (Certidão Negativa de Débitos Imobiliários and Certidão Agency: Commercial registry (Junta Comercial do Estado da Bahia) Negativa de Pessoa Jurídica) and cadastral certificate (Certidão de Dados Cadastrais do Imóvel) Time: 2 days Cost: R$25 Agency: Municipal tax authority (Secretaria Municipal de Fazenda) Time: Less than one day (online procedure) Cost: No cost Procedure 3*. Obtain certificates of dispute (Certidões de Protesto de Títulos e Outros Documentos de Dívida) Agency: Dispute registries distribution service (Cartório Distribuidor de Procedure 8*. Obtain state taxes clearance certificate (Certidão Negativa de Débitos Estaduais) Protestos de Salvador) Time: 2 days Agency: State tax authority (Secretaria da Fazenda do Governo do Estado Cost: R$71.44 [R$17.86 for each certificate (x4)] da Bahia) Time: Less than one day (online procedure) Cost: No cost Procedure 4*. Obtain state justice certificates (Certidões de Ações Cíveis, Criminais, Concordata, Falência e Recuperação Judicial e Extrajudicial) Agency: State Justice Court (Tribunal de Justiça do Estado da Bahia) Time: Less than one day (online procedure) Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 207 Procedure 9*. Obtain federal taxes clearance certificate Procedure 14. Register public deed of purchase and sale (Certidão de Débitos Relativos a Créditos Tributários Federais Agency: Property registry (Cartório de Registro de Imóveis) e à Dívida Ativa da União) Time: 18 days Agency: Federal Revenue Service & Office of the Attorney General of the Cost: R$8,175.02 National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- Geral da Fazenda Nacional) Procedure 15*. Update municipal taxpayer records to the new Time: Less than one day (online procedure) owner’s name (cadastro do contribuinte para fins de IPTU) Cost: No cost Agency: Municipal tax authority (Secretaria Municipal de Fazenda) Time: 30 days Procedure 10*. Obtain workers fund certificate (Certidão de Cost: No cost Regularidade do FGTS) Bahia Agency: Federal Savings Bank (Caixa Econômica Federal) Note: For detailed information on each procedure, see Time: Less than one day (online procedure) https://www.doingbusiness.org/brazil. Cost: No cost QUALITY OF LAND ADMINISTRATION INDEX Procedure 11*. Obtain federal justice certificate (Certidão Cível e Criminal) Score Agency: Federal Justice Court (Tribunal Regional Federal da 1ª Região/Seção Quality of land administration index (0–30) 13.5 Judiciária da Bahia) Time: Less than one day (online procedure) Reliability of infrastructure index (0–8) 5.0 Cost: No cost Transparency of information index (0–6) 4.0 Procedure 12. Pay property transfer tax (Imposto sobre a Geographic coverage index (0–8) 0.0 Transmissão Intervivos, ITIV) Land dispute resolution index (0–8) 4.5 Agency: Municipal tax authority (Secretaria Municipal de Fazenda) Equal access to property rights index (-2–0) 0.0 Time: Less than one day (online procedure) Cost: R$50,223.93 (3% of the property value) Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. Procedure 13. Prepare public deed of purchase and sale Agency: Public notary (Tabelionato de Notas) Time: 6 days Cost: R$8,175.02 ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 84 Quality of judicial processes index (0–18) 11.5 Trial and judgment 674 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 391 Case management (0–6) 2.0 Total time 1,149 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 20.0 Note: For a list of all components, questions and results on this index, refer to Court fees 8.2 the “Quality indexes details” section. Enforcement fees 1.1 Total cost 29.3 Source: Subnational Doing Business database. * Simultaneous with previous procedure 208 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 CEARÁ FORTALEZA Overall rank (1–27) 9 Aggregate score (5 topics) 56.3 Starting a business (rank) 13 Doing Business score (0–100) 82.0 Procedures (number) 11 Time (days) 13 Ceará Cost (% of income per capita) 1.4 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 4 Paying taxes (rank) 21 Doing Business score (0–100) 60.1 Doing Business score (0–100) 33.9 Procedures (number) 19 Payments (number) 10 Time (days) 205 Time (hours per year) 1,483 Cost (% of warehouse value) 1.1 TTCR (% of profit) 66.0 Building quality control index (0–15) 8.0 Postfiling index (0–100) 7.8 Registering property (rank) 15 Enforcing contracts (rank) 19 Doing Business score (0–100) 52.4 Doing Business score (0–100) 53.2 Procedures (number) 15 Time (days) 1,070 Time (days) 37 Cost (% of claim value) 28.6 Cost (% of property value) 2.5 Quality of judicial processes index (0–18) 12.5 Quality of land administration index (0–30) 13.0 Overall rank 4 9 Rank by 13 indicator 15 19 21 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 56.3 Score by indicator 82.0 60.1 52.4 33.9 53.2 Source: Subnational Doing Business database. State profiles 209 STARTING A BUSINESS Procedure 9*. Update employees’ information with Social LIST OF PROCEDURES Security (Programa de Integração Social - PIS) Agency: Federal Savings Bank (Caixa Econômica Federal) Legal form: Limited Liability Company Paid-in minimum capital requirement: No minimum Time: 1 day Data as of: September 1st, 2020 Cost: No cost Procedure 1. Check the availability of the company name and Procedure 10*. Notify the General Cadaster of Employed and the feasibility of the location Unemployed Workers - CAGED - or eSocial Agency: Municipality / Commercial Registry (via Redesim) Agency: Ministry of Economy Ceará Time: 2 days Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 2. Apply for registration with the Federal Tax Procedure 11*. Register with the Employers’ Union and with Authority (Receita Federal) the Employees’ Union Agency: Federal Tax Authority Agency: Employers’ Union and Employees’ Union Time: Less than one day (online procedure) Time: 1 day Cost: No cost Cost: No cost Note: For detailed information on each procedure, see Procedure 3. Pay registration fees https://www.doingbusiness.org/brazil. Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 4) Procedure 4. Register with the state commercial registry to complete registration with the federal and state tax authorities to obtain the National Corporate Taxpayer Registry (CNPJ) and the Company Registration Identification Number (NIRE) Agency: Commercial Registry Time: 2 days Cost: R$187 Procedure 5. Register with the municipal tax agency Agency: Municipal Secretariat of Finance Time: Less than one day (online procedure) Cost: No cost Procedure 6. Obtain a digital certificate (e-CNPJ) in order to issue electronic invoices Agency: Digital e-certifier Time: 2 days Cost: R$235 Procedure 7. Pay the operations license fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 8) Procedure 8. Obtain the operations license Agency: Municipal Secretariat of Urbanism and Environment Time: 5 days Cost: R$50.00 [for small businesses (Empresas de Pequeno Porte - EPP), a “social fee” (alvará social) of R$50.00 applies] Source: Subnational Doing Business database. * Simultaneous with previous procedure 210 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 DEALING WITH CONSTRUCTION PERMITS Procedure 9. Request and obtain construction permit LIST OF PROCEDURES Agency: Secretary of Urbanism and Environment Estimated value of warehouse: R$1,674,131 Time: 10 days Data as of: September 1st, 2020 Cost: R$2,937 [Fixed fee of R$166.98 + R$2.13/m² (for an area between 901 and 2,500 m²)] Procedure 1. Perform consultation of suitability for construction Procedure 10. Register construction at the National Registry Agency: Secretary of Urbanism and Environment of Construction Works (CNO) Time: Less than one day (online procedure) Agency: Federal Revenue Service Ceará Cost: No cost Time: Less than one day (online procedure) Cost: No cost Procedure 2*. Request and obtain a land ownership certificate from the property registry Procedure 11. Receive random inspection from Municipality Agency: Property registry Agency: Secretary of Urbanism and Environment Time: 2 days Time: 1 day Cost: R$42 [Property registry fee: R$28.38 + Justice refitting fund fee Cost: No cost (Fermoju): R$1.40 + Safety label: R$7.80 + Municipal service tax (ISS): R$1.42 + Public Defender’s Office fund fee (FAADEP): R$1.42 + Prosecutor’s Procedure 12. Receive inspection from Labor Public office fund fee (FRMMP): R$1.42] Attorneys’ Office Agency: Labor Public Attorneys’ Office Procedure 3. Obtain results of soil study Time: 1 day Agency: Private agency Cost: No cost Time: 30 days Cost: R$6,000 Procedure 13. Request inspection from Fire Department Agency: Fire Department Procedure 4*. Obtain a topographic survey Time: 1 day Agency: Private licensed company Cost: R$676 (For low to medium risk construction: R$0.52/m²) Time: 13 days Cost: R$4,000 Procedure 14. Receive inspection from Fire Department Agency: Fire Department Procedure 5. Obtain Technical Term of Responsibility (ART) Time: 1 day or Technical Report of Responsibility (RRT) Cost: No cost Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Time: 2 days Procedure 15. Obtain Fire Department Certificate Cost: R$234 (Fixed price for contracts over R$15,000.01) Agency: Fire Department Time: 34 days Procedure 6*. Submit waste management project and obtain Cost: No cost clearance Agency: Secretary of Urbanism and Environment (Municipality) Procedure 16*. Request and connect to water and sewage Time: Less than one day (online procedure) Agency: Water and Sewerage Agency Cost: R$180 (Fixed fee) Time: 60 days Cost: R$1,999 (Viability: R$1,239 + Water and sewage connection: R$760) Procedure 7. Request and obtain exemption from environmental licensing Procedure 17. Obtain certificate of occupancy (“Habite-se”) Agency: Secretary of Urbanism and Environment (Municipality) Agency: Municipality Time: Less than one day (online procedure) Time: 35 days Cost: No cost Cost: R$1,008 (Fixed fee of R$84.36 + R$0.71/m² for an area between 901 and 2,500 m²) Procedure 8*. Submit project for analysis by Fire Department and obtain report Procedure 18. Close CNO registration and obtain debt Agency: Fire Department clearance certificate Time: 34 days Agency: Federal Revenue Service Cost: R$676 (For low to medium risk: R$0.52/m²) Time: Less than one day (online procedure) Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 211 Procedure 19. Register building with the property registry BUILDING QUALITY CONTROL INDEX Agency: Property registry Time: 25 days Score Cost: R$190 [Registration fee: R$132.84 + Justice refitting fund fee Building quality control index (0–15) 8.0 (Fermoju): R$12.15 + Safety label: R$24.82 + Municipal service tax (ISS): R$6.63 + Public Defender’s Office fund fee (FAADEP): R$6.63 + Prosecutor’s Quality of building regulations index (0–2) 2.0 office fund fee (FRMMP): R$6.63] Quality control before construction index (0–1) 1.0 Note: For detailed information on each procedure, see Quality control during construction index (0–3) 0.0 https://www.doingbusiness.org/brazil. Quality control after construction index (0–3) 3.0 Liability and insurance regimes index (0–2) 1.0 Professional certifications index (0–4) 1.0 Ceará Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. REGISTERING PROPERTY Procedure 5*. Obtain consolidated certificate of dispute LIST OF PROCEDURES (Certidão de Distribuição de Protesto de Títulos e Outros Documentos de Dívida) Estimated property value: R$1,674,131 Data as of: September 1st, 2020 Agency: Dispute registries distribution service (2º Ofício de Distribuição de Protestos de Títulos) Time: 1 day Procedure 1. Obtain ownership and no-lien certificates Cost: R$36 [R$19.95 for registrar fees (R$14.65 for issuing the certificate (Certidão de Inteiro Teor de Matrícula and Certidão de Ônus + R$5.30 for searching) + R$5.25 for FERMOJU + R$1.00 for FAADEP + Reais e Ações Reais e Pessoais Reipersecutórias) R$1.00 for FRMMP/CE + R$1.00 for ISS (5% of the registrar fees) + R$7.80 Agency: Central Eletrônica de Registros Imobiliários do Ceará (CERICE) for authenticity stamp] Time: 5 days Cost: R$74.58 (R$49.18 for registrar fees + R$2.42 for FERMOJU + R$2.46 for FAADEP + R$2.46 for FRMMP/CE + R$2.46 for ISS + R$15.60 for Procedure 6*. Obtain labor justice certificate (Certidão de authenticity stamp) Ações Trabalhistas) Agency: Regional Labor Court (Tribunal Regional do Trabalho da 7ª Região) Time: Less than one day (online procedure) Procedure 2*. Obtain company certificate of good standing Cost: No cost (Certidão Simplificada da Empresa) Agency: Commercial registry (Junta Comercial do Estado do Ceará) Time: 2 days Procedure 7*. Obtain certificate of good standing on labor Cost: R$49 debts (Certidão Negativa de Débitos Trabalhistas) Agency: High Labor Court (Tribunal Superior do Trabalho) Time: Less than one day (online procedure) Procedure 3*. Obtain state justice certificates (Certidão Cost: No cost Judicial and Certidão de Falência/Concordata) Agency: State Justice Court (Tribunal de Justiça do Estado do Ceará) Time: 2 days Procedure 8*. Obtain municipal taxes clearance certificate and Cost: R$79.74 [R$39.87 for each certificate (x2). The cost of each certificate cadastral certificate (Certidão Negativa de Débitos de Tributos Municipais and Certidão Negativa de Débitos de IPTU) is calculated as follows: R$32.28 for FERMOJU + R$3.37 for DCP + R$4.22 for MP] Agency: Municipal tax authority (Secretaria Municipal das Finanças) Time: Less than one day (online procedure) Cost: No cost Procedure 4*. Obtain consolidated certificate of dispute (Certidão de Distribuição de Protesto de Títulos e Outros Documentos de Dívida) Procedure 9*. Obtain state taxes clearance certificate (Certidão Agency: Dispute registries distribution service (1º Ofício de Distribuição de Negativa de Débitos Estaduais) Protestos de Títulos) Agency: State tax authority (Secretaria da Fazenda do Governo do Estado Time: 1 day do Ceará) Cost: R$36 [R$19.95 for registrar fees + R$5.25 for FERMOJU + R$1.00 for Time: Less than one day (online procedure) FAADEP + R$1.00 for FRMMP/CE + R$1.00 for ISS (5% of the registrar fees) Cost: No cost + R$7.80 for authenticity stamp] Source: Subnational Doing Business database. * Simultaneous with previous procedure 212 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 10*. Obtain federal taxes clearance certificate Procedure 15. Register public deed of purchase and sale (Certidão de Débitos Relativos a Créditos Tributários Federais Agency: Property registry (Cartório de Registro de Imóveis) e à Dívida Ativa da União) Time: 25 days Agency: Federal Revenue Service & Office of the Attorney General of the Cost: R$3,783.18 (R$3,104.91 for registrar fees + R$164.25 for FERMOJU National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- + R$155.24 for FAADEP + R$155.24 for FRMMP/CE + R$155.24 for ISS + Geral da Fazenda Nacional) R$48.30 for authenticity stamp) Time: Less than one day (online procedure) Cost: No cost Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. Procedure 11*. Obtain workers fund certificate (Certidão de Regularidade do FGTS) QUALITY OF LAND ADMINISTRATION INDEX Agency: Federal Savings Bank (Caixa Econômica Federal) Time: Less than one day (online procedure) Score Ceará Cost: No cost Quality of land administration index (0–30) 13.0 Procedure 12*. Obtain federal justice certificate (Certidão de Reliability of infrastructure index (0–8) 5.0 Distribuição Cível, Criminal e Execução Fiscal) Transparency of information index (0–6) 3.5 Agency: Federal Justice Court (Tribunal Regional Federal da 5ª Região/Seção Geographic coverage index (0–8) 0.0 Judiciária do Ceará) Time: Less than one day (online procedure) Land dispute resolution index (0–8) 4.5 Cost: No cost Equal access to property rights index (-2–0) 0.0 Procedure 13. Pay property transfer tax (Imposto sobre a Note: For a list of all components, questions and results on this index, refer to Transmissão de Bens Imóveis e de Direitos, ITBI) the “Quality indexes details” section. Agency: Municipal tax authority (Secretaria Municipal das Finanças) Time: Less than one day (online procedure) Cost: R$33,482.62 (2% of the property value) Procedure 14. Prepare public deed of purchase and sale Agency: Public notary (Tabelionato de Notas) Time: 3 days Cost: R$3,507.85 [R$2,895.85 for notary fees + R$150.62 for FERMOJU + R$144.79 for FAADEP (5% of the notary fees) + R$144.79 for FRMMP/ CE (5% of the notary fees) + R$144.79 for ISS (5% of the notary fees) + R$27.01 for authenticity stamp] ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 92 Quality of judicial processes index (0–18) 12.5 Trial and judgment 628 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 350 Case management (0–6) 3.0 Total time 1,070 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 19.1 Note: For a list of all components, questions and results on this index, refer to Court fees 9.5 the “Quality indexes details” section. Enforcement fees 0.1 Total cost 28.6 Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 213 ESPÍRITO SANTO VITÓRIA Overall rank (1–27) 26 Aggregate score (5 topics) 51.7 Starting a business (rank) 9 Doing Business score (0–100) 82.5 Procedures (number) 10 Time (days) 14.5 Espírito Santo Cost (% of income per capita) 5.7 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 22 Paying taxes (rank) 1 Doing Business score (0–100) 45.8 Doing Business score (0–100) 34.9 Procedures (number) 23 Payments (number) 9 Time (days) 413.5 Time (hours per year) 1,483 Cost (% of warehouse value) 0.9 TTCR (% of profit) 64.4 Building quality control index (0–15) 9.0 Postfiling index (0–100) 7.8 Registering property (rank) 5 Enforcing contracts (rank) 27 Doing Business score (0–100) 54.9 Doing Business score (0–100) 40.4 Procedures (number) 16 Time (days) 1,516 Time (days) 34.5 Cost (% of claim value) 28.1 Cost (% of property value) 2.7 Quality of judicial processes index (0–18) 9.5 Quality of land administration index (0–30) 16.0 1 Overall rank 5 9 Rank by indicator 22 27 26 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 51.7 Score by indicator 82.5 45.8 54.9 34.9 40.4 Source: Subnational Doing Business database. 214 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 STARTING A BUSINESS Procedure 9*. Notify the General Cadaster of Employed and LIST OF PROCEDURES Unemployed Workers - CAGED - or eSocial Agency: Ministry of Economy Legal form: Limited Liability Company Paid-in minimum capital requirement: No minimum Time: Less than one day (online procedure) Data as of: September 1st, 2020 Cost: No cost Procedure 1. Check the availability of the company name and Procedure 10*. Register with the Employers’ Union and with the feasibility of the location the Employees’ Union Agency: Municipality / Commercial Registry (via Redesim) Agency: Employers’ Union and Employees’ Union Time: 2 days Time: 1 day Espírito Santo Cost: No cost Cost: No cost Note: For detailed information on each procedure, see Procedure 2. Apply for registration with the Federal Tax https://www.doingbusiness.org/brazil. Authority (Receita Federal) Agency: Federal Tax Authority Time: Less than one day (online procedure) Cost: No cost Procedure 3. Pay registration fees Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 4) Procedure 4. Register with the state commercial registry to complete registration with the federal, state and municipal tax authorities to obtain the National Corporate Taxpayer Registry (CNPJ) and the Company Registration Identification Number (NIRE) Agency: Commercial Registry Time: 2 days Cost: R$310.77 Procedure 5. Obtain a digital certificate (e-CNPJ) in order to issue electronic invoices Agency: Digital e-certifier Time: 2 days Cost: R$212 Procedure 6. Pay the operations license fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 7) Procedure 7. Obtain the operations license Agency: Municipality (Alvará Mais Fácil website) Time: 7 days Cost: R$1,389.67 Procedure 8*. Update employees’ information with Social Security (Programa de Integração Social - PIS) Agency: Federal Savings Bank (Caixa Econômica Federal) Time: 1 day Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 215 DEALING WITH CONSTRUCTION PERMITS Procedure 9*. Request and obtain the sanitation project LIST OF PROCEDURES approval Agency: Secretary of Urban Development (Municipality) Estimated value of warehouse: R$1,674,131 Data as of: September 1st, 2020 Time: 90 days Cost: No cost Procedure 1. Request and obtain a land ownership certificate from the property registry Procedure 10*. Submit project for analysis by Fire Agency: Property registry Department and obtain report Time: 3 days Agency: Fire Department Cost: R$68 [Property registry fee: R$52.49 + Justice special fund fee (FUNEPJ): Time: 45 days Espírito Santo R$5.25 + Public defender’s office fund fee (FADESPES): R$2.63 + Public Cost: R$542 Prosecutor’s office fund fee (FUNEMP): R$2.63 + State Attorney General’s office fund fee (FUNCAD): R$2.63 + Municipal service tax (ISS): R$2.63] Procedure 11. Register construction at the National Registry of Construction Works (CNO) Procedure 2. Perform consultation of suitability for Agency: Federal Revenue Service construction Time: Less than one day (online procedure) Agency: Secretary of Urban Development (Municipality) Cost: No cost Time: Less than one day (online procedure) Cost: No cost Procedure 12. Receive random inspection from Municipality Agency: Secretary of Urban Development (Municipality) Procedure 3*. Obtain results of soil study Time: 1 day Agency: Private agency Cost: No cost Time: 15 days Cost: R$5,000 Procedure 13. Receive inspection from Labor Public Attorneys’ Office Procedure 4*. Obtain a topographic survey Agency: Labor Public Attorneys’ Office Agency: Private licensed company Time: 1 day Time: 10 days Cost: No cost Cost: R$3,323 Procedure 14. Request inspection from Fire Department Procedure 5*. Obtain Technical Term of Responsibility (ART) Agency: Fire Department or Technical Report of Responsibility (RRT) Time: Less than one day (online procedure) Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Cost: No cost Time: 2 days Cost: R$234 (Fixed price for contracts over R$15,000.01) Procedure 15. Receive inspection from Fire Department Agency: Fire Department Procedure 6. Request and obtain land plot alignment and Time: 1 day leveling permit Cost: No cost Agency: Secretary of Urban Development (Municipality) Time: 30 days Procedure 16. Obtain Fire Department Certificate Cost: R$100 Agency: Fire Department Time: 40 days Procedure 7*. Request and obtain environmental license Cost: R$542 Agency: Secretary of Environment (Municipality) Time: 38 days Procedure 17*. Receive inspection from water and sewage Cost: R$787 (Cost includes preliminary license, installation license and company operating license fees) Agency: Water and Sewerage Agency Time: 1 day Procedure 8. Request and obtain construction approval Cost: No cost permit and construction execution permit Agency: Secretary of Urban Development (Municipality) Procedure 18. Request and connect to water and sewage Time: 180 days Agency: Water and Sewerage Agency Cost: R$2,041 [Fixed approval fee (new construction): R$511.28 + Execution Time: 75 days (new construction or reform): R$255/month (6 months)] Cost: R$743 (Water connection fixed fee: R$66.56 + Water connection: R$188.76 + Sewage connection: R$487.52) Source: Subnational Doing Business database. * Simultaneous with previous procedure 216 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 19. Request final inspection from Municipality Procedure 23. Register building with the property registry Agency: Secretary of Urban Development (Municipality) Agency: Property registry Time: Less than one day (online procedure) Time: 15 days Cost: No cost Cost: R$2,029 [50% of the following fees: Registration R$3,239.46 + Justice special fund (FUNEPJ) R$323.95 + Public defender’s office fund Procedure 20. Receive final inspection from Municipality (FADESPES) R$161.97 + Public Prosecutor’s office fund (FUNEMP) R$161.97 + State Attorney General’s office fund (FUNCAD) R$161.97 + Data Agency: Secretary of Urban Development (Municipality) processing fee R$7.90] Time: 1 day Cost: No cost Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. Procedure 21. Obtain certificate of occupancy (“Habite-se”) Agency: Secretary of Urban Development (Municipality) Time: 40 days BUILDING QUALITY CONTROL INDEX Cost: R$220 (Construction certificate: R$110.11 + Certificate of occupancy: Espírito Santo Score R$110.11) Building quality control index (0–15) 9.0 Procedure 22. Close CNO registration and obtain debt Quality of building regulations index (0–2) 2.0 clearance certificate Quality control before construction index (0–1) 1.0 Agency: Federal Revenue Service Time: Less than one day (online procedure) Quality control during construction index (0–3) 0.0 Cost: No cost Quality control after construction index (0–3) 3.0 Liability and insurance regimes index (0–2) 1.0 Professional certifications index (0–4) 2.0 Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. REGISTERING PROPERTY Procedure 4*. Obtain state justice certificate (Certidão LIST OF PROCEDURES Negativa de Distribuição (Cível, Criminal, Execuções Fiscais, Falência, Concordata e Recuperação Judicial e Extrajudicial)) Estimated property value: R$1,674,131 Data as of: September 1st, 2020 Agency: State Justice Court (Tribunal de Justiça do Estado do Espírito Santo) Time: Less than one day (online procedure) Cost: No cost Procedure 1. Obtain ownership and no-lien certificate (Certidão de Ônus Reais) Agency: Property registry (Cartório de Registro de Imóveis) Procedure 5*. Obtain labor justice certificate (Certidão de Time: 3 days Ações Trabalhistas) Cost: R$68.26 [R$52.49 for registrar fees (R$46.18 for issuing the Agency: Regional Labor Court (Tribunal Regional do Trabalho da 17ª Região) certificate + R$6.31 for data processing) + R$5.25 for FUNEPJ (10% of the Time: Less than one day (online procedure) registrar fees) + R$2.63 for FADESPES (5% of the registrar fees) + R$2.63 Cost: No cost for FUNEMP (5% of the registrar fees) + R$2.63 for FUNCAD (5% of the registrar fees) + R$2.63 for ISS (5% of the registrar fees)] Procedure 6*. Obtain certificate of good standing on labor debts (Certidão Negativa de Débitos Trabalhistas) Procedure 2*. Obtain company certificate of good standing Agency: High Labor Court (Tribunal Superior do Trabalho) (Certidão Simplificada da Empresa) Time: Less than one day (online procedure) Agency: Commercial registry (Junta Comercial do Estado do Espírito Santo) Cost: No cost Time: 2 days Cost: R$65.05 Procedure 7*. Obtain municipal taxes clearance certificate (Certidão Negativa de Débitos de Tributos Municipais) and Procedure 3*. Obtain certificate of dispute (Certidão de cadastral certificate (Espelho do Cadastro Imobiliário) Protesto de Títulos e Outros Documentos de Dívida) Agency: Municipal tax authority (Secretaria Municipal de Fazenda) Agency: Dispute registry (Tabelionato de Protesto de Títulos) Time: Less than one day (online procedure) Time: 2 days Cost: No cost Cost: R$38.80 [R$28.31 for registrar fees + R$2.83 for FUNEPJ (10% of the registrar fees) + R$1.42 for FADESPES (5% of the registrar fees) + R$1.42 for FUNEMP (5% of the registrar fees) + R$1.42 for FUNCAD (5% of the registrar fees) + R$1.42 for ISS (5% of the registrar fees)] Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 217 Procedure 8*. Obtain state taxes clearance certificate (Certidão Procedure 14. Prepare public deed of purchase and sale Negativa de Débitos Estaduais) Agency: Public notary (Tabelionato de Notas) Agency: State tax authority (Secretaria da Fazenda do Governo do Espírito Santo) Time: 3 days Time: Less than one day (online procedure) Cost: R$6,708.38 [R$5,160.27 for the notary fees (R$5,153.96 for preparing Cost: No cost the deed + R$6.31 for data processing) + R$516.03 for FUNEPJ (10% of the notary fees) + R$258.02 for FADESPES (5% of the notary fees) + R$258.02 for FUNEMP (5% of the notary fees) + R$258.02 for FUNCAD (5% of the Procedure 9*. Obtain federal taxes clearance certificate notary fees) + R$258.02 for ISS (5% of the notary fees)] (Certidão de Débitos Relativos a Créditos Tributários Federais e à Dívida Ativa da União) Procedure 15. Register public deed of purchase and sale Agency: Federal Revenue Service & Office of the Attorney General of the Agency: Property registry (Cartório de Registro de Imóveis) National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- Time: 15 days Geral da Fazenda Nacional) Cost: R$4,219.51 [R$3,245.77 for registrar fees (R$3,239.46 for registration Time: Less than one day (online procedure) + R$6.31 for data processing) + R$324.58 for FUNEPJ (10% of the registrar Cost: No cost fees) + R$162.29 for FADESPES (5% of the registrar fees) + R$162.29 for Espírito Santo FUNEMP (5% for the registrar fees) + R$162.29 for FUNCAD (5% of the Procedure 10*. Obtain workers fund certificate (Certidão de registrar fees) + R$162.29 for ISS (5% of the registrar fees)] Regularidade do FGTS) Agency: Federal Savings Bank (Caixa Econômica Federal) Procedure 16. Update municipal taxpayer records to the new Time: Less than one day (online procedure) owner’s name (cadastro do contribuinte para fins de IPTU) Cost: No cost Agency: Municipal tax authority (Secretaria Municipal de Fazenda) Time: 4 days Cost: No cost (fee included in procedure 13) Procedure 11*. Obtain federal justice certificate (Certidão de Distribuição de Ações da Competência da Justiça Federal) Note: For detailed information on each procedure, see Agency: Federal Justice Court (Tribunal Regional Federal da 2ª Região/Seção https://www.doingbusiness.org/brazil. Judiciária do Espírito Santo) Time: Less than one day (online procedure) Cost: No cost QUALITY OF LAND ADMINISTRATION INDEX Score Procedure 12. Request property tax payment slip (Imposto sobre a Transmissão de Bens Imóveis e de Direitos, ITBI) Quality of land administration index (0–30) 16.0 Agency: Municipal tax authority (Secretaria Municipal de Fazenda) Reliability of infrastructure index (0–8) 5.0 Time: 5 days Transparency of information index (0–6) 4.5 Cost: No cost Geographic coverage index (0–8) 2.0 Procedure 13. Pay property transfer tax Land dispute resolution index (0–8) 4.5 Agency: Commercial bank Equal access to property rights index (-2–0) 0.0 Time: Less than one day (online procedure) Cost: R$33,511.80 (2% of the property value + R$29.18 administrative fees) Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. ENFORCING CONTRACTS Claim value: R$66,965. Data as of: September 1st, 2020. INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 114 Quality of judicial processes index (0–18) 9.5 Trial and judgment 856 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 546 Case management (0–6) 1.0 Total time 1,516 Court automation (0–4) 2.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 18.7 Note: For a list of all components, questions and results on this index, refer to Court fees 9.3 the “Quality indexes details” section. Enforcement fees 0.1 Total cost 28.1 Source: Subnational Doing Business database. * Simultaneous with previous procedure 218 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 FEDERAL DISTRICT BRASÍLIA Overall rank (1–27) 12 Aggregate score (5 topics) 55.8 Starting a business (rank) 26 Doing Business score (0–100) 75.9 Procedures (number) 13 Time (days) 24.5 Cost (% of income per capita) 3.2 Paid-in minimum capital (% of income per capita)  0.0 Federal District Dealing with construction permits (rank) 19 Paying taxes (rank) 9 Doing Business score (0–100) 47.2 Doing Business score (0–100) 34.3 Procedures (number) 24 Payments (number) 10 Time (days) 347.5 Time (hours per year) 1,483 Cost (% of warehouse value) 0.5 TTCR (% of profit) 65.0 Building quality control index (0–15) 9.0 Postfiling index (0–100) 7.8 Registering property (rank) 10 Enforcing contracts (rank) 2 Doing Business score (0–100) 53.3 Doing Business score (0–100) 68.4 Procedures (number) 14 Time (days) 632 Time (days) 34.0 Cost (% of claim value) 19.9 Cost (% of property value) 3.1 Quality of judicial processes index (0–18) 12.5 Quality of land administration index (0–30) 15.0 Overall rank 2 9 10 Rank by indicator 12 19 26 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 55.8 Score by indicator 75.9 47.2 53.3 34.3 68.4 Source: Subnational Doing Business database. State profiles 219 STARTING A BUSINESS Procedure 9. Pay the operating fee LIST OF PROCEDURES Agency: Commercial bank Legal form: Limited Liability Company Time: Less than one day (online procedure) Paid-in minimum capital requirement: No minimum Cost: R$566.69 (R$0.61 per sqm) Data as of: September 1st, 2020 Procedure 10. Obtain the operating fee certificate Procedure 1. Check the availability of the company name and Agency: State Secretariat of Urban Organization (DF LEGAL) - Federal District the feasibility of the location Inspection Agency Agency: Regional Administration / Commercial Registry (via Redesim) Time: 1 day Time: 2 days Cost: No cost Cost: No cost Procedure 11*. Update employees’ information with Social Federal District Procedure 2. Apply for registration with the Federal Tax Security (Programa de Integração Social - PIS) Authority (Receita Federal) Agency: Federal Savings Bank (Caixa Econômica Federal) Agency: Federal Tax Authority Time: 1 day Time: 2 days Cost: No cost Cost: No cost Procedure 12*. Notify the General Cadaster of Employed and Procedure 3. Pay registration fees Unemployed Workers - CAGED - or eSocial Agency: Commercial bank Agency: Ministry of Economy Time: Less than one day (online procedure) Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 4) Cost: No cost Procedure 4. Register with the Federal District commercial Procedure 13*. Register with the Employers’ Union and with registry to complete registration with the federal tax authority the Employees’ Union to obtain the National Corporate Taxpayer Registry (CNPJ) Agency: Employers’ Union and Employees’ Union and the Company Registration Identification Number (NIRE) Time: 1 day Agency: Commercial Registry Cost: No cost Time: 3 days Cost: R$295 Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. Procedure 5. Register with the Federal District tax agency Agency: Federal District Secretariat of Economy - Subsecretariat of Revenue (SUREC) Time: 2 days Cost: No cost Procedure 6. Obtain a digital certificate (e-CNPJ) in order to issue electronic invoices Agency: Digital e-certifier Time: 1 day Cost: R$200 Procedure 7. Obtain the operations license Agency: Federal District Government (GDF) - AGEFIS or Posto Na Hora Time: 10 days Cost: No cost Procedure 8*. Request the operating fee payment slip Agency: State Secretariat of Urban Organization (DF LEGAL) - Federal District Inspection Agency Time: 6 days Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure 220 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 DEALING WITH CONSTRUCTION PERMITS Procedure 9. Register construction at the National Registry of LIST OF PROCEDURES Construction Works (CNO) Agency: Federal Revenue Service Estimated value of warehouse: R$1,674,131 Data as of: September 1st, 2020 Time: Less than one day (online procedure) Cost: No cost Procedure 1. Request and obtain a land ownership certificate from the property registry Procedure 10. Receive inspection from Labor Public Attorneys’ Office Agency: Property registry Time: 5 days Agency: Labor Public Attorneys’ Office Cost: R$26 [Property registry fee: R$8.20 + Extra documents sheets (3): Time: 1 day R$6.15 (R$2.05 per sheet) + Research fee for documents over 20 years old: Cost: No cost R$12.10] Federal District Procedure 11. Hire artist Procedure 2. Request and obtain demarcation declaration Agency: Contractor Time: 1 day Agency: Public Real Estate Company Cost: No cost Time: 18 days Cost: R$482 Procedure 12. Request final inspection from public works company (Novacap) Procedure 3. Obtain results of soil study Agency: Public Works Company Agency: Private agency Time: 1 day Time: 7 days Cost: R$45 (Fixed fee) Cost: R$3,500 Procedure 13. Request inspection from Fire Department Procedure 4*. Obtain a topographic survey Agency: Fire Department Agency: Private licensed company Time: Less than one day (online procedure) Time: 7 days Cost: R$93 Cost: R$2,000 Procedure 14. Receive final inspection from public works Procedure 5. Obtain Technical Term of Responsibility (ART) company (Novacap) or Technical Report of Responsibility (RRT) Agency: Public Works Company Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Time: 1 day Time: 3 days Cost: No cost Cost: R$234 (Fixed price for contracts over R$15,000.01) Procedure 15. Receive inspection from Fire Department and Procedure 6*. Request and obtain Debt Clearance Certificate obtain Fire Department Certificate (CND) Agency: Fire Department Agency: Secretary of Urban Order Protection Time: 45 days Time: 15 days Cost: No cost Cost: No cost Procedure 16*. Request and connect to water and sewage Procedure 7. Submit project for analysis by Fire Department Agency: Water and Sewerage Agency and obtain report Time: 13 days Agency: Fire Department Cost: R$676 Time: 45 days Cost: R$200 Procedure 17. Receive final inspection and obtain acceptance letter for occupancy certificate from water and sewage Procedure 8*. Request and obtain construction permit company Agency: Secretary of Urban Development and Housing Agency: Water and Sewage Company Time: 105 days Time: 30 days Cost: R$700 (Project approval fee: projects with over 300 m² of total area: Cost: No cost fixed fee of R$150.00 and R$0.15/m² that exceeds this limit + Construction permit: projects with over 300 m² of total area: fixed fee of R$200.00 and Procedure 18*. Receive final inspection and obtain acceptance R$0.20/m² that exceeds this limit) letter for occupancy certificate from electric power company Agency: Electric power company Time: 60 days Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 221 Procedure 19*. Receive final inspection and obtain acceptance Procedure 24. Register building with the property registry letter for occupancy certificate from public works company Agency: Property registry Agency: Public Works Company Time: 20 days Time: 20 days Cost: R$335 (Registration fee: 50% of R$670.65) Cost: No cost Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. Procedure 20. Request final inspection from local government Agency: Secretary of Urban Development and Housing Time: 1 day BUILDING QUALITY CONTROL INDEX Cost: R$250 Score Procedure 21. Receive final inspection from local government Building quality control index (0–15) 9.0 Agency: Secretary of Urban Order Protection Time: 1 day Quality of building regulations index (0–2) 2.0 Cost: No cost Quality control before construction index (0–1) 1.0 Federal District Quality control during construction index (0–3) 0.0 Procedure 22. Obtain certificate of occupancy (“Habite-se”) Agency: Secretary of Urban Development and Housing Quality control after construction index (0–3) 3.0 Time: 61 days Liability and insurance regimes index (0–2) 1.0 Cost: No cost Professional certifications index (0–4) 2.0 Procedure 23. Close CNO registration and obtain debt Note: For a list of all components, questions and results on this index, refer to clearance certificate the “Quality indexes details” section. Agency: Federal Revenue Service Time: Less than one day (online procedure) Cost: No cost REGISTERING PROPERTY Procedure 4*. Obtain district justice certificates (Certidão LIST OF PROCEDURES Especial (Cível e Criminal) and Certidão de Falências e Recuperações Judiciais) Estimated property value: R$1,674,131 Data as of: September 1st, 2020 Agency: District Justice Court (Tribunal de Justiça do Distrito Federal e Territórios) Time: Less than one day (online procedure) Procedure 1. Obtain ownership and no-lien certificate Cost: No cost (Certidão de Ônus Reais) Agency: Sistema de Registro de Imóveis Eletrônico do Distrito Federal (e-RIDFT) Procedure 5*. Obtain labor justice certificate (Certidão de Ações Trabalhistas) Time: 2 days Cost: R$26.45 [R$8.20 for issuing the certificate + R$6.15 for three extra Agency: Regional Labor Court (Tribunal Regional do Trabalho da 10ª Região) pages (R$2.05 each) + R$12.10 for searching] Time: Less than one day (online procedure) Cost: No cost Procedure 2*. Obtain company certificate of good standing (Certidão Simplificada da Empresa) Procedure 6*. Obtain certificate of good standing on labor debts (Certidão Negativa de Débitos Trabalhistas) Agency: Commercial registry (Junta Comercial, Industrial e Serviços do Distrito Federal) Agency: High Labor Court (Tribunal Superior do Trabalho) Time: Less than one day (online procedure) Time: Less than one day (online procedure) Cost: R$36 Cost: No cost Procedure 7*. Obtain municipal taxes clearance certificates Procedure 3*. Obtain consolidated certificate of dispute (Certidão de Débitos de Pessoa Jurídica and Certidão de (Certidão de Protesto de Títulos e Outros Documentos de Débitos do Imóvel) and cadastral certificate (Ficha Cadastral Dívida) do Imóvel) Agency: Central de Certidões do Distrito Federal Agency: Federal District tax authority (Secretaria de Economia) Time: Less than one day (online procedure) Time: Less than one day (online procedure) Cost: R$56.10 Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure 222 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 8*. Obtain federal taxes clearance certificate Procedure 13. Register public deed of purchase and sale (Certidão de Débitos Relativos a Créditos Tributários Federais Agency: Property registry (Cartório de Registro de Imóveis) e à Dívida Ativa da União) Time: 20 days Agency: Federal Revenue Service & Office of the Attorney General of the Cost: R$670.60 [The cost includes the collection of FCRC (7% of the National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- registrar fees) and ISS (5% of the registrar fees)] Geral da Fazenda Nacional) Time: Less than one day (online procedure) Procedure 14. Update municipal taxpayer records to the new Cost: No cost owner’s name (cadastro do contribuinte para fins de IPTU) Agency: Federal District tax authority (Secretaria de Economia) Procedure 9*. Obtain workers fund certificate (Certidão de Time: 5 days Regularidade do FGTS) Cost: No cost Agency: Federal Savings Bank (Caixa Econômica Federal) Time: Less than one day (online procedure) Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. Cost: No cost Procedure 10*. Obtain federal justice certificate (Certidão QUALITY OF LAND ADMINISTRATION INDEX Federal District Cível e Criminal) Agency: Federal Justice Court (Tribunal Regional Federal da 1ª Região/Seção Score Judiciária do Distrito Federal) Quality of land administration index (0–30) 15.0 Time: Less than one day (online procedure) Cost: No cost Reliability of infrastructure index (0–8) 5.0 Transparency of information index (0–6) 3.5 Procedure 11. Pay property transfer tax (Imposto sobre a Geographic coverage index (0–8) 2.0 Transmissão de Bens Imóveis e de Direitos, ITBI) Agency: Federal District tax authority (Secretaria de Economia) Land dispute resolution index (0–8) 4.5 Time: Less than one day (online procedure) Equal access to property rights index (-2–0) 0.0 Cost: R$50,223.93 (3% of the property value) Note: For a list of all components, questions and results on this index, refer to Procedure 12. Prepare public deed of purchase and sale the “Quality indexes details” section. Agency: Public notary (Tabelionato de Notas) Time: 3 days Cost: R$1,341.30 [The cost includes the collection of FCRC (7% of the notary fees) and ISS (5% of the notary fees)] ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 84 Quality of judicial processes index (0–18) 12.5 Trial and judgment 350 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 198 Case management (0–6) 3.0 Total time 632 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 14.0 Note: For a list of all components, questions and results on this index, refer to Court fees 5.6 the “Quality indexes details” section. Enforcement fees 0.3 Total cost 19.9 Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 223 GOIÁS GOIÂNIA Overall rank (1–27) 11 Aggregate score (5 topics) 55.9 Starting a business (rank) 27 Doing Business score (0–100) 72.2 Procedures (number) 16 Time (days) 21 Cost (% of income per capita) 5.1 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 6 Paying taxes (rank) 6 Doing Business score (0–100) 57.7 Doing Business score (0–100) 34.4 Goiás Procedures (number) 20 Payments (number) 10 Time (days) 221.5 Time (hours per year) 1,483 Cost (% of warehouse value) 2.6 TTCR (% of profit) 64.8 Building quality control index (0–15) 9.0 Postfiling index (0–100) 7.8 Registering property (rank) 3 Enforcing contracts (rank) 10 Doing Business score (0–100) 55.8 Doing Business score (0–100) 59.6 Procedures (number) 15 Time (days) 725 Time (days) 22 Cost (% of claim value) 31.6 Cost (% of property value) 2.8 Quality of judicial processes index (0–18) 11.5 Quality of land administration index (0–30) 15.5 Overall rank 3 6 6 10 Rank by 11 indicator 27 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 55.9 Score by indicator 72.2 57.7 55.8 34.4 59.6 Source: Subnational Doing Business database. 224 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 STARTING A BUSINESS Procedure 9. Pay the fee of the registration with the municipal LIST OF PROCEDURES tax agency Agency: Commercial bank Legal form: Limited Liability Company Paid-in minimum capital requirement: No minimum Time: Less than one day (online procedure) Data as of: September 1st, 2020 Cost: No cost (fee included in procedure 10) Procedure 1. Pay the land use certificate fee Procedure 10. Register with the municipal tax agency Agency: Commercial bank Agency: Municipal Secretariat of Finance Time: Less than one day (online procedure) Time: 2 days Cost: No cost (fee included in procedure 2) Cost: R$150.55 Procedure 2. Obtain the land use certificate Procedure 11. Obtain a digital certificate (e-CNPJ) in order to Agency: Municipal Secretariat for Sustainable Urban Development (SEPLAM) issue electronic invoices Time: 2 days Agency: Digital e-certifier Cost: R$61.06 Time: 1 day Goiás Cost: R$200.00 Procedure 3*. Obtain the building number certificate Agency: Municipal Secretariat for Sustainable Urban Development (SEPLAM) Procedure 12. Pay the operations license fee Time: 2 days Agency: Commercial bank Cost: R$33.54 Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 13) Procedure 4*. Pay the fee for obtaining the building number certificate Procedure 13. Obtain the operations license Agency: Commercial bank Agency: Municipal Secretariat of Economic Development, Labor, Science and Time: Less than one day (online procedure) Technology Cost: No cost (fee included in procedure 3) Time: 10 days Cost: R$917.10 Procedure 5. Check the availability of the company name and the feasibility of the location Procedure 14*. Update employees’ information with Social Agency: Municipality / Commercial Registry (via Redesim) Security (Programa de Integração Social - PIS) Time: Less than one day (online procedure) Agency: Federal Savings Bank (Caixa Econômica Federal) Cost: No cost Time: 1 day Cost: No cost Procedure 6. Apply for registration with the Federal Tax Authority (Receita Federal) Procedure 15*. Notify the General Cadaster of Employed and Agency: Federal Tax Authority Unemployed Workers - CAGED - or eSocial Time: Less than one day (online procedure) Agency: Ministry of Economy Cost: No cost Time: Less than one day (online procedure) Cost: No cost Procedure 7. Pay registration fees Agency: Commercial bank Procedure 16*. Register with the Employers’ Union and with Time: Less than one day (online procedure) the Employees’ Union Cost: No cost (fee included in procedure 8) Agency: Employers’ Union and Employees’ Union Time: 1 day Cost: No cost Procedure 8. Register with the state commercial registry to complete registration with the federal and state tax authorities Note: For detailed information on each procedure, see to obtain the National Corporate Taxpayer Registry (CNPJ) https://www.doingbusiness.org/brazil. and the Company Registration Identification Number (NIRE) Agency: Commercial Registry Time: 2 days Cost: R$337 Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 225 DEALING WITH CONSTRUCTION PERMITS Procedure 9. Register construction at the National Registry of LIST OF PROCEDURES Construction Works (CNO) Agency: Federal Revenue Service Estimated value of warehouse: R$1,674,131 Data as of: September 1st, 2020 Time: Less than one day (online procedure) Cost: No cost Procedure 1. Request and obtain a land ownership certificate from the property registry Procedure 10. Receive random inspection from Municipality Agency: Property registry Agency: Secretary of Urban Planning and Housing (Municipality) Time: 3 days Time: 1 day Cost: R$33 [Property registry fee: R$22.84 + ISSON: R$1.44 + SOMA: R$9.14] Cost: No cost Procedure 2. Perform consultation of suitability for Procedure 11. Receive inspection from Labor Public construction Attorneys’ Office Agency: Secretary of Urban Planning and Housing (Municipality) Agency: Labor Public Attorneys’ Office Time: 17 days Time: 1 day Goiás Cost: R$216 (Fixed fee) Cost: No cost Procedure 3. Obtain results of soil study Procedure 12. Request inspection from Fire Department Agency: Private agency Agency: Fire Department Time: 3 days Time: Less than one day (online procedure) Cost: No cost Cost: R$323 (Fixed fee of R$118.71 for 376 m² plus R$0.17/m² that exceeds this limit) Procedure 4*. Obtain a topographic survey Agency: Private licensed company Procedure 13. Receive inspection from Fire Department Time: 5 days Agency: Fire Department Cost: R$4,500 Time: 1 day Cost: No cost Procedure 5. Obtain Technical Term of Responsibility (ART) or Technical Report of Responsibility (RRT) Procedure 14. Obtain Fire Department Certificate Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Agency: Fire Department Time: 3 days Time: 30 days Cost: R$234 (Fixed price for contracts over R$15,000.01) Cost: No cost Procedure 6. Request and obtain project approval and Procedure 15*. Request and connect to water and sewage construction permit Agency: Water and Sewerage Agency Agency: Secretary of Urban Planning and Housing (Municipality) Time: 11 days Time: 75 days Cost: R$5,000 Cost: R$4,461 (Project approval: R$1.30/m² + Administrative fee: R$6.27 + Construction licensing: R$2.12/m² + Administrative fee: R$6.27) Procedure 16. Request final inspection from Municipality Agency: Secretary of Urban Planning and Housing (Municipality) Procedure 7*. Submit project for analysis by Fire Department Time: 1 day and obtain report Cost: R$91 (Initial certificate of occupancy fee: R$84.71 + Administrative Agency: Fire Department fee: R$6.27) Time: 38 days Cost: R$332 (Fixed fee of R$137.81 for 376 m² plus R$0.21/m² that exceeds Procedure 17. Receive final inspection from Municipality this limit) Agency: Secretary of Urban Planning and Housing (Municipality) Time: 1 day Procedure 8*. Request and obtain water and sewage Cost: No cost feasibility declaration Agency: Water and Sewerage Agency Procedure 18. Obtain certificate of occupancy (CCO) Time: 60 days Agency: Secretary of Urban Planning and Housing (Municipality) Cost: R$1,429 Time: 71 days Cost: R$21,342 [(Final certificate of occupancy fee: R$2.48/m² for works over 100 m² + Administrative fee: R$6.27) + (Municipal tax on construction: R$13.92/m² + Administrative fee: R$6.27)] Source: Subnational Doing Business database. * Simultaneous with previous procedure 226 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 19. Close CNO registration and obtain debt BUILDING QUALITY CONTROL INDEX clearance certificate Agency: Federal Revenue Service Score Time: Less than one day (online procedure) Building quality control index (0–15) 9.0 Cost: No cost Quality of building regulations index (0–2) 2.0 Procedure 20. Register building with the property registry Quality control before construction index (0–1) 1.0 Agency: Property registry Quality control during construction index (0–3) 0.0 Time: 10 days Quality control after construction index (0–3) 3.0 Cost: R$2,451 (Registration fee for properties with total value over R$400,000) Liability and insurance regimes index (0–2) 1.0 Note: For detailed information on each procedure, see Professional certifications index (0–4) 2.0 https://www.doingbusiness.org/brazil. Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. REGISTERING PROPERTY Goiás Procedure 4*. Obtain state justice certificates (Certidão de LIST OF PROCEDURES Nada Consta Cível and Certidão de Nada Consta Criminal de Pessoa Jurídica) Estimated property value: R$1,674,131 Data as of: September 1st, 2020 Agency: State Justice Court (Tribunal de Justiça do Estado de Goiás) Time: Less than one day (online procedure) Cost: No cost Procedure 1. Obtain ownership and no-lien certificates (Certidão de Inteiro Teor de Matrícula and Certidão de Ônus e Ações) Procedure 5*. Obtain labor justice certificate (Certidão de Ações Trabalhistas) Agency: Property registry (Cartório de Registro de Imóveis) Agency: Regional Labor Court (Tribunal Regional do Trabalho da 18ª Região) Time: 3 days Time: Less than one day (online procedure) Cost: R$110.94 [R$33.12 for issuing the Certidão de Inteiro Teor de Cost: No cost Matrícula (R$22.84 for registrar fees + R$9.14 for institutional funds (40% of the registrar fees) + R$1.14 for ISS) + R$77.82 for issuing the Certidão de Ônus e Ações (R$53.67 for registrar fees + R$21.47 for institutional funds Procedure 6*. Obtain certificate of good standing on labor (40% of the registrar fees) + R$2.68 for ISS)] debts (Certidão Negativa de Débitos Trabalhistas) Agency: High Labor Court (Tribunal Superior do Trabalho) Time: Less than one day (online procedure) Procedure 2*. Obtain certificate of dispute (Certidão de Cost: No cost Protesto de Títulos e Outros Documentos de Dívida) Agency: Dispute registry (1º Tabelionato de Protesto de Títulos) Procedure 7*. Obtain municipal taxes clearance certificates Time: 1 day (Certidão Negativa de Débitos de Tributos Imobiliários Cost: R$66.47 (R$35.40 for registrar fees + R$3.54 for FUNDESP + R$2.83 and Consulta de Situação do Contribuinte) and cadastral for FUNESP + R$1.06 for the State of Goiás + R$1.42 for Fundo Especial dos certificate (Consulta às Informações Cadastrais do Imóvel) Sistemas de Execução de Medidas Penais e Socioeducativas + R$1.06 for Agency: Municipal tax authority (Secretaria Municipal de Finanças) FUNEMP + R$1.06 for FUNCOMP + R$0.71 for FUNDATIVOS + R$0.71 for Time: Less than one day (online procedure) FUNPROGE + R$0.44 for FUNDEPEG + R$0.44 for FUNDAF-GO + R$0.89 Cost: No cost for FEMAL-GO + R$1.77 for ISS + R$15.14 for judiciary fee) Procedure 8*. Obtain state taxes clearance certificate (Certidão Procedure 3*. Obtain certificate of dispute (Certidão de Negativa de Débitos Estaduais) Protesto de Títulos e Outros Documentos de Dívida) Agency: State tax authority (Secretaria da Fazenda do Governo do Estado Agency: Dispute registry (2º Tabelionato de Protesto de Títulos) de Goiás) Time: 1 day Time: Less than one day (online procedure) Cost: R$66.47 (R$35.40 for registrar fees + R$3.54 for FUNDESP + R$2.83 Cost: No cost for FUNESP + R$1.06 for the State of Goiás + R$1.42 for Fundo Especial dos Sistemas de Execução de Medidas Penais e Socioeducativas + R$1.06 for Procedure 9*. Obtain federal taxes clearance certificate FUNEMP + R$1.06 for FUNCOMP + R$0.71 for FUNDATIVOS + R$0.71 for (Certidão de Débitos Relativos a Créditos Tributários Federais FUNPROGE + R$0.44 for FUNDEPEG + R$0.44 for FUNDAF-GO + R$0.89 e à Dívida Ativa da União) for FEMAL-GO + R$1.77 for ISS + R$15.14 for judiciary fee) Agency: Federal Revenue Service & Office of the Attorney General of the National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- Geral da Fazenda Nacional) Time: Less than one day (online procedure) Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 227 Procedure 10*. Obtain workers fund certificate (Certidão de Procedure 15. Register public deed of purchase and sale Regularidade do FGTS) Agency: Property registry (Cartório de Registro de Imóveis) Agency: Federal Savings Bank (Caixa Econômica Federal) Time: 10 days Time: Less than one day (online procedure) Cost: R$6,651.29 [R$6,609.18 for registration (R$4,558.06 for registrar Cost: No cost fees + R$227.90 for ISS + R$1,823.22 for institutional funds) + R$42.11 for provisional registration (R$9.93 for registrar fees + R$15.62 for judiciary fee Procedure 11*. Obtain federal justice certificate (Certidão + R$16.56 for searching)] Cível e Criminal) Note: For detailed information on each procedure, see Agency: Federal Justice Court (Tribunal Regional Federal da 1ª Região/Seção https://www.doingbusiness.org/brazil. Judiciária de Goiás) Time: Less than one day (online procedure) Cost: No cost QUALITY OF LAND ADMINISTRATION INDEX Score Procedure 12*. Obtain company certificate of good standing (Certidão Simplificada da Empresa) Quality of land administration index (0–30) 15.5 Agency: Commercial registry (Junta Comercial do Estado de Goiás) Reliability of infrastructure index (0–8) 5.0 Time: Less than one day (online procedure) Cost: R$62 Transparency of information index (0–6) 4.0 Geographic coverage index (0–8) 2.0 Goiás Procedure 13. Pay property transfer tax (Imposto Sobre Transmissão de Imóveis, ISTI) Land dispute resolution index (0–8) 4.5 Agency: Municipal tax authority (Secretaria Municipal de Finanças) Equal access to property rights index (-2–0) 0.0 Time: Less than one day (online procedure) Note: For a list of all components, questions and results on this index, refer to Cost: R$33,527.84 (2% of the property value + R$45.22 for assessing the the “Quality indexes details” section. property value) Procedure 14. Prepare public deed of purchase and sale Agency: Public notary (Tabelionato de Notas) Time: 4 days Cost: R$5,845.06 (R$3,730.56 for notary fees + R$373.06 for FUNDESP + R$298.44 for FUNESP + R$111.92 for the State of Goiás + R$149.22 for Fundo Especial dos Sistemas de Execução de Medidas Penais e Socioeducativas + R$111.92 for FUNEMP + R$111.92 for FUNCOMP + R$74.61 for FUNDATIVOS + R$74.61 for FUNPROGE + R$46.63 for FUNDEPEG + R$93.26 for FEMAL-GO + R$46.63 for FUNDAF-GO + R$186.53 for ISS + R$435.75 for judiciary fee) ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 69 Quality of judicial processes index (0–18) 11.5 Trial and judgment 373 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 283 Case management (0–6) 2.0 Total time 725 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 20.0 Note: For a list of all components, questions and results on this index, refer to Court fees 10.4 the “Quality indexes details” section. Enforcement fees 1.2 Total cost 31.6 Source: Subnational Doing Business database. * Simultaneous with previous procedure 228 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 MARANHÃO SÃO LUÍS Overall rank (1–27) 15 Aggregate score (5 topics) 54.4 Starting a business (rank) 5 Doing Business score (0–100) 83.4 Procedures (number) 9 Time (days) 18 Cost (% of income per capita) 3.6 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 27 Paying taxes (rank) 10 Doing Business score (0–100) 42.0 Doing Business score (0–100) 34.2 Procedures (number) 26 Payments (number) 10 Maranhão Time (days) 503 Time (hours per year) 1,501 Cost (% of warehouse value) 1.6 TTCR (% of profit) 65.1 Building quality control index (0–15) 9.0 Postfiling index (0–100) 7.8 Registering property (rank) 20 Enforcing contracts (rank) 7 Doing Business score (0–100) 50.2 Doing Business score (0–100) 62.3 Procedures (number) 16 Time (days) 753 Time (days) 39 Cost (% of claim value) 27.3 Cost (% of property value) 3.7 Quality of judicial processes index (0–18) 12.5 Quality of land administration index (0–30) 13.0 Overall rank 5 7 10 Rank by indicator 15 20 27 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 54.4 Score by indicator 83.4 42.0 50.2 34.2 62.3 Source: Subnational Doing Business database. State profiles 229 STARTING A BUSINESS Procedure 5. Obtain a digital certificate (e-CNPJ) in order LIST OF PROCEDURES to issue electronic invoices Agency: Digital e-certifier Legal form: Limited Liability Company Paid-in minimum capital requirement: No minimum Time: 2 days Data as of: September 1st, 2020 Cost: R$225 Procedure 1. Check the availability of the company name Procedure 6. Pay the operations license fee and the feasibility of the location Agency: Commercial bank Agency: Municipality / Commercial Registry (via Redesim) Time: Less than one day (online procedure) Time: 2 days Cost: R$665 Cost: No cost Procedure 7*. Update employees’ information with Social Procedure 2. Apply for registration with the Federal Tax Security (Programa de Integração Social - PIS) Authority (Receita Federal) Agency: Federal Savings Bank (Caixa Econômica Federal) Agency: Federal Tax Authority Time: 1 day Time: Less than one day (online procedure) Cost: No cost Cost: No cost Maranhão Procedure 8*. Notify the General Cadaster of Employed Procedure 3. Pay registration fees and Unemployed Workers - CAGED - or eSocial Agency: Commercial bank Agency: Ministry of Economy Time: Less than one day (online procedure) Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 4) Cost: No cost Procedure 4. Register with the state commercial Procedure 9*. Register with the Employers’ Union and registry to complete registration with the federal, state with the Employees’ Union and municipal tax authorities to obtain the National Agency: Employers’ Union and Employees’ Union Corporate Taxpayer Registry (CNPJ), the Company Time: 1 day Registration Identification Number (NIRE) and the Cost: No cost operations license Agency: Commercial Registry Note: For detailed information on each procedure, see Time: 10 days https://www.doingbusiness.org/brazil. Cost: R$304 DEALING WITH CONSTRUCTION PERMITS Procedure 3*. Obtain a topographic survey LIST OF PROCEDURES Agency: Private licensed company Estimated value of warehouse: R$1,674,131 Time: 2 days Data as of: September 1st, 2020 Cost: R$2,000 Procedure 1. Request and obtain a land ownership certificate Procedure 4*. Request and obtain traffic analysis approval from the property registry Agency: Secretary of Transit and Transportation Agency: Property registry Time: 30 days Time: 5 days Cost: R$804 (Fixed fee for projects with requirement of up to 30 parking Cost: R$38 [Property registry fee: R$34.10 + Notary fund fee (FERC): R$1.00 spots) + Public Prosecutor’s office fund fee (FEMP): R$1.36 + Public defender’s office fund fee (FADEP): R$1.36] Procedure 5. Obtain Technical Term of Responsibility (ART) or Technical Report of Responsibility (RRT) Procedure 2. Obtain results of soil study Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Agency: Private agency Time: 3 days Time: 5 days Cost: R$234 (Fixed price for contracts over R$15,000.01) Cost: R$6,500 Source: Subnational Doing Business database. * Simultaneous with previous procedure 230 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 6*. Request and obtain Debt Clearance Procedure 16. Receive inspection from Labor Public Certificate (CND) Attorneys’ Office Agency: Secretary of Finance (Municipality) Agency: Labor Public Attorneys’ Office Time: Less than one day (online procedure) Time: 1 day Cost: No cost Cost: No cost Procedure 7. Request and obtain electricity feasibility Procedure 17. Request inspection from Fire Department declaration Agency: Fire Department Agency: Electric power company Time: 1 day Time: 15 days Cost: No cost Cost: No cost Procedure 18. Receive inspection from Fire Department Procedure 8*. Request and obtain water and sewage Agency: Fire Department feasibility declaration Time: 1 day Agency: Water and Sewerage Agency Cost: No cost Time: 15 days Cost: No cost Procedure 19. Obtain Fire Department Certificate Agency: Fire Department Procedure 9. Perform consultation of suitability for Time: 45 days construction Cost: R$614 (Fixed final inspection fee) Agency: Secretary of Urbanism and Housing (Municipality) Maranhão Time: 30 days Procedure 20*. Request and connect to water and sewage Cost: No cost Agency: Water and Sewerage Agency Time: 20 days Procedure 10. Submit project for analysis by Fire Cost: R$313 (Water and sewage fee) Department and obtain report Agency: Fire Department Procedure 21*. Request and obtain completion certificate Time: 43 days Cost: R$614 (Fixed project analysis fee) Agency: Secretary of Transit and Transportation Time: 30 days Cost: R$1,316 (Fixed fee for projects with requirement of up to 30 parking Procedure 11*. Request and obtain environmental license spots) Agency: Secretary of Environment (Municipality) Time: 30 days Procedure 22. Request final inspection from Municipality Cost: R$4,200 (Preliminary license: R$1,200 + Installation license: R$1,500 + Operating license: R$1,500) Agency: Secretary of Urbanism and Housing (Municipality) Time: 1 day Cost: No cost Procedure 12*. Perform pre-approval analysis Agency: Secretary of Urbanism and Housing (Municipality) Procedure 23. Receive final inspection from Municipality Time: 45 days Cost: R$1,232 (Fixed fee) Agency: Secretary of Urbanism and Housing (Municipality) Time: 1 day Cost: No cost Procedure 13. Request and obtain construction permit Agency: Secretary of Urbanism and Housing (Municipality) Procedure 24. Obtain certificate of occupancy (“Habite-se”) Time: 240 days Cost: R$4,300 (Construction permit fee: R$3.29/m² + Administrative fee: Agency: Secretary of Urbanism and Housing (Municipality) R$20.94) Time: 55 days Cost: R$4,300 (Construction permit fee: R$3.29/m² + Administrative fee: R$20.94) Procedure 14. Register construction at the National Registry of Construction Works (CNO) Procedure 25. Close CNO registration and obtain debt Agency: Federal Revenue Service clearance certificate Time: Less than one day (online procedure) Cost: No cost Agency: Federal Revenue Service Time: Less than one day (online procedure) Cost: No cost Procedure 15. Receive random inspection from Municipality Agency: Secretary of Urbanism and Housing (Municipality) Time: 1 day Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 231 Procedure 26. Register building with the property registry BUILDING QUALITY CONTROL INDEX Agency: Property registry Time: 23 days Score Cost: R$192 (Registration fee) Building quality control index (0–15) 9.0 Note: For detailed information on each procedure, see Quality of building regulations index (0–2) 2.0 https://www.doingbusiness.org/brazil. Quality control before construction index (0–1) 1.0 Quality control during construction index (0–3) 0.0 Quality control after construction index (0–3) 3.0 Liability and insurance regimes index (0–2) 1.0 Professional certifications index (0–4) 2.0 Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. REGISTERING PROPERTY Maranhão Procedure 6*. Obtain certificate of good standing on labor LIST OF PROCEDURES debts (Certidão Negativa de Débitos Trabalhistas) Agency: High Labor Court (Tribunal Superior do Trabalho) Estimated property value: R$1,674,131 Data as of: September 1st, 2020 Time: Less than one day (online procedure) Cost: No cost Procedure 1. Obtain ownership and no-lien certificates (Certidão de Inteiro Teor de Matrícula, Certidão de Procedure 7*. Obtain municipal taxes clearance certificate Ônus Reais, and Certidão de Ações Reais e Pessoais (Certidão Negativa de Débitos Municipais) and cadastral Reipersecutórias) certificate (Boletim de Cadastro Imobiliário) Agency: Property registry (Cartório de Registro de Imóveis) Agency: Municipal tax authority (Secretaria Municipal de Fazenda) Time: 5 days Time: Less than one day (online procedure) Cost: R$113.46 [R$37.82 for each certificate (x3). The cost of each certificate Cost: No cost is calculated as follows: R$34.10 for registrar fees + R$1.00 for FERC (3% of the registrar fees) + R$1.36 for FEMP (4% of the registrar fees) + R$1.36 for Procedure 8*. Obtain state taxes clearance certificate (Certidão FADEP (4% of the registrar fees)] Negativa de Débitos Estaduais) Agency: State tax authority (Secretaria da Fazenda do Governo do Estado do Maranhão) Procedure 2*. Obtain certificate of dispute (Certidão de Time: Less than one day (online procedure) Protesto de Títulos e Outros Documentos de Dívida) Cost: No cost Agency: Dispute registry (1º Tabelionato de Protesto de Títulos) Time: 3 days Procedure 9*. Obtain federal taxes clearance certificate Cost: R$47.30 (Certidão de Débitos Relativos a Créditos Tributários Federais e à Dívida Ativa da União) Procedure 3*. Obtain certificate of dispute (Certidão de Agency: Federal Revenue Service & Office of the Attorney General of the Protesto de Títulos e Outros Documentos de Dívida) National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- Agency: Dispute registry (2º Tabelionato de Protesto de Títulos) Geral da Fazenda Nacional) Time: 3 days Time: Less than one day (online procedure) Cost: R$47.30 Cost: No cost Procedure 4*. Obtain state justice certificate (Certidão Única Procedure 10*. Obtain workers fund certificate (Certidão de de Distribuição para Fins Gerais (todas as competências)) Regularidade do FGTS) Agency: State Justice Court (Tribunal de Justiça do Estado do Maranhão) Agency: Federal Savings Bank (Caixa Econômica Federal) Time: 2 days Time: Less than one day (online procedure) Cost: R$48.60 Cost: No cost Procedure 5*. Obtain labor justice certificate (Certidão de Procedure 11*. Obtain federal justice certificate (Certidão de Ações Trabalhistas) Distribuição Cível e Criminal) Agency: Regional Labor Court (Tribunal Regional do Trabalho da 16ª Região) Agency: Federal Justice Court (Tribunal Regional Federal da 1ª Região/Seção Time: 2 days Judiciária do Maranhão) Cost: R$5.53 [for issuing the Guia de Recolhimento da União (GRU) Time: Less than one day (online procedure) regarding archived physical records] Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure 232 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 12*. Obtain company certificate of good standing Procedure 16. Register public deed of purchase and sale (Certidão Simplificada da Empresa) Agency: Property registry (Cartório de Registro de Imóveis) Agency: Commercial registry (Junta Comercial do Estado do Maranhão) Time: 23 days Time: Less than one day (online procedure) Cost: R$13,783.82 [R$12,417.90 for registrar fees (R$12,390.30 for Cost: R$53 registration + R$27.60 for provisional registration) + R$372.50 for FERC + R$496.71 for FEMP + R$496.71 for FADEP] Procedure 13. Request property tax payment slip (Imposto Note: For detailed information on each procedure, see sobre a Transmissão de Bens Imóveis e de Direitos, ITBI) https://www.doingbusiness.org/brazil. Agency: Municipal tax authority (Secretaria Municipal de Fazenda) Time: 3 days Cost: No cost QUALITY OF LAND ADMINISTRATION INDEX Score Procedure 14. Pay property transfer tax Agency: Commercial bank Quality of land administration index (0–30) 13.0 Time: Less than one day (online procedure) Reliability of infrastructure index (0–8) 5.0 Cost: R$33,482.62 (2% of the property value) Transparency of information index (0–6) 3.5 Procedure 15. Prepare public deed of purchase and sale Geographic coverage index (0–8) 0.0 Agency: Public notary (Tabelionato de Notas) Land dispute resolution index (0–8) 4.5 Time: 4 days Maranhão Cost: R$13,753.22 [R$12,390.30 for notary fees + R$371.70 for FERC (3% Equal access to property rights index (-2–0) 0.0 of the notary fees) + R$495.61 for FEMP (4% of the notary fees) + R$495.61 Note: For a list of all components, questions and results on this index, refer to for FADEP (4% of the notary fees)] the “Quality indexes details” section. ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 54 Quality of judicial processes index (0–18) 12.5 Trial and judgment 466 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 233 Case management (0–6) 3.0 Total time 753 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 14.7 Note: For a list of all components, questions and results on this index, refer to Court fees 11.2 the “Quality indexes details” section. Enforcement fees 1.4 Total cost 27.3 Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 233 MATO GROSSO CUIABÁ Overall rank (1–27) 19 Aggregate score (5 topics) 53.5 Starting a business (rank) 21 Doing Business score (0–100) 78.0 Procedures (number) 12 Time (days) 17 Cost (% of income per capita) 13.6 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 17 Paying taxes (rank) 16 Doing Business score (0–100) 47.6 Doing Business score (0–100) 34.1 Procedures (number) 23 Payments (number) 11 Time (days) 337.5 Time (hours per year) 1,483 Mato Grosso Cost (% of warehouse value) 1.5 TTCR (% of profit) 64.4 Building quality control index (0–15) 9.0 Postfiling index (0–100) 7.8 Registering property (rank) 16 Enforcing contracts (rank) 14 Doing Business score (0–100) 51.9 Doing Business score (0–100) 56.0 Procedures (number) 14 Time (days) 874 Time (days) 43.5 Cost (% of claim value) 30.5 Cost (% of property value) 2.6 Quality of judicial processes index (0–18) 11.5 Quality of land administration index (0–30) 13.5 Overall rank Rank by indicator 14 16 16 17 21 19 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 53.5 Score by indicator 78.0 47.6 51.9 34.1 56.0 Source: Subnational Doing Business database. 234 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 STARTING A BUSINESS Procedure 10*. Update employees’ information with Social LIST OF PROCEDURES Security (Programa de Integração Social - PIS) Agency: Federal Savings Bank (Caixa Econômica Federal) Legal form: Limited Liability Company Paid-in minimum capital requirement: No minimum Time: 1 day Data as of: September 1st, 2020 Cost: No cost Procedure 1. Check the availability of the company name and Procedure 11*. Notify the General Cadaster of Employed and the feasibility of the location Unemployed Workers - CAGED - or eSocial Agency: Municipality / Commercial Registry (via Redesim) Agency: Ministry of Economy Time: 2 days Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 2. Apply for registration with the Federal Tax Procedure 12*. Register with the Employers’ Union and with Authority (Receita Federal) the Employees’ Union Agency: Federal Tax Authority Agency: Employers’ Union and Employees’ Union Time: Less than one day (online procedure) Time: 1 day Cost: No cost Cost: No cost Note: For detailed information on each procedure, see Mato Grosso Procedure 3. Pay registration fees https://www.doingbusiness.org/brazil. Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 4) Procedure 4. Register with the state commercial registry to complete registration with the federal and state tax authorities to obtain the National Corporate Taxpayer Registry (CNPJ) and the Company Registration Identification Number (NIRE) Agency: Commercial Registry Time: 2 days Cost: R$210.00 Procedure 5. Register with the municipal tax agency Agency: Municipal Secretariat of Finance Time: Less than one day (online procedure) Cost: No cost Procedure 6. Obtain a digital certificate (e-CNPJ) in order to issue electronic invoices Agency: Digital e-certifier Time: 1 day Cost: R$200 Procedure 7. Pay the operations license fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 8) Procedure 8. Obtain the operations license Agency: Municipal Secretariat of Environment and Urban Development Time: 10 days Cost: R$2,201.73 (R$2.37 per sqm) Procedure 9*. Pay the operating fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: R$1,932.32 (R$2.08 per sqm) Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 235 DEALING WITH CONSTRUCTION PERMITS Procedure 10. Register construction at the National Registry LIST OF PROCEDURES of Construction Works (CNO) Agency: Federal Revenue Service Estimated value of warehouse: R$1,674,131 Data as of: September 1st, 2020 Time: Less than one day (online procedure) Cost: No cost Procedure 1. Request and obtain a land ownership certificate from the property registry Procedure 11. Receive random inspection from Municipality Agency: Property registry Agency: Secretary of Public Order (Municipality) Time: 5 days Time: 1 day Cost: R$25 (Property registry fee: R$25.30) Cost: No cost Procedure 2. Perform consultation of suitability for Procedure 12*. Receive inspection from Labor Public construction Attorneys’ Office Agency: Secretary of Urban Policy (Municipality) Agency: Labor Public Attorneys’ Office Time: 15 days Time: 1 day Cost: R$54 Cost: No cost Procedure 3*. Obtain results of soil study Procedure 13. Request inspection from Fire Department Mato Grosso Agency: Private agency Agency: Fire Department Time: 13 days Time: Less than one day (online procedure) Cost: R$5,000 Cost: No cost Procedure 4*. Obtain a topographic survey Procedure 14. Receive inspection from Fire Department Agency: Private licensed company Agency: Fire Department Time: 12 days Time: 1 day Cost: R$2,000 Cost: No cost Procedure 5*. Obtain Technical Term of Responsibility (ART) Procedure 15. Obtain Fire Department Certificate or Technical Report of Responsibility (RRT) Agency: Fire Department Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Time: 42 days Time: 2 days Cost: R$1,165 (Project analysis fee: R$2,904.74 + Inspection request fee: Cost: R$234 (Fixed price for contracts over R$15,000.01) R$1,115.8) Procedure 6*. Request and obtain water and sewage Procedure 16. Receive inspection from water and sewage feasibility declaration company Agency: Water and Sewerage Agency Agency: Water and Sewerage Agency Time: 15 days Time: 1 day Cost: R$131 (Water connection: R$65.53 + Sewage connection: R$65.53) Cost: No cost Procedure 7*. Request and obtain environmental license Procedure 17*. Request and connect to water and sewage Agency: Environmental and urban development department Agency: Water and Sewerage Agency Time: 75 days Time: 20 days Cost: R$3,010 (Preliminary license: R$757.61 + Installation license: Cost: R$834 (Water connection: R$437.19 + Sewage connection: R$396.93) R$1,156.32 + Operating license: R$1,096.56) Procedure 18. Obtain Certificate of Tax Payment Procedure 8. Request and obtain construction permit Agency: Secretary of Finance (Municipality) Agency: Secretary of Environment and Sustainable Urban Development Time: Less than one day (online procedure) (Municipality) Cost: No cost Time: 135 days Cost: R$6,469 [Building Permit fee: R$161.04 + Project Approval (commercial use): R$4.85/m²] Procedure 19. Request final inspection from Municipality Agency: Municipality Procedure 9*. Submit project for analysis by Fire Department Time: Less than one day (online procedure) and obtain report Cost: No cost Agency: Fire Department Time: 45 days Cost: R$3,034 Source: Subnational Doing Business database. * Simultaneous with previous procedure 236 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 20. Receive final inspection from Municipality BUILDING QUALITY CONTROL INDEX Agency: Municipality Time: 1 day Score Cost: No cost Building quality control index (0–15) 9.0 Procedure 21. Obtain certificate of occupancy (“Habite-se”) Quality of building regulations index (0–2) 2.0 Agency: Municipality Quality control before construction index (0–1) 1.0 Time: 23 days Cost: R$2,549 (R$1.96/m²) Quality control during construction index (0–3) 0.0 Quality control after construction index (0–3) 3.0 Procedure 22. Close CNO registration and obtain debt Liability and insurance regimes index (0–2) 1.0 clearance certificate Agency: Federal Revenue Service Professional certifications index (0–4) 2.0 Time: Less than one day (online procedure) Note: For a list of all components, questions and results on this index, refer to Cost: No cost the “Quality indexes details” section. Procedure 23. Register building with the property registry Agency: Property registry Time: 25 days Cost: R$1,407 (Registration fee for properties over 301 m² of total built area: R$1,342.30 + Research fee: R$23.40 + Detailed status certificate fee: R$20.60 + Clearance certificate fee: R$20.60) Mato Grosso Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. REGISTERING PROPERTY Procedure 4*. Obtain labor justice certificate (Certidão de LIST OF PROCEDURES Ações Trabalhistas) Agency: Regional Labor Court (Tribunal Regional do Trabalho da 23ª Região) Estimated property value: R$1,674,131 Data as of: September 1st, 2020 Time: 2 days Cost: No cost Procedure 1. Obtain state justice certificates (Certidões Negativas de Pessoa Jurídica, Cível e Criminal) Procedure 5*. Obtain company certificate of good standing (Certidão Simplificada da Empresa) Agency: State Justice Court (Tribunal de Justiça do Mato Grosso) Agency: Commercial registry (Junta Comercial do Estado de Mato Grosso) Time: 6 days Time: 2 days Cost: R$61.06 [R$30.53 for each certificate (x2). The cost of each certificate Cost: R$24 is calculated as follows: R$19.65 for issuing the certificate + R$2.71 for searching] Procedure 6*. Obtain certificate of good standing on labor debts (Certidão Negativa de Débitos Trabalhistas) Procedure 2*. Obtain ownership and no-lien certificates Agency: High Labor Court (Tribunal Superior do Trabalho) (Certidão de Inteiro Teor de Matrícula, Certidão de Time: Less than one day (online procedure) Ônus Reais, and Certidão de Ações Reais e Pessoais Cost: No cost Reipersecutórias) Agency: Property registry (Cartório de Registro de Imóveis) Time: 5 days Procedure 7*. Obtain municipal taxes clearance certificates Cost: R$87.23 (R$20.60 for issuing the Certidão de Inteiro Teor + R$20.60 (Certidão de Débitos Gerais de Pessoa Jurídica and Certidão Imobiliária) and cadastral certificate (Guia Imobiliária) for issuing the Certidão de Ônus Reais + R$20.60 for issuing the Certidão de Ações Reais e Pessoais Reipersecutórias + R$23.40 for searching + R$2.03 Agency: Municipal tax authority (Secretaria Municipal de Fazenda) for ISS) Time: Less than one day (online procedure) Cost: No cost Procedure 3*. Obtain certificate of dispute (Certidão de Protesto de Títulos e Outros Documentos de Dívida) Procedure 8*. Obtain state taxes clearance certificate (Certidão Negativa de Débitos Estaduais) Agency: Dispute registry (Tabelionato de Protesto de Títulos) Agency: State tax authority (Secretaria de Fazenda do Governo do Estado de Time: 2 days Mato Grosso) Cost: R$48.19 (R$38.20 for registrar fees + R$6.08 for FCRCPN + R$1.90 Time: Less than one day (online procedure) for microfilming + R$2.01 for ISS) Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 237 Procedure 9*. Obtain federal taxes clearance certificate Procedure 14. Register public deed of purchase and sale (Certidão de Débitos Relativos a Créditos Tributários Federais Agency: Property registry (Cartório de Registro de Imóveis) e à Dívida Ativa da União) Time: 25 days Agency: Federal Revenue Service & Office of the Attorney General of the Cost: R$4,662.48 (R$4,474.70 for registrar fees + R$14.20 for endorsement National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- + R$23.40 for searching + R$20.60 for issuing the Certidão de Inteiro Teor + Geral da Fazenda Nacional) R$20.60 for issuing the Certidão de Ônus Reais + R$108.98 for ISS) Time: Less than one day (online procedure) Cost: No cost Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. Procedure 10*. Obtain workers fund certificate (Certidão de Regularidade do FGTS) QUALITY OF LAND ADMINISTRATION INDEX Agency: Federal Savings Bank (Caixa Econômica Federal) Time: Less than one day (online procedure) Score Cost: No cost Quality of land administration index (0–30) 13.5 Reliability of infrastructure index (0–8) 5.0 Procedure 11*. Obtain federal justice certificate (Certidão Cível e Criminal) Transparency of information index (0–6) 4.0 Agency: Federal Justice Court (Tribunal Regional Federal da 1ª Região/Seção Geographic coverage index (0–8) 0.0 Judiciária de Mato Grosso) Time: Less than one day (online procedure) Land dispute resolution index (0–8) 4.5 Cost: No cost Equal access to property rights index (-2–0) 0.0 Note: For a list of all components, questions and results on this index, refer to Mato Grosso Procedure 12. Pay property transfer tax (Imposto sobre a the “Quality indexes details” section. Transmissão de Bens Imóveis e de Direitos, ITBI) Agency: Municipal tax authority (Secretaria Municipal de Fazenda) Time: Less than one day (online procedure) Cost: R$33,579.33 (2% of the property value + R$96.71 for updating the taxpayer records) Procedure 13. Prepare public deed of purchase and sale Agency: Public notary (Tabelionato de Notas) Time: 10 days Cost: R$4,631.26 (R$4,474.70 for preparing the deed + R$14.20 for endorsement + R$34.10 for the ITBI information guide + R$108.26 for ISS) ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 84 Quality of judicial processes index (0–18) 11.5 Trial and judgment 454 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 336 Case management (0–6) 2.0 Total time 874 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 23.4 Note: For a list of all components, questions and results on this index, refer to Court fees 6.3 the “Quality indexes details” section. Enforcement fees 0.8 Total cost 30.5 Source: Subnational Doing Business database. * Simultaneous with previous procedure 238 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 MATO GROSSO DO SUL CAMPO GRANDE Overall rank (1–27) 7 Aggregate score (5 topics) 56.7 Starting a business (rank) 22 Doing Business score (0–100) 77.8 Procedures (number) 13 Time (days) 17.5 Cost (% of income per capita) 2.0 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 2 Paying taxes (rank) 8 Doing Business score (0–100) 62.4 Doing Business score (0–100) 34.3 Procedures (number) 18 Payments (number) 10 Time (days) 203 Time (hours per year) 1,483 Cost (% of warehouse value) 1.5 TTCR (% of profit) 65.0 Mato Grosso do Sul Building quality control index (0–15) 9.0 Postfiling index (0–100) 7.8 Registering property (rank) 6 Enforcing contracts (rank) 17 Doing Business score (0–100) 54.7 Doing Business score (0–100) 54.3 Procedures (number) 17 Time (days) 1,095 Time (days) 29.5 Cost (% of claim value) 23.9 Cost (% of property value) 2.9 Quality of judicial processes index (0–18) 12.5 Quality of land administration index (0–30) 15.5 Overall rank 2 6 8 7 Rank by indicator 17 22 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 56.7 Score by indicator 77.8 62.4 54.7 34.3 54.3 Source: Subnational Doing Business database. State profiles 239 STARTING A BUSINESS Procedure 7. Pay the operations license fee LIST OF PROCEDURES Agency: Commercial bank Legal form: Limited Liability Company Time: Less than one day (online procedure) Paid-in minimum capital requirement: No minimum Cost: No cost (fee included in procedure 6) Data as of: September 1st, 2020 Procedure 8. Pay the state tax agency fee Procedure 1. Check the availability of the company name and Agency: Commercial bank the feasibility of the location Time: Less than one day (online procedure) Agency: Municipality / Commercial Registry (via Redesim) Cost: No cost (fee included in procedure 9) Time: 2 days Cost: No cost Procedure 9. Register with the state tax agency phase 1 Agency: State Secretariat of Finance Procedure 2. Apply for registration with the Federal Tax Time: 3 days Authority (Receita Federal) Cost: R$31.20 Agency: Federal Tax Authority Time: Less than one day (online procedure) Cost: No cost Procedure 10. Register with the state tax agency phase 2 Agency: State Secretariat of Finance Procedure 3. Pay registration fees Time: 1 day Cost: No cost Agency: Commercial bank Mato Grosso do Sul Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 4) Procedure 11*. Update employees’ information with Social Security (Programa de Integração Social - PIS) Procedure 4. Register with the state commercial registry to complete Agency: Federal Savings Bank (Caixa Econômica Federal) registration with the federal and municipal tax authorities to obtain Time: 1 day the National Corporate Taxpayer Registry (CNPJ) and the Company Cost: No cost Registration Identification Number (NIRE) Agency: Commercial Registry Procedure 12*. Notify the General Cadaster of Employed and Time: 2 days Unemployed Workers - CAGED - or eSocial Cost: R$378 Agency: Ministry of Economy Time: Less than one day (online procedure) Procedure 5. Obtain a digital certificate (e-CNPJ) in order to Cost: No cost issue electronic invoices Agency: Digital e-certifier Procedure 13*. Register with the Employers’ Union and with Time: 2 days the Employees’ Union Cost: R$210 Agency: Employers’ Union and Employees’ Union Time: 1 day Procedure 6. Obtain the operations license Cost: No cost Agency: Municipality Time: 3 days Note: For detailed information on each procedure, see Cost: R$50.90 https://www.doingbusiness.org/brazil. DEALING WITH CONSTRUCTION PERMITS Prosecutor’s office fund fee (FEADMP): R$2.90 + Municipal service tax (ISS): LIST OF PROCEDURES R$1.45 + Security stamp: R$1.50] Estimated value of warehouse: R$1,674,131 Data as of: September 1st, 2020 Procedure 2. Obtain results of soil study Agency: Private agency Time: 11 days Procedure 1. Request and obtain a land ownership certificate Cost: R$9,750 from the property registry Agency: Property registry Procedure 3*. Obtain a topographic survey Time: 1 day Agency: Private licensed company Cost: R$41 [Property registry fee: R$29 + Justice refitting fund fee (FUNJECC): Time: 12 days R$2.90 + Public defender’s office development fund fee (FUNADEP): R$1.74 Cost: R$4,500 + State Attorney General’s office fund fee (FUNDEP-GE): R$1.16 + Public Source: Subnational Doing Business database. * Simultaneous with previous procedure 240 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 4. Obtain Technical Term of Responsibility (ART) Procedure 15. Obtain certificate of occupancy (“Habite-se”) or Technical Report of Responsibility (RRT) Agency: Secretary of the Environment and Urban Development (Municipality) Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Time: 45 days Time: 1 day Cost: No cost Cost: R$234 (Fixed price for contracts over R$15,000.01) Procedure 16*. Request and connect to water and sewage Procedure 5. Request and obtain construction permit Agency: Water and Sewerage Agency Agency: Secretary of the Environment and Urban Development (Municipality) Time: 12 days Time: 35 days Cost: R$1,178 (Water connection: R$423.63 + Sewage connection: Cost: R$2,389 [Approval fee: R$1.80/m² + Permit fee: R$48.15 (fixed)] R$754.74) Procedure 6*. Submit project for analysis by Fire Department Procedure 17. Close CNO registration and obtain debt and obtain report clearance certificate Agency: Fire Department Agency: Federal Revenue Service Time: 67 days Time: Less than one day (online procedure) Cost: R$1,015 (34 TU) Cost: No cost Procedure 7. Register construction at the National Registry of Procedure 18. Register building with the property registry Construction Works (CNO) Agency: Property registry Agency: Federal Revenue Service Time: 15 days Time: Less than one day (online procedure) Cost: R$4,500 (Registration fee) Cost: No cost Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. Mato Grosso do Sul Procedure 8. Receive random inspection from Municipality Agency: Secretary of the Environment and Urban Development (Municipality) Time: 1 day BUILDING QUALITY CONTROL INDEX Cost: No cost Score Procedure 9. Receive inspection from Labor Public Attorneys’ Building quality control index (0–15) 9.0 Office Quality of building regulations index (0–2) 2.0 Agency: Labor Public Attorneys’ Office Time: 1 day Quality control before construction index (0–1) 1.0 Cost: No cost Quality control during construction index (0–3) 0.0 Procedure 10. Request inspection from Fire Department Quality control after construction index (0–3) 3.0 Agency: Fire Department Liability and insurance regimes index (0–2) 1.0 Time: 1 day Cost: R$1,015 (34 TU) Professional certifications index (0–4) 2.0 Note: For a list of all components, questions and results on this index, refer to Procedure 11. Receive inspection from Fire Department the “Quality indexes details” section. Agency: Fire Department Time: 1 day Cost: No cost Procedure 12. Obtain Fire Department Certificate Agency: Fire Department Time: 53 days Cost: No cost Procedure 13. Request final inspection from Municipality Agency: Secretary of the Environment and Urban Development (Municipality) Time: 1 day Cost: R$682 [Certificate fee: R$0.49/m² + Inspection fee: R$45.05 (fixed)] Procedure 14. Receive final inspection from Municipality Agency: Secretary of the Environment and Urban Development (Municipality) Time: 1 day Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 241 REGISTERING PROPERTY Procedure 7*. Obtain ownership and no-lien certificate LIST OF PROCEDURES (Certidão de Inteiro Teor de Matrícula com Ônus Reais e Ações Reais e Pessoais Reipersecutórias) Estimated property value: R$1,674,131 Data as of: September 1st, 2020 Agency: Property registry (Cartório de Registro de Imóveis) Time: 1 day Cost: R$40.65 [R$29.00 for registrar fees + R$2.90 for FUNJECC (10% Procedure 1. Obtain certificate of dispute (Certidão de of the registrar fees) + R$1.74 for FUNADEP (6% of the registrar fees) + Protesto de Títulos e Outros Documentos de Dívida) R$1.16 for FUNDEP-GE (4% of the registrar fees) + R$2.90 for FEADMP Agency: Dispute registry (1º Tabelionato de Protesto de Títulos) (10% of the registrar fees) + R$1.45 for ISS (5% of the registrar fees) + Time: 1 day R$1.50 for supervision stamp] Cost: R$25.80 [R$18.00 for registrar fees + R$1.80 for FUNJECC (10% of the registrar fees) + R$1.08 for FUNADEP (6% of the registrar fees) + R$0.72 for FUNDE-PGE (4% of the registrar fees) + R$1.80 for FEADMP Procedure 8*. Obtain municipal taxes clearance certificate (Certidão Negativa Imobiliária) and cadastral certificate (10% of the registrar fees) + R$0.90 for ISS (5% of the registrar fees) + (Ficha Cadastral Imobiliária) R$1.50 for supervision stamp] Agency: Municipality (Central de Atendimento ao Cidadão) Time: 1 day Procedure 2*. Obtain certificate of dispute (Certidão de Cost: R$25.28 (for issuing the Certidão Negativa Imobiliária) Protesto de Títulos e Outros Documentos de Dívida) Agency: Dispute registry (2º Tabelionato de Protesto de Títulos) Procedure 9*. Obtain state taxes clearance certificate (Certidão Time: 1 day Negativa de Débitos Estaduais) Mato Grosso do Sul Cost: R$24.90 [R$18.00 for registrar fees + R$1.80 for FUNJECC (10% of the registrar fees) + R$1.08 for FUNADEP (6% of the registrar fees) + Agency: State tax authority (Secretaria de Fazenda do Governo do Estado de R$0.72 for FUNDE-PGE (4% of the registrar fees) + R$1.80 for FEADMP Mato Grosso do Sul) (10% of the registrar fees) + R$1.50 for supervision stamp] Time: Less than one day (online procedure) Cost: No cost Procedure 3*. Obtain certificate of dispute (Certidão de Protesto de Títulos e Outros Documentos de Dívida) Procedure 10*. Obtain federal taxes clearance certificate (Certidão de Débitos Relativos a Créditos Tributários Federais Agency: Dispute registry (3º Tabelionato de Protesto de Títulos) e à Dívida Ativa da União) Time: 1 day Cost: R$25.80 [R$18.00 for registrar fees + R$1.80 for FUNJECC (10% Agency: Federal Revenue Service & Office of the Attorney General of the of the registrar fees) + R$1.08 for FUNADEP (6% of the registrar fees) + National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- R$0.72 for FUNDE-PGE (4% of the registrar fees) + R$1.80 for FEADMP Geral da Fazenda Nacional) (10% of the registrar fees) + R$0.90 for ISS (5% of the registrar fees) + Time: Less than one day (online procedure) R$1.50 for supervision stamp] Cost: No cost Procedure 4*. Obtain state justice certificates (Certidão de Procedure 11*. Obtain workers fund certificate (Certidão de Distribuição de Ações Cíveis and Certidão de Distribuição Regularidade do FGTS) de Ações de Falência, Concordata e Recuperação Judicial e Agency: Federal Savings Bank (Caixa Econômica Federal) Extrajudicial) Time: Less than one day (online procedure) Agency: State Justice Court (Tribunal de Justiça do Estado de Mato Grosso Cost: No cost do Sul) Time: Less than one day (online procedure) Procedure 12*. Obtain federal justice certificate (Certidão de Cost: No cost Distribuição de Ações e Execuções Cíveis, Fiscais, Criminais e dos Juizados Especiais Federais Criminais Adjuntos) Procedure 5*. Obtain labor justice certificate (Certidão de Agency: Federal Justice Court (Tribunal Regional Federal da 3ª Região/Seção Ações Trabalhistas) Judiciária de Mato Grosso do Sul) Agency: Regional Labor Court (Tribunal Regional do Trabalho da 24ª Região) Time: Less than one day (online procedure) Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 13*. Obtain company certificate of good standing Procedure 6*. Obtain certificate of good standing on labor (Certidão Simplificada da Empresa) debts (Certidão Negativa de Débitos Trabalhistas) Agency: Commercial registry (Junta Comercial do Estado de Mato Grosso Agency: High Labor Court (Tribunal Superior do Trabalho) do Sul) Time: Less than one day (online procedure) Time: Less than one day (online procedure) Cost: No cost Cost: R$30 Source: Subnational Doing Business database. * Simultaneous with previous procedure 242 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 14. Pay property transfer tax (Imposto sobre a Procedure 17. Update municipal taxpayer records to the new Transmissão de Bens Imóveis e de Direitos, ITBI) owner’s name (cadastro do contribuinte para fins de IPTU) Agency: Municipal tax authority (Secretaria Municipal de Finanças e Agency: Municipal office of urban management (Secretaria Municipal do Planejamento) Meio Ambiente e Gestão Urbana) Time: Less than one day (online procedure) Time: 3 days Cost: R$33,482.62 (2% of the property value) Cost: R$33.08 Note: For detailed information on each procedure, see Procedure 15. Prepare public deed of purchase and sale https://www.doingbusiness.org/brazil. Agency: Public notary (Tabelionato de Notas) Time: 2 days Cost: R$10,603.45 [R$7,847.00 for notary fees + R$784.70 for FUNJECC QUALITY OF LAND ADMINISTRATION INDEX (10% of the notary fees) + R$470.82 for FUNADEP (6% of the notary fees) + R$313.88 for FUNDE-PGE (4% of the notary fees) + R$784.70 for FEADMP Score (10% of the notary fees) + R$392.35 for ISS (5% of the notary fees) + Quality of land administration index (0–30) 15.5 R$10.00 for supervision stamp] Reliability of infrastructure index (0–8) 5.0 Procedure 16. Register public deed of purchase and sale Transparency of information index (0–6) 4.0 Agency: Property registry (Cartório de Registro de Imóveis) Geographic coverage index (0–8) 2.0 Time: 15 days Cost: R$4,303 [R$3,180.00 for registrar fees + R$318.00 for FUNJECC Land dispute resolution index (0–8) 4.5 (10% of the registrar fees) + R$190.80 for FUNADEP (6% of the registrar Equal access to property rights index (-2–0) 0.0 fees) + R$127.20 for FUNDE-PGE (4% of the registrar fees) + R$318.00 for FEADMP (10% of the registrar fees) + R$159.00 for ISS (5% of the registrar Note: For a list of all components, questions and results on this index, refer to fees) + R$10.00 for supervision stamp] the “Quality indexes details” section. Mato Grosso do Sul ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 70 Quality of judicial processes index (0–18) 12.5 Trial and judgment 730 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 295 Case management (0–6) 3.0 Total time 1,095 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 13.0 Note: For a list of all components, questions and results on this index, refer to Court fees 10.7 the “Quality indexes details” section. Enforcement fees 0.2 Total cost 23.9 Source: Subnational Doing Business database. State profiles 243 MINAS GERAIS BELO HORIZONTE Overall rank (1–27) 2 Aggregate score (5 topics) 58.3 Starting a business (rank) 12 Doing Business score (0–100) 82.0 Procedures (number) 11 Time (days) 9.5 Cost (% of income per capita) 8.0 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 3 Paying taxes (rank) 17 Doing Business score (0–100) 61.6 Doing Business score (0–100) 34.0 Procedures (number) 23 Payments (number) 10 Time (days) 187.5 Time (hours per year) 1,501 Cost (% of warehouse value) 1.6 TTCR (% of profit) 65.6 Building quality control index (0–15) 11.0 Postfiling index (0–100) 7.8 Minas Gerais Registering property (rank) 12 Enforcing contracts (rank) 8 Doing Business score (0–100) 53.3 Doing Business score (0–100) 60.7 Procedures (number) 14 Time (days) 798 Time (days) 27.5 Cost (% of claim value) 23.4 Cost (% of property value) 3.6 Quality of judicial processes index (0–18) 11.5 Quality of land administration index (0–30) 15.0 Overall rank 3 2 8 Rank by 12 12 indicator 17 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 58.3 Score by indicator 82.0 61.6 53.3 34.0 60.7 Source: Subnational Doing Business database. 244 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 STARTING A BUSINESS Procedure 9*. Update employees’ information with Social LIST OF PROCEDURES Security (Programa de Integração Social - PIS) Agency: Federal Savings Bank (Caixa Econômica Federal) Legal form: Limited Liability Company Paid-in minimum capital requirement: No minimum Time: 1 day Data as of: September 1st, 2020 Cost: No cost Procedure 1. Check the availability of the company name and Procedure 10*. Notify the General Cadaster of Employed and the feasibility of the location Unemployed Workers - CAGED - or eSocial Agency: Municipality / Commercial Registry (via Redesim) Agency: Ministry of Economy Time: Less than one day (online procedure) Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 2. Apply for registration with the Federal Tax Procedure 11*. Register with the Employers’ Union and with Authority (Receita Federal) the Employees’ Union Agency: Federal Tax Authority Agency: Employers’ Union and Employees’ Union Time: 2 days Time: 1 day Cost: No cost Cost: No cost Note: For detailed information on each procedure, see Procedure 3. Pay registration fees https://www.doingbusiness.org/brazil. Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 4) Minas Gerais Procedure 4. Register with the state commercial registry to complete registration with the federal and municipal tax authorities to obtain the National Corporate Taxpayer Registry (CNPJ), the Company Registration Identification Number (NIRE) and the operations license Agency: Commercial Registry Time: Less than one day (online procedure) Cost: R$267.86 Procedure 5. Obtain a digital certificate (e-CNPJ) in order to issue electronic invoices Agency: Digital e-certifier Time: 2 days Cost: R$229.50 Procedure 6. Register with the state tax agency Agency: State Secretariat of Finance (SEFAZ) Time: Less than one day (online procedure) Cost: No cost Procedure 7. Pay the operations license fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: R$241.52 (analysis and issuing of immediate license for low risk activities) Procedure 8*. Pay the operating fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: R$1,936.35 (for 929 sqm: R$1,549.00 + 5*R$77.47) Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 245 DEALING WITH CONSTRUCTION PERMITS Procedure 9. Notify Commencement of Construction LIST OF PROCEDURES Agency: Secretary of Urban Policy (Municipality) Estimated value of warehouse: R$1,674,131 Time: Less than one day (online procedure) Data as of: September 1st, 2020 Cost: No cost Procedure 1. Perform consultation of suitability for Procedure 10. Register construction at the National Registry construction of Construction Works (CNO) Agency: Secretary of Urban Policy (Municipality) Agency: Federal Revenue Service Time: Less than one day (online procedure) Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 2. Obtain results of soil study Procedure 11. Request and receive foundation inspection Agency: Private agency from Municipality Time: 15 days Agency: Secretary of Urban Policy (Municipality) Cost: R$2,250 Time: 1 day Cost: R$245 (Fixed price of each inspection by the Municipality, not dependent of total built area) Procedure 3*. Obtain a topographic survey Agency: Private licensed company Procedure 12. Request and receive building inspection from Time: 13 days Municipality Cost: R$2,700 Agency: Secretary of Urban Policy (Municipality) Time: 1 day Procedure 4*. Obtain declaration of inexistence of permanent Cost: R$245 (Fixed price of each inspection by the Municipality, not Minas Gerais conservation area (APP) dependent of total built area) Agency: Licensed environmental engineer Time: 5 days Procedure 13. Request and receive structure inspection from Cost: R$1,500 Municipality Agency: Secretary of Urban Policy (Municipality) Procedure 5*. Obtain Technical Term of Responsibility (ART) Time: 1 day or Technical Report of Responsibility (RRT) Cost: R$245 (Fixed price of each inspection by the Municipality, not Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) dependent of total built area) Time: 2 days Cost: R$234 (Fixed price for contracts over R$15,000.01) Procedure 14. Receive inspection from Labor Public Attorneys’ Office Procedure 6. Receive inspection from water and sewage Agency: Labor Public Attorneys’ Office company Time: 1 day Agency: Water and Sewerage Agency Cost: No cost Time: 30 days Cost: No cost Procedure 15. Request inspection from Fire Department Agency: Fire Department Procedure 7*. Submit project for analysis by Fire Department Time: 1 day and obtain report Cost: No cost Agency: Fire Department Time: 30 days Procedure 16. Receive inspection from Fire Department Cost: R$483 [Total built area * 0.1 (multiplier for protection with hydrants Agency: Fire Department and extinguisher) * 3.7116 (State’s fiscal unit - UFEMG for 2020)] Time: 1 day Cost: No cost Procedure 8*. Request and obtain construction permit Agency: Secretary of Urban Policy (Municipality) Procedure 17. Obtain Fire Department Certificate Time: 62 days Agency: Fire Department Cost: R$13,643 [Project analysis fee: R$0.81 * total built area + Private Time: 49 days works inspection fee (TFOP) R$9.68 * total built area. The value per m² of Cost: R$483 [Total built area * 0.1 (multiplier for protection with hydrants TFOP is defined by the land value (in this case, for areas with land value and extinguisher) * 3.7116 (State’s fiscal unit - UFEMG for 2020)] above R$291.97)] Source: Subnational Doing Business database. * Simultaneous with previous procedure 246 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 18*. Request and connect to water and sewage Procedure 23. Register building with the property registry Agency: Water and Sewerage Agency Agency: Property registry Time: 14 days Time: 16 days Cost: R$888 (Water connection R$286.26 + Sewage connection R$601.49) Cost: R$4,402 (Registration fee for properties with total value between R$840,000 and R$1,120,000: R$2,484.26 + Inspection fee: R$1,917.52) Procedure 19. Request final inspection from Municipality Note: For detailed information on each procedure, see Agency: Secretary of Urban Policy (Municipality) https://www.doingbusiness.org/brazil. Time: Less than one day (online procedure) Cost: R$245 (Fixed price of each inspection by the Municipality, not dependent of total built area) BUILDING QUALITY CONTROL INDEX Score Procedure 20. Receive final inspection from Municipality Agency: Secretary of Urban Policy (Municipality) Building quality control index (0–15) 11.0 Time: 1 day Quality of building regulations index (0–2) 2.0 Cost: No cost Quality control before construction index (0–1) 1.0 Procedure 21. Obtain certificate of occupancy (Baixa de Quality control during construction index (0–3) 2.0 construção) Quality control after construction index (0–3) 3.0 Agency: Secretary of Urban Policy (Municipality) Time: 34 days Liability and insurance regimes index (0–2) 1.0 Cost: No cost Professional certifications index (0–4) 2.0 Procedure 22. Close CNO registration and obtain debt Note: For a list of all components, questions and results on this index, refer to clearance certificate the “Quality indexes details” section. Agency: Federal Revenue Service Time: Less than one day (online procedure) Minas Gerais Cost: No cost REGISTERING PROPERTY Procedure 4*. Obtain state justice certificates (Certidões Cível LIST OF PROCEDURES e Criminal) Agency: State Justice Court (Tribunal de Justiça do Estado de Minas Gerais) Estimated property value: R$1,674,131 Data as of: September 1st, 2020 Time: Less than one day (online procedure) Cost: No cost Procedure 1. Obtain ownership and no-lien certificates (Certidão de Inteiro Teor de Matrícula, Certidão de Procedure 5*. Obtain labor justice certificate (Certidão de Ônus Reais, and Certidão de Ações Reais e Pessoais Ações Trabalhistas) Reipersecutórias) Agency: Regional Labor Court (Tribunal Regional do Trabalho da 3ª Região) Agency: Central Eletrônica de Registro de Imóveis do Estado de Minas Gerais Time: Less than one day (online procedure) Time: 3 days Cost: No cost Cost: R$123.43 [R$108.15 for registrar fees + R$11.14 for CORI fee + R$4.14 for ISS] Procedure 6*. Obtain certificate of good standing on labor debts (Certidão Negativa de Débitos Trabalhistas) Procedure 2*. Obtain consolidated certificate of dispute Agency: High Labor Court (Tribunal Superior do Trabalho) (Certidão de Distribuição de Protesto de Títulos e Outros Time: Less than one day (online procedure) Documentos de Dívida) Cost: No cost Agency: Dispute registries distribution service (Ofício Distribuidor de Protesto de Belo Horizonte) Procedure 7*. Obtain municipal taxes clearance certificate Time: 2 days and cadastral certificate (Certidão do Imóvel and Certidão de Cost: R$42.60 Quitação Plena Pessoa Jurídica) Agency: Municipal tax authority (Secretaria Municipal de Fazenda) Procedure 3*. Obtain company certificate of good standing Time: Less than one day (online procedure) (Certidão Simplificada da Empresa) Cost: No cost Agency: Commercial registry (Junta Comercial do Estado de Minas Gerais) Time: 2 days Cost: R$12.82 Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 247 Procedure 8*. Obtain state taxes clearance certificate (Certidão Procedure 13. Prepare public deed of purchase and sale Negativa de Débitos Estaduais) Agency: Public notary (Tabelionato de Notas) Agency: State tax authority (Secretaria da Fazenda do Governo do Estado de Time: 4 days Minas Gerais) Cost: R$5,271.33 (R$2,733.80 for notary fees + R$2,236.82 for TFJ + Time: Less than one day (online procedure) R$164.02 for Recompe/MG + R$136.69 for ISS) Cost: No cost Procedure 14. Register public deed of purchase and sale Procedure 9*. Obtain federal taxes clearance certificate Agency: Property registry (Cartório de Registro de Imóveis) (Certidão de Débitos Relativos a Créditos Tributários Federais Time: 16 days e à Dívida Ativa da União) Cost: R$5,341.10 [R$5,271.33 for registration (R$2,733.80 for registrar fees Agency: Federal Revenue Service & Office of the Attorney General of the + R$164.02 for Recompe/MG + R$136.69 for ISS + R$2,236.82 for TFJ) + National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- R$42.52 for provisional registration (R$32.11 for registrar fees + R$1.93 for Geral da Fazenda Nacional) Recompe/MG + R$1.61 for ISS + R$6.87 for TFJ) + R$27.25 for issuing the Time: Less than one day (online procedure) Certidão de Inteiro Teor de Matrícula Atualizada (R$18.36 for registrar fees + Cost: No cost R$1.10 for Recompe/MG + R$0.92 for ISS + R$6.87 for TFJ)] Note: For detailed information on each procedure, see Procedure 10*. Obtain workers fund certificate (Certidão de https://www.doingbusiness.org/brazil. Regularidade do FGTS) Agency: Federal Savings Bank (Caixa Econômica Federal) Time: Less than one day (online procedure) QUALITY OF LAND ADMINISTRATION INDEX Cost: No cost Score Procedure 11*. Obtain federal justice certificate (Certidão Quality of land administration index (0–30) 15.0 Cível e Criminal) Reliability of infrastructure index (0–8) 5.0 Agency: Federal Justice Court (Tribunal Regional Federal da 1ª Região/Seção Judiciária de Minas Gerais) Transparency of information index (0–6) 3.5 Time: Less than one day (online procedure) Minas Gerais Geographic coverage index (0–8) 2.0 Cost: No cost Land dispute resolution index (0–8) 4.5 Procedure 12. Pay property transfer tax (Imposto sobre a Equal access to property rights index (-2–0) 0.0 Transmissão de Bens Imóveis e de Direitos, ITBI) Agency: Municipal tax authority (Secretaria Municipal de Fazenda) Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. Time: Less than one day (online procedure) Cost: R$50,223.93 (3% of the property value) ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 84 Quality of judicial processes index (0–18) 11.5 Trial and judgment 441 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 273 Case management (0–6) 2.0 Total time 798 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 13.3 Note: For a list of all components, questions and results on this index, refer to Court fees 9.8 the “Quality indexes details” section. Enforcement fees 0.2 Total cost 23.4 Source: Subnational Doing Business database. * Simultaneous with previous procedure 248 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 PARÁ BELÉM Overall rank (1–27) 23 Aggregate score (5 topics) 52.7 Starting a business (rank) 1 Doing Business score (0–100) 84.7 Procedures (number) 9 Time (days) 11.5 Cost (% of income per capita) 6.3 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 25 Paying taxes (rank) 27 Doing Business score (0–100) 44.5 Doing Business score (0–100) 33.0 Procedures (number) 23 Payments (number) 12 Time (days) 519 Time (hours per year) 1,501 Cost (% of warehouse value) 2.0 TTCR (% of profit) 66.0 Building quality control index (0–15) 9.0 Postfiling index (0–100) 7.8 Registering property (rank) 9 Enforcing contracts (rank) 24 Doing Business score (0–100) 53.5 Doing Business score (0–100) 47.8 Procedures (number) 16 Time (days) 1,261 Pará Time (days) 23.5 Cost (% of claim value) 29.1 Cost (% of property value) 3.3 Quality of judicial processes index (0–18) 12.5 Quality of land administration index (0–30) 14.0 1 Overall rank 9 Rank by indicator 24 25 27 23 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 52.7 Score by indicator 84.7 44.5 53.5 33.0 47.8 Source: Subnational Doing Business database. State profiles 249 STARTING A BUSINESS Procedure 5. Obtain a digital certificate (e-CNPJ) in order to LIST OF PROCEDURES issue electronic invoices Agency: Digital e-certifier Legal form: Limited Liability Company Paid-in minimum capital requirement: No minimum Time: 1 day Data as of: September 1st, 2020 Cost: R$250 Procedure 1. Check the availability of the company name and Procedure 6. Pay the operations license fee the feasibility of the location Agency: Commercial bank Agency: Municipality / Commercial Registry (via Redesim) Time: Less than one day (online procedure) Time: 2 days Cost: R$1,432 Cost: No cost Procedure 7*. Update employees’ information with Social Procedure 2. Apply for registration with the Federal Tax Security (Programa de Integração Social - PIS) Authority (Receita Federal) Agency: Federal Savings Bank (Caixa Econômica Federal) Agency: Federal Tax Authority Time: 1 day Time: 2 days Cost: No cost Cost: No cost Procedure 8*. Notify the General Cadaster of Employed and Procedure 3. Pay registration fees Unemployed Workers - CAGED - or eSocial Agency: Commercial bank Agency: Ministry of Economy Time: Less than one day (online procedure) Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 4) Cost: No cost Procedure 4. Register with the state commercial registry to Procedure 9*. Register with the Employers’ Union and with complete registration with the federal, state and municipal the Employees’ Union tax authorities to obtain the National Corporate Taxpayer Agency: Employers’ Union and Employees’ Union Pará Registry (CNPJ), the Company Registration Identification Time: 1 day Number (NIRE) and the operations license Cost: No cost Agency: Commercial Registry Time: 3 days Note: For detailed information on each procedure, see Cost: R$415 https://www.doingbusiness.org/brazil. DEALING WITH CONSTRUCTION PERMITS Procedure 3. Obtain results of soil study LIST OF PROCEDURES Agency: Private agency Estimated value of warehouse: R$1,674,131 Time: 7 days Data as of: September 1st, 2020 Cost: R$5,850 Procedure 1. Request and obtain a land ownership certificate Procedure 4*. Obtain a topographic survey from the property registry Agency: Private licensed company Agency: Property registry Time: 5 days Time: 3 days Cost: R$2,000 Cost: R$57 [Property registry fee: R$43.31 + Justice reffiting fund fee (FRJ): R$8.39 + Civil registry fund fee (FRC): R$1.40 + Municipal service tax (ISS): Procedure 5*. Obtain Technical Term of Responsibility (ART) R$2.80 + Safety label: R$1.45] or Technical Report of Responsibility (RRT) Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Procedure 2. Perform consultation of suitability for Time: 2 days construction Cost: R$234 (Fixed price for contracts over R$15,000.01) Agency: Secretary of Urbanism (Municipality) Time: 30 days Cost: R$190 [(TU: Tax Unit) Filing fee: 13.59 TU] Source: Subnational Doing Business database. * Simultaneous with previous procedure 250 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 6*. Request and obtain Debt Clearance Certificate Procedure 17*. Receive inspection from water and sewage (CND) company Agency: Secretary of Finance (Municipality) Agency: Water and Sewerage Agency Time: 3 days Time: 15 days Cost: No cost Cost: R$840 [Water connection (commercial category, C3 subcategory): R$526.70 + Sewage connection: R$316.02] Procedure 7*. Request and obtain water and sewage feasibility analysis and project approval Procedure 18. Request and connect to water and sewage Agency: Water and Sewerage Agency Agency: Water and Sewerage Agency Time: 75 days Time: 75 days Cost: R$725 (Technical feasibility fee: R$388.85 + Project approval fee: R$336.51) Cost: R$553 Procedure 8*. Request and obtain water and sewage project Procedure 19*. Request final inspection from Municipality approval Agency: Secretary of Urbanism (Municipality) Agency: Secretary of Sanitation (Municipality) Time: 1 day Time: 60 days Cost: No cost Cost: No cost Procedure 20. Receive final inspection from Municipality Procedure 9*. Request and obtain environmental license Agency: Secretary of Urbanism (Municipality) Agency: Secretary of Environment (Municipality) Time: 1 day Time: 75 days Cost: No cost Cost: R$4,923 (Preliminary license: R$2,187.96 + Installation license: R$2,734.95) Procedure 21. Obtain certificate of occupancy (“Habite-se”) Procedure 10*. Submit project for analysis by Fire Agency: Secretary of Urbanism (Municipality) Department and obtain report Time: 90 days Agency: Fire Department Cost: R$317 [(TU: Tax Unit) File fee (commercial use over 100 m²): 13.59 TU Time: 53 days + 62.24 TU] Cost: R$1,060 Procedure 22. Close CNO registration and obtain debt Procedure 11. Request and obtain construction permit clearance certificate Pará Agency: Secretary of Urbanism (Municipality) Agency: Federal Revenue Service Time: 180 days Time: Less than one day (online procedure) Cost: R$8,719 [(TU: Tax Unit) Building Permit (commercial use over 100 m²): Cost: No cost 33.98 TU + Project Approval (over 500 m²): 1.85 TU/m²] Procedure 12. Register construction at the National Registry Procedure 23. Register building with the property registry of Construction Works (CNO) Agency: Property registry Agency: Federal Revenue Service Time: 10 days Time: Less than one day (online procedure) Cost: R$7,053 [Registration fee for properties with total value between Cost: No cost R$1,083,333.21 and R$2,437,500.07. Cost includes municipal service tax (ISS)] Procedure 13. Receive inspection from Labor Public Note: For detailed information on each procedure, see Attorneys’ Office https://www.doingbusiness.org/brazil. Agency: Labor Public Attorneys’ Office Time: 1 day Cost: No cost BUILDING QUALITY CONTROL INDEX Score Procedure 14. Request inspection from Fire Department Agency: Fire Department Building quality control index (0–15) 9.0 Time: 1 day Quality of building regulations index (0–2) 2.0 Cost: No cost Quality control before construction index (0–1) 1.0 Procedure 15. Receive inspection from Fire Department Quality control during construction index (0–3) 0.0 Agency: Fire Department Quality control after construction index (0–3) 3.0 Time: 1 day Cost: No cost Liability and insurance regimes index (0–2) 1.0 Professional certifications index (0–4) 2.0 Procedure 16. Obtain Fire Department Certificate Agency: Fire Department Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. Time: 45 days Cost: R$1,060 Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 251 REGISTERING PROPERTY Procedure 8*. Obtain certificate of good standing on labor LIST OF PROCEDURES debts (Certidão Negativa de Débitos Trabalhistas) Agency: High Labor Court (Tribunal Superior do Trabalho) Estimated property value: R$1,674,131 Data as of: September 1st, 2020 Time: Less than one day (online procedure) Cost: No cost Procedure 1. Obtain state justice certificate (Certidão Unificada de Distribuição de Ações Cíveis, Execuções Fiscais Procedure 9*. Obtain municipal taxes clearance certificate e Ações de Falência, Concordata e Recuperação Judicial e (Certidão Negativa de Débitos Municipais) and cadastral Extrajudicial) certificate (Certidão de Cadastro Imobiliário) Agency: State Justice Court (Tribunal de Justiça do Estado do Pará) Agency: Municipal tax authority (Secretaria Municipal de Finanças) Time: 4 days Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 2*. Obtain certificate of dispute (Certidão de Procedure 10*. Obtain state taxes clearance certificate Protesto de Títulos e Outros Documentos de Dívida) (Certidão Negativa de Débitos Estaduais) Agency: Dispute registry (1º Tabelionato de Protesto de Títulos) Agency: State tax authority (Secretaria da Fazenda do Governo do Estado Time: 3 days do Pará) Cost: R$108.61 [R$91.20 for registrar fees + R$13.68 for FRJ (15% of the Time: Less than one day (online procedure) registrar fees) + R$2.28 for FRC (2.5% of the registrar fees) + R$1.45 for Cost: No cost security stamp] Procedure 11*. Obtain federal taxes clearance certificate Procedure 3*. Obtain certificate of dispute (Certidão de (Certidão de Débitos Relativos a Créditos Tributários Federais Protesto de Títulos e Outros Documentos de Dívida) e à Dívida Ativa da União) Agency: Dispute registry (2º Tabelionato de Protesto de Títulos) Agency: Federal Revenue Service & Office of the Attorney General of the Time: 3 days National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- Cost: R$108.61 [R$91.20 for registrar fees + R$13.68 for FRJ (15% of the Geral da Fazenda Nacional) Pará registrar fees) + R$2.28 for FRC (2.5% of the registrar fees) + R$1.45 for Time: Less than one day (online procedure) security stamp] Cost: No cost Procedure 4*. Obtain certificate of dispute (Certidão de Procedure 12*. Obtain workers fund certificate (Certidão de Protesto de Títulos e Outros Documentos de Dívida) Regularidade do FGTS) Agency: Dispute registry (3º Tabelionato de Protesto de Títulos) Agency: Federal Savings Bank (Caixa Econômica Federal) Time: 3 days Time: Less than one day (online procedure) Cost: R$108.61 [R$91.20 for registrar fees + R$13.68 for FRJ (15% of the Cost: No cost registrar fees) + R$2.28 for FRC (2.5% of the registrar fees) + R$1.45 for security stamp] Procedure 13*. Obtain federal justice certificate (Certidão Negativa de Distribuição Cível e Criminal) Procedure 5*. Obtain ownership and no-lien certificate Agency: Federal Justice Court (Tribunal Regional Federal da 1ª Região/Seção (Certidão Conjunta de Inteiro Teor de Matrícula e Negativa de Judiciária do Pará) Ônus Reais) Time: Less than one day (online procedure) Agency: Property registry (Cartório de Registro de Imóveis) Cost: No cost Time: 3 days Cost: R$57.35 [R$55.90 for issuing the certificate + R$1.45 for security Procedure 14. Pay property transfer tax (Imposto sobre a stamp. The cost includes the collection of FRJ (15% of the registrar fees), RFC Transmissão de Bens Imóveis e de Direitos, ITBI) (2.5% of the registrar fees), and ISS (5% of the registrar fees)] Agency: Municipal tax authority (Secretaria Municipal de Finanças) Time: Less than one day (online procedure) Procedure 6*. Obtain company certificate of good standing Cost: R$33,482.62.62 (2% of the property value) (Certidão Simplificada da Empresa) Agency: Commercial registry (Junta Comercial do Estado do Pará) Procedure 15. Prepare public deed of purchase and sale Time: 2 days Agency: Public notary (Tabelionato de Notas) Cost: R$43 Time: 3 days Cost: R$7,028.85 [R$7,014.60 for notary fees + R$14.25 for security stamp. Procedure 7*. Obtain labor justice certificate (Certidão de The cost includes the collection of FRJ (15% of the notary fees), RFC (2.5% of Ações Trabalhistas) the notary fees), and ISS (5% of the notary fees)] Agency: Regional Labor Court (Tribunal Regional do Trabalho da 8ª Região) Time: 2 days Cost: R$5.53 [for issuing the Guia de Recolhimento da União (GRU)] Source: Subnational Doing Business database. * Simultaneous with previous procedure 252 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 16. Register public deed of purchase and sale QUALITY OF LAND ADMINISTRATION INDEX Agency: Property registry (Cartório de Registro de Imóveis) Time: 10 days Score Cost: R$13,838 [R$13,678.20 for registration + R$158.10 for provisional Quality of land administration index (0–30) 14.0 registration + R$1.70 for two security stamps. The cost includes the collection of FRJ (15% of the registrar fees), RFC (2.5% of the registrar fees), and ISS Reliability of infrastructure index (0–8) 4.0 (5% of the registrar fees)] Transparency of information index (0–6) 3.5 Note: For detailed information on each procedure, see Geographic coverage index (0–8) 2.0 https://www.doingbusiness.org/brazil. Land dispute resolution index (0–8) 4.5 Equal access to property rights index (-2–0) 0.0 Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 84 Quality of judicial processes index (0–18) 12.5 Trial and judgment 706 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 471 Case management (0–6) 3.0 Total time 1,261 Court automation (0–4) 3.0 Pará Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 20.0 Note: For a list of all components, questions and results on this index, refer to Court fees 8.6 the “Quality indexes details” section. Enforcement fees 0.5 Total cost 29.1 Source: Subnational Doing Business database. State profiles 253 PARAÍBA JOÃO PESSOA Overall rank (1–27) 17 Aggregate score (5 topics) 53.9 Starting a business (rank) 20 Doing Business score (0–100) 79.1 Procedures (number) 12 Time (days) 18 Cost (% of income per capita) 2.7 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 9 Paying taxes (rank) 14 Doing Business score (0–100) 55.5 Doing Business score (0–100) 34.1 Procedures (number) 21 Payments (number) 10 Time (days) 240 Time (hours per year) 1,483 Cost (% of warehouse value) 1.2 TTCR (% of profit) 65.3 Building quality control index (0–15) 8.0 Postfiling index (0–100) 7.8 Registering property (rank) 23 Enforcing contracts (rank) 20 Doing Business score (0–100) 49.0 Doing Business score (0–100) 51.7 Procedures (number) 15 Time (days) 1,076 Time (days) 30.5 Cost (% of claim value) 32.0 Paraíba Cost (% of property value) 4.5 Quality of judicial processes index (0–18) 12.5 Quality of land administration index (0–30) 12.0 Overall rank 9 Rank by indicator 14 20 20 17 23 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 53.9 Score by indicator 79.1 55.5 49.0 34.1 51.7 Source: Subnational Doing Business database. 254 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 STARTING A BUSINESS Procedure 9. Register with the state tax agency LIST OF PROCEDURES Agency: State Secretariat of Finance Legal form: Limited Liability Company Time: Less than one day (online procedure) Paid-in minimum capital requirement: No minimum Cost: No cost Data as of: September 1st, 2020 Procedure 10*. Update employees’ information with Social Procedure 1. Check the availability of the company name and Security (Programa de Integração Social - PIS) the feasibility of the location Agency: Federal Savings Bank (Caixa Econômica Federal) Agency: Municipality / Commercial Registry (via Redesim) Time: 1 day Time: 2 days Cost: No cost Cost: No cost Procedure 11*. Notify the General Cadaster of Employed and Procedure 2. Apply for registration with the Federal Tax Unemployed Workers - CAGED - or eSocial Authority (Receita Federal) Agency: Ministry of Economy Agency: Federal Tax Authority Time: Less than one day (online procedure) Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 12*. Register with the Employers’ Union and with Procedure 3. Pay registration fees the Employees’ Union Agency: Commercial bank Agency: Employers’ Union and Employees’ Union Time: Less than one day (online procedure) Time: 1 day Cost: No cost (fee included in procedure 4) Cost: No cost Note: For detailed information on each procedure, see Procedure 4. Register with the state commercial registry to https://www.doingbusiness.org/brazil. complete registration with the federal and state tax authorities to obtain the National Corporate Taxpayer Registry (CNPJ) and the Company Registration Identification Number (NIRE) Paraíba Agency: Commercial Registry Time: 3 days Cost: R$328.94 Procedure 5. Register with the municipal tax agency and obtain a temporary operations license Agency: Municipal Secretariat of Revenue Time: 7 days Cost: No cost Procedure 6. Obtain a digital certificate (e-CNPJ) in order to issue electronic invoices Agency: Digital e-certifier Time: 1 day Cost: R$204.50 Procedure 7. Pay the operations license fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 8) Procedure 8. Obtain the definitive operations license Agency: Municipal Secretariat of Planning Time: Less than one day (online procedure) Cost: R$367.30 (10 UFIR*R$36.73 – UFIR João Pessoa 2020) Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 255 DEALING WITH CONSTRUCTION PERMITS Procedure 10. Receive random inspection from Municipality LIST OF PROCEDURES Agency: Secretary of Planning (Municipality) Estimated value of warehouse: R$1,674,131 Time: 1 day Data as of: September 1st, 2020 Cost: No cost Procedure 1. Request and obtain a land ownership certificate Procedure 11. Receive inspection from Labor Public from the property registry Attorneys’ Office Agency: Property registry Agency: Labor Public Attorneys’ Office Time: 4 days Time: 1 day Cost: R$33 [Property registry fee: R$25.56 + Justice special fund fee (FEPJ): Cost: No cost R$5.11 + Notary fund fee (Farpen): R$1.37 + Municipal service tax (ISS): R$1.28] Procedure 12. Request inspection from Fire Department Procedure 2. Obtain results of soil study Agency: Fire Department Agency: Private agency Time: 1 day Time: 13 days Cost: R$104 (2 TU. TU since May 2020 = R$51.78) Cost: R$1,200 Procedure 13. Receive inspection from Fire Department Procedure 3*. Obtain a topographic survey Agency: Fire Department Agency: Private licensed company Time: 1 day Time: 4 days Cost: No cost Cost: R$900 Procedure 14. Obtain Fire Department Certificate Procedure 4. Request and obtain environmental license Agency: Fire Department Agency: Secretary of Environment (Municipality) Time: 25 days Time: 32 days Cost: No cost Cost: R$3,431 (Preliminary license: R$932.25 + Installation license: R$1,454.31 + Operation license: R$1,044.12) Procedure 15*. Request and connect to water and sewage Paraíba Procedure 5*. Perform pre-approval of architectural project Agency: Water and Sewerage Agency Time: 30 days Agency: Secretary of Planning (Municipality) Time: 11 days Cost: R$1,084 (Water connection: R$435.64 + Sewage connection: Cost: R$18 [Pre-approval fee: 0.3 TU/drawing (considered 1 for case study) + R$648.34) Administrative fee: 0.1 TU + Proceeding fee: 0.1 TU. TU for 2020 = R$36.73] Procedure 16. Request and obtain proof of artwork Procedure 6. Obtain Technical Term of Responsibility (ART) Agency: Cultural Foundation of João Pessoa (Municipality) or Technical Report of Responsibility (RRT) Time: 1 day Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Cost: No cost Time: 3 days Cost: R$234 (Fixed price for contracts over R$15,000.01) Procedure 17. Request final inspection from Municipality Agency: Secretary of Planning (Municipality) Procedure 7*. Submit project for analysis by Fire Department Time: 1 day and obtain report Cost: R$44 (Occupancy certificate fee: 1 TU + Administrative fee: 0.1 TU + Agency: Fire Department Proceeding fee: 0.1 TU. TU for 2020 = R$36.73) Time: 30 days Cost: R$285 (3 UFR professional registration + 2.5 UFR analysis fee. UFR = Procedure 18. Receive final inspection from Municipality R$51.78 since May 2020) Agency: Secretary of Planning (Municipality) Time: 1 day Procedure 8. Request and obtain construction permit Cost: No cost Agency: Secretary of Planning (Municipality) Time: 60 days Procedure 19. Obtain certificate of occupancy (“Habite-se”) Cost: R$6,213 Agency: Secretary of Planning (Municipality) Time: 45 days Procedure 9. Register construction at the National Registry of Cost: No cost Construction Works (CNO) Agency: Federal Revenue Service Time: Less than one day (online procedure) Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure 256 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 20. Close CNO registration and obtain debt BUILDING QUALITY CONTROL INDEX clearance certificate Agency: Federal Revenue Service Score Time: Less than one day (online procedure) Building quality control index (0–15) 8.0 Cost: No cost Quality of building regulations index (0–2) 1.0 Procedure 21. Register building with the property registry Quality control before construction index (0–1) 1.0 Agency: Property registry Quality control during construction index (0–3) 0.0 Time: 16 days Cost: R$6,000 (Registration fee) Quality control after construction index (0–3) 3.0 Note: For detailed information on each procedure, see Liability and insurance regimes index (0–2) 1.0 https://www.doingbusiness.org/brazil. Professional certifications index (0–4) 2.0 Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. REGISTERING PROPERTY Procedure 6*. Obtain labor justice certificate (Certidão de LIST OF PROCEDURES Ações Trabalhistas) Agency: Regional Labor Court (Tribunal Regional do Trabalho da 13ª Região) Estimated property value: R$1,674,131 Data as of: September 1st, 2020 Time: Less than one day (online procedure) Cost: No cost Procedure 1. Obtain ownership and no-lien certificates (Certidão de Inteiro Teor de Matrícula and Certidão de Ônus Procedure 7*. Obtain certificate of good standing on labor Reais) debts (Certidão Negativa de Débitos Trabalhistas) Agency: Property registry (Cartório de Registro de Imóveis) Agency: High Labor Court (Tribunal Superior do Trabalho) Time: 4 days Time: Less than one day (online procedure) Cost: R$33.32 (R$25.56 for registrar fees + R$5.11 for FEPJ + R$1.37 for Cost: No cost Paraíba FARPEN + R$1.28 for ISS) Procedure 8*. Obtain municipal taxes clearance certificates Procedure 2*. Obtain company certificate of good standing (Certidão de Pessoa Jurídica and Certidão de Inscrição do (Certidão Simplificada da Empresa) Imóvel) and cadastral certificate (Ficha Cadastral Imobiliária) Agency: Commercial registry (Junta Comercial do Estado da Paraíba) Agency: Municipal tax authority (Secretaria da Receita Municipal) Time: 2 days Time: Less than one day (online procedure) Cost: R$99.24 Cost: No cost Procedure 3*. Obtain certificate of dispute (Certidão de Procedure 9*. Obtain state taxes clearance certificate (Certidão Protesto de Títulos e Outros Documentos de Dívida) Negativa de Débitos Estaduais) Agency: Dispute registry (1º Tabelionato de Protesto de Títulos) Agency: State tax authority (Secretaria da Fazenda do Governo do Estado Time: 2 days da Paraíba) Cost: R$33.32 (R$25.56 for registrar fees + R$5.11 for FEPJ + R$1.37 for Time: Less than one day (online procedure) FARPEN + R$1.28 for ISS) Cost: No cost Procedure 4*. Obtain certificate of dispute (Certidão de Procedure 10*. Obtain federal taxes clearance certificate Protesto de Títulos e Outros Documentos de Dívida) (Certidão de Débitos Relativos a Créditos Tributários Federais e à Dívida Ativa da União) Agency: Dispute registry (2º Tabelionato de Protesto de Títulos) Time: 2 days Agency: Federal Revenue Service & Office of the Attorney General of the Cost: R$33.32 (R$25.56 for registrar fees + R$5.11 for FEPJ + R$1.37 for National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- FARPEN + R$1.28 for ISS) Geral da Fazenda Nacional) Time: Less than one day (online procedure) Cost: No cost Procedure 5*. Obtain state justice certificates (Certidão Cível, Certidão de Execução Fiscal, Certidão Criminal, and Certidão de Falência e Recuperação Judicial e Extrajudicial) Procedure 11*. Obtain workers fund certificate (Certidão de Agency: State Justice Court (Tribunal de Justiça do Estado da Paraíba) Regularidade do FGTS) Time: Less than one day (online procedure) Agency: Federal Savings Bank (Caixa Econômica Federal) Cost: No cost Time: Less than one day (online procedure) Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 257 Procedure 12*. Obtain federal justice certificate (Certidão QUALITY OF LAND ADMINISTRATION INDEX Cível e Criminal) Agency: Federal Justice Court (Tribunal Regional Federal da 1ª Região/Seção Score Judiciária da Paraíba) Quality of land administration index (0–30) 12.0 Time: Less than one day (online procedure) Cost: No cost Reliability of infrastructure index (0–8) 5.0 Transparency of information index (0–6) 2.5 Procedure 13. Pay property transfer tax (Imposto sobre a Transmissão de Bens Imóveis e de Direitos, ITBI) Geographic coverage index (0–8) 0.0 Agency: Municipal tax authority (Secretaria da Receita Municipal) Land dispute resolution index (0–8) 4.5 Time: Less than one day (online procedure) Cost: R$50,223.93 (3% of the property value) Equal access to property rights index (-2–0) 0.0 Note: For a list of all components, questions and results on this index, refer to Procedure 14. Prepare public deed of purchase and sale the “Quality indexes details” section. Agency: Public notary (Tabelionato de Notas) Time: 6 days Cost: R$16,102.20 [R$16,037.49 for preparing the deed (R$12,781.25 for notary fees + R$2,351.75 for FEPJ + R$60.92 for FARPEN + R$204.50 for MP + R$639.06 for ISS + R$51.12 for communications) + R$64.71 for communications (R$9.41 for FEPJ + R$0.81 for FARPEN + R$0.82 for MP + R$2.56 for ISS)] Procedure 15. Register public deed of purchase and sale Agency: Property registry (Cartório de Registro de Imóveis) Time: 16 days Cost: R$8,049.19 (R$6,390.61 for registrar fees + R$1,175.87 for FEPJ + R$60.93 for FARPEN + R$102.25 for MP + R$319.53 for ISS) Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. Paraíba ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 114 Quality of judicial processes index (0–18) 12.5 Trial and judgment 596 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 366 Case management (0–6) 3.0 Total time 1,076 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 18.6 Note: For a list of all components, questions and results on this index, refer to Court fees 12.8 the “Quality indexes details” section. Enforcement fees 0.6 Total cost 32.0 Source: Subnational Doing Business database. * Simultaneous with previous procedure 258 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 PARANÁ CURITIBA Overall rank (1–27) 4 Aggregate score (5 topics) 57.3 Starting a business (rank) 2 Doing Business score (0–100) 84.5 Procedures (number) 9 Time (days) 12 Cost (% of income per capita) 6.5 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 7 Paying taxes (rank) 4 Doing Business score (0–100) 57.5 Doing Business score (0–100) 34.4 Procedures (number) 23 Payments (number) 9 Time (days) 214 Time (hours per year) 1,483 Cost (% of warehouse value) 0.8 TTCR (% of profit) 65.7 Building quality control index (0–15) 9.0 Postfiling index (0–100) 7.8 Registering property (rank) 14 Enforcing contracts (rank) 12 Doing Business score (0–100) 52.5 Doing Business score (0–100) 57.7 Procedures (number) 16 Time (days) 919 Time (days) 53 Cost (% of claim value) 22.5 Cost (% of property value) 3.0 Quality of judicial processes index (0–18) 11.5 Paraná Quality of land administration index (0–30) 16.5 Overall rank 2 4 4 7 Rank by 12 indicator 14 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 57.3 Score by indicator 84.5 57.5 52.5 34.4 57.7 Source: Subnational Doing Business database. State profiles 259 STARTING A BUSINESS Procedure 5. Obtain a digital certificate (e-CNPJ) in order to LIST OF PROCEDURES issue electronic invoices Agency: Digital e-certifier Legal form: Limited Liability Company Paid-in minimum capital requirement: No minimum Time: 2 days Data as of: September 1st, 2020 Cost: R$230 Procedure 1. Check the availability of the company name and Procedure 6. Pay the operations license fee the feasibility of the location Agency: Commercial bank Agency: Municipality / Commercial Registry (via Redesim) Time: Less than one day (online procedure) Time: 2 days Cost: R$1,843.09 Cost: No cost Procedure 7*. Update employees’ information with Social Procedure 2. Apply for registration with the Federal Tax Security (Programa de Integração Social - PIS) Authority (Receita Federal) Agency: Federal Savings Bank (Caixa Econômica Federal) Agency: Federal Tax Authority Time: 1 day Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 8*. Notify the General Cadaster of Employed and Procedure 3. Pay registration fees Unemployed Workers - CAGED - or eSocial Agency: Commercial bank Agency: Ministry of Economy Time: Less than one day (online procedure) Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 4) Cost: No cost Procedure 4. Register with the state commercial registry to Procedure 9*. Register with the Employers’ Union and with complete registration with the federal, state and municipal the Employees’ Union tax authorities to obtain the National Corporate Taxpayer Registry (CNPJ), the Company Registration Identification Agency: Employers’ Union and Employees’ Union Number (NIRE) and the operations license Time: 1 day Agency: Commercial Registry Cost: No cost Time: 4 days Note: For detailed information on each procedure, see Cost: R$91.85 https://www.doingbusiness.org/brazil. Paraná DEALING WITH CONSTRUCTION PERMITS Procedure 4*. Obtain a topographic survey LIST OF PROCEDURES Agency: Private licensed company Estimated value of warehouse: R$1,674,131 Time: 7 days Data as of: September 1st, 2020 Cost: R$1,500 Procedure 1. Perform consultation of suitability for Procedure 5. Obtain Technical Term of Responsibility (ART) construction or Technical Report of Responsibility (RRT) Agency: Secretary of Urbanism (Municipality) Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Time: Less than one day (online procedure) Time: 2 days Cost: No cost Cost: R$234 (Fixed price for contracts over R$15,000.01) Procedure 2*. Request and obtain a land ownership certificate Procedure 6. Request and obtain construction permit from the property registry Agency: Secretary of Urbanism (Municipality) Agency: Property registry Time: 95 days Time: 5 days Cost: R$1,391 (Processing fee R$38.35 + Project analysis fee R$1.04/m², Cost: R$33 (R$21.48 for registrar fees + R$1.10 for FADEP + R$5.33 for according to Municipal Decree 1,666/2019) FUNREJUS + R$0.82 for ISS + R$4.67 for security stamp) Procedure 3*. Obtain results of soil study Agency: Private agency Time: 7 days Cost: R$2,750 Source: Subnational Doing Business database. * Simultaneous with previous procedure 260 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 7*. Submit project for analysis by Fire Department Procedure 17*. Request and connect to water and sewage and obtain report Agency: Water and Sewerage Agency Agency: Fire Department Time: 15 days Time: 38 days Cost: R$412 (Water connection: R$196.68 + Sewage connection: R$215.00) Cost: R$670 [Calculation formula on item 2.1 on Annex of State Law 19,449/2018 : I = 30% UPF/PR x {5 + ( ΣAi x Zi) x fr}. UPF/PR = R$106.33. Procedure 18. Receive inspection from water and sewage Cost limited to 100 UPF/PR, or R$10,633] company Agency: Water and Sewerage Agency Procedure 8*. Request and obtain water and sewage project Time: 5 days approval Cost: R$304 (Fixed fee) Agency: Water and Sewerage Agency Time: 30 days Procedure 19. Request final inspection from Municipality Cost: No cost Agency: Municipality Time: 1 day Procedure 9. Register construction at the National Registry of Cost: No cost Construction Works (CNO) Agency: Federal Revenue Service Procedure 20. Receive final inspection from Municipality Time: Less than one day (online procedure) Agency: Municipality Cost: No cost Time: 1 day Cost: R$1,391 (Processing fee R$38.35 + Project analysis fee R$1.04/m², Procedure 10. Receive random inspection from Municipality according to Municipal Decree 1,666/2019) Agency: Secretary of Urbanism (Municipality) Time: 1 day Procedure 21. Obtain certificate of occupancy (CVCO) Cost: No cost Agency: Municipality Time: 23 days Procedure 11. Receive inspection from Labor Public Cost: No cost Attorneys’ Office Agency: Labor Public Attorneys’ Office Procedure 22. Close CNO registration and obtain debt Time: 1 day clearance certificate Cost: No cost Agency: Federal Revenue Service Time: Less than one day (online procedure) Procedure 12. Book appointment to request Certificate of Tax Cost: No cost Payment Agency: Secretary of Finance (Municipality) Paraná Procedure 23. Register building with the property registry Time: Less than one day (online procedure) Agency: Property registry Cost: No cost Time: 30 days Cost: R$3,684 [Registration fee: R$416.11 + Public defender’s office fund Procedure 13. Attend appointment and obtain Certificate of fee (FADEP): R$20.81 + Municipal service tax (ISS): R$16.64 + Certificate Tax Payment fee: R$12.93 + Justice refitting fund fee: R$3.23 + Public defender’s office Agency: Secretary of Finance (Municipality) fund fee (FADEP): R$0.65 + Municipal service tax (ISS) R$0.52 + Safety label: Time: 10 days R$4.67] Cost: No cost Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. Procedure 14*. Request inspection from Fire Department Agency: Fire Department Time: Less than one day (online procedure) BUILDING QUALITY CONTROL INDEX Cost: No cost Score Procedure 15. Receive inspection from Fire Department Building quality control index (0–15) 9.0 Agency: Fire Department Quality of building regulations index (0–2) 2.0 Time: 1 day Cost: No cost Quality control before construction index (0–1) 1.0 Quality control during construction index (0–3) 0.0 Procedure 16. Obtain Fire Department Certificate Quality control after construction index (0–3) 3.0 Agency: Fire Department Time: 33 days Liability and insurance regimes index (0–2) 1.0 Cost: R$925 [Calculation formula on item 2.1 on Annex of State Law 19,449/2018 : I = 30% UPF/PR x {5 + ( ΣAi x Zi) x fr}. UPF/PR = R$106.33. Professional certifications index (0–4) 2.0 Cost limited to 100 UPF/PR, or R$10,633] Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 261 REGISTERING PROPERTY Procedure 8*. Obtain municipal taxes clearance certificates LIST OF PROCEDURES (Certidão de Tributos e Outros Débitos Municipais and Certidão Negativa do Imóvel) and cadastral certificate Estimated property value: R$1,674,131 (Certidão de Cadastro Imobiliário) Data as of: September 1st, 2020 Agency: Municipal tax authority (Secretaria Municipal de Planejamento, Finanças e Orçamento) Procedure 1. Obtain ownership and no-lien certificates Time: Less than one day (online procedure) (Certidão de Matrícula Atualizada and Certidão de Ônus Cost: No cost Reais) Agency: Central Registradores de Imóveis do Paraná Procedure 9*. Obtain state taxes clearance certificate (Certidão Time: 5 days Negativa de Débitos Tributários e de Dívida Ativa Estadual) Cost: R$66.80 [R$33.40 for each certificate (x2). The cost of each certificate is calculated as follows: R$21.48 for registrar fees + R$1.10 for FADEP + Agency: State tax authority (Secretaria da Fazenda do Governo do Estado R$5.33 for FUNREJUS + R$0.82 for ISS + R$4.67 for security stamp] do Paraná) Time: Less than one day (online procedure) Cost: No cost Procedure 2*. Obtain consolidated certificate of dispute (Certidão de Distribuição de Protesto de Títulos e Outros Documentos de Dívida) Procedure 10*. Obtain federal taxes clearance certificate (Certidão de Débitos Relativos a Créditos Tributários Federais Agency: Dispute registries distribution service (3º Ofício de Registro de e à Dívida Ativa da União) Distribuição) Agency: Federal Revenue Service & Office of the Attorney General of the Time: 3 days National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- Cost: R$34.95 Geral da Fazenda Nacional) Time: Less than one day (online procedure) Procedure 3*. Obtain state justice certificate (Certidão de Cost: No cost Distribuição de Executivos Fiscais e Ações de Falência, Concordata e Recuperação Judicial e Extrajudicial) Procedure 11*. Obtain workers fund certificate (Certidão de Agency: State Justice Court (1º Ofício Distribuidor da Comarca da Região Regularidade do FGTS) Metropolitana de Curitiba) Agency: Federal Savings Bank (Caixa Econômica Federal) Time: 3 days Time: Less than one day (online procedure) Cost: R$33.66 (R$30.60 for issuing the certificate + R$3.06 for CPC) Cost: No cost Paraná Procedure 4*. Obtain state justice certificate (Certidão de Procedure 12*. Obtain federal justice certificate (Certidão de Distribuição de Ações Cíveis para Fins de Lavratura de Distribuição Cível e Criminal) Escritura Pública) Agency: Federal Justice Court (Tribunal Regional Federal da 4ª Região/Seção Agency: State Justice Court (2º Ofício Distribuidor da Comarca da Região Judiciária do Paraná) Metropolitana de Curitiba) Time: Less than one day (online procedure) Time: 3 days Cost: No cost Cost: R$33.66 (R$30.60 for issuing the certificate + R$3.06 for CPC) Procedure 13*. Pay property transfer tax (Imposto sobre a Procedure 5*. Obtain company certificate of good standing Transmissão de Bens Imóveis e de Direitos, ITBI) (Certidão Simplificada da Empresa) Agency: Municipal tax authority (Secretaria Municipal de Planejamento, Agency: Commercial registry (Junta Comercial do Paraná) Finanças e Orçamento) Time: 2 days Time: Less than one day (online procedure) Cost: R$30.65 Cost: R$45,201.54 (2.7% of the property value) Procedure 6*. Obtain labor justice certificate (Certidão de Procedure 14. Prepare public deed of purchase and sale Ações Trabalhistas) Agency: Public notary (Tabelionato de Notas) Agency: Regional Labor Court (Tribunal Regional do Trabalho da 9ª Região) Time: 7 days Time: Less than one day (online procedure) Cost: R$4,405.43 [R$959.59 for notary fees + R$3,348.26 for FUNREJUS Cost: No cost + R$10.42 for distribution + R$47.98 for FADEP (5% of the notary fees) + R$38.38 for ISS + R$0.80 for supervision stamp] Procedure 7*. Obtain certificate of good standing on labor debts (Certidão Negativa de Débitos Trabalhistas) Procedure 15. Register public deed of purchase and sale Agency: High Labor Court (Tribunal Superior do Trabalho) Agency: Property registry (Cartório de Registro de Imóveis) Time: Less than one day (online procedure) Time: 30 days Cost: No cost Cost: R$915.36 [R$835.49 for registrar fees (R$832.21 for registration + R$1.93 for provisional registration + R$1.35 for filing) + R$41.78 for FADEP + R$33.42 for ISS + R$4.67 for supervision stamp] Source: Subnational Doing Business database. * Simultaneous with previous procedure 262 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 16. Update municipal taxpayer records to the new QUALITY OF LAND ADMINISTRATION INDEX owner’s name (cadastro do contribuinte para fins de IPTU) Agency: Municipal tax authority (Secretaria Municipal de Planejamento, Score Finanças e Orçamento) Quality of land administration index (0–30) 16.5 Time: 7 days Cost: No cost Reliability of infrastructure index (0–8) 5.0 Note: For detailed information on each procedure, see Transparency of information index (0–6) 5.0 https://www.doingbusiness.org/brazil. Geographic coverage index (0–8) 2.0 Land dispute resolution index (0–8) 4.5 Equal access to property rights index (-2–0) 0.0 Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 69 Quality of judicial processes index (0–18) 11.5 Trial and judgment 439 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 411 Case management (0–6) 2.0 Total time 919 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 15.0 Note: For a list of all components, questions and results on this index, refer to Paraná Court fees 7.1 the “Quality indexes details” section. Enforcement fees 0.4 Total cost 22.5 Source: Subnational Doing Business database. State profiles 263 PERNAMBUCO RECIFE Overall rank (1–27) 27 Aggregate score (5 topics) 51.0 Starting a business (rank) 11 Doing Business score (0–100) 82.1 Procedures (number) 11 Time (days) 11 Cost (% of income per capita) 4.1 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 26 Paying taxes (rank) 20 Doing Business score (0–100) 42.3 Doing Business score (0–100) 33.9 Procedures (number) 24 Payments (number) 10 Time (days) 532.5 Time (hours per year) 1,501 Cost (% of warehouse value) 1.7 TTCR (% of profit) 66.0 Building quality control index (0–15) 8.0 Postfiling index (0–100) 7.8 Registering property (rank) 19 Enforcing contracts (rank) 25 Doing Business score (0–100) 50.3 Doing Business score (0–100) 46.6 Procedures (number) 16 Time (days) 1.262 Time (days) 55.5 Cost (% of claim value) 27.2 Cost (% of property value) 2.6 Quality of judicial processes index (0–18) 11.5 Quality of land administration index (0–30) 13.5 Pernambuco Overall rank 11 Rank by indicator 19 20 25 26 27 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 51.0 Score by indicator 82.1 42.3 50.3 33.9 46.6 Source: Subnational Doing Business database. 264 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 STARTING A BUSINESS Procedure 9*. Update employees’ information with Social LIST OF PROCEDURES Security (Programa de Integração Social - PIS) Agency: Federal Savings Bank (Caixa Econômica Federal) Legal form: Limited Liability Company Paid-in minimum capital requirement: No minimum Time: 1 day Data as of: September 1st, 2020 Cost: No cost Procedure 1. Check the availability of the company name and Procedure 10*. Notify the General Cadaster of Employed and the feasibility of the location Unemployed Workers - CAGED - or eSocial Agency: Municipality / Commercial Registry (via Redesim) Agency: Ministry of Economy Time: 2 days Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 2. Apply for registration with the Federal Tax Procedure 11*. Register with the Employers’ Union and with Authority (Receita Federal) the Employees’ Union Agency: Federal Tax Authority Agency: Employers’ Union and Employees’ Union Time: Less than one day (online procedure) Time: 1 day Cost: No cost Cost: No cost Note: For detailed information on each procedure, see Procedure 3. Pay registration fees https://www.doingbusiness.org/brazil. Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 4) Procedure 4. Register with the state commercial registry to complete registration with the federal, state and municipal tax authorities to obtain the National Corporate Taxpayer Registry (CNPJ), the Company Registration Identification Number (NIRE) and a temporary operations license (valid for 6 months) Agency: Commercial Registry Time: 2 days Pernambuco Cost: R$347 Procedure 5. Obtain a digital certificate (e-CNPJ) in order to issue electronic invoices Agency: Digital e-certifier Time: 2 days Cost: R$270 Procedure 6. Pay the operations license fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 7) Procedure 7. Obtain the definitive operations license Agency: Municipality Time: Less than one day (online procedure) Cost: R$380.50 (one-time fee for obtaining the operations license) Procedure 8*. Pay the operating fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: R$380.50 (fee paid twice a year for retail activities, due from the second semester onwards – this fee has the same cost of the one-time fee paid for obtaining the operations license) Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 265 DEALING WITH CONSTRUCTION PERMITS Procedure 10*. Request and obtain artwork approval LIST OF PROCEDURES Agency: Secretary of Mobility and Urban Control (Municipality) Estimated value of warehouse: R$1,674,131 Time: Less than one day (online procedure) Data as of: September 1st, 2020 Cost: No cost Procedure 1. Request and obtain a land ownership certificate Procedure 11. Request and obtain construction permit from the property registry Agency: Secretary of Mobility and Urban Control (Municipality) Agency: Property registry Time: 150 days Time: 5 days Cost: R$575 (Fixed fee for projects between 400 and 1,500 m² of total built Cost: R$45 (Property registry fee: R$44.87) area) Procedure 2. Obtain results of soil study Procedure 12. Register construction at the National Registry Agency: Private agency of Construction Works (CNO) Time: 7 days Agency: Federal Revenue Service Cost: R$6,000 Time: Less than one day (online procedure) Cost: No cost Procedure 3*. Obtain a topographic survey Agency: Private licensed company Procedure 13. Receive random inspection from Municipality Time: 15 days Agency: Secretary of Mobility and Urban Control (Municipality) Cost: R$2,500 Time: 1 day Cost: No cost Procedure 4. Obtain Technical Term of Responsibility (ART) or Technical Report of Responsibility (RRT) Procedure 14. Receive inspection from Labor Public Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Attorneys’ Office Time: 3 days Agency: Labor Public Attorneys’ Office Cost: R$234 (Fixed price for contracts over R$15,000.01) Time: 1 day Cost: No cost Procedure 5*. Request and obtain Debt Clearance Certificate (CND) Procedure 15. Request inspection from Fire Department Agency: Secretary of Finance (Municipality) Agency: Fire Department Time: Less than one day (online procedure) Pernambuco Time: Less than one day (online procedure) Cost: No cost Cost: R$1,200 Procedure 6. Submit project for analysis by Fire Department Procedure 16. Receive inspection from Fire Department and obtain report Agency: Fire Department Agency: Fire Department Time: 1 day Time: 75 days Cost: No cost Cost: R$455 (R$0.35/m²) Procedure 17. Obtain Fire Department Certificate Procedure 7*. Request and obtain project approval Agency: Fire Department Agency: Secretary of Mobility and Urban Control (Municipality) Time: 65 days Time: 138 days Cost: No cost Cost: R$1,407 (Fixed fee for projects up to 1,500 m²) Procedure 18*. Submit final waste management report and Procedure 8. Request and obtain environmental license obtain declaration Agency: Secretary of Environment (Municipality) Agency: Public Waste Management Company (Municipality) Time: 30 days Time: 7 days Cost: R$8,357 (Preliminary license: R$1,857.21 + Installation license: Cost: No cost R$3,714.16 + Operating license: R$2,785.79) Procedure 19. Request final inspection from Municipality Procedure 9*. Submit waste management project and obtain Agency: Secretary of Mobility and Urban Control (Municipality) clearance Time: 1 day Agency: Public Waste Management Company (Municipality) Cost: R$767 (Fixed fee for projects up to 1,500 m² of total built area) Time: 7 days Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure 266 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 20. Receive final inspection from Municipality Procedure 24. Register building with the property registry Agency: Secretary of Mobility and Urban Control (Municipality) Agency: Property registry Time: 1 day Time: 17 days Cost: No cost Cost: R$2,334 [Registration fee: R$998.83 + Inspection fee (TSNR): R$1,122.28 + Justice refitting fund fee (FERM): R$11.22 + Municipal Justice officials security fund fee (FUNSEG): R$22.45 + Notary fee (FERC): R$123.45 + Municipal service Procedure 21. Obtain certificate of occupancy (“Habite-se”) tax (ISS): R$56.11] Agency: Secretary of Mobility and Urban Control (Municipality) Time: 101 days Note: For detailed information on each procedure, see Cost: No cost https://www.doingbusiness.org/brazil. Procedure 22*. Request and connect to water and sewage BUILDING QUALITY CONTROL INDEX Agency: Water and Sewerage Agency Time: 45 days Score Cost: R$4,000 Building quality control index (0–15) 8.0 Quality of building regulations index (0–2) 1.0 Procedure 23. Close CNO registration and obtain debt clearance certificate Quality control before construction index (0–1) 1.0 Agency: Federal Revenue Service Quality control during construction index (0–3) 0.0 Time: Less than one day (online procedure) Cost: No cost Quality control after construction index (0–3) 3.0 Liability and insurance regimes index (0–2) 1.0 Professional certifications index (0–4) 2.0 Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. REGISTERING PROPERTY Procedure 5*. Obtain labor justice certificate (Certidão de LIST OF PROCEDURES Ações Trabalhistas) Agency: Regional Labor Court (Tribunal Regional do Trabalho da 6ª Região) Estimated property value: R$1,674,131 Data as of: September 1st, 2020 Time: Less than one day (online procedure) Cost: No cost Pernambuco Procedure 1. Obtain ownership and no-lien certificate (Certidão de Transcrição) Procedure 6*. Obtain certificate of good standing on labor Agency: Property registry (Cartório de Registro de Imóveis) debts (Certidão Negativa de Débitos Trabalhistas) Time: 5 days Agency: High Labor Court (Tribunal Superior do Trabalho) Cost: R$44.57 (R$34.82 for registrar fees + R$2.79 for institutional funds Time: Less than one day (online procedure) and ISS + R$6.96 for TSNR) Cost: No cost Procedure 2*. Obtain certificates of dispute (Certidões de Procedure 7*. Obtain municipal taxes clearance certificates Protesto de Títulos e Outros Documentos de Dívida) (Certidão Narrativa Nada Consta and Certidão Negativa de Agency: Central de Distribuição de Títulos do Recife (CDTR) Débitos de Pessoa Jurídica) and cadastral certificate (Certidão Time: 3 days Narrativa de Dados Cadastrais) Cost: R$49.40 [R$12.35 for each certificate (x4). The cost of each certificate is Agency: Municipal tax authority (Secretaria Municipal de Finanças) calculated as follows: R$8.69 for registrar fees + R$1.93 for TSNR + R$0.96 for Time: Less than one day (online procedure) FERC + R$0.10 for FERM-PJPE + R$0.19 for FUNSEG + R$0.48 for ISS] Cost: No cost Procedure 3*. Obtain company certificate of good standing Procedure 8*. Obtain state taxes clearance certificate (Certidão (Certidão Simplificada da Empresa) Negativa de Débitos Estaduais) Agency: Commercial registry (Junta Comercial do Estado de Pernambuco) Agency: State tax authority (Secretaria da Fazenda do Governo do Estado de Time: 2 days Pernambuco) Cost: R$26 Time: Less than one day (online procedure) Cost: No cost Procedure 4*. Obtain state justice certificates (Certidão Cível and Certidão Negativa de Antecedentes Criminais) Agency: State Justice Court (Tribunal de Justiça do Estado de Pernambuco) Time: Less than one day (online procedure) Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 267 Procedure 9*. Obtain federal taxes clearance certificate Procedure 15. Register public deed of purchase and sale (Certidão de Débitos Relativos a Créditos Tributários Federais Agency: Property registry (Cartório de Registro de Imóveis) e à Dívida Ativa da União) Time: 17 days Agency: Federal Revenue Service & Office of the Attorney General of the Cost: R$5,975.38 (R$2,996.46 for the registrar fees + R$2,339.22 for TSNR National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- + R$33.67 for FERM-PJPE + R$67.34 for FUNSEG + R$370.35 for FERC + Geral da Fazenda Nacional) R$168.34 for ISS) Time: Less than one day (online procedure) Cost: No cost Procedure 16. Update municipal taxpayer records to the new owner’s name (cadastro do contribuinte para fins de IPTU) Procedure 10*. Obtain workers fund certificate (Certidão de Agency: Municipal tax authority (Secretaria Municipal de Finanças) Regularidade do FGTS) Time: 15 days Agency: Federal Savings Bank (Caixa Econômica Federal) Cost: No cost Time: Less than one day (online procedure) Cost: No cost Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. Procedure 11*. Obtain federal justice certificate (Certidão Negativa (Cível, Criminal e Execução Fiscal)) Agency: Federal Justice Court (Tribunal Regional Federal da 5ª Região/Seção QUALITY OF LAND ADMINISTRATION INDEX Judiciária de Pernambuco) Score Time: Less than one day (online procedure) Cost: No cost Quality of land administration index (0–30) 13.5 Reliability of infrastructure index (0–8) 5.0 Procedure 12. Request property tax payment slip (Imposto sobre a Transmissão de Bens Imóveis e de Direitos, ITBI) Transparency of information index (0–6) 4.0 Agency: Municipal tax authority (Secretaria Municipal de Finanças) Geographic coverage index (0–8) 0.0 Time: 10 days Cost: No cost Land dispute resolution index (0–8) 4.5 Equal access to property rights index (-2–0) 0.0 Procedure 13. Pay property transfer tax Note: For a list of all components, questions and results on this index, refer to Agency: Commercial bank the “Quality indexes details” section. Time: Less than one day (online procedure) Cost: R$30,134.36 (1.8% of the property value) Procedure 14. Prepare public deed of purchase and sale Agency: Public notary (Tabelionato de Notas) Time: 6 days Pernambuco Cost: R$7,792.53 (R$4,544.68 for notary fees + R$2,339.22 for TSNR + R$50.50 for FERM-PJPE + R$100.69 for FUNSEG + R$504.96 for FERC + R$252.48 for ISS) ENFORCING CONTRACTS Claim value: R$66,965. Data as of: September 1st, 2020. INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 77 Quality of judicial processes index (0–18) 11.5 Trial and judgment 820 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 365 Case management (0–6) 2.0 Total time 1,262 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 20.0 Note: For a list of all components, questions and results on this index, refer to Court fees 5.2 the “Quality indexes details” section. Enforcement fees 2.0 Total cost 27.2 Source: Subnational Doing Business database. * Simultaneous with previous procedure 268 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 PIAUÍ TERESINA Overall rank (1–27) 10 Aggregate score (5 topics) 56.0 Starting a business (rank) 3 Doing Business score (0–100) 84.5 Procedures (number) 9 Time (days) 13 Cost (% of income per capita) 5.1 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 10 Paying taxes (rank) 23 Doing Business score (0–100) 52.8 Doing Business score (0–100) 33.8 Procedures (number) 23 Payments (number) 11 Time (days) 279 Time (hours per year) 1,501 Cost (% of warehouse value) 0.8 TTCR (% of profit) 65.2 Building quality control index (0–15) 9.0 Postfiling index (0–100) 7.8 Registering property (rank) 21 Enforcing contracts (rank) 11 Doing Business score (0–100) 49.7 Doing Business score (0–100) 59.1 Procedures (number) 18 Time (days) 781 Time (days) 62.5 Cost (% of claim value) 33.8 Cost (% of property value) 2.3 Quality of judicial processes index (0–18) 12.5 Quality of land administration index (0–30) 13.0 Overall rank 3 Piauí 10 11 Rank by 10 indicator 21 23 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 56.0 Score by indicator 84.5 52.8 49.7 33.8 59.1 Source: Subnational Doing Business database. State profiles 269 STARTING A BUSINESS Procedure 5. Obtain a digital certificate (e-CNPJ) in order to LIST OF PROCEDURES issue electronic invoices Agency: Digital e-certifier Legal form: Limited Liability Company Paid-in minimum capital requirement: No minimum Time: 2 days Data as of: September 1st, 2020 Cost: R$212.50 Procedure 1. Check the availability of the company name and Procedure 6. Pay the operations license fee the feasibility of the location Agency: Commercial bank Agency: Municipality / Commercial Registry (via Redesim) Time: Less than one day (online procedure) Time: 2 days Cost: R$1,176 Cost: No cost Procedure 7*. Update employees’ information with Social Procedure 2. Apply for registration with the Federal Tax Security (Programa de Integração Social - PIS) Authority (Receita Federal) Agency: Federal Savings Bank (Caixa Econômica Federal) Agency: Federal Tax Authority Time: 1 day Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 8*. Notify the General Cadaster of Employed and Procedure 3. Pay registration fees Unemployed Workers - CAGED - or eSocial Agency: Commercial bank Agency: Ministry of Economy Time: Less than one day (online procedure) Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 4) Cost: No cost Procedure 4. Register with the state commercial registry to Procedure 9*. Register with the Employers’ Union and with complete registration with the federal, state and municipal the Employees’ Union tax authorities to obtain the National Corporate Taxpayer Agency: Employers’ Union and Employees’ Union Registry (CNPJ), the Company Registration Identification Time: 1 day Number (NIRE) and the operations license Cost: No cost Agency: Commercial Registry Time: 5 days Note: For detailed information on each procedure, see Cost: R$325.77 https://www.doingbusiness.org/brazil. DEALING WITH CONSTRUCTION PERMITS Piauí Procedure 3*. Obtain results of soil study LIST OF PROCEDURES Agency: Private agency Estimated value of warehouse: R$1,674,131 Time: 3 days Data as of: September 1st, 2020 Cost: R$2,000 Procedure 1. Request and obtain a land ownership certificate Procedure 4*. Obtain a topographic survey from the property registry Agency: Private licensed company Agency: Property registry Time: 11 days Time: 5 days Cost: R$875 Cost: R$47 [Property registry fee: R$38.23 + Justice refitting fund fee (FERMOJUPI): R$7.65 + Public Prosecutor’s office fund fee: R$0.96 + Procedure 5*. Obtain Technical Term of Responsibility (ART) Security stamp: R$0.26] or Technical Report of Responsibility (RRT) Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Procedure 2. Perform consultation of suitability for Time: 2 days construction Cost: R$234 (Fixed price for contracts over R$15,000.01) Agency: Municipality Time: 30 days Cost: R$1,106 (R$0.85/m²) Source: Subnational Doing Business database. * Simultaneous with previous procedure 270 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 6*. Request and obtain water and sewage Procedure 17. Request and connect to water and sewage feasibility declaration and project approval Agency: Water and Sewerage Agency Agency: Municipality (Sanitation Department) Time: 7 days Time: 15 days Cost: R$810 (Water connection: R$125.44 + Sewage connection: R$684.66) Cost: No cost Procedure 18*. Obtain Certificate of Tax Payment Procedure 7*. Approve waste management report and obtain Agency: Secretary of Finance (Municipality) report Time: 1 day Agency: Secretary of Environment Cost: No cost Time: 15 days Cost: No cost Procedure 19. Request final inspection from Municipality Agency: Superintendence of Urban Development (Municipality) Procedure 8*. Request and obtain environmental license Time: 1 day Agency: Secretary of Environment (Municipality) Cost: No cost Time: 30 days Cost: R$818 (Preliminary license: R$206.07 + Installation license: R$611.56) Procedure 20. Receive final inspection from Municipality Procedure 9. Request and obtain construction permit Agency: Superintendence of Urban Development (Municipality) Time: 1 day Agency: Superintendence of Urban Development (Municipality) Cost: No cost Time: 120 days Cost: R$3,317 (R$2.55/m²) Procedure 21. Obtain certificate of occupancy (“Habite-se”) Procedure 10*. Submit project for analysis by Fire Agency: Superintendence of Urban Development (Municipality) Department and obtain report Time: 30 days Agency: Fire Department Cost: R$2,484 (R$1.91/m²) Time: 45 days Cost: R$219 Procedure 22. Close CNO registration and obtain debt clearance certificate Procedure 11. Register construction at the National Registry Agency: Federal Revenue Service of Construction Works (CNO) Time: Less than one day (online procedure) Agency: Federal Revenue Service Cost: No cost Time: Less than one day (online procedure) Cost: No cost Procedure 23. Register building with the property registry Agency: Property registry Procedure 12. Receive inspection from Labor Public Time: 30 days Attorneys’ Office Cost: R$648 [Registration fee for properties with total value over Agency: Labor Public Attorneys’ Office R$200,000: R$445.57 + Public Prosecutor’s office: R$8.69 + Justice refitting Time: 1 day fund fee (FERMOJUPI): R$89.11 + Security stamp: R$0.26 + Filing fee: Cost: No cost R$9.72 + Public Prosecutor’s office: R$0.24 + Justice refitting fund fee Piauí (FERMOJUPI): R$1.94 + Safety label: R$0.26 + Previous annotation fee: Procedure 13. Request inspection from Fire Department R$75.67 + Public Prosecutor’s office: R$1.89 + Justice refitting fund fee Agency: Fire Department (FERMOJUPI): R$15.13] Time: 1 day Note: For detailed information on each procedure, see Cost: No cost https://www.doingbusiness.org/brazil. Procedure 14. Receive inspection from Fire Department Agency: Fire Department BUILDING QUALITY CONTROL INDEX Time: 1 day Score Cost: No cost Building quality control index (0–15) 9.0 Procedure 15. Obtain Fire Department Certificate Quality of building regulations index (0–2) 2.0 Agency: Fire Department Time: 45 days Quality control before construction index (0–1) 1.0 Cost: R$395 Quality control during construction index (0–3) 0.0 Procedure 16*. Receive inspection from water and sewage Quality control after construction index (0–3) 3.0 company Liability and insurance regimes index (0–2) 1.0 Agency: Water and Sewerage Agency Time: 1 day Professional certifications index (0–4) 2.0 Cost: No cost Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 271 REGISTERING PROPERTY Procedure 8*. Obtain certificate of good standing on labor LIST OF PROCEDURES debts (Certidão Negativa de Débitos Trabalhistas) Agency: High Labor Court (Tribunal Superior do Trabalho) Estimated property value: R$1,674,131 Data as of: September 1st, 2020 Time: Less than one day (online procedure) Cost: No cost Procedure 1. Obtain ownership and no-lien certificate (Certidão de Inteiro Teor de Matrícula com Ônus Reais) Procedure 9*. Obtain municipal taxes clearance certificates Agency: Property registry (Cartório de Registro de Imóveis) (Certidão Negativa de Débitos IPTU and Certidão Conjunta Negativa de Débitos Municipais e da Dívida Ativa do Time: 5 days Município) and cadastral certificate (Memória de Cálculo do Cost: R$47.10 [R$38.23 for registrar fees + R$7.65 for FERMOJUPI (20% of Imóvel) the registrar fees) + R$0.96 for MP (2.5% of the registrar fees) + R$0.26 for security stamp] Agency: Municipal tax authority (Secretaria Municipal de Finanças) Time: Less than one day (online procedure) Cost: No cost Procedure 2*. Obtain company certificate of good standing (Certidão Simplificada da Empresa) Procedure 10*. Obtain state taxes clearance certificate Agency: Commercial registry (Junta Comercial do Estado do Piauí) (Certidão Negativa de Débitos Estaduais) Time: 2 days Cost: R$81.40 Agency: State tax authority (Secretaria da Fazenda do Governo do Estado do Piauí) Time: Less than one day (online procedure) Procedure 3*. Obtain certificate of dispute (Certidão de Cost: No cost Protesto de Títulos e Outros Documentos de Dívida) Agency: Dispute registry (1º Tabelionato de Protesto de Títulos) Procedure 11*. Obtain federal taxes clearance certificate Time: 2 days (Certidão de Débitos Relativos a Créditos Tributários Federais Cost: R$27.46 [R$22.20 for registrar fees + R$4.44 for FERMOJUPI (20% of e à Dívida Ativa da União) the registrar fees) + R$0.56 for MP (2.5% of the registrar fees) + R$0.26 for security stamp] Agency: Federal Revenue Service & Office of the Attorney General of the National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- Geral da Fazenda Nacional) Procedure 4*. Obtain certificate of dispute (Certidão de Time: Less than one day (online procedure) Protesto de Títulos e Outros Documentos de Dívida) Cost: No cost Agency: Dispute registry (2º Tabelionato de Protesto de Títulos) Time: 2 days Procedure 12*. Obtain workers fund certificate (Certidão de Cost: R$27.46 [R$22.20 for registrar fees + R$4.44 for FERMOJUPI (20% of Regularidade do FGTS) the registrar fees) + R$0.56 for MP (2.5% of the registrar fees) + R$0.26 for security stamp] Agency: Federal Savings Bank (Caixa Econômica Federal) Time: Less than one day (online procedure) Piauí Cost: No cost Procedure 5*. Obtain certificate of dispute (Certidão de Protesto de Títulos e Outros Documentos de Dívida) Procedure 13*. Obtain federal justice certificate (Certidão de Agency: Dispute registry (3º Tabelionato de Protesto de Títulos) Distribuição Cível e Criminal) Time: 2 days Cost: R$27.46 [R$22.20 for registrar fees + R$4.44 for FERMOJUPI (20% of Agency: Federal Justice Court (Tribunal Regional Federal da 1ª Região/Seção the registrar fees) + R$0.56 for MP (2.5% of the registrar fees) + R$0.26 for Judiciária do Piauí) security stamp] Time: Less than one day (online procedure) Cost: No cost Procedure 6*. Obtain state justice certificates (Certidão Negativa de Distribuição Cível e Execução Cível, Certidão Procedure 14. Request property tax payment slip (Imposto Negativa de Execução Fiscal, and Certidão Negativa de sobre a Transmissão de Bens Imóveis e de Direitos, ITBI) Ações de Falência, Concordata e Recuperação Judicial e Agency: Municipal tax authority (Secretaria Municipal de Finanças) Extrajudicial) Time: 3 days Agency: State Justice Court (Tribunal de Justiça do Estado do Piauí) Cost: No cost Time: Less than one day (online procedure) Cost: No cost Procedure 15. Pay property transfer tax Agency: Commercial bank Procedure 7*. Obtain labor justice certificate (Certidão de Time: Less than one day (online procedure) Ações Trabalhistas) Cost: R$28,627.64 (1.71% of the property value) Agency: Regional Labor Court (Tribunal Regional do Trabalho da 22ª Região) Time: Less than one day (online procedure) Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure 272 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 16. Prepare public deed of purchase and sale QUALITY OF LAND ADMINISTRATION INDEX Agency: Public notary (Tabelionato de Notas) Time: 15 days Score Cost: R$3,943.01 [R$3,218.36 for notary fees (R$3,208.64 for preparing Quality of land administration index (0–30) 13.0 the deed + R$9.72 for filing) + R$643.67 for FERMOJUPI (20% of the notary fees) + R$80.46 for MP (2.5% of the notary fees) + R$0.52 for two security Reliability of infrastructure index (0–8) 4.0 stamps] Transparency of information index (0–6) 2.5 Procedure 17. Register public deed of purchase and sale Geographic coverage index (0–8) 2.0 Agency: Property registry (Cartório de Registro de Imóveis) Land dispute resolution index (0–8) 4.5 Time: 30 days Equal access to property rights index (-2–0) 0.0 Cost: R$5,313.19 [R$4,336.88 for registrar fees (R$4,251.49 for registration + R$75.67 for provisional registration + R$9.72 for filing) + R$867.37 for Note: For a list of all components, questions and results on this index, refer to FERMOJUPI (20% of the registrar fees) + R$108.42 for MP (2.5% of the the “Quality indexes details” section. registrar fees) + R$0.52 for two security stamps] Procedure 18. Update municipal taxpayer records to the new owner’s name (cadastro do contribuinte para fins de IPTU) Agency: Municipal tax authority (Secretaria Municipal de Finanças) Time: 5 days Cost: No cost Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 69 Quality of judicial processes index (0–18) 12.5 Trial and judgment 484 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 228 Piauí Case management (0–6) 3.0 Total time 781 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 20.0 Note: For a list of all components, questions and results on this index, refer to Court fees 13.4 the “Quality indexes details” section. Enforcement fees 0.4 Total cost 33.8 Source: Subnational Doing Business database. State profiles 273 RIO DE JANEIRO RIO DE JANEIRO Overall rank (1–27) 5 Aggregate score (5 topics) 57.1 Starting a business (rank) 6 Doing Business score (0–100) 83.2 Procedures (number) 10 Time (days) 12.5 Cost (% of income per capita) 4.6 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 8 Paying taxes (rank) 25 Doing Business score (0–100) 57.2 Doing Business score (0–100) 33.7 Procedures (number) 19 Payments (number) 10 Time (days) 267 Time (hours per year) 1,489 Cost (% of warehouse value) 1.1 TTCR (% of profit) 66.4 Building quality control index (0–15) 9.0 Postfiling index (0–100) 7.8 Registering property (rank) 2 Enforcing contracts (rank) 18 Doing Business score (0–100) 57.4 Doing Business score (0–100) 53.9 Procedures (number) 11 Time (days) 1,085 Time (days) 41.5 Cost (% of claim value) 25.5 Cost (% of property value) 3.7 Quality of judicial processes index (0–18) 12.5 Quality of land administration index (0–30) 17.0 Overall rank 2 Rio de Janeiro 6 5 8 Rank by indicator 18 25 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 57.1 Score by indicator 83.2 57.2 57.4 33.7 53.9 Source: Doing Business and Subnational Doing Business database. Note: The data for Rio de Janeiro and São Paulo are not considered official until published by the Doing Business 2021 report. 274 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 STARTING A BUSINESS Procedure 6. Register with the municipal tax agency to obtain LIST OF PROCEDURES the operations license Agency: Municipal Secretariat of Finance Legal form: Limited Liability Company Paid-in minimum capital requirement: No minimum Time: 2 days Data as of: September 1st, 2020 Cost: R$891,67 Procedure 1. Check the availability of the company name and Procedure 7. Pay the operations license fee the feasibility of the location Agency: Commercial Bank Agency: Municipality / Commercial Registry (via Redesim) Time: Less than one day (online procedure) Time: 2 days Cost: No cost (fee included in procedure 6) Cost: No cost Procedure 8*. Update employees’ information with Social Procedure 2. Apply for registration with the Federal Tax Security (Programa de Integração Social - PIS) Authority (Receita Federal) Agency: Federal Savings Bank (Caixa Econômica Federal) Agency: Federal Tax Authority Time: 1 day Time: 2 days Cost: No cost Cost: No cost Procedure 9*. Notify the General Cadaster of Employed and Procedure 3. Pay registration fees Unemployed Workers - CAGED - or eSocial Agency: Commercial bank Time: Less than one day (online procedure) Agency: Ministry of Economy Cost: No cost (fee included in procedure 4) Time: Less than one day (online procedure) Cost: No cost Procedure 4. Register with the state commercial registry to complete registration with the federal and state tax authorities Procedure 10*. Register with the Employers’ Union and with to obtain the National Corporate Taxpayer Registry (CNPJ) the Employees’ Union and the Company Registration Identification Number (NIRE) Agency: Employers’ Union and Employees’ Union Agency: Commercial Registry Time: 1 day Time: 1 day Cost: No cost Cost: R$414 Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. Procedure 5. Obtain a digital certificate (e-CNPJ) in order to issue electronic invoices Agency: Digital e-certifier Time: 2 days Cost: R$229 Rio de Janeiro DEALING WITH CONSTRUCTION PERMITS Procedure 3*. Obtain results of soil study LIST OF PROCEDURES Agency: Private agency Estimated value of warehouse: R$1,674,131 Time: 15 days Data as of: September 1st, 2020 Cost: R$6,000 (R$150/linear meter of surveying area + R$4,000 on equipment and personnel) Procedure 1. Request and obtain proof of land ownership from the property registry Procedure 4*. Obtain Technical Term of Responsibility -ART Agency: Property registry (or RRT) Time: 7 days Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Cost: R$81 (Property registry fee: R$80.78) Time: Less than one day (online procedure) Cost: R$234 (Fixed price for contracts over R$15,000.01) Procedure 2. Obtain a topographic map Agency: Private licensed company Time: 15 days Cost: R$3,500 Source: Doing Business and Subnational Doing Business database. * Simultaneous with previous procedure State profiles 275 Procedure 5*. Request and obtain proof of land tax payment Procedure 15. Receive final inspection from Municipality from the Treasury Department of the Municipality Agency: Secretary of Urbanism (Municipality) Agency: Secretary of Finance (Municipality) Time: 1 day Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 16. Obtain certificate of occupancy (“Habite-se”) Procedure 6. Request and obtain construction permit Agency: Secretary of Urbanism (Municipality) Agency: Secretary of Urbanism (Municipality) Time: 28 days Time: 150 days Cost: R$1,610 Cost: R$1,204 [Total built surface x 0.11575 x number of months (30 weeks rounded up to 8 months)] Procedure 17. Close CNO registration and obtain debt clearance certificate Procedure 7*. Request and obtain water and sewage Agency: Federal Revenue Service feasibility declarations (CPAE) Time: Less than one day (online procedure) Agency: Water and Sewerage Agency Cost: No cost Time: 45 days Cost: R$2,500 Procedure 18. Request and connect to water and sewage Agency: Water and Sewerage Agency Procedure 8*. Submit project for analysis by Fire Department Time: 30 days and obtain report Cost: No cost Agency: Fire Department Time: 30 days Procedure 19*. Register building with the property registry Cost: R$416 (Total built surface * 0.088531 * UFIR-RJ. UFIR-RJ in 2020 = Agency: Property registry R$3,555) Time: 30 days Cost: R$3,398 (Registration fee) Procedure 9. Register construction at the National Registry of Construction Works (CNO) Note: For detailed information on each procedure, see Agency: Federal Revenue Service https://www.doingbusiness.org/brazil. Time: Less than one day (online procedure) Cost: No cost BUILDING QUALITY CONTROL INDEX Procedure 10. Receive labor inspection from Labor Public Attorneys Office Score Agency: Labor Public Attorneys’ Office Building quality control index (0–15) 9.0 Time: 1 day Cost: No cost Quality of building regulations index (0–2) 2.0 Quality control before construction index (0–1) 1.0 Procedure 11. Request inspection from Fire Department Quality control during construction index (0–3) 0.0 Rio de Janeiro Agency: Fire Department Time: 1 day Quality control after construction index (0–3) 3.0 Cost: No cost Liability and insurance regimes index (0–2) 1.0 Procedure 12. Receive inspection from Fire Department Professional certifications index (0–4) 2.0 Agency: Fire Department Note: For a list of all components, questions and results on this index, refer to Time: 1 day the “Quality indexes details” section. Cost: No cost Procedure 13. Obtain Fire Department Certificate (Certificado de Aprovação - AVCB) Agency: Fire Department Time: 29 days Cost: R$79 (22.132750 x UFIR-RJ. UFIR-RJ in 2020 = R$3.555) Procedure 14. Request final inspection from Municipality Agency: Secretary of Urbanism (Municipality) Time: 1 day Cost: No cost Source: Doing Business and Subnational Doing Business database. * Simultaneous with previous procedure 276 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 REGISTERING PROPERTY Procedure 7. Pay property transfer tax LIST OF PROCEDURES Agency: Commercial bank Estimated property value: R$1,674,131 Time: Less than one day (online procedure) Data as of: September 1st, 2020 Cost: R$50,223.93 (3% of the property value) Procedure 1. Obtain certificates of dispute (Certidões de Procedure 8. Obtain property transfer tax proof of payment Protesto de Títulos e Outros Documentos de Dívida), state (Certidão de Pagamento do ITBI) justice certificates (Certidões de Distribuição Cível - Período Agency: Municipal tax authority (Secretaria Municipal de Fazenda e 20 anos, Certidões de Falências e Concordatas, and Certidão Planejamento) Fiscal e Fazendária - Imóveis), and ownership and no-lien Time: 2 days certificate (Certidão Vintenária) Cost: No cost Agency: E-CartórioRJ - Central de Certidões Time: 4 days Procedure 9. Prepare public deed of purchase and sale Cost: R$1,311.35 [R$124.16 for the certificates of dispute (R$31.04 each Agency: Public notary (Tabelionato de Notas) x 4 dispute registries) + R$472.76 for the Certidões de Distribuição Cível (R$118.19 each x 4 Registros de Distribuição) + R$472.76 for the Certidões Time: 3 days de Falências e Concordatas (R$118.19 each x 4 Registros de Distribuição) + Cost: R$5,550.47 R$129.72 for the Certidão Fiscal e Fazendária + R$111.95 for the ownership and no-lien certificate] Procedure 10. Update municipal taxpayer records to the new owner’s name (cadastro do contribuinte para fins de IPTU) Procedure 2*. Obtain labor justice certificate (Certidão de Agency: Municipal tax authority (Secretaria Municipal de Fazenda e Ações Trabalhistas) Planejamento) Agency: Regional Labor Court (Tribunal Regional do Trabalho da 1ª Região) Time: Less than one day (online procedure) Time: 3 days Cost: No cost Cost: R$5.53 (per page) Procedure 11. Register public deed of purchase and sale Procedure 3*. Obtain state taxes clearance certificates Agency: Property registry (Cartório de Registro de Imóveis) (Certidão de Regularidade Fiscal and Certidão Negativa de Time: 30 days Débitos Tributários Inscritos na Dívida Ativa Estadual) Cost: R$3,849.88 Agency: State tax authorities (Secretaria de Estado de Fazenda e Procuradoria Geral do Estado do Rio de Janeiro) Note: For detailed information on each procedure, see Time: 3 days https://www.doingbusiness.org/brazil. Cost: No cost QUALITY OF LAND ADMINISTRATION INDEX Procedure 4*. Obtain federal justice certificate (Certidão de Distribuição da Justiça Federal), certificate of good standing Score Rio de Janeiro on labor debts (Certidão Negativa de Débitos Trabalhistas), Quality of land administration index (0–30) 17.0 municipal taxes clearance certificate (Certidão Conjunta de Débitos de Tributos Imobiliários), cadastral certificate Reliability of infrastructure index (0–8) 5.0 (Certidão de Dados Cadastrais do Imóvel), federal taxes Transparency of information index (0–6) 5.5 clearance certificate (Certidão de Débitos Relativos a Créditos Tributários Federais e à Dívida Ativa da União), and workers Geographic coverage index (0–8) 2.0 fund certificate (Certidão de Regularidade do FGTS) Land dispute resolution index (0–8) 4.5 Agency: Guichê de Certidões Time: Less than one day (online procedure) Equal access to property rights index (-2–0) 0.0 Cost: No cost Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. Procedure 5*. Obtain company certificate of good standing (Certidão Simplificada da Empresa) Agency: Commercial registry (Junta Comercial do Estado do Rio de Janeiro) Time: Less than one day (online procedure) Cost: R$183 Procedure 6. Request property tax payment slip (Imposto sobre a Transmissão de Bens Imóveis e de Direitos, ITBI) Agency: Municipal tax authority (Secretaria Municipal de Fazenda e Planejamento) Time: Less than one day (online procedure) Cost: No cost Source: Doing Business and Subnational Doing Business database. * Simultaneous with previous procedure State profiles 277 ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 60 Quality of judicial processes index (0–18) 12.5 Trial and judgment 660 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 365 Case management (0–6) 3.0 Total time 1,085 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 15.9 Note: For a list of all components, questions and results on this index, refer to Court fees 8.5 the “Quality indexes details” section. Enforcement fees 1.1 Total cost 25.5 Rio de Janeiro Source: Doing Business and Subnational Doing Business database. 278 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 RIO GRANDE DO NORTE NATAL Overall rank (1–27) 21 Aggregate score (5 topics) 53.1 Starting a business (rank) 16 Doing Business score (0–100) 80.4 Procedures (number) 11 Time (days) 17.5 Cost (% of income per capita) 4.7 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 13 Paying taxes (rank) 11 Doing Business score (0–100) 50.6 Doing Business score (0–100) 34.2 Procedures (number) 21 Payments (number) 10 Time (days) 300 Time (hours per year) 1,483 Cost (% of warehouse value) 1.6 TTCR (% of profit) 65.1 Building quality control index (0–15) 9.0 Postfiling index (0–100) 7.8 Registering property (rank) 26 Enforcing contracts (rank) 16 Doing Business score (0–100) 45.5 Doing Business score (0–100) 54.7 Procedures (number) 16 Time (days) 1,017 Time (days) 35.5 Cost (% of claim value) 23.4 Cost (% of property value) 6.0 Quality of judicial processes index (0–18) 11.5 Quality of land administration index (0–30) 11.5 Overall rank Rio Grande do Norte 11 Rank by 13 indicator 16 16 21 26 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 53.1 Score by indicator 80.4 50.6 45.5 34.2 54.7 Source: Subnational Doing Business database. State profiles 279 STARTING A BUSINESS Procedure 9*. Update employees’ information with Social LIST OF PROCEDURES Security (Programa de Integração Social - PIS) Agency: Federal Savings Bank (Caixa Econômica Federal) Legal form: Limited Liability Company Paid-in minimum capital requirement: No minimum Time: 1 day Data as of: September 1st, 2020 Cost: No cost Procedure 1. Check the availability of the company name and Procedure 10*. Notify the General Cadaster of Employed and the feasibility of the location Unemployed Workers - CAGED - or eSocial Agency: Municipality / Commercial Registry (via Redesim) Agency: Ministry of Economy Time: 2 days Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 2. Apply for registration with the Federal Tax Procedure 11*. Register with the Employers’ Union and with Authority (Receita Federal) the Employees’ Union Agency: Federal Tax Authority Agency: Employers’ Union and Employees’ Union Time: Less than one day (online procedure) Time: 1 day Cost: No cost Cost: No cost Note: For detailed information on each procedure, see Procedure 3. Pay registration fees https://www.doingbusiness.org/brazil. Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 4) Procedure 4. Register with the state commercial registry to complete registration with the federal, state and municipal tax authorities to obtain the National Corporate Taxpayer Registry (CNPJ) and the Company Registration Identification Number (NIRE) Agency: Commercial Registry Time: 2 days Cost: R$340.31 Procedure 5. Obtain a digital certificate (e-CNPJ) in order to issue electronic invoices Agency: Digital e-certifier Time: 2 days Rio Grande do Norte Cost: R$222.50 Procedure 6. Pay the operations license fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 7) Procedure 7. Obtain the operations license Agency: Municipal Secretariat of Taxation Time: 10 days Cost: R$115.46 Procedure 8*. Pay the operating fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: R$881.52 (R$283.97 for the first 300 sqm, and an addition of R$0.95 per sqm) Source: Subnational Doing Business database. * Simultaneous with previous procedure 280 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 DEALING WITH CONSTRUCTION PERMITS Procedure 9. Register construction at the National Registry of LIST OF PROCEDURES Construction Works (CNO) Agency: Federal Revenue Service Estimated value of warehouse: R$1,674,131 Data as of: September 1st, 2020 Time: Less than one day (online procedure) Cost: No cost Procedure 1. Request and obtain a land ownership certificate from the property registry Procedure 10. Receive random inspection from Municipality Agency: Property registry Agency: Secretary of the Environment and Urbanism (Municipality) Time: 5 days Time: 1 day Cost: R$147 [Property registry fee: R$116.51 + Justice fund fee (FDJ): Cost: No cost R$26.92 + Public Prosecutor’s office fund fee (FRMP/RN): R$3.57] Procedure 11. Receive inspection from Labor Public Procedure 2. Obtain results of soil study Attorneys’ Office Agency: Private agency Agency: Labor Public Attorneys’ Office Time: 30 days Time: 1 day Cost: R$4,450 Cost: No cost Procedure 3*. Obtain a topographic survey Procedure 12. Request inspection from Fire Department Agency: Private licensed company Agency: Fire Department Time: 13 days Time: 1 day Cost: R$2,500 Cost: R$390 (R$0.30/m² of total built area, for projects over 100 m²) Procedure 4*. Request and obtain water and sewage Procedure 13. Receive inspection from Fire Department feasibility declaration Agency: Fire Department Agency: Water and Sewerage Agency Time: 1 day Time: 15 days Cost: No cost Cost: No cost Procedure 14. Obtain Fire Department Certificate Procedure 5. Obtain Technical Term of Responsibility (ART) Agency: Fire Department or Technical Report of Responsibility (RRT) Time: 60 days Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Cost: No cost Time: 4 days Cost: R$234 (Fixed price for contracts over R$15,000.01) Procedure 15. Request final inspection from Municipality Agency: Secretary of the Environment and Urbanism (Municipality) Procedure 6*. Request and obtain Debt Clearance Certificate Time: 1 day Rio Grande do Norte (CND) Cost: R$831 (Occupancy certificate fee: R$0.36/m² + Inspection fee: R$0.19/ Agency: Secretary of Taxation (Municipality) m² + Issuance fee: R$115.47) Time: Less than one day (online procedure) Cost: No cost Procedure 16. Receive final inspection from Municipality Agency: Secretary of the Environment and Urbanism (Municipality) Procedure 7. Submit project for analysis by Fire Department Time: 1 day and obtain report Cost: No cost Agency: Fire Department Time: 58 days Procedure 17. Obtain certificate of occupancy (“Habite-se”) Cost: R$390 (Analysis fee: R$0.30/m² of total built area, for projects over Agency: Secretary of the Environment and Urbanism (Municipality) 120 m²) Time: 51 days Cost: No cost Procedure 8. Request and obtain construction permit and simplified environmental license Procedure 18. Receive inspection from water and sewage Agency: Secretary of Environment and Urbanism (Municipality) company Time: 50 days Agency: Water and Sewerage Agency Cost: R$10,596 (Construction permit fee: R$3.32/m² + Simplified Time: 5 days environmental license fee: R$6,151.84 + Construction permit issuance fee: Cost: No cost R$115.47 + Environmental license issuance fee: R$11.04) Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 281 Procedure 19. Request and connect to water and sewage BUILDING QUALITY CONTROL INDEX Agency: Water and Sewerage Agency Time: 10 days Score Cost: R$1,544 (Water connection: R$470.69 + Sewage connection: Building quality control index (0–15) 8.0 R$1,072.99) Quality of building regulations index (0–2) 1.0 Procedure 20. Close CNO registration and obtain debt Quality control before construction index (0–1) 1.0 clearance certificate Quality control during construction index (0–3) 0.0 Agency: Federal Revenue Service Time: Less than one day (online procedure) Quality control after construction index (0–3) 3.0 Cost: No cost Liability and insurance regimes index (0–2) 1.0 Procedure 21. Register building with the property registry Professional certifications index (0–4) 2.0 Agency: Property registry Note: For a list of all components, questions and results on this index, refer to Time: 20 days the “Quality indexes details” section. Cost: R$6,094 [Registration fee (also includes Justice fund fee, extra notary fee, Public Prosecutor’s office and State Attorney General’s office)] Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. REGISTERING PROPERTY Procedure 5*. Obtain state justice certificates (Certidão LIST OF PROCEDURES de Distribuição de Ações e Execuções Cíveis Fiscais and Certidão de Distribuição de Ações de Falência e/ou Estimated property value: R$1,674,131 Recuperação Judicial e Extrajudicial) Data as of: September 1st, 2020 Agency: State Justice Court (Tribunal de Justiça do Estado do Rio Grande do Norte) Procedure 1. Obtain ownership and no-lien certificate Time: Less than one day (online procedure) (Certidão Negativa de Ônus Reais) Cost: No cost Agency: Property registry (Cartório de Registro de Imóveis) Time: 5 days Procedure 6*. Obtain labor justice certificate (Certidão de Cost: R$176.21 [R$120.44 for registrar fees + R$12.04 for FCRCPN + Ações Trabalhistas) R$5.32 for FRMP + R$1.22 for FUNAF + R$31.17 for supervision fee + R$6.02 for ISS (5% of the registrar fees)] Agency: Regional Labor Court (Tribunal Regional do Trabalho da 21ª Região) Time: Less than one day (online procedure) Cost: No cost Procedure 2*. Obtain company certificate of good standing Rio Grande do Norte (Certidão Simplificada da Empresa) Procedure 7*. Obtain certificate of good standing on labor Agency: Commercial registry (Junta Comercial do Estado do Rio Grande do debts (Certidão Negativa de Débitos Trabalhistas) Norte) Time: 2 days Agency: High Labor Court (Tribunal Superior do Trabalho) Cost: R$54.09 Time: Less than one day (online procedure) Cost: No cost Procedure 3*. Obtain certificate of dispute (Certidão de Protesto de Títulos e Outros Documentos de Dívida) Procedure 8*. Obtain municipal taxes clearance certificate (Certidão Imobiliária) and cadastral certificate (Certidão Agency: Dispute registry (1º Tabelionato de Protesto de Títulos) Narrativa de Imóvel) Time: 2 days Cost: R$78.28 [R$53.84 for registrar fees + R$5.39 for FCRCPN + R$1.78 Agency: Municipal tax authority (Secretaria Municipal de Tributação) for FRMP + R$0.41 for FUNAF + R$14.17 for supervision fee + R$2.69 for Time: Less than one day (online procedure) ISS (5% of the registrar fees)] Cost: No cost Procedure 4*. Obtain certificate of dispute (Certidão de Procedure 9*. Obtain state taxes clearance certificate (Certidão Protesto de Títulos e Outros Documentos de Dívida) Negativa de Débitos Estaduais) Agency: Dispute registry (2º Tabelionato de Protesto de Títulos) Agency: State tax authority (Secretaria de Tributação do Governo do Estado Time: 2 days do Rio Grande do Norte) Cost: R$78.28 [R$53.84 for registrar fees + R$5.39 for FCRCPN + R$1.78 Time: Less than one day (online procedure) for FRMP + R$0.41 for FUNAF + R$14.17 for supervision fee + R$2.69 for Cost: No cost ISS (5% of the registrar fees)] Source: Subnational Doing Business database. * Simultaneous with previous procedure 282 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 10*. Obtain federal taxes clearance certificate Procedure 15. Prepare public deed of purchase and sale (Certidão de Débitos Relativos a Créditos Tributários Federais Agency: Public notary (Tabelionato de Notas) e à Dívida Ativa da União) Time: 2 days Agency: Federal Revenue Service & Office of the Attorney General of the Cost: R$32,905.39 [R$23,026.64 for notary fees + R$2,302.66 for FCRCPN National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- + R$356.22 for FRMP + R$81.62 for FUNAF + R$5,986.92 for supervision Geral da Fazenda Nacional) fee + R$1,151.33 for ISS (5% of the notary fees)] Time: Less than one day (online procedure) Cost: No cost Procedure 16. Register public deed of purchase and sale Agency: Property registry (Cartório de Registro de Imóveis) Procedure 11*. Obtain workers fund certificate (Certidão de Time: 20 days Regularidade do FGTS) Cost: R$16,670.93 [R$11,513.33 for registrar fees + R$1,151.34 for Agency: Federal Savings Bank (Caixa Econômica Federal) FCRCPN + R$356.22 for FRMP + R$81.62 for PGE + R$2,992.75 for Time: Less than one day (online procedure) supervision fee + R$575.67 for ISS (5% of the registrar fees)] Cost: No cost Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. Procedure 12*. Obtain federal justice certificate (Certidão de Distribuição Cível, Criminal e Execução Fiscal) Agency: Federal Justice Court (Tribunal Regional Federal da 5ª Região/Seção QUALITY OF LAND ADMINISTRATION INDEX Judiciária do Rio Grande do Norte) Time: Less than one day (online procedure) Score Cost: No cost Quality of land administration index (0–30) 11.5 Procedure 13. Pay property transfer tax (Imposto sobre a Reliability of infrastructure index (0–8) 4.0 Transmissão Inter Vivos de Bens Imóveis, ITIV) Transparency of information index (0–6) 3.0 Agency: Municipal tax authority (Secretaria Municipal de Tributação) Geographic coverage index (0–8) 0.0 Time: 5 days Cost: No cost Land dispute resolution index (0–8) 4.5 Equal access to property rights index (-2–0) 0.0 Procedure 14. Pay property transfer tax Agency: Commercial bank Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. Time: Less than one day (online procedure) Cost: R$50,223.93 (3% of the property value) ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 Rio Grande do Norte INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 71 Quality of judicial processes index (0–18) 11.5 Trial and judgment 556 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 390 Case management (0–6) 2.0 Total time 1,017 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 19.7 Note: For a list of all components, questions and results on this index, refer to Court fees 3.7 the “Quality indexes details” section. Enforcement fees 0.0 Total cost 23.4 Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 283 RIO GRANDE DO SUL PORTO ALEGRE Overall rank (1–27) 22 Aggregate score (5 topics) 52.9 Starting a business (rank) 7 Doing Business score (0–100) 83.0 Procedures (number) 10 Time (days) 14.5 Cost (% of income per capita) 1.7 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 20 Paying taxes (rank) 12 Doing Business score (0–100) 46.5 Doing Business score (0–100) 34.2 Procedures (number) 22 Payments (number) 10 Time (days) 367.5 Time (hours per year) 1,501 Cost (% of warehouse value) 1.5 TTCR (% of profit) 65.1 Building quality control index (0–15) 9.0 Postfiling index (0–100) 7.8 Registering property (rank) 24 Enforcing contracts (rank) 21 Doing Business score (0–100) 49.0 Doing Business score (0–100) 51.7 Procedures (number) 18 Time (days) 1,078 Time (days) 51.5 Cost (% of claim value) 27.1 Cost (% of property value) 3.5 Quality of judicial processes index (0–18) 11.5 Quality of land administration index (0–30) 13.0 Overall rank 7 Rank by 12 Rio Grande do Sul indicator 20 21 24 22 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 52.9 Score by indicator 83.0 46.5 49.0 34.2 51.7 Source: Subnational Doing Business database. 284 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 STARTING A BUSINESS Procedure 9*. Notify the General Cadaster of Employed and LIST OF PROCEDURES Unemployed Workers - CAGED - or eSocial Agency: Ministry of Economy Legal form: Limited Liability Company Paid-in minimum capital requirement: No minimum Time: Less than one day (online procedure) Data as of: September 1st, 2020 Cost: No cost Procedure 1. Check the availability of the company name and Procedure 10*. Register with the Employers’ Union and with the feasibility of the location the Employees’ Union Agency: Municipality / Commercial Registry (via Redesim) Agency: Employers’ Union and Employees’ Union Time: 2 days Time: 1 day Cost: No cost Cost: No cost Note: For detailed information on each procedure, see Procedure 2. Apply for registration with the Federal Tax https://www.doingbusiness.org/brazil. Authority (Receita Federal) Agency: Federal Tax Authority Time: Less than one day (online procedure) Cost: No cost Procedure 3. Pay registration fees Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 4) Procedure 4. Register with the state commercial registry to complete registration with the federal, state and municipal tax authorities to obtain the National Corporate Taxpayer Registry (CNPJ) and the Company Registration Identification Number (NIRE) Agency: Commercial Registry Time: 4 days Cost: R$155.77 Procedure 5. Obtain a digital certificate (e-CNPJ) in order to issue electronic invoices Agency: Digital e-certifier Time: 2 days Cost: R$224.50 Rio Grande do Sul Procedure 6. Pay the operations license fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 7) Procedure 7. Obtain the operations license Agency: Municipal Secretariat of Finance Time: 5 days Cost: R$195.72 Procedure 8*. Update employees’ information with Social Security (Programa de Integração Social - PIS) Agency: Federal Savings Bank (Caixa Econômica Federal) Time: 1 day Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 285 DEALING WITH CONSTRUCTION PERMITS Procedure 10. Register construction at the National Registry LIST OF PROCEDURES of Construction Works (CNO) Agency: Federal Revenue Service Estimated value of warehouse: R$1,674,131 Data as of: September 1st, 2020 Time: Less than one day (online procedure) Cost: No cost Procedure 1. Request and obtain a land ownership certificate from the property registry Procedure 11. Notify the completion of the building Agency: Property registry foundations Time: 3 days Agency: Secretary of Environment and Sustainability (Municipality) Cost: R$44 (Property registry fee: R$23.00 + Safety label: R$2.70 + Time: Less than one day (online procedure) Electronic processing fee: R$6.40 + Research fee: R$11.40) Cost: No cost Procedure 2. Perform consultation of suitability for Procedure 12. Receive inspection from Labor Public construction Attorneys’ Office Agency: Labor Public Attorneys’ Office Agency: Municipality Time: 1 day Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 13. Request inspection from Fire Department Procedure 3*. Obtain results of soil study Agency: Fire Department Agency: Private agency Time: 1 day Time: 30 days Cost: No cost Cost: R$5,000 Procedure 14. Receive inspection from Fire Department Procedure 4*. Obtain a topographic survey Agency: Fire Department Agency: Private licensed company Time: 1 day Time: 15 days Cost: No cost Cost: R$3,547 Procedure 15. Obtain Fire Department Certificate Procedure 5*. Obtain Technical Term of Responsibility (ART) Agency: Fire Department or Technical Report of Responsibility (RRT) Time: 53 days Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Cost: R$406 [(TU: Tax Unit) R$405.998 (up to 1,999 m²) or 20 TU] Time: 3 days Cost: R$234 (Fixed price for contracts over R$15,000.01) Procedure 16*. Receive inspection from water and sewage company Procedure 6*. Request and obtain Debt Clearance Certificate Agency: Water and Sewerage Agency (CND) Time: 1 day Agency: Secretary of Finance (Municipality) Cost: R$178 (R$142.31/unit) Time: Less than one day (online procedure) Cost: No cost Procedure 17. Request and connect to water and sewage Rio Grande do Sul Agency: Water and Sewerage Agency Procedure 7. Request and obtain approval protocol and Time: 60 days project license Cost: R$1,052 (Water connection: R$732.35 + Sewage connection: R$319.43) Agency: Secretary of Environment and Sustainability (Municipality) Time: 150 days Cost: R$6,009 [(TU: Tax Unit) Over 800 m²: 1,300 TU + 100 TU (per each 500 m²)] Procedure 18*. Obtain Certificate of Tax Payment Agency: Secretary of Finance (Municipality) Time: Less than one day (online procedure) Procedure 8*. Submit project for analysis by Fire Department Cost: No cost and obtain report Agency: Fire Department Time: 90 days Procedure 19. Request final inspection from Municipality Cost: R$201 [(TU: Tax Unit) Technical analysis fee: R$200.994 (up to 1,999 m²) Agency: Municipality or 10 TU] Time: Less than one day (online procedure) Cost: No cost Procedure 9*. Request and obtain water and sewage Procedure 20. Obtain certificate of occupancy (“Habite-se”) feasibility declaration and project approval Agency: Municipality Agency: Water and Sewerage Agency (Municipality) Time: 45 days Time: 45 days Cost: R$5,794 [(TU: Tax Unit) Over 800 m²: 1,300 TU + 100 TU (per each 1,000 m²)] Cost: R$245 [Project approval fee (more than one unit)] Source: Subnational Doing Business database. * Simultaneous with previous procedure 286 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 21. Close CNO registration and obtain debt BUILDING QUALITY CONTROL INDEX clearance certificate Agency: Federal Revenue Service Score Time: Less than one day (online procedure) Building quality control index (0–15) 9.0 Cost: No cost Quality of building regulations index (0–2) 2.0 Procedure 22. Register building with the property registry Quality control before construction index (0–1) 1.0 Agency: Property registry Quality control during construction index (0–3) 0.0 Time: 21 days Cost: R$2,047 (Certificate fee: R$11.10 + Research fee: R$11.40 + Quality control after construction index (0–3) 3.0 Electronic processing fee: R$6.40 + Registration fee: R$1,913 + Electronic processing fee: R$6.40 + Document scanning fee: R$4.60 + ISSQN: Liability and insurance regimes index (0–2) 1.0 R$94.18) Professional certifications index (0–4) 2.0 Note: For detailed information on each procedure, see Note: For a list of all components, questions and results on this index, refer to https://www.doingbusiness.org/brazil. the “Quality indexes details” section. REGISTERING PROPERTY Procedure 5*. Obtain state justice certificates (Certidão LIST OF PROCEDURES Judicial Cível Negativa and Certidão Judicial Criminal Negativa) Estimated property value: R$1,674,131 Data as of: September 1st, 2020 Agency: State Justice Court (Tribunal de Justiça do Rio Grande do Sul) Time: Less than one day (online procedure) Cost: No cost Procedure 1. Obtain ownership and no-lien certificates (Certidão de 4 Faces/Inteiro Teor da Matrícula and Certidão Procedure 6*. Obtain labor justice certificate (Certidão de Conjunta de Ônus e Ações Reais) Ações Trabalhistas) Agency: Central de Registro de Imóveis do Rio Grande do Sul (CRI-RS) Time: 3 days Agency: Regional Labor Court (Tribunal Regional do Trabalho da 4ª Região) Cost: R$87.34 [R$25.70 for issuing the Certidão de 4 Faces (R$23.00 for Time: Less than one day (online procedure) registrar fees + R$2.70 for security stamp) + R$6.40 for data processing Cost: No cost of the Certidão de 4 Faces (R$5.00 for registrar fees + R$1.40 for security stamp) + R$11.40 for searching the Certidão de 4 Faces (R$9.50 for registrar Procedure 7*. Obtain certificate of good standing on labor fees + R$1.90 for security stamp) + R$11.10 for issuing the Certidão debts (Certidão Negativa de Débitos Trabalhistas) Conjunta de Ônus e Ações Reais (R$9.20 for registrar fees + R$1.90 for Agency: High Labor Court (Tribunal Superior do Trabalho) security stamp) + R$6.40 for data processing of the Certidão Conjunta de Time: Less than one day (online procedure) Ônus e Ações Reais (R$5.00 for registrar fees + R$1.40 for security stamp) Cost: No cost + R$22.80 for searching the Certidão Conjunta de Ônus e Ações Reais (R$19.00 for registrar fees + R$3.80 for security stamp) + R$3.54 for ISS] Procedure 8*. Obtain municipal taxes clearance certificates (Certidão de Débitos do Imóvel and Certidão Geral de Procedure 2*. Obtain certificate of dispute (Certidão de Débitos de Pessoa Jurídica) and cadastral certificate (Certidão Protesto de Títulos e Outros Documentos de Dívida) Rio Grande do Sul de Cadastro Imobiliário) Agency: Dispute registry (1º Tabelionato de Protesto de Títulos) Agency: Municipal tax authority (Secretaria Municipal da Fazenda) Time: 2 days Time: Less than one day (online procedure) Cost: R$28.75 (R$9.20 for issuing the certificate + R$8.70 for searching + Cost: No cost R$5.00 for data processing + R$4.70 for security stamp + R$1.15 for ISS) Procedure 9*. Obtain state taxes clearance certificate (Certidão Procedure 3*. Obtain certificate of dispute (Certidão de Negativa de Débitos Estaduais) Protesto de Títulos e Outros Documentos de Dívida) Agency: State tax authority (Secretaria da Fazenda do Governo do Estado do Agency: Dispute registry (2º Tabelionato de Protesto de Títulos) Rio Grande do Sul) Time: 2 days Time: Less than one day (online procedure) Cost: R$28.75 (R$9.20 for issuing the certificate + R$8.70 for searching + Cost: No cost R$5.00 for data processing + R$4.70 for security stamp + R$1.15 for ISS) Procedure 10*. Obtain federal taxes clearance certificate Procedure 4*. Obtain certificate of dispute (Certidão de (Certidão de Débitos Relativos a Créditos Tributários Federais Protesto de Títulos e Outros Documentos de Dívida) e à Dívida Ativa da União) Agency: Dispute registry (3º Tabelionato de Protesto de Títulos) Agency: Federal Revenue Service & Office of the Attorney General of the Time: 2 days National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- Cost: R$28.75 (R$9.20 for issuing the certificate + R$8.70 for searching + Geral da Fazenda Nacional) R$5.00 for data processing + R$4.70 for security stamp + R$1.15 for ISS) Time: Less than one day (online procedure) Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 287 Procedure 11*. Obtain workers fund certificate (Certidão de Procedure 17. Register public deed of purchase and sale Regularidade do FGTS) Agency: Property registry (Cartório de Registro de Imóveis) Agency: Federal Savings Bank (Caixa Econômica Federal) Time: 21 days Time: Less than one day (online procedure) Cost: R$3,986.50 [R$3,764.60 for registration (R$3,703.20 for registrar fees Cost: No cost + R$61.40 for security stamp) + R$6.40 for data processing for registration (R$5.00 for registrar fees + R$1.40 for security stamp) + R$11.10 for issuing Procedure 12*. Obtain federal justice certificates (Certidões de the Certidão de 4 Faces (R$9.20 for registrar fees + R$1.90 for security Distribuição Cível e Criminal) stamp) + R$11.40 for searching (R$9.50 registrar fees + R$1.90 for security Agency: Federal Justice Court (Tribunal Regional Federal da 4ª Região/Seção stamp) + R$6.40 for data processing to issue the Certidão de 4 Faces Judiciária do Rio Grande do Sul) (R$5.00 for registrar fees + R$1.40 for security stamp) + R$186.60 for ISS] Time: Less than one day (online procedure) Cost: No cost Procedure 18. Update municipal taxpayer records to the new owner’s name (cadastro do contribuinte para fins de IPTU) Procedure 13*. Obtain company certificate of good standing Agency: Municipal tax authority (Secretaria Municipal da Fazenda) (Certidão Simplificada da Empresa) Time: 10 days Agency: Commercial registry (Junta Comercial, Industrial e Serviços do Rio Cost: No cost Grande do Sul) Time: 2 days Note: For detailed information on each procedure, see Cost: R$51.78 https://www.doingbusiness.org/brazil. Procedure 14. Request property tax payment slip (Imposto sobre a Transmissão de Bens Imóveis e de Direitos, ITBI) QUALITY OF LAND ADMINISTRATION INDEX Agency: Municipal tax authority (Secretaria Municipal da Fazenda) Score Time: 5 days Cost: No cost Quality of land administration index (0–30) 13.0 Reliability of infrastructure index (0–8) 5.0 Procedure 15. Pay property transfer tax Agency: Commercial bank Transparency of information index (0–6) 3.5 Time: Less than one day (online procedure) Geographic coverage index (0–8) 0.0 Cost: R$50,223.93 (3% of the property value) Land dispute resolution index (0–8) 4.5 Procedure 16. Prepare public deed of purchase and sale Equal access to property rights index (-2–0) 0.0 Agency: Public notary (Tabelionato de Notas) Time: 5 days Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. Cost: R$4,037.73 [R$3,764.60 for preparing the deed (R$3,703.20 for notary fees + R$61.40 for security stamp) + R$77.60 for examining documentation (R$74.30 for notary fees + R$3.30 for security stamp) + R$6.40 for data processing (R$5.00 for notary fees + R$1.40 for security stamp) + R$189.13 for ISS] ENFORCING CONTRACTS Rio Grande do Sul Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 54 Quality of judicial processes index (0–18) 11.5 Trial and judgment 620 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 404 Case management (0–6) 2.0 Total time 1,078 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 16.3 Note: For a list of all components, questions and results on this index, refer to Court fees 9.4 the “Quality indexes details” section. Enforcement fees 1.3 Total cost 27.1 Source: Subnational Doing Business database. * Simultaneous with previous procedure 288 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 RONDÔNIA PORTO VELHO Overall rank (1–27) 13 Aggregate score (5 topics) 55.5 Starting a business (rank) 10 Doing Business score (0–100) 82.2 Procedures (number) 11 Time (days) 11 Cost (% of income per capita) 3.5 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 23 Paying taxes (rank) 2 Doing Business score (0–100) 45.5 Doing Business score (0–100) 34.5 Procedures (number) 24 Payments (number) 10 Time (days) 360.5 Time (hours per year) 1,483 Cost (% of warehouse value) 1.1 TTCR (% of profit) 64.5 Building quality control index (0–15) 9.0 Postfiling index (0–100) 7.8 Registering property (rank) 17 Enforcing contracts (rank) 4 Doing Business score (0–100) 51.3 Doing Business score (0–100) 63.8 Procedures (number) 16 Time (days) 670 Time (days) 30.5 Cost (% of claim value) 29.5 Cost (% of property value) 3.3 Quality of judicial processes index (0–18) 12.5 Quality of land administration index (0–30) 12.5 Overall rank 2 4 10 Rank by indicator 13 17 Rondônia 23 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 55.5 Score by indicator 82.2 45.5 51.3 34.5 63.8 Source: Subnational Doing Business database. State profiles 289 STARTING A BUSINESS Procedure 6. Obtain a temporary operations license LIST OF PROCEDURES Agency: Municipal Secretariat of Finance Legal form: Limited Liability Company Time: Less than one day (online procedure) Paid-in minimum capital requirement: No minimum Cost: R$462.54 (6 UPFs) Data as of: September 1st, 2020 Procedure 7. Pay the operations license fee Procedure 1. Check the availability of the company name and Agency: Commercial bank the feasibility of the location Time: Less than one day (online procedure) Agency: Municipality / Commercial Registry (via Redesim) Cost: No cost (fee included in procedure 6) Time: 2 days Cost: No cost Procedure 8. Obtain the definitive operations license Agency: Municipality Procedure 2. Apply for registration with the Federal Tax Time: Less than one day (online procedure) Authority (Receita Federal) Cost: No cost Agency: Federal Tax Authority Time: Less than one day (online procedure) Procedure 9*. Update employees’ information with Social Cost: No cost Security (Programa de Integração Social - PIS) Agency: Federal Savings Bank (Caixa Econômica Federal) Procedure 3. Pay registration fees Time: 1 day Agency: Commercial bank Cost: No cost Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 4) Procedure 10*. Notify the General Cadaster of Employed and Unemployed Workers - CAGED - or eSocial Procedure 4. Register with the state commercial registry to complete Agency: Ministry of Economy registration with the federal, state and municipal tax authorities to Time: Less than one day (online procedure) obtain the National Corporate Taxpayer Registry (CNPJ) and the Cost: No cost Company Registration Identification Number (NIRE) Agency: Commercial Registry Procedure 11*. Register with the Employers’ Union and with Time: 2 days the Employees’ Union Cost: R$502 Agency: Employers’ Union and Employees’ Union Time: 1 day Procedure 5. Obtain a digital certificate (e-CNPJ) in order to Cost: No cost issue electronic invoices Agency: Digital e-certifier Note: For detailed information on each procedure, see Time: 2 days https://www.doingbusiness.org/brazil. Cost: R$204.50 DEALING WITH CONSTRUCTION PERMITS Rondônia Procedure 2. Perform consultation of suitability for LIST OF PROCEDURES construction Agency: Secretary of Land Regularization, Housing and Urbanism Estimated value of warehouse: R$1,674,131 Data as of: September 1st, 2020 (Municipality) Time: 20 days Cost: R$77 Procedure 1. Request and obtain a land ownership certificate from the property registry Agency: Property registry Procedure 3*. Obtain results of soil study Time: 1 day Agency: Private agency Cost: R$29 [Property registry fee: R$20.97 + Justice fund fee (FUJU): Time: 7 days R$4.19 + Public Prosecutor’s office fund fee (FUNDIMPER): R$1.57 + Public Cost: R$4,250 defender’s office fund fee (FUNDEP): R$0.84 + State Attorney General’s office fund fee (FUMORPGE): R$0.63 + Safety label: R$1.12] Source: Subnational Doing Business database. * Simultaneous with previous procedure 290 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 4*. Obtain a topographic survey Procedure 14. Receive inspection from Labor Public Agency: Private licensed company Attorneys’ Office Time: 14 days Agency: Labor Public Attorneys’ Office Cost: R$2,100 Time: 1 day Cost: No cost Procedure 5*. Obtain Technical Term of Responsibility (ART) or Technical Report of Responsibility (RRT) Procedure 15. Request inspection from Fire Department Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Agency: Fire Department Time: 2 days Time: Less than one day (online procedure) Cost: R$234 (Fixed price for contracts over R$15,000.01) Cost: No cost Procedure 6*. Request and obtain Debt Clearance Procedure 16. Receive inspection from Fire Department Certificate (CND) Agency: Fire Department Agency: Secretary of Finance (Municipality) Time: 1 day Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 17. Obtain Fire Department Certificate Procedure 7. Request and obtain environmental license Agency: Fire Department Agency: Secretary of Environment (Municipality) Time: 15 days Time: 75 days Cost: R$164 Cost: R$2,774 [(TU: Tax Unit) Preliminary license: 6.5 TU + Installation license: 19.5 TU + Operational license: 10 TU] Procedure 18. Request and connect to water and sewage Agency: Water and Sewerage Agency Procedure 8*. Request and obtain traffic analysis approval Time: 10 days Agency: Secretary of Transit, Mobility and Transportation (Municipality) Cost: R$494 (Water connection: R$213.41 + Sewage connection: R$280.36) Time: 7 days Cost: R$43 Procedure 19*. Obtain Certificate of Tax Payment Agency: Secretary of Finance (Municipality) Procedure 9*. Receive inspection from water and sewage Time: Less than one day (online procedure) company Cost: No cost Agency: Water and Sewerage Agency Time: 1 day Procedure 20. Request final inspection from Municipality Cost: R$23 Agency: Secretary of Land Regularization, Housing and Urbanism (Municipality) Procedure 10*. Submit project for analysis by Fire Time: 1 day Department and obtain report Cost: No cost Agency: Fire Department Time: 45 days Procedure 21. Receive final inspection from Municipality Cost: R$320 Agency: Secretary of Land Regularization, Housing and Urbanism (Municipality) Procedure 11. Request and obtain construction permit Time: 1 day Agency: Secretary of Land Regularization, Housing and Urbanism Cost: No cost (Municipality) Time: 165 days Procedure 22. Obtain certificate of occupancy (“Habite-se”) Cost: R$5,539 [(TU: Tax Unit) File fee: R$24.67 + Building permit: Agency: Secretary of Land Regularization, Housing and Urbanism Rondônia 0.055 TU/m² (for commercial use)] (Municipality) Time: 53 days Procedure 12. Register construction at the National Cost: R$463 [(TU: Tax Unit) Certificate of occupancy: 3 TU (for commercial Registry of Construction Works (CNO) use) + Inspection fee: 3 TU (for commercial use)] Agency: Federal Revenue Service Time: Less than one day (online procedure) Procedure 23. Close CNO registration and obtain debt Cost: No cost clearance certificate Agency: Federal Revenue Service Procedure 13. Receive random inspection from Time: Less than one day (online procedure) Municipality Cost: No cost Agency: Secretary of Land Regularization, Housing and Urbanism (Municipality) Time: 1 day Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 291 Procedure 24. Register building with the property registry BUILDING QUALITY CONTROL INDEX Agency: Property registry Time: 15 days Score Cost: R$2,427 [Registration fee for properties with total value between Building quality control index (0–15) 9.0 R$1,576,796.01 and R$1,715,077.00: R$1,803.27 + Justice fund fee (FUJU): R$360.65 + Public defender’s office fund fee (Fundep): R$72.13 + Quality of building regulations index (0–2) 2.0 Public Prosecutor’s office fund fee (Fundimper): R$135.25 + State Attorney Quality control before construction index (0–1) 1.0 General’s office (Fumorpge): R$54.10 + Safety label: R$1.12] Quality control during construction index (0–3) 1.0 Note: For detailed information on each procedure, see Quality control after construction index (0–3) 3.0 https://www.doingbusiness.org/brazil. Liability and insurance regimes index (0–2) 1.0 Professional certifications index (0–4) 2.0 Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. REGISTERING PROPERTY Procedure 5*. Obtain state justice certificates (Certidão de LIST OF PROCEDURES Distribuição de Ações e Execuções Cíveis e Fiscais and Certidão de Distribuição de Ações de Falência, Concordata e Estimated property value: R$1,674,131 Recuperação Judicial e Extrajudicial) Data as of: September 1st, 2020 Agency: State Justice Court (Tribunal de Justiça do Estado de Rondônia) Time: Less than one day (online procedure) Procedure 1. Obtain cadastral certificate (Certidão Cost: No cost Informativa) Agency: Municipal office of urban management (Secretaria Municipal de Procedure 6*. Obtain labor justice certificate (Certidão de Regularização Fundiária, Habitação e Urbanismo) Ações Trabalhistas) Time: 5 days Agency: Regional Labor Court (Tribunal Regional do Trabalho da 14ª Região) Cost: R$68.61 (R$24.67 for administrative fees + R$43.94 for issuing the Time: Less than one day (online procedure) certificate) Cost: No cost Procedure 2*. Obtain company certificate of good standing Procedure 7*. Obtain certificate of good standing on labor (Certidão Simplificada da Empresa) debts (Certidão Negativa de Débitos Trabalhistas) Agency: Commercial registry (Junta Comercial do Estado de Rondônia) Agency: High Labor Court (Tribunal Superior do Trabalho) Time: 2 days Time: Less than one day (online procedure) Cost: R$60 Cost: No cost Procedure 3*. Obtain consolidated certificate of dispute Procedure 8*. Obtain municipal taxes clearance certificate (Certidão de Distribuição de Protesto de Títulos e Outros (Certidão Negativa de Débitos de Tributos Imobiliários) Documentos de Dívida) Agency: Municipal tax authority (Secretaria Municipal da Fazenda) Agency: Dispute registries distribution service (Ofício de Registro de Time: Less than one day (online procedure) Distribuição de Títulos) Cost: No cost Rondônia Time: 1 day Cost: R$18.82 [R$13.16 for registrar fees + R$2.63 for FUJU (20% of the Procedure 9*. Obtain state taxes clearance certificate (Certidão for registrar fees) + R$0.99 for FUNDIMPER (7.5% of the for registrar fees) + Negativa de Débitos Estaduais) R$0.53 for FUNDEP (4% of the for registrar fees) + R$0.39 for FUMORPGE Agency: State tax authority (Secretaria de Finanças do Governo do Estado (3% of the for registrar fees) + R$1.12 for supervision stamp] de Rondônia) Time: Less than one day (online procedure) Procedure 4*. Obtain ownership and no-lien certificate Cost: No cost (Certidão de Inteiro Teor de Matrícula com Negativa de Ônus Reais) Procedure 10*. Obtain federal taxes clearance certificate Agency: Property registry (Cartório de Registro de Imóveis) (Certidão de Débitos Relativos a Créditos Tributários Federais Time: 1 day e à Dívida Ativa da União) Cost: R$29.32 [R$20.97 for registrar fees + R$4.19 for FUJU (20% of the Agency: Federal Revenue Service & Office of the Attorney General of the registrar fees) + R$1.57 for FUNDIMPER (7.5% of the registrar fees) + National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- R$0.84 for FUNDEP (4% of the registrar fees) + R$0.63 for FUMORPGE (3% Geral da Fazenda Nacional) of the registrar fees) + R$1.12 for supervision stamp] Time: Less than one day (online procedure) Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure 292 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 11*. Obtain workers fund certificate (Certidão de Procedure 16. Update municipal taxpayer records to the new Regularidade do FGTS) owner’s name (cadastro do contribuinte para fins de IPTU) Agency: Federal Savings Bank (Caixa Econômica Federal) Agency: Municipal office of urban management (Secretaria Municipal de Time: Less than one day (online procedure) Regularização Fundiária, Habitação e Urbanismo) Cost: No cost Time: 4 days Cost: No cost Procedure 12*. Obtain federal justice certificate (Certidão de Distribuição Cível e Criminal) Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. Agency: Federal Justice Court (Tribunal Regional Federal da 1ª Região/Seção Judiciária de Rondônia) Time: Less than one day (online procedure) QUALITY OF LAND ADMINISTRATION INDEX Cost: No cost Score Procedure 13. Pay property transfer tax (Imposto sobre a Quality of land administration index (0–30) 12.5 Transmissão de Bens Imóveis e de Direitos, ITBI) Agency: Municipal tax authority (Secretaria Municipal da Fazenda) Reliability of infrastructure index (0–8) 4.0 Time: Less than one day (online procedure) Transparency of information index (0–6) 4.0 Cost: R$33,636.80 (2% of the property value + R$154.18 for administrative fees) Geographic coverage index (0–8) 0.0 Land dispute resolution index (0–8) 4.5 Procedure 14. Prepare public deed of purchase and sale Equal access to property rights index (-2–0) 0.0 Agency: Public notary (Tabelionato de Notas) Time: 3 days Note: For a list of all components, questions and results on this index, refer to Cost: R$14,104.67 [R$10,485.91 for notary fees + R$2,097.18 for FUJU the “Quality indexes details” section. (20% of the notary fees) + R$786.44 for FUNDIMPER (7.5% of the notary fees) + R$419.44 for FUNDEP (4% of the notary fees) + R$314.58 for FUMORPGE (3% for the notary fees) + R$1.12 for supervision stamp] Procedure 15. Register public deed of purchase and sale Agency: Property registry (Cartório de Registro de Imóveis) Time: 15 days Cost: R$8,085.79 [R$6,010.90 for registrar fees + R$1,202.18 for FUJU (20% of the registrar fees) + R$450.82 for FUNDIMPER (7.5% of the registrar fees) + R$240.44 for FUNDEP (4% of the registrar fees) + R$180.33 for FUMORPGE (3% of the registrar fees) + R$1.12 for supervision stamp] ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Rondônia Filing and service 59 Quality of judicial processes index (0–18) 12.5 Trial and judgment 356 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 255 Case management (0–6) 3.0 Total time 670 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 23.1 Note: For a list of all components, questions and results on this index, refer to Court fees 6.3 the “Quality indexes details” section. Enforcement fees 0.1 Total cost 29.5 Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 293 RORAIMA BOA VISTA Overall rank (1–27) 3 Aggregate score (5 topics) 58.3 Starting a business (rank) 25 Doing Business score (0–100) 76.9 Procedures (number) 13 Time (days) 17.5 Cost (% of income per capita) 9.1 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 1 Paying taxes (rank) 18 Doing Business score (0–100) 63.7 Doing Business score (0–100) 34.0 Procedures (number) 19 Payments (number) 11 Time (days) 179.5 Time (hours per year) 1,501 Cost (% of warehouse value) 1.0 TTCR (% of profit) 64.7 Building quality control index (0–15) 9.0 Postfiling index (0–100) 7.8 Registering property (rank) 11 Enforcing contracts (rank) 5 Doing Business score (0–100) 53.3 Doing Business score (0–100) 63.6 Procedures (number) 16 Time (days) 787 Time (days) 38 Cost (% of claim value) 21.4 Cost (% of property value) 1.9 Quality of judicial processes index (0–18) 12.5 Quality of land administration index (0–30) 13.0 1 Overall rank 5 3 11 Rank by indicator 18 25 Roraima Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 58.3 Score by indicator 76.9 63.7 53.3 34.0 63.6 Source: Subnational Doing Business database. 294 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 STARTING A BUSINESS Procedure 10. Obtain the operations license LIST OF PROCEDURES Agency: Municipal Secretariat of Economy, Planning and Finance Legal form: Limited Liability Company Time: 3 days Paid-in minimum capital requirement: No minimum Cost: R$2,325 (for 929 sqm: 750 UFMs*R$3.10 - UFM value) Data as of: September 1st, 2020 Procedure 11*. Update employees’ information with Social Procedure 1. Check the availability of the company name and Security (Programa de Integração Social - PIS) the feasibility of the location Agency: Federal Savings Bank (Caixa Econômica Federal) Agency: Municipality / Commercial Registry (via Redesim) Time: 1 day Time: 2 days Cost: No cost Cost: No cost Procedure 12*. Notify the General Cadaster of Employed and Procedure 2. Apply for registration with the Federal Tax Unemployed Workers - CAGED - or eSocial Authority (Receita Federal) Agency: Ministry of Economy Agency: Federal Tax Authority Time: Less than one day (online procedure) Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 13*. Register with the Employers’ Union and with Procedure 3. Pay registration fees the Employees’ Union Agency: Commercial bank Agency: Employers’ Union and Employees’ Union Time: Less than one day (online procedure) Time: 1 day Cost: No cost (fee included in procedure 4) Cost: No cost Note: For detailed information on each procedure, see Procedure 4. Register with the state commercial registry to https://www.doingbusiness.org/brazil. complete registration with the federal tax authority to obtain the National Corporate Taxpayer Registry (CNPJ) and the Company Registration Identification Number (NIRE) Agency: Commercial Registry Time: 3 days Cost: R$457.13 Procedure 5. Register with the state tax agency Agency: State Secretariat of Finance (SEFAZ) Time: 3 days Cost: R$20.30 Procedure 6. Pay the state tax agency fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 5) Procedure 7. Register with the municipal tax agency Agency: Municipal Secretariat of Economy, Planning and Finance Time: 2 days Roraima Cost: No cost Procedure 8. Obtain a digital certificate (e-CNPJ) in order to issue electronic invoices Agency: Digital e-certifier Time: 2 days Cost: R$250 Procedure 9. Pay the operations license fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 10) Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 295 DEALING WITH CONSTRUCTION PERMITS Procedure 9. Receive random inspection from Municipality LIST OF PROCEDURES Agency: Municipality Estimated value of warehouse: R$1,674,131 Time: 1 day Data as of: September 1st, 2020 Cost: No cost Procedure 1. Request and obtain a land ownership certificate Procedure 10. Receive inspection from Labor Public from the property registry Attorneys’ Office Agency: Property registry Agency: Labor Public Attorneys’ Office Time: 5 days Time: 1 day Cost: R$23 [Property registry fee: R$17.19 + State Justice fund fee Cost: No cost (FUNDERJURR): R$1.72 + Inspection fee: R$0.86 + Extra notary fee (FECOM): R$0.86 + Municipal service tax (ISS): R$0.86 + Safety label: R$1.50] Procedure 11. Request inspection from Fire Department Agency: Fire Department Procedure 2. Obtain results of soil study Time: 1 day Agency: Private agency Cost: R$221 (Fixed price for projects between 750 m² and 1,500 m² of total Time: 4 days area) Cost: R$6,000 Procedure 12. Receive inspection from Fire Department Procedure 3*. Obtain a topographic survey Agency: Fire Department Agency: Private licensed company Time: 1 day Time: 1 day Cost: No cost Cost: R$1,200 Procedure 13. Obtain Fire Department Certificate Procedure 4*. Obtain Technical Term of Responsibility (ART) Agency: Fire Department or Technical Report of Responsibility (RRT) Time: 24 days Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Cost: No cost Time: 1 day Cost: R$234 (Fixed price for contracts over R$15,000.01) Procedure 14. Request final inspection from Municipality Agency: Municipality Procedure 5. Submit project for analysis by Fire Department Time: Less than one day (online procedure) and obtain report Cost: R$2,016 [0.5 TU * total built area (1,300.6 m²). TU for year 2020: Agency: Fire Department R$3.10] Time: 23 days Cost: R$143 (Fixed price for projects between 750 m² and 1,500 m² of total Procedure 15. Receive final inspection from Municipality area) Agency: Municipality Time: 1 day Procedure 6*. Obtain parking technical report Cost: No cost Agency: Secretary of Urban Safety and Traffic (Municipality) Time: 30 days Procedure 16. Obtain certificate of occupancy (“Habite-se”) Cost: No cost Agency: Municipality Time: 37 days Procedure 7. Request and obtain construction permit Cost: No cost Agency: Secretary of Economy, Planning and Finances and Secretary of Roraima Works (Municipality) Procedure 17. Request and connect to water and sewage Time: 45 days Agency: Water and Sewerage Agency Cost: R$6,048 [1.5 TU * total built area (1,300.6 m²). TU for year 2020: Time: 7 days R$3.10] Cost: R$457 (Fixed cost for works that involve asphalt cutting) Procedure 8. Register construction at the National Registry of Procedure 18. Close CNO registration and obtain debt Construction Works (CNO) clearance certificate Agency: Federal Revenue Service Agency: Federal Revenue Service Time: Less than one day (online procedure) Time: Less than one day (online procedure) Cost: No cost Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure 296 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 19. Register building with the property registry BUILDING QUALITY CONTROL INDEX Agency: Property registry Time: 20 days Score Cost: R$832 [Registration fee: R$690.16 + State Justice fund fee Building quality control index (0–15) 9.0 (FUNDERJURR): R$34.51 + Inspection fee: R$34.51 + Extra notary fee: R$34.51 + Safety label: R$4.00 + Municipal service tax (ISSQN): R$34.51] Quality of building regulations index (0–2) 2.0 Quality control before construction index (0–1) 1.0 Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. Quality control during construction index (0–3) 0.0 Quality control after construction index (0–3) 3.0 Liability and insurance regimes index (0–2) 1.0 Professional certifications index (0–4) 2.0 Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. REGISTERING PROPERTY Procedure 5*. Obtain federal justice certificate (Certidão Cível LIST OF PROCEDURES e Criminal) Agency: Federal Justice Court (Tribunal Regional Federal da 1ª Região/Seção Estimated property value: R$1,674,131 Data as of: September 1st, 2020 Judiciária de Roraima) Time: Less than one day (online procedure) Cost: No cost Procedure 1. Obtain certificate of dispute (Certidão de Protesto de Títulos e Outros Documentos de Dívida) Procedure 6*. Obtain state justice certificates (Certidão de Agency: Dispute registry (1º Tabelionato de Protesto de Títulos) Distribuição de Ações Cíveis and Certidão de Distribuição de Time: 5 days Ações de Falência, Concordata e Recuperação Judicial) Cost: R$59.49 (R$46.39 for registrar fees + R$4.64 for FUNDEJURR + R$2.32 for FECOM + R$2.32 for supervision fee + R$1.50 for supervision Agency: State Justice Court (Tribunal de Justiça do Estado de Roraima) stamp + R$2.32 for ISS) Time: Less than one day (online procedure) Cost: No cost Procedure 2*. Obtain certificate of dispute (Certidão de Procedure 7*. Obtain labor justice certificate (Certidão de Protesto de Títulos e Outros Documentos de Dívida) Ações Trabalhistas) Agency: Dispute registry (2º Tabelionato de Protesto de Títulos) Agency: Regional Labor Court (Tribunal Regional do Trabalho da 11ª Região) Time: 5 days Time: Less than one day (online procedure) Cost: R$59.49 (R$46.39 for registrar fees + R$4.64 for FUNDEJURR + Cost: No cost R$2.32 for FECOM + R$2.32 for supervision fee + R$1.50 for supervision stamp + R$2.32 for ISS) Procedure 8*. Obtain certificate of good standing on labor debts (Certidão Negativa de Débitos Trabalhistas) Procedure 3*. Obtain ownership and no-lien certificate Agency: High Labor Court (Tribunal Superior do Trabalho) (Certidão de Inteiro Teor de Matrícula com Ônus Reais e Ações Reais e Pessoais Reipersecutórias) Time: Less than one day (online procedure) Cost: No cost Agency: Property registry (Cartório de Registro de Imóveis) Time: 5 days Cost: R$22.99 (R$17.19 for registrar fees + R$1.72 for FUNDEJURR + Procedure 9*. Obtain state taxes clearance certificate (Certidão Negativa de Débitos Estaduais) Roraima R$0.86 for FECOM + R$0.86 for supervision fee + R$1.50 for supervision stamp + R$0.86 for ISS) Agency: State tax authority (Secretaria da Fazenda do Governo do Estado de Roraima) Time: Less than one day (online procedure) Procedure 4*. Obtain municipal taxes clearance certificates Cost: No cost (Certidão de Débitos para Imóveis and Certidão de Débitos para Empresas) and cadastral certificate (Certidão Imobiliária) Agency: Municipal tax authority (Secretaria Municipal de Economia, Procedure 10*. Obtain federal taxes clearance certificate Planejamento e Finanças) (Certidão de Débitos Relativos a Créditos Tributários Federais e à Dívida Ativa da União) Time: 3 days Cost: No cost Agency: Federal Revenue Service & Office of the Attorney General of the National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- Geral da Fazenda Nacional) Time: Less than one day (online procedure) Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 297 Procedure 11*. Obtain workers fund certificate (Certidão de Procedure 16*. Update municipal taxpayer records to the new Regularidade do FGTS) owner’s name (cadastro do contribuinte para fins de IPTU) Agency: Federal Savings Bank (Caixa Econômica Federal) Agency: Municipal tax authority (Secretaria Municipal de Economia, Time: Less than one day (online procedure) Planejamento e Finanças) Cost: No cost Time: 5 days Cost: No cost Procedure 12*. Obtain company certificate of good standing Note: For detailed information on each procedure, see (Certidão Simplificada da Empresa) https://www.doingbusiness.org/brazil. Agency: Commercial registry (Junta Comercial do Estado de Roraima) Time: 2 days Cost: R$67.94 QUALITY OF LAND ADMINISTRATION INDEX Score Procedure 13. Pay property transfer tax (Imposto sobre a Transmissão de Bens Imóveis e de Direitos, ITBI) Quality of land administration index (0–30) 13.0 Agency: Municipal tax authority (Secretaria Municipal de Economia, Reliability of infrastructure index (0–8) 5.0 Planejamento e Finanças) Time: Less than one day (online procedure) Transparency of information index (0–6) 3.5 Cost: R$25,111.97 (1.5% of the property value) Geographic coverage index (0–8) 0.0 Procedure 14. Prepare public deed of purchase and sale Land dispute resolution index (0–8) 4.5 Agency: Public notary (Tabelionato de Notas) Equal access to property rights index (-2–0) 0.0 Time: 8 days Note: For a list of all components, questions and results on this index, refer to Cost: R$2,916.33 (R$2,329.07 for notary fees + R$232.91 for FUNDEJURR the “Quality indexes details” section. + R$116.45 for FECOM + R$116.45 for supervision fee + R$5.00 for supervision stamp + R$116.45 for ISS) Procedure 15. Register public deed of purchase and sale Agency: Property registry (Cartório de Registro de Imóveis) Time: 20 days Cost: R$3,019.46 (R$2,411.56 for registrar fees + R$241.16 for FUNDEJURR + R$120.58 for FECOM + R$120.58 for supervision fee + R$5.00 for supervision stamp + R$120.58 for ISS) ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 51 Quality of judicial processes index (0–18) 12.5 Trial and judgment 383 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 353 Case management (0–6) 3.0 Roraima Total time 787 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 15.8 Note: For a list of all components, questions and results on this index, refer to Court fees 5.4 the “Quality indexes details” section. Enforcement fees 0.2 Total cost 21.4 Source: Subnational Doing Business database. * Simultaneous with previous procedure 298 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 SANTA CATARINA FLORIANÓPOLIS Overall rank (1–27) 20 Aggregate score (5 topics) 53.2 Starting a business (rank) 4 Doing Business score (0–100) 83.9 Procedures (number) 10 Time (days) 10 Cost (% of income per capita) 3.9 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 18 Paying taxes (rank) 13 Doing Business score (0–100) 47.5 Doing Business score (0–100) 34.2 Procedures (number) 21 Payments (number) 10 Time (days) 480 Time (hours per year) 1,501 Cost (% of warehouse value) 1.2 TTCR (% of profit) 65.2 Building quality control index (0–15) 9.0 Postfiling index (0–100) 7.8 Registering property (rank) 4 Enforcing contracts (rank) 26 Doing Business score (0–100) 55.6 Doing Business score (0–100) 44.8 Procedures (number) 17 Time (days) 1,316 Time (days) 30.5 Cost (% of claim value) 28.1 Cost (% of property value) 2.3 Quality of judicial processes index (0–18) 11.5 Quality of land administration index (0–30) 15.5 Overall rank 4 4 Rank by 13 indicator 18 20 26 Santa Catarina Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 53.2 Score by indicator 83.9 47.5 55.6 34.2 44.8 Source: Subnational Doing Business database. State profiles 299 STARTING A BUSINESS Procedure 9*. Notify the General Cadaster of Employed and LIST OF PROCEDURES Unemployed Workers - CAGED - or eSocial Agency: Ministry of Economy Legal form: Limited Liability Company Paid-in minimum capital requirement: No minimum Time: Less than one day (online procedure) Data as of: September 1st, 2020 Cost: No cost Procedure 1. Check the availability of the company name and Procedure 10*. Register with the Employers’ Union and with the feasibility of the location the Employees’ Union Agency: Municipality / Commercial Registry (via Redesim) Agency: Employers’ Union and Employees’ Union Time: Less than one day (online procedure) Time: 1 day Cost: No cost Cost: No cost Note: For detailed information on each procedure, see Procedure 2. Apply for registration with the Federal Tax https://www.doingbusiness.org/brazil. Authority (Receita Federal) Agency: Federal Tax Authority Time: Less than one day (online procedure) Cost: No cost Procedure 3. Pay registration fees Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 4) Procedure 4. Register with the state commercial registry to complete registration with the federal, state and municipal tax authorities to obtain the National Corporate Taxpayer Registry (CNPJ), the Company Registration Identification Number (NIRE) and the operations license Agency: Commercial Registry Time: 3 days Cost: R$96 Procedure 5. Obtain a digital certificate (e-CNPJ) in order to issue electronic invoices Agency: Digital e-certifier Time: 2 days Cost: R$250 Procedure 6. Pay the state tax authority fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: R$105.67 Procedure 7. Pay the operations license and the emission fee Agency: Commercial bank Santa Catarina Time: Less than one day (online procedure) Cost: R$865.70 (operations license fee + expedition fee) Procedure 8*. Update employees’ information with Social Security (Programa de Integração Social - PIS) Agency: Federal Savings Bank (Caixa Econômica Federal) Time: 1 day Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure 300 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 DEALING WITH CONSTRUCTION PERMITS Procedure 9*. Submit project for analysis by Fire Department LIST OF PROCEDURES and obtain report Agency: Fire Department Estimated value of warehouse: R$1,674,131 Data as of: September 1st, 2020 Time: 53 days Cost: R$923 (Project analysis fee: R$0.71/m²) Procedure 1. Request and obtain a land ownership certificate from the property registry Procedure 10. Register construction at the National Registry of Construction Works (CNO) Agency: Property registry Agency: Federal Revenue Service Time: 2 days Time: Less than one day (online procedure) Cost: R$23 (Property registry fee: R$20 + Safety label: R$2.80) Cost: No cost Procedure 2. Perform consultation of suitability for Procedure 11*. Receive inspection from Labor Public construction Attorneys’ Office Agency: Secretary of Environment, Planning and Urban Development Agency: Labor Public Attorneys’ Office (Municipality) Time: 1 day Time: 2 days Cost: No cost Cost: R$33 Procedure 12. Request inspection from Fire Department Procedure 3. Obtain results of soil study Agency: Fire Department Agency: Private agency Time: Less than one day (online procedure) Time: 7 days Cost: No cost Cost: R$5,000 Procedure 13. Receive inspection from Fire Department Procedure 4*. Obtain a topographic survey Agency: Fire Department Agency: Private licensed company Time: 1 day Time: 11 days Cost: No cost Cost: R$2,500 Procedure 14. Obtain Fire Department Certificate Procedure 5*. Obtain Technical Term of Responsibility (ART) Agency: Fire Department or Technical Report of Responsibility (RRT) Time: 30 days Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Cost: R$923 (Certificate of occupancy inspection fee: R$0.71/m²) Time: 1 day Cost: R$234 (Fixed price for contracts over R$15,000.01) Procedure 15. Receive final inspection from Municipality (VISA) Procedure 6. Request and obtain water and sewage feasibility Agency: Sanitation Department (Municipality) declaration Time: 1 day Agency: Water and Sewerage Agency Cost: R$2,328 (Water and sewage inspection fee: R$1.79/m²) Time: 30 days Cost: R$406 (Technical feasibility fee for water: R$115.91 + Technical Procedure 16*. Request and connect to water and sewage feasibility fee for sewage: R$115.91 + Connection approval fee: R$173.87) Agency: Water and Sewerage Agency Time: 15 days Procedure 7. Approve waste management report by Cost: R$127 (Water connection: R$127.46 + Sewage connection: no charges Sanitation Department for the first connection) Agency: Water and Sewerage Agency (CASAN) Time: 105 days Santa Catarina Procedure 17. Request final inspection from Municipality Cost: R$1,171 (Project approval fee: R$0.90/m²) Agency: Secretary of Environment, Planning and Urban Development (Municipality) Procedure 8. Request and obtain project approval and Time: Less than one day (online procedure) construction permit Cost: No cost Agency: Secretary of Environment, Planning and Urban Development (Municipality) Procedure 18. Receive final inspection from Municipality Time: 210 days Agency: Secretary of Environment, Planning and Urban Development Cost: R$2,212 [(TU: Tax Unit) Project approval file fee: 11.6008 TU (minimum) (Municipality) + 2.3208 TU (up to 100 m²) + 2.3208 TU (per each 50 m² over 100 m²) + Time: 1 day Project approval fee: R$1.64/m² + Building Permit fee: 2 * 2.3208 TU] Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 301 Procedure 19. Obtain certificate of occupancy (“Habite-se”) BUILDING QUALITY CONTROL INDEX Agency: Secretary of Environment, Planning and Urban Development (Municipality) Score Time: 53 days Building quality control index (0–15) 9.0 Cost: R$2,148 [(TU: Tax Unit) Certificate of occupancy file fee: 11.6008 TU + 2.3208 TU + Certificate of occupancy: R$1.64/m²] Quality of building regulations index (0–2) 2.0 Quality control before construction index (0–1) 1.0 Procedure 20. Close CNO registration and obtain debt clearance certificate Quality control during construction index (0–3) 0.0 Agency: Federal Revenue Service Quality control after construction index (0–3) 3.0 Time: Less than one day (online procedure) Liability and insurance regimes index (0–2) 1.0 Cost: No cost Professional certifications index (0–4) 2.0 Procedure 21. Register building with the property registry Note: For a list of all components, questions and results on this index, refer to Agency: Property registry the “Quality indexes details” section. Time: 15 days Cost: R$1,541 [Registration fee for properties of total value over R$230,000: R$668 + Justice fund fee (FRJ): R$873] Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. REGISTERING PROPERTY Procedure 5*. Obtain certificate of dispute (Certidão de LIST OF PROCEDURES Protesto de Títulos e Outros Documentos de Dívida) Agency: Dispute registry (3º Tabelionato de Protesto de Títulos) Estimated property value: R$1,674,131 Data as of: September 1st, 2020 Time: 1 day Cost: R$17.80 (R$15.00 for registrar fees + R$2.80 for supervision stamp) Procedure 1. Obtain ownership and no-lien certificates (Certidão de Inteiro Teor de Matrícula, Certidão de Procedure 6*. Obtain certificate of dispute (Certidão de Ônus Reais, and Certidão de Ações Reais e Pessoais Protesto de Títulos e Outros Documentos de Dívida) Reipersecutórias) Agency: Dispute registry (4º Tabelionato de Protesto de Títulos) Agency: Property registry (Cartório de Registro de Imóveis) Time: 1 day Time: 2 days Cost: R$17.80 (R$15.00 for registrar fees + R$2.80 for supervision stamp) Cost: R$68.40 [R$22.80 for each certificate (x3). The cost of each certificate is calculated as follows: R$20.00 for registrar fees + R$2.80 for supervision Procedure 7*. Obtain state justice certificates (Certidão de stamp] Distribuição de Ações Cíveis and Certidão de Distribuição de Ações de Falência, Concordata e Recuperação Judicial) Procedure 2*. Obtain company certificate of good standing Agency: State Justice Court (Tribunal de Justiça do Estado de Santa Catarina) (Certidão Simplificada da Empresa) Time: Less than one day (online procedure) Agency: Commercial registry (Junta Comercial do Estado de Santa Catarina) Cost: No cost Time: 2 days Cost: R$25 Procedure 8*. Obtain labor justice certificate (Certidão de Ações Trabalhistas) Procedure 3*. Obtain certificate of dispute (Certidão de Agency: Regional Labor Court (Tribunal Regional do Trabalho da 12ª Região) Santa Catarina Protesto de Títulos e Outros Documentos de Dívida) Time: Less than one day (online procedure) Agency: Dispute registry (1º Tabelionato de Protesto de Títulos) Cost: No cost Time: 1 day Cost: R$17.80 (R$15.00 for registrar fees + R$2.80 for supervision stamp) Procedure 9*. Obtain certificate of good standing on labor debts (Certidão Negativa de Débitos Trabalhistas) Procedure 4*. Obtain certificate of dispute (Certidão de Agency: High Labor Court (Tribunal Superior do Trabalho) Protesto de Títulos e Outros Documentos de Dívida) Time: Less than one day (online procedure) Agency: Dispute registry (2º Tabelionato de Protesto de Títulos) Cost: No cost Time: 1 day Cost: R$17.80 (R$15.00 for registrar fees + R$2.80 for supervision stamp) Source: Subnational Doing Business database. * Simultaneous with previous procedure 302 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 10*. Obtain municipal taxes clearance certificates Procedure 15. Pay property transfer tax (Imposto sobre a (Certidão Negativa de Débitos Municipais (pessoa jurídica) Transmissão de Bens Imóveis e de Direitos, ITBI) and Certidão Negativa de Débitos Municipais (imóvel)) and Agency: Municipal tax authority (Secretaria Municipal da Fazenda) cadastral certificate (Certidão de Cadastro Imobiliário para Time: Less than one day (online procedure) Fins Gerais) Cost: R$33,482.62 (2% of the property value) Agency: Municipal tax authority (Secretaria Municipal da Fazenda) Time: Less than one day (online procedure) Procedure 16. Prepare public deed of purchase and sale Cost: No cost Agency: Public notary (Tabelionato de Notas) Time: 5 days Procedure 11*. Obtain state taxes clearance certificate Cost: R$2,493.80 [R$1,618.00 for notary fees + R$873.00 for FRJ + R$2.80 (Certidão Negativa de Débitos Estaduais) for supervision stamp] Agency: State tax authority (Secretaria da Fazenda do Governo do Estado de Santa Catarina) Procedure 17. Register public deed of purchase and sale Time: Less than one day (online procedure) Agency: Property registry (Cartório de Registro de Imóveis) Cost: No cost Time: 15 days Cost: R$1,604.80 (R$1,602.00 for registrar fees + R$2.80 for supervision Procedure 12*. Obtain federal taxes clearance certificate stamp) (Certidão de Débitos Relativos a Créditos Tributários Federais e à Dívida Ativa da União) Note: For detailed information on each procedure, see Agency: Federal Revenue Service & Office of the Attorney General of the https://www.doingbusiness.org/brazil. National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- Geral da Fazenda Nacional) Time: Less than one day (online procedure) QUALITY OF LAND ADMINISTRATION INDEX Cost: No cost Score Procedure 13*. Obtain workers fund certificate (Certidão de Quality of land administration index (0–30) 15.5 Regularidade do FGTS) Reliability of infrastructure index (0–8) 5.0 Agency: Federal Savings Bank (Caixa Econômica Federal) Time: Less than one day (online procedure) Transparency of information index (0–6) 4.0 Cost: No cost Geographic coverage index (0–8) 2.0 Land dispute resolution index (0–8) 4.5 Procedure 14*. Obtain federal justice certificate (Certidão de Distribuição Cível e Criminal) Equal access to property rights index (-2–0) 0.0 Agency: Federal Justice Court (Tribunal Regional Federal da 4ª Região/Seção Note: For a list of all components, questions and results on this index, refer to Judiciária de Santa Catarina) the “Quality indexes details” section. Time: Less than one day (online procedure) Cost: No cost ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 64 Quality of judicial processes index (0–18) 11.5 Santa Catarina Trial and judgment 801 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 451 Case management (0–6) 2.0 Total time 1,316 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 20.0 Note: For a list of all components, questions and results on this index, refer to Court fees 7.5 the “Quality indexes details” section. Enforcement fees 0.6 Total cost 28.1 Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 303 SÃO PAULO SÃO PAULO Overall rank (1–27) 1 Aggregate score (5 topics) 59.1 Starting a business (rank) 14 Doing Business score (0–100) 81.7 Procedures (number) 11 Time (days) 13.5 Cost (% of income per capita) 2.7 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 15 Paying taxes (rank) 19 Doing Business score (0–100) 48.9 Doing Business score (0–100) 33.9 Procedures (number) 18 Payments (number) 10 Time (days) 382.5 Time (hours per year) 1,501 Cost (% of warehouse value) 1.2 TTCR (% of profit) 65.8 Building quality control index (0–15) 8.0 Postfiling index (0–100) 7.8 Registering property (rank) 1 Enforcing contracts (rank) 3 Doing Business score (0–100) 65.8 Doing Business score (0–100) 65.4 Procedures (number) 8 Time (days) 731 Time (days) 21 Cost (% of claim value) 20.7 Cost (% of property value) 3.6 Quality of judicial processes index (0–18) 12.5 Quality of land administration index (0–30) 16.5 1 Overall rank 3 1 Rank by indicator 14 15 19 São Paulo Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits 59.1 Score by indicator 81.7 48.9 65.8 33.9 65.4 Source: Doing Business and Subnational Doing Business database. Note: The data for Rio de Janeiro and São Paulo are not considered official until published by the Doing Business 2021 report. 304 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 STARTING A BUSINESS Procedure 7. Obtain the operations license LIST OF PROCEDURES Agency: Municipality Legal form: Limited Liability Company Time: 2 days Paid-in minimum capital requirement: No minimum Cost: No cost Data as of: September 1st, 2020 Procedure 8*. Pay the operating fee Procedure 1. Check the availability of the company name and Agency: Commercial bank the feasibility of the location Time: Less than one day (online procedure) Agency: Municipality / Commercial Registry (via Redesim) Cost: R$509.54 (fee for retailing business - the fee may vary in accordance Time: Less than one day (online procedure) with the company’s activities) Cost: No cost Procedure 9*. Update employees’ information with Social Procedure 2. Apply for registration with the Federal Tax Security (Programa de Integração Social - PIS) Authority (Receita Federal) Agency: Federal Savings Bank (Caixa Econômica Federal) Agency: Federal Tax Authority Time: 1 day Time: 3 days Cost: No cost Cost: No cost Procedure 10*. Notify the General Cadaster of Employed and Procedure 3. Pay registration fees Unemployed Workers - CAGED - or eSocial Agency: Commercial bank Agency: Ministry of Economy Time: Less than one day (online procedure) Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 4) Cost: No cost Procedure 4. Register with the state commercial registry to complete registration with the federal and state tax authorities Procedure 11*. Register with the Employers’ Union and with to obtain the National Corporate Taxpayer Registry (CNPJ) and the Employees’ Union the Company Registration Identification Number (NIRE) Agency: Employers’ Union and Employees’ Union Agency: Commercial Registry Time: 1 day Time: 3 days Cost: No cost Cost: R$138.05 (service fee for using the decentralized services) Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. Procedure 5. Register with the municipal tax agency Agency: Municipal Secretariat of Finance Time: Less than one day (online procedure) Cost: No cost Procedure 6. Obtain a digital certificate (e-CNPJ) in order to issue electronic invoices Agency: Digital e-certifier Time: 2 days Cost: R$247.50 DEALING WITH CONSTRUCTION PERMITS Procedure 2. Obtain results of Soil study LIST OF PROCEDURES Agency: Private agency São Paulo Time: 15 days Estimated value of warehouse: R$1,674,131 Data as of: September 1st, 2020 Cost: R$4,000 Procedure 1. Request and obtain proof of land ownership Procedure 3*. Obtain results of topographical study from the property registry Agency: Private licensed company Agency: Property registry Time: 5 days Time: 1 day Cost: R$6,500 Cost: R$55 [Property registry fee] Source: Doing Business and Subnational Doing Business database. * Simultaneous with previous procedure State profiles 305 Procedure 4*. Obtain Technical Term of Responsibility -ART Procedure 14. Request and obtain Certificate of Tax Payment (or RRT) (Certificado de Quitação do ISS). Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Agency: Secretary of Finance (Municipality) Time: Less than one day (online procedure) Time: Less than one day (online procedure) Cost: R$234 (Fixed price for contracts over R$15,000.01) Cost: No cost Procedure 5*. Request and obtain proof of land tax payment Procedure 15. Obtain certificate of occupancy (“Habite-se”) from the Treasury Department of the Municipality Agency: Secretary of Licensing (Municipality) Agency: Secretary of Finance (Municipality) Time: 28 days Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 16. Close CNO registration and obtain debt Procedure 6. Request and obtain construction approval clearance certificate permit and construction execution permit Agency: Federal Revenue Service Agency: Secretary of Licensing (Municipality) Time: Less than one day (online procedure) Time: 274 days Cost: No cost Cost: R$7,315 [R$5.01 * 1,300m² = R$6,513 (construction approval fee) + R$802.19 (construction execution fee)] Procedure 17. Request and connect to water and sewage Agency: Water and Sewerage Agency Procedure 7. Register construction at the National Registry of Time: 30 days Construction Works (CNO) Cost: No cost Agency: Federal Revenue Service Time: Less than one day (online procedure) Cost: No cost Procedure 18*. Register building with the property registry Agency: Property registry Procedure 8. Receive random inspection from Municipality Time: 15 days Cost: R$1,402 (Registration fee) Agency: Municipality Time: 1 day Note: For detailed information on each procedure, see Cost: No cost https://www.doingbusiness.org/brazil. Procedure 9. Receive labor inspection from Labor Public Attorneys Office Agency: Labor Public Attorneys’ Office BUILDING QUALITY CONTROL INDEX Time: 1 day Cost: No cost Score Building quality control index (0–15) 8.0 Procedure 10. Request inspection from Fire Department Quality of building regulations index (0–2) 2.0 Agency: Fire Department Time: Less than one day (online procedure) Quality control before construction index (0–1) 1.0 Cost: No cost Quality control during construction index (0–3) 0.0 Procedure 11. Receive inspection from Fire Department Quality control after construction index (0–3) 2.0 Agency: Fire Department Liability and insurance regimes index (0–2) 1.0 Time: 1 day Cost: No cost Professional certifications index (0–4) 2.0 Note: For a list of all components, questions and results on this index, refer to Procedure 12. Obtain Fire Department Certificate (Certificado the “Quality indexes details” section. de Aprovação - AVCB) Agency: Fire Department Time: 29 days Cost: R$215 São Paulo Procedure 13. Request and obtain Tributary Declaration of Conclusion of the Construction (DTCO) Agency: Secretary of Finance (Municipality) Time: Less than one day (online procedure) Cost: No cost Source: Doing Business and Subnational Doing Business database. * Simultaneous with previous procedure 306 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 REGISTERING PROPERTY Procedure 6. Prepare public deed of purchase and sale LIST OF PROCEDURES Agency: Public notary (Tabelionato de Notas) Estimated property value: R$1,674,131 Time: 3 days Data as of: September 1st, 2020 Cost: R$5,306.60 (R$3,159.84 for notary fees + R$898.06 to the State Government + R$614.67 to the tax authority + R$67.58 to the Municipality + R$151.67 for MP + R$166.31 for FRC + R$216.87 for TJSP + R$31.60 for Procedure 1. Obtain certificates of dispute (Certidões de Holy House of Mercy’s contribution) Protesto de Títulos e Outros Documentos de Dívida) Agency: Central de Serviços dos Cartórios de Protesto do Estado de São Paulo Procedure 7. Register public deed of purchase and sale Time: 2 days Agency: Property registry (Cartório de Registro de Imóveis) Cost: R$138.80 [R$13.88 for each certificate (x10)] Time: 15 days Cost: R$3,863.44 (R$2,315.64 for registrar fees + R$658.13 for the State Government + R$450.45 for the tax authority + R$121.88 for FRC + Procedure 2*. Obtain state justice certificates (Certidão de R$158.93 for TJSP + R$111.15 for MP + R$47.26 for the Municipality) Distribuição Cível em Geral and Certidão de Falências, Concordatas e Recuperações), federal justice certificate (Certidão de Distribuição da Justiça Federal), certificate of Procedure 8*. Update municipal taxpayer records to the new good standing on labor debts (Certidão Negativa de Débitos owner’s name (cadastro do contribuinte para fins de IPTU) Trabalhistas), labor justice certificate (Certidão de Ações Agency: Municipal tax authority (Secretaria Municipal da Fazenda) Trabalhistas), municipal taxes clearance certificate (Certidão Time: 5 days Conjunta de Débitos de Tributos Imobiliários), cadastral Cost: No cost certificate (Certidão de Dados Cadastrais do Imóvel), federal taxes clearance certificate (Certidão de Débitos Relativos a Note: For detailed information on each procedure, see Créditos Tributários Federais e à Dívida Ativa da União), https://www.doingbusiness.org/brazil. workers fund certificate (Certidão de Regularidade do FGTS), and company certificate of good standing (Certidão Simplificada da Empresa) QUALITY OF LAND ADMINISTRATION INDEX Agency: Guichê de Certidões Score Time: Less than one day (online procedure) Cost: No cost Quality of land administration index (0–30) 16.5 Reliability of infrastructure index (0–8) 5.0 Procedure 3*. Obtain ownership and no-lien certificate (Certidão Vintenária) Transparency of information index (0–6) 5.0 Agency: Central Registradores de Imóveis do Estado de São Paulo Geographic coverage index (0–8) 2.0 Time: Less than one day (online procedure) Cost: R$55 (R$32.97 for issuing the certificate + R$9.37 for the State Land dispute resolution index (0–8) 4.5 Government + R$6.41 for the tax authority + R$1.74 for FRC + R$2.26 for Equal access to property rights index (-2–0) 0.0 TJSP + R$1.58 for MP + R$0.67 for the Municipality) Note: For a list of all components, questions and results on this index, refer to the “Quality indexes details” section. Procedure 4*. Obtain state taxes clearance certificates (Certidão Negativa de Débitos Tributários Inscritos na Dívida Ativa and Certidão Negativa de Débitos Não Inscritos) Agency: State tax authority (Secretaria da Fazenda e Planejamento do Governo do Estado de São Paulo) Time: Less than one day (online procedure) Cost: No cost Procedure 5. Pay property transfer tax (Imposto sobre a Transmissão de Bens Imóveis e de Direitos, ITBI) Agency: Municipal tax authority (Secretaria Municipal da Fazenda) São Paulo Time: Less than one day (online procedure) Cost: R$50,223.93 (3% of the property value) Source: Doing Business and Subnational Doing Business database. * Simultaneous with previous procedure State profiles 307 ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 41 Quality of judicial processes index (0–18) 12.5 Trial and judgment 480 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 210 Case management (0–6) 3.0 Total time 731 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 12.6 Note: For a list of all components, questions and results on this index, refer to Court fees 7.0 the “Quality indexes details” section. Enforcement fees 1.1 Total cost 20.7 São Paulo Source: Doing Business and Subnational Doing Business database. 308 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 SERGIPE ARACAJU Overall rank (1–27) 8 Aggregate score (5 topics) 56.3 Starting a business (rank) 15 Doing Business score (0–100) 81.5 Procedures (number) 11 Time (days) 14 Cost (% of income per capita) 3.3 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 24 Paying taxes (rank) 24 Doing Business score (0–100) 45.5 Doing Business score (0–100) 33.7 Procedures (number) 23 Payments (number) 10 Time (days) 347 Time (hours per year) 1,483 Cost (% of warehouse value) 1.4 TTCR (% of profit) 66.3 Building quality control index (0–15) 8.0 Postfiling index (0–100) 7.8 Registering property (rank) 18 Enforcing contracts (rank) 1 Doing Business score (0–100) 51.3 Doing Business score (0–100) 69.7 Procedures (number) 15 Time (days) 538 Time (days) 32 Cost (% of claim value) 23.3 Cost (% of property value) 3.3 Quality of judicial processes index (0–18) 12.5 Quality of land administration index (0–30) 12.5 1 Overall rank 8 Rank by indicator 15 18 24 24 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing Sergipe a business construction property taxes contracts permits 56.3 Score by indicator 81.5 45.5 51.3 33.7 69.7 Source: Subnational Doing Business database. State profiles 309 STARTING A BUSINESS Procedure 9*. Update employees’ information with Social LIST OF PROCEDURES Security (Programa de Integração Social - PIS) Agency: Federal Savings Bank (Caixa Econômica Federal) Legal form: Limited Liability Company Paid-in minimum capital requirement: No minimum Time: 1 day Data as of: September 1st, 2020 Cost: No cost Procedure 1. Check the availability of the company name and Procedure 10*. Notify the General Cadaster of Employed and the feasibility of the location Unemployed Workers - CAGED - or eSocial Agency: Municipality / Commercial registry (via Redesim) Agency: Ministry of Economy Time: Less than one day (online procedure) Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 2. Apply for registration with the Federal Tax Procedure 11*. Register with the Employers’ Union and with Authority (Receita Federal) the Employees’ Union Agency: Federal Tax Authority Agency: Employers’ Union and Employees’ Union Time: Less than one day (online procedure) Time: 1 day Cost: No cost Cost: No cost Note: For detailed information on each procedure, see Procedure 3. Pay registration fees https://www.doingbusiness.org/brazil. Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 4) Procedure 4. Register with the state commercial registry to complete registration with the federal, state and municipal tax authorities to obtain the National Corporate Taxpayer Registry (CNPJ) and the Company Registration Identification Number (NIRE) Agency: Commercial Registry Time: 2 days Cost: R$295 Procedure 5. Obtain a digital certificate (e-CNPJ) in order to issue electronic invoices Agency: Digital e-certifier Time: 2 days Cost: R$250 Procedure 6. Obtain a temporary operations license Agency: Municipal Secretariat of Finance Time: 5 days Cost: No cost Procedure 7. Obtain a definitive operations license Agency: Municipal Secretariat of Finance Time: Less than one day (online procedure) Cost: No cost Procedure 8. Pay the operating fee Agency: Commercial bank Sergipe Time: Less than one day (online procedure) Cost: R$558.96 Source: Subnational Doing Business database. * Simultaneous with previous procedure 310 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 DEALING WITH CONSTRUCTION PERMITS Procedure 10*. Submit project for analysis by Fire LIST OF PROCEDURES Department and obtain report Agency: Fire Department Estimated value of warehouse: R$1,674,131 Data as of: September 1st, 2020 Time: 60 days Cost: R$2,383 [(TU: Tax Unit) 55 TU] Procedure 1. Request and obtain a land ownership certificate from the property registry Procedure 11. Request and obtain construction permit Agency: Property registry Agency: Municipal Works and Urbanization Company (Municipality) Time: 3 days Time: 90 days Cost: R$86 [Property registry fee: R$71.86 + Justice expense fund fee Cost: R$5,632 (R$4.30/m² + Processing fee: R$22.08 + Filing fee: R$17.26) (FERD): R$14.37] Procedure 12*. Register construction at the National Registry Procedure 2. Perform consultation of suitability for of Construction Works (CNO) construction Agency: Federal Revenue Service Agency: Municipal Works and Urbanization Company (Municipality) Time: Less than one day (online procedure) Time: 15 days Cost: No cost Cost: R$238 Procedure 13. Receive inspection from Labor Public Procedure 3. Obtain results of soil study Attorneys’ Office Agency: Private agency Agency: Labor Public Attorneys’ Office Time: 15 days Time: 1 day Cost: R$5,000 Cost: No cost Procedure 4*. Obtain a topographic survey Procedure 14. Request inspection from Fire Department Agency: Private licensed company Agency: Fire Department Time: 7 days Time: 1 day Cost: R$2,500 Cost: No cost Procedure 5*. Obtain Technical Term of Responsibility (ART) Procedure 15. Receive inspection from Fire Department or Technical Report of Responsibility (RRT) Agency: Fire Department Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Time: 1 day Time: 3 days Cost: No cost Cost: R$234 (Fixed price for contracts over R$15,000.01) Procedure 16. Obtain Fire Department Certificate Procedure 6*. Request and obtain Debt Clearance Certificate (CND) Agency: Fire Department Time: 45 days Agency: Secretary of Finance (Municipality) Cost: R$169 [(TU: Tax Unit) 3.9 TU] Time: Less than one day (online procedure) Cost: No cost Procedure 17*. Request and connect to water and sewage Procedure 7*. Receive an inspection from Municipality to Agency: Water and Sewerage Agency verify the measures of the land plot Time: 30 days Agency: Municipal Works and Urbanization Company (Municipality) Cost: R$440 [Water connection (commercial category): R$87.20 (minimum) Time: 1 day + R$15.40/m² + Sewage connection: 0.8 * Water connection cost] Cost: R$640 Procedure 18*. Obtain Certificate of Tax Payment Procedure 8*. Request and obtain water and sewage project Agency: Secretary of Finance (Municipality) approval Time: 1 day Agency: Water and Sewerage Agency Cost: No cost Time: 30 days Cost: R$199 (Technical feasibility: R$199.39) Procedure 19. Request final inspection from Municipality Sergipe Agency: Municipal Works and Urbanization Company (Municipality) Procedure 9*. Request and obtain environmental license Time: 1 day Agency: Secretary of Environment (Municipality) Cost: No cost Time: 135 days Cost: R$603 (Fee for simplified permit) Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 311 Procedure 20. Receive final inspection from Municipality BUILDING QUALITY CONTROL INDEX Agency: Municipal Works and Urbanization Company (Municipality) Time: 1 day Score Cost: No cost Building quality control index (0–15) 8.0 Procedure 21. Obtain certificate of occupancy (“Habite-se”) Quality of building regulations index (0–2) 1.0 Agency: Municipal Works and Urbanization Company (Municipality) Quality control before construction index (0–1) 1.0 Time: 30 days Quality control during construction index (0–3) 0.0 Cost: R$954 [Fixed value (buildings over 1,000 m² for single family housing, commercial, mixed or institutional use)] Quality control after construction index (0–3) 3.0 Liability and insurance regimes index (0–2) 1.0 Procedure 22. Close CNO registration and obtain debt clearance certificate Professional certifications index (0–4) 2.0 Agency: Federal Revenue Service Note: For a list of all components, questions and results on this index, refer to Time: Less than one day (online procedure) the “Quality indexes details” section. Cost: No cost Procedure 23. Register building with the property registry Agency: Property registry Time: 18 days Cost: R$4,366 (Registration fee) Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. REGISTERING PROPERTY Agency: Municipal tax authority (Secretaria Municipal da Fazenda) LIST OF PROCEDURES Time: 2 days Cost: No cost Estimated property value: R$1.674.131,16 Data as of: September 1st, 2020 Procedure 5*. Obtain company certificate of good standing Procedure 1. Obtain certificate of dispute (Certidão de (Certidão Simplificada da Empresa) Protesto de Títulos e Outros Documentos de Dívida) Agency: Commercial registry (Junta Comercial do Estado de Sergipe) Agency: Dispute registry (1º Tabelionato de Protesto de Títulos) Time: 2 days Time: 3 days Cost: R$47 Cost: R$59.83 [R$49.86 for registrar fees + R$9.97 for FERD (20% of the registrar fees)] Procedure 6*. Obtain state justice certificates (Certidões Negativas de Ações Cível, de Execução Fiscal, de Execução Patrimonial, de Falência, Concordata, Recuperação Judicial e Procedure 2*. Obtain certificate of dispute (Certidão de Extrajudicial e Penal) Protesto de Títulos e Outros Documentos de Dívida) Agency: State Justice Court (Tribunal de Justiça do Estado de Sergipe) Agency: Dispute registry (2º Tabelionato de Protesto de Títulos) Time: Less than one day (online procedure) Time: 3 days Cost: No cost Cost: R$59.83 [R$49.86 for registrar fees + R$9.97 for FERD (20% of the registrar fees)] Procedure 7*. Obtain labor justice certificate (Certidão de Ações Trabalhistas) Procedure 3*. Obtain ownership and no-lien certificate (Certidão Conjunta de Inteiro Teor de Matrícula e Negativa de Agency: Regional Labor Court (Tribunal Regional do Trabalho da 20ª Região) Ônus Reais) Time: Less than one day (online procedure) Cost: No cost Agency: Property registry (Cartório de Registro de Imóveis) Time: 3 days Sergipe Cost: R$86.23 [R$71.86 for registrar fees + R$14.37 for FERD (20% of the Procedure 8*. Obtain certificate of good standing on labor registrar fees)] debts (Certidão Negativa de Débitos Trabalhistas) Agency: High Labor Court (Tribunal Superior do Trabalho) Procedure 4*. Obtain municipal taxes clearance certificates Time: Less than one day (online procedure) (Declaração de Regularidade de Tributos Vinculada ao Imóvel Cost: No cost and Certidão Negativa de Débitos Municipais da Pessoa Jurídica) and consult real estate cadaster Source: Subnational Doing Business database. * Simultaneous with previous procedure 312 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 9*. Obtain state taxes clearance certificate (Certidão Procedure 14. Prepare public deed of purchase and sale Negativa de Débitos Estaduais) Agency: Public notary (Tabelionato de Notas) Agency: State tax authority (Secretaria da Fazenda do Governo do Estado Time: 5 days de Sergipe) Cost: R$10,477.66 [R$8,731.38 for notary fees + R$1,746.28 for FERD Time: Less than one day (online procedure) (20% of the notary fees)] Cost: No cost Procedure 15. Register public deed of purchase and sale Procedure 10*. Obtain federal taxes clearance certificate Agency: Property registry (Cartório de Registro de Imóveis) (Certidão de Débitos Relativos a Créditos Tributários Federais Time: 18 days e à Dívida Ativa da União) Cost: R$10,493.33 [R$10,477.66 for registration (R$8,731.38 for registrar Agency: Federal Revenue Service & Office of the Attorney General of the fees + R$1,746.28 for FERD (20% of the registrar fees)) + R$15.67 for National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- provisional registration (R$13.06 for registrar fees + R$2.61 for FERD (20% Geral da Fazenda Nacional) of the registrar fees))] Time: Less than one day (online procedure) Cost: No cost Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. Procedure 11*. Obtain workers fund certificate (Certidão de Regularidade do FGTS) QUALITY OF LAND ADMINISTRATION INDEX Agency: Federal Savings Bank (Caixa Econômica Federal) Time: Less than one day (online procedure) Score Cost: No cost Quality of land administration index (0–30) 12.5 Procedure 12*. Obtain federal justice certificates (Certidões Reliability of infrastructure index (0–8) 5.0 Cível, Criminal e de Execução Fiscal) Transparency of information index (0–6) 3.0 Agency: Federal Justice Court (Tribunal Regional Federal da 5ª Região/Seção Judiciária de Sergipe) Geographic coverage index (0–8) 0.0 Time: Less than one day (online procedure) Land dispute resolution index (0–8) 4.5 Cost: No cost Equal access to property rights index (-2–0) 0.0 Procedure 13. Pay property transfer tax (Imposto sobre a Note: For a list of all components, questions and results on this index, refer to Transmissão de Bens Imóveis e de Direitos, ITBI) the “Quality indexes details” section. Agency: Municipal tax authority (Secretaria Municipal da Fazenda) Time: Less than one day (online procedure) Cost: R$33,482.62 (2% of the property value) ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 54 Quality of judicial processes index (0–18) 12.5 Trial and judgment 321 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 163 Case management (0–6) 3.0 Total time 538 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 15.6 Note: For a list of all components, questions and results on this index, refer to Court fees 7.4 the “Quality indexes details” section. Sergipe Enforcement fees 0.3 Total cost 23.3 Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 313 TOCANTINS PALMAS Overall rank (1–27) 6 Aggregate score (5 topics) 56.8 Starting a business (rank) 23 Doing Business score (0–100) 77.8 Procedures (number) 12 Time (days) 21 Cost (% of income per capita) 6.9 Paid-in minimum capital (% of income per capita)  0.0 Dealing with construction permits (rank) 5 Paying taxes (rank) 15 Doing Business score (0–100) 59.3 Doing Business score (0–100) 34.1 Procedures (number) 22 Payments (number) 11 Time (days) 199.5 Time (hours per year) 1,501 Cost (% of warehouse value) 1.0 TTCR (% of profit) 64.4 Building quality control index (0–15) 9.0 Postfiling index (0–100) 7.8 Registering property (rank) 13 Enforcing contracts (rank) 9 Doing Business score (0–100) 52.8 Doing Business score (0–100) 59.8 Procedures (number) 16 Time (days) 811 Time (days) 26.5 Cost (% of claim value) 29.9 Cost (% of property value) 2.7 Quality of judicial processes index (0–18) 12.5 Quality of land administration index (0–30) 12.5 Overall rank 5 6 9 Rank by 13 indicator 15 23 Aggregate Doing Business score (5 topics) Starting Dealing with Registering Paying Enforcing a business construction property taxes contracts permits Tocantins 56.8 Score by indicator 77.8 59.3 52.8 34.1 59.8 Source: Subnational Doing Business database. 314 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 STARTING A BUSINESS Procedure 10*. Update employees’ information with Social LIST OF PROCEDURES Security (Programa de Integração Social - PIS) Agency: Federal Savings Bank (Caixa Econômica Federal) Legal form: Limited Liability Company Paid-in minimum capital requirement: No minimum Time: 1 day Data as of: September 1st, 2020 Cost: No cost Procedure 1. Check the availability of the company name and Procedure 11*. Notify the General Cadaster of Employed and the feasibility of the location Unemployed Workers - CAGED - or eSocial Agency: Municipality / Commercial Registry (via Redesim) Agency: Ministry of Economy Time: 2 days Time: Less than one day (online procedure) Cost: No cost Cost: No cost Procedure 2. Apply for registration with the Federal Tax Procedure 12*. Register with the Employers’ Union and with Authority (Receita Federal) the Employees’ Union Agency: Federal Tax Authority Agency: Employers’ Union and Employees’ Union Time: Less than one day (online procedure) Time: 1 day Cost: No cost Cost: No cost Procedure 3. Pay registration fees Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 4) Procedure 4. Register with the state commercial registry to complete registration with the federal and municipal tax authorities to obtain the National Corporate Taxpayer Registry (CNPJ) and the Company Registration Identification Number (NIRE) Agency: Commercial Registry Time: 2 days Cost: R$305 Procedure 5. Register with the state tax agency Agency: State Secretariat of Finance Time: Less than one day (online procedure) Cost: R$35 Procedure 6. Pay the state tax agency fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 5) Procedure 7. Obtain operations license Agency: Municipal Secretariat of Finance Time: 10 days Cost: R$1,769.88 Procedure 8. Obtain a digital certificate (e-CNPJ) in order to issue electronic invoices Agency: Digital e-certifier Time: 2 days Cost: R$200 Tocantins Procedure 9. Pay the operations license fee Agency: Commercial bank Time: Less than one day (online procedure) Cost: No cost (fee included in procedure 7) Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 315 DEALING WITH CONSTRUCTION PERMITS Procedure 9*. Request and obtain water and sewage LIST OF PROCEDURES feasibility declaration Agency: Water and Sewerage Agency Estimated value of warehouse: R$1,674,131 Data as of: September 1st, 2020 Time: 60 days Cost: R$486 Procedure 1. Request and obtain a land ownership certificate from the property registry Procedure 10. Register construction at the National Registry Agency: Property registry of Construction Works (CNO) Time: 2 days Agency: Federal Revenue Service Cost: R$43 (Property registry fee: R$43.16) Time: Less than one day (online procedure) Cost: No cost Procedure 2. Perform consultation of suitability for construction Procedure 11. Receive random inspection from Municipality Agency: Municipality Agency: Secretary of Urban Development (Municipality) Time: 5 days Time: 1 day Cost: R$42 [Fixed administrative fee defined by Annex V of Municipal Tax Cost: No cost Code (Law 285/2013)] Procedure 12. Receive inspection from Labor Public Procedure 3*. Obtain results of soil study Attorneys’ Office Agency: Private agency Agency: Labor Public Attorneys’ Office Time: 7 days Time: 1 day Cost: R$4,075 Cost: No cost Procedure 4*. Obtain a topographic survey Procedure 13. Request inspection from Fire Department Agency: Private licensed company Agency: Fire Department Time: 2 days Time: 1 day Cost: R$1,500 Cost: R$89 (Inspection fee per m²) Procedure 5. Obtain Technical Term of Responsibility (ART) Procedure 14. Receive inspection from Fire Department or Technical Report of Responsibility (RRT) Agency: Fire Department Agency: Engineers Syndicate (Crea) or Architects Syndicate (Cau) Time: 1 day Time: 1 day Cost: No cost Cost: R$234 (Fixed price for contracts over R$15,000.01) Procedure 15. Obtain Fire Department Certificate Procedure 6*. Request and obtain Debt Clearance Certificate Agency: Fire Department (CND) Time: 38 days Agency: Secretary of Finance (Municipality) Cost: No cost Time: Less than one day (online procedure) Cost: No cost Procedure 16*. Request and connect to water and sewage Agency: Water and Sewerage Agency Procedure 7. Request and obtain construction permit Time: 12 days Agency: Secretary of Urban Development (Municipality) Cost: R$558 (Water connection: R$313.08 + Sewage connection: R$244.63) Time: 23 days Cost: R$3,390 [Fee defined by Table VIII of Municipal Tax Code (Law Procedure 17. Receive inspection from water and sewage 285/2013)] company Agency: Water and Sewerage Agency Procedure 8. Submit project for analysis by Fire Department Time: 4 days and obtain report Cost: R$12 (Fixed fee per hydrometer) Agency: Fire Department Time: 24 days Procedure 18. Request final inspection from Municipality Cost: R$122 (Fixed cost of R$52 up to 300 m² + R$0.07/m² that exceeds Agency: Secretary of Urban Development (Municipality) 300 m²) Tocantins Time: 1 day Cost: R$2,916 (Certificate of occupancy fee: R$2,808.32 + Certificate of work completion fee: R$107.50) Source: Subnational Doing Business database. * Simultaneous with previous procedure 316 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Procedure 19. Receive final inspection from Municipality BUILDING QUALITY CONTROL INDEX Agency: Secretary of Urban Development (Municipality) Time: 1 day Score Cost: No cost Building quality control index (0–15) 9.0 Procedure 20. Obtain certificate of occupancy (CCO) Quality of building regulations index (0–2) 2.0 Agency: Secretary of Urban Development (Municipality) Quality control before construction index (0–1) 1.0 Time: 40 days Cost: No cost Quality control during construction index (0–3) 0.0 Quality control after construction index (0–3) 3.0 Procedure 21. Close CNO registration and obtain debt Liability and insurance regimes index (0–2) 1.0 clearance certificate Agency: Federal Revenue Service Professional certifications index (0–4) 2.0 Time: Less than one day (online procedure) Note: For a list of all components, questions and results on this index, refer to Cost: No cost the “Quality indexes details” section. Procedure 22. Register building with the property registry Agency: Property registry Time: 15 days Cost: R$2,905 (Registration fee) Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. REGISTERING PROPERTY Procedure 5*. Obtain labor justice certificate (Certidão de LIST OF PROCEDURES Ações Trabalhistas) Agency: Regional Labor Court (Tribunal Regional do Trabalho da 10ª Região) Estimated property value: R$1,674,131 Data as of: September 1st, 2020 Time: Less than one day (online procedure) Cost: No cost Procedure 1. Obtain certificate of dispute (Certidão de Protesto de Títulos e Outros Documentos de Dívida) Procedure 6*. Obtain certificate of good standing on labor Agency: Dispute registry (Tabelionato de Protesto de Títulos) debts (Certidão Negativa de Débitos Trabalhistas) Time: 2 days Agency: High Labor Court (Tribunal Superior do Trabalho) Cost: R$53.17 (R$20.51 for registrar fees + R$8.53 for TFJ + R$11.07 for Time: Less than one day (online procedure) FUNCIVIL + R$2.03 for FUNCESE, FSE-TJ + R$1.03 for ISS + R$10.00 for Cost: No cost remittance fee) Procedure 7*. Obtain municipal taxes clearance certificates Procedure 2*. Obtain ownership and no-lien certificate (Certidão de Situação Fiscal de Empresa and Certidão (Certidão de Inteiro Teor de Matrícula) Negativa de Débitos do Imóvel) and cadastral certificate (Boletim Cadastral do Imóvel) Agency: Central Cartórios Tocantins Time: 2 days Agency: Municipal tax authority (Secretaria Municipal de Finanças) Cost: R$53.17 (R$20.51 for registrar fees + R$8.53 for TFJ + R$11.07 for Time: Less than one day (online procedure) FUNCIVIL + R$2.03 for FUNCESE, FSE-TJ + R$1.03 for ISS + R$10.00 for Cost: No cost remittance fee) Procedure 8*. Obtain state taxes clearance certificate (Certidão Procedure 3*. Obtain company certificate of good standing Negativa de Débitos Estaduais) (Certidão Simplificada da Empresa) Agency: State tax authority (Secretaria da Fazenda do Governo do Estado Agency: Commercial registry (Junta Comercial do Estado do Tocantins) do Tocantins) Time: 2 days Time: Less than one day (online procedure) Cost: R$37 Cost: No cost Tocantins Procedure 4*. Obtain state justice certificate (Certidão Judicial Online Geral) Agency: State Justice Court (Tribunal de Justiça do Estado do Tocantins) Time: Less than one day (online procedure) Cost: No cost Source: Subnational Doing Business database. * Simultaneous with previous procedure State profiles 317 Procedure 9*. Obtain federal taxes clearance certificate Procedure 15. Register public deed of purchase and sale (Certidão de Débitos Relativos a Créditos Tributários Federais Agency: Property registry (Cartório de Registro de Imóveis) e à Dívida Ativa da União) Time: 15 days Agency: Federal Revenue Service & Office of the Attorney General of the Cost: R$5,811.94 (R$4,074.38 for registrar fees + R$1,019.67 for TFJ + National Treasury (Secretaria da Receita Federal do Brasil and Procuradoria- R$512.14 for FUNCIVIL + R$2.03 for FUNCESE, FSE-TJ + R$203.72 for ISS) Geral da Fazenda Nacional) Time: Less than one day (online procedure) Cost: No cost Procedure 16*. Update municipal taxpayer records to the new owner’s name (cadastro do contribuinte para fins de IPTU) Agency: Municipal tax authority (Secretaria Municipal de Finanças) Procedure 10*. Obtain workers fund certificate (Certidão de Time: 5 days Regularidade do FGTS) Cost: No cost Agency: Federal Savings Bank (Caixa Econômica Federal) Time: Less than one day (online procedure) Note: For detailed information on each procedure, see Cost: No cost https://www.doingbusiness.org/brazil. Procedure 11*. Obtain federal justice certificate (Certidão Cível e Criminal) QUALITY OF LAND ADMINISTRATION INDEX Agency: Federal Justice Court (Tribunal Regional Federal da 1ª Região/Seção Score Judiciária do Tocantins) Time: Less than one day (online procedure) Quality of land administration index (0–30) 12.5 Cost: No cost Reliability of infrastructure index (0–8) 4.0 Procedure 12. Request property tax payment slip (Imposto Transparency of information index (0–6) 4.0 sobre a Transmissão de Bens Imóveis e de Direitos, ITBI) Geographic coverage index (0–8) 0.0 Agency: Municipal tax authority (Secretaria Municipal de Finanças) Time: 2 days Land dispute resolution index (0–8) 4.5 Cost: No cost Equal access to property rights index (-2–0) 0.0 Note: For a list of all components, questions and results on this index, refer to Procedure 13. Pay property transfer tax the “Quality indexes details” section. Agency: Commercial bank Time: Less than one day (online procedure) Cost: R$33,482.62 (2% of the property value) Procedure 14. Prepare public deed of purchase and sale Agency: Public notary (Tabelionato de Notas) Time: 2 days Cost: R$6,403.48 (R$4,467.49 for notary fees + R$1,198.45 for TFJ + R$512.14 for FUNCIVIL + R$2.03 for FUNCESE, FSE-TJ + R$223.37 for ISS) ENFORCING CONTRACTS Claim value: R$66,965 Data as of: September 1st, 2020 INDICATOR DETAILS QUALITY OF JUDICIAL PROCESSES INDEX Time (days) Score Filing and service 84 Quality of judicial processes index (0–18) 12.5 Trial and judgment 502 Court structure and proceedings (-1–5) 3.5 Enforcement of judgment 225 Case management (0–6) 3.0 Total time 811 Court automation (0–4) 3.0 Cost (% of claim value) Alternate dispute resolution (0–3) 3.0 Attorney fees 21.6 Tocantins Note: For a list of all components, questions and results on this index, refer to Court fees 8.1 the “Quality indexes details” section. Enforcement fees 0.2 Total cost 29.9 Source: Subnational Doing Business database. * Simultaneous with previous procedure 318 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 State profiles 319 PAYING TAXES Time (hours per year) Total Tax and Contribution Rate (% of profit) Postfiling index State Time to comply with labor taxes and Federal taxes taxes Municipal taxes Time to comply with taxes similar Time to comply with corporate security contributions (INSS) Corporate income tax (IRPJ) Employer paid - Payroll tax Garbage collection fee*** Employer paid - Severance Employer paid - Social Other municipal fees* Social contribution on Operating license fee Tax on interest**** social contributions contribution (FGTS) Property tax (IPTU) Vehicle tax (IPVA) Time to comply Time to complete profits (CSLL) income taxes Total Tax and with a corporate a corporate Payments Time Contribution Time to comply Time to obtain income tax income tax Postfiling to VAT (number (hours Rate with VAT refund VAT refund correction correction index score Location per year) per year) (% of profit) (hours)** (weeks)** (hours) (weeks) (0–100) Acre (Rio Branco) 10 361 885 255 1,501 16.26% 5.85% 22.56% 9.59% 8.72% 0.51% 0.08% 2.37% 0.07% 0.50% n/a 66.0% No refund No refund 39.0 86.6 7.8 Alagoas (Maceió) 10 361 885 255 1,501 16.81% 6.05% 22.56% 9.59% 8.72% 0.51% 0.08% 0.53% 0.10% 0.07% 0.06% 64.6% No refund No refund 39.0 86.6 7.8 Amapá (Macapá) 10 361 867 255 1,483 16.72% 6.02% 22.56% 9.59% 8.72% 0.51% 0.10% 1.01% 0.09% 0.01% n/a 64.8% No refund No refund 39.0 86.6 7.8 Amazonas (Manaus) 10 361 885 255 1,501 16.67% 6.00% 22.56% 9.59% 8.72% 0.51% 0.12% 1.20% 0.05% n/a n/a 64.9% No refund No refund 39.0 86.6 7.8 Bahia (Salvador) 12 361 885 255 1,501 16.38% 5.90% 22.56% 9.59% 8.72% 0.51% 0.08% 2.01% 0.25% 0.18% 0.02% 65.7% No refund No refund 39.0 86.6 7.8 Ceará (Fortaleza) 10 361 867 255 1,483 16.27% 5.86% 22.56% 9.59% 8.72% 0.51% 0.08% 2.62% 0.26% n/a n/a 66.0% No refund No refund 39.0 86.6 7.8 Espírito Santo (Vitória) 9 361 867 255 1,483 16.85% 6.07% 22.56% 9.59% 8.72% 0.51% 0.08% 0.55% n/a 0.03% n/a 64.4% No refund No refund 39.0 86.6 7.8 Federal District (Brasília) 10 361 867 255 1,483 16.64% 5.99% 22.56% 9.59% 8.72% 0.51% 0.08% 1.41% 0.03% 0.03% n/a 65.0% No refund No refund 39.0 86.6 7.8 Goiás (Goiânia) 10 361 867 255 1,483 16.71% 6.02% 22.56% 9.59% 8.72% 0.51% 0.11% 0.93% 0.18% n/a n/a 64.8% No refund No refund 39.0 86.6 7.8 Maranhão (São Luís) 10 361 885 255 1,501 16.61% 5.98% 22.56% 9.59% 8.72% 0.51% 0.08% 1.51% 0.03% n/a n/a 65.1% No refund No refund 39.0 86.6 7.8 Mato Grosso (Cuiabá) 11 361 867 255 1,483 16.85% 6.07% 22.56% 9.59% 8.72% 0.51% 0.08% 0.53% 0.03% 0.01% n/a 64.4% No refund No refund 39.0 86.6 7.8 Mato Grosso do Sul (Campo Grande) 10 361 867 255 1,483 16.66% 6.00% 22.56% 9.59% 8.72% 0.51% 0.14% 1.19% 0.01% 0.09% n/a 65.0% No refund No refund 39.0 86.6 7.8 Minas Gerais (Belo Horizonte) 10 361 885 255 1,501 16.42% 5.91% 22.56% 9.59% 8.72% 0.51% 0.08% 2.17% 0.10% 0.03% n/a 65.6% No refund No refund 39.0 86.6 7.8 Pará (Belém) 12 361 885 255 1,501 16.28% 5.86% 22.56% 9.59% 8.72% 0.51% 0.07% 2.67% 0.06% 0.09% 0.08% 66.0% No refund No refund 39.0 86.6 7.8 Paraíba (João Pessoa) 10 361 867 255 1,483 16.51% 5.94% 22.56% 9.59% 8.72% 0.51% 0.08% 1.89% n/a 0.05% n/a 65.3% No refund No refund 39.0 86.6 7.8 Paraná (Curitiba) 9 361 867 255 1,483 16.36% 5.89% 22.56% 9.59% 8.72% 0.51% 0.08% 2.50% n/a 0.02% n/a 65.7% No refund No refund 39.0 86.6 7.8 Pernambuco (Recife) 10 361 885 255 1,501 16.28% 5.86% 22.56% 9.59% 8.72% 0.51% 0.08% 2.67% 0.04% 0.18% n/a 66.0% No refund No refund 39.0 86.6 7.8 Piauí (Teresina) 11 361 885 255 1,501 16.58% 5.97% 22.56% 9.59% 8.72% 0.51% 0.07% 1.58% 0.06% 0.03% 0.02% 65.2% No refund No refund 39.0 86.6 7.8 Rio de Janeiro (Rio de Janeiro) 10 361 873 255 1,489 16.11% 5.80% 22.56% 9.59% 8.72% 0.51% 0.08% 3.44% n/a 0.02% 0.09% 66.4% No refund No refund 39.0 86.6 7.8 Rio Grande do Norte (Natal) 10 361 867 255 1,483 16.60% 5.97% 22.56% 9.59% 8.72% 0.51% 0.08% 1.24% 0.04% 0.29% n/a 65.1% No refund No refund 39.0 86.6 7.8 Rio Grande do Sul (Porto Alegre) 10 361 885 255 1,501 16.59% 5.97% 22.56% 9.59% 8.72% 0.51% 0.08% 1.47% 0.01% 0.15% n/a 65.1% No refund No refund 39.0 86.6 7.8 Rondônia (Porto Velho) 10 361 867 255 1,483 16.82% 6.06% 22.56% 9.59% 8.72% 0.51% 0.08% 0.59% 0.07% 0.03% n/a 64.5% No refund No refund 39.0 86.6 7.8 Roraima (Boa Vista) 11 361 885 255 1,501 16.81% 6.05% 22.56% 9.59% 8.72% 0.51% 0.17% 0.67% n/a 0.01% 0.12% 64.7% No refund No refund 39.0 86.6 7.8 Santa Catarina (Florianópolis) 10 361 885 255 1,501 16.57% 5.96% 22.56% 9.59% 8.72% 0.51% 0.08% 1.53% n/a 0.19% n/a 65.2% No refund No refund 39.0 86.6 7.8 São Paulo (São Paulo) 10 361 885 255 1,501 16.35% 5.88% 22.56% 9.59% 8.72% 0.51% 0.12% 2.50% 0.05% n/a n/a 65.8% No refund No refund 39.0 86.6 7.8 Sergipe (Aracaju) 10 361 867 255 1,483 16.17% 5.82% 22.56% 9.59% 8.72% 0.51% 0.08% 3.29% 0.03% n/a n/a 66.3% No refund No refund 39.0 86.6 7.8 Tocantins (Palmas) 11 361 885 255 1,501 16.85% 6.07% 22.56% 9.59% 8.72% 0.51% 0.09% 0.43% 0.03% 0.06% 0.04% 64.4% No refund No refund 39.0 86.6 7.8 Source: Doing Business and Subnational Doing Business database. * ‘Other municipal fees’ includes fees that are charged in certain cities, which are mainly the advertising fee, environmental license fee, urbanization fee, and sanitary license fee. Note: Data as of December 31st, 2019. The total tax and contribution rate includes only taxes that represent a cost paid by the company. In addition to those, Doing Business ** Taxes similar to VAT are charged in Brazil (ICMS, IPI, PIS and COFINS apply to the Doing Business case). However, VAT refund is restricted to specific cases: (i) ICMS: in case of records the number of payments and the tax compliance time for the following taxes (which are not shown in this table): federal social contributions on sales (PIS and COFINS, overpayment due to a mistake in the calculation of taxes due; (ii) IPI: no IPI credit on capital purchase is allowed; (iii) PIS and COFINS: restricted to international traders and similar to VAT), federal tax on industrial products (IPI, similar to VAT), state tax on circulation of goods and services (ICMS, similar to VAT), and employee-paid social security other cases. contributions (INSS). The data for Rio de Janeiro and São Paulo are not considered official until published by the Doing Business 2021 report. *** Brasília applies a public cleaning fee, which includes garbage collection, among other public cleaning services. **** The tax on interest is not included in the TTCR. 320 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 State profiles 321 QUALITY INDEXES DETAILS Acre, Alagoas, Amapá, Amazonas, Bahia, Espírito Santo, Federal District, Goiás, Maranhão, Mato Grosso, Mato Grosso do Sul, Pará, Paraná, Piauí, Rio de Janeiro, Rio Grande do Sul, Rondônia, Roraima, Paraíba, Pernambuco, Minas Gerais Santa Catarina, Tocantins Rio Grande do Norte, Sergipe Ceará São Paulo Answer Score Answer Score Answer Score Answer Score Answer Score Building quality control index (0–15) 11 9 8 8 8 Quality of building regulations index (0–2) 2 2 1 2 2 How accessible are building laws and regulations in the Available online; Free of 1 Available online; Free of charge. 1 Available online; Free of charge. 1 Available online; Free of charge. 1 Available online; Free of charge. 1 economy? (0–1) charge. Which requirements for obtaining a building permit are List of required documents; 1 List of required documents; Fees to 1 List of required documents; and 0 List of required documents; Fees to 1 List of required documents; Fees to 1 clearly specified in the building regulations or on any Fees to be paid; Required be paid; Required pre-approvals. Required pre-approvals; or Fees to be paid; Required pre-approvals. be paid; Required pre-approvals. accessible website, brochure or pamphlet? (0–1) pre-approvals. be paid. Quality control before construction index (0–1) 1 1 1 1 1 Which third-party entities are required by law to verify that Licensed architect; Licensed 1 Licensed architect; Licensed 1 Licensed architect; Licensed 1 Licensed architect; Licensed 1 Licensed architect; Licensed 1 the building plans are in compliance with existing building engineer. engineer. engineer. engineer. engineer. regulations? (0–1) Quality control during construction index (0–3) 2 0 0 0 0 What types of inspections (if any) are required by law to be Inspections at various phases. 1 Unscheduled inspections; or 0 Unscheduled inspections. 0 Unscheduled inspections. 0 Unscheduled inspections. 0 carried out during construction? (0–2) No inspections are legally required during construction. Do legally mandated inspections occur in practice during Mandatory inspections are 1 Mandatory inspections are not always 0 Mandatory inspections are not 0 Mandatory inspections are not 0 Mandatory inspections are not 0 construction? (0–1) always done in practice. done in practice during construction; always done in practice during always done in practice during always done in practice during or Mandatory inspections are done construction; or Mandatory construction. construction; Mandatory inspections most of the time during construction inspections are always done in are done most of the time during but not always. practice but are unscheduled. construction. Quality control after construction index (0–3) 3 3 3 3 2 Is there a final inspection required by law to verify that the Yes, final inspection is done 2 Yes, final inspection is done by 2 Yes, final inspection is done by 2 Yes, final inspection is done by 2 Yes, in-house engineer submits 2 building was built in accordance with the approved plans and by government agency. government agency; or in-house government agency; In-house government agency; Yes, in-house report for final inspection. regulations? (0–2) engineer submits report for final engineer submits report for final engineer submits report for final inspection; or both. inspection. inspection. Do legally mandated final inspections occur in practice? (0–1) Final inspection always occurs 1 Final inspection always occurs in 1 Final inspection always occurs in 1 Final inspection always occurs in 1 Final inspection does not always 0 in practice. practice. practice. practice. occur in practice. Liability and insurance regimes index (0–2) 1 1 1 1 1 Which parties (if any) are held liable by law for structural Architect or engineer; 1 Architect or engineer; Professional 1 Architect or engineer; Professional 1 Architect or engineer; Professional 1 Architect or engineer; Professional 1 flaws or problems in the building once it is in use (Latent Professional in charge of the in charge of the supervision; in charge of the supervision; in charge of the supervision; in charge of the supervision; Defect Liability or Decennial Liability)? (0–1) supervision; Construction Construction company. Construction company. Construction company. Construction company; Owner or company. investor. Which parties (if any) are required by law to obtain an No party is required by law to 0 No party is required by law to obtain 0 No party is required by law to obtain 0 No party is required by law to obtain 0 No party is required by law to obtain 0 insurance policy to cover possible structural flaws or problems obtain insurance. insurance. insurance. insurance. insurance. in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0–1) Professional certifications index (0–4) 2 2 2 1 2 What are the qualification requirements for the professional University degree in 1 University degree in architecture 1 University degree in architecture 1 University degree in architecture 1 University degree in architecture 1 responsible for verifying that the architectural plans architecture or engineering; or engineering; Being a registered or engineering; Being a registered or engineering; Being a registered or engineering; Being a registered or drawings are in compliance with existing building Being a registered architect or architect or engineer; or Passing a architect or engineer; or Passing a architect or engineer. architect or engineer; Passing a regulations? (0–2) engineer. certification exam. certification exam. certification exam. What are the qualification requirements for the professional University degree in 1 University degree in engineering, 1 University degree in engineering, 1 Passing a certification exam. 0 University degree in engineering, 1 who supervises the construction on the ground? (0–2) engineering, construction or construction or construction construction or construction construction or construction construction management; management; Being a registered management; Being a registered management; Being a registered Being a registered architect or architect or engineer; or Passing a architect or engineer. architect or engineer. engineer. certification exam. Source: Doing Business and Subnational Doing Business database. Note: The data for Rio de Janeiro and São Paulo are not considered official until published by the Doing Business 2021 report. 322 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 State profiles 323 QUALITY INDEXES DETAILS Rio de Janeiro Amazonas Paraná São Paulo Espírito Santo Answer Score Answer Score Answer Score Answer Score Answer Score Quality of land administration index (0–30) 17 16.5 16.5 16.5 16 Reliability of infrastructure index (0–8) 5 5 5 5 5 In what format land title certificates are kept at the immovable property registry of the city—in a paper format or in a computerized format (scanned or fully digital)? (0–2) Computer/Scanned 1 Computer/Scanned 1 Computer/Scanned 1 Computer/Scanned 1 Computer/Scanned 1 Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? (0–1) Yes 1 Yes 1 Yes 1 Yes 1 Yes 1 In what format cadastral maps (plans) are kept at the mapping agency of the city—in a paper format or in a computerized format (scanned or fully digital)? (0–2) Computer/Fully digital 2 Computer/Fully digital 2 Computer/Fully digital 2 Computer/Fully digital 2 Computer/Fully digital 2 Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? (0–1) Yes 1 Yes 1 Yes 1 Yes 1 Yes 1 Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked Separate databases 0 Separate databases 0 Separate databases 0 Separate databases 0 Separate databases 0 databases or in separate databases? (0–1) Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? (0–1) No 0 No 0 No 0 No 0 No 0 Transparency of information index (0–6) 5.5 5 5 5 4.5 Is information on land ownership made publicly available without providing the title certificate number at the agency in charge of immovable property registration in the Anyone who pays the 1 Anyone who pays the 1 Anyone who pays the 1 Anyone who pays the 1 Anyone who pays the 1 city? (0–1) official fee official fee official fee official fee official fee Is the list of documents that are required to complete all types of property transactions made publicly available–and if so, how? (0–0.5) Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Is the applicable fee schedule for all types of property transactions at the agency in charge of immovable property registration in the city made publicly available–and if so, how? (0–0.5) Yes, online 0.5 Yes, online 0.5 Yes, in person 0 Yes, online 0.5 Yes, online 0.5 Does the agency in charge of immovable property registration formally commit to deliver a legally binding document proving ownership within a specific time frame–and Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 if so, how does it communicate the service standard? (0–0.5) Is there a specific and independent mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? (0–1) Yes 1 Yes 1 Yes 1 Yes 1 Yes 1 Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? (0–0.5) Yes 0.5 No 0 Yes 0.5 Yes 0.5 No 0 Are cadastral maps (plans) made publicly available in the city? (0–0.5) Freely accessible by 0.5 Freely accessible by 0.5 Freely accessible by 0.5 Freely accessible by 0.5 Freely accessible by 0.5 anyone anyone anyone anyone anyone Is the applicable fee schedule for accessing maps (plans) of land plots made easily publicly available—and if so, how? (0–0.5) Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Yes, in person 0 Does the cadastral/mapping agency formally specifies the time frame to deliver an updated cadastral map (plan)—and if so, how does it communicate the service standard? (0–0.5) Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 No 0 Yes, online 0.5 Is there a specific and independent mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? (0–0.5) No 0 No 0 No 0 No 0 No 0 Geographic coverage index (0–8) 2 2 2 2 2 Are all privately held land plots in Brazil formally registered at the immovable property registry? (0–2) No 0 No 0 No 0 No 0 No 0 Are all privately held land plots in the city formally registered at the immovable property registry? (0–2) No 0 No 0 No 0 No 0 No 0 Are all privately held land plots in Brazil mapped? (0–2) No 0 No 0 No 0 No 0 No 0 Are all privately held land plots in the city mapped? (0–2) Yes 2 Yes 2 Yes 2 Yes 2 Yes 2 Land dispute resolution index (0–8) 4.5 4.5 4.5 4.5 4.5 Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? (0–1.5) Yes 1.5 Yes 1.5 Yes 1.5 Yes 1.5 Yes 1.5 Is the system of immovable property registration subject to a state or private guarantee? (0–0.5) Yes 0.5 Yes 0.5 Yes 0.5 Yes 0.5 Yes 0.5 Is there a specific, out-of-court compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous No 0 No 0 No 0 No 0 No 0 information certified by the immovable property registry? (0–0.5) Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 the law)? (0–0.5) Does the legal system require verification of the identity of the parties to a property transaction? (0–0.5) Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Is there a national database to verify the accuracy of government issued identity documents? (0–1) No 0 No 0 No 0 No 0 No 0 How long does it take on average to obtain a decision from the first-instance court in charge of a case of land dispute between two local businesses over tenure rights Between 2 and 3 years 1 Between 2 and 3 years 1 Between 2 and 3 years 1 Between 2 and 3 years 1 Between 2 and 3 years 1 and located in the city (without appeal)? (0–3) Are there publicly available statistics on the number of land disputes in the first-instance court? (0–0.5) Yes 0.5 Yes 0.5 Yes 0.5 Yes 0.5 Yes 0.5 Equal access to property rights index (-2–0) 0 0 0 0 0 Do unmarried men and unmarried women have equal ownership rights to property? (-1–0) Yes 0 Yes 0 Yes 0 Yes 0 Yes 0 Do married men and married women have equal ownership rights to property? (-1–0) Yes 0 Yes 0 Yes 0 Yes 0 Yes 0 Source: Doing Business and Subnational Doing Business database. Note: Data as of September 1st, 2020. For detailed information about each location, see https://www.doingbusiness.org/brazil. The data for Rio de Janeiro and São Paulo are not considered official until published by the Doing Business 2021 report. 324 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 State profiles 325 QUALITY INDEXES DETAILS Mato Grosso do Sul and Goiás Santa Catarina Federal District Minas Gerais Pará Answer Score Answer Score Answer Score Answer Score Answer Score Quality of land administration index (0–30) 15.5 15.5 15 15 14 Reliability of infrastructure index (0–8) 5 5 5 5 4 In what format land title certificates are kept at the immovable property registry of the city—in a paper format or in a computerized format (scanned or fully digital)? (0–2) Computer/Scanned 1 Computer/Scanned 1 Computer/Scanned 1 Computer/Scanned 1 Computer/Scanned 1 Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? (0–1) Yes 1 Yes 1 Yes 1 Yes 1 Yes 1 In what format cadastral maps (plans) are kept at the mapping agency of the city—in a paper format or in a computerized format (scanned or fully digital)? (0–2) Computer/Fully digital 2 Computer/Fully digital 2 Computer/Fully digital 2 Computer/Fully digital 2 Computer/Fully digital 2 Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? (0–1) Yes 1 Yes 1 Yes 1 Yes 1 No 0 Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked Separate databases 0 Separate databases 0 Separate databases 0 Separate databases 0 Separate databases 0 databases or in separate databases? (0–1) Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? (0–1) No 0 No 0 No 0 No 0 No 0 Transparency of information index (0–6) 4 4 3.5 3.5 3.5 Is information on land ownership made publicly available without providing the title certificate number at the agency in charge of immovable property registration in the Anyone who pays 1 Anyone who pays 1 Anyone who pays 1 Anyone who pays 1 Anyone who pays 1 city? (0–1) the official fee the official fee the official fee the official fee the official fee Is the list of documents that are required to complete all types of property transactions made publicly available–and if so, how? (0–0.5) Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Is the applicable fee schedule for all types of property transactions at the agency in charge of immovable property registration in the city made publicly available–and if so, how? (0–0.5) Yes, in person 0 Yes, in person 0 Yes, online 0.5 Yes, in person 0 Yes, in person 0 Does the agency in charge of immovable property registration formally commit to deliver a legally binding document proving ownership within a specific time frame–and Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 if so, how does it communicate the service standard? (0–0.5) Is there a specific and independent mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? (0–1) Yes 1 Yes 1 No 0 Yes 1 Yes 1 Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? (0–0.5) No 0 Yes 0.5 No 0 No 0 No 0 Are cadastral maps (plans) made publicly available in the city? (0–0.5) Freely accessible by 0.5 Freely accessible by 0.5 Freely accessible by 0.5 Freely accessible by 0.5 Freely accessible by 0.5 anyone anyone anyone anyone anyone Is the applicable fee schedule for accessing maps (plans) of land plots made easily publicly available—and if so, how? (0–0.5) Yes, in person 0 Yes, in person 0 Yes, in person 0 Yes, in person 0 Yes, in person 0 Does the cadastral/mapping agency formally specifies the time frame to deliver an updated cadastral map (plan)—and if so, how does it communicate the service standard? (0–0.5) Yes, online 0.5 Yes, in person 0 Yes, online 0.5 Yes, in person 0 Yes, in person 0 Is there a specific and independent mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? (0–0.5) No 0 No 0 No 0 No 0 No 0 Geographic coverage index (0–8) 2 2 2 2 2 Are all privately held land plots in Brazil formally registered at the immovable property registry? (0–2) No 0 No 0 No 0 No 0 No 0 Are all privately held land plots in the city formally registered at the immovable property registry? (0–2) No 0 No 0 No 0 No 0 No 0 Are all privately held land plots in Brazil mapped? (0–2) No 0 No 0 No 0 No 0 No 0 Are all privately held land plots in the city mapped? (0–2) Yes 2 Yes 2 Yes 2 Yes 2 Yes 2 Land dispute resolution index (0–8) 4.5 4.5 4.5 4.5 4.5 Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? (0–1.5) Yes 1.5 Yes 1.5 Yes 1.5 Yes 1.5 Yes 1.5 Is the system of immovable property registration subject to a state or private guarantee? (0–0.5) Yes 0.5 Yes 0.5 Yes 0.5 Yes 0.5 Yes 0.5 Is there a specific, out-of-court compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous No 0 No 0 No 0 No 0 No 0 information certified by the immovable property registry? (0–0.5) Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 the law)? (0–0.5) Does the legal system require verification of the identity of the parties to a property transaction? (0–0.5) Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Is there a national database to verify the accuracy of government issued identity documents? (0–1) No 0 No 0 No 0 No 0 No 0 How long does it take on average to obtain a decision from the first-instance court in charge of a case of land dispute between two local businesses over tenure rights Between 2 and 3 years 1 Between 2 and 3 years 1 Between 2 and 3 years 1 Between 2 and 3 years 1 Between 2 and 3 years 1 and located in the city (without appeal)? (0–3) Are there publicly available statistics on the number of land disputes in the first-instance court? (0–0.5) Yes 0.5 Yes 0.5 Yes 0.5 Yes 0.5 Yes 0.5 Equal access to property rights index (-2–0) 0 0 0 0 0 Do unmarried men and unmarried women have equal ownership rights to property? (-1–0) Yes 0 Yes 0 Yes 0 Yes 0 Yes 0 Do married men and married women have equal ownership rights to property? (-1–0) Yes 0 Yes 0 Yes 0 Yes 0 Yes 0 Source: Doing Business and Subnational Doing Business database. Note: Data as of September 1st, 2020. For detailed information about each location, see https://www.doingbusiness.org/brazil. The data for Rio de Janeiro and São Paulo are not considered official until published by the Doing Business 2021 report. 326 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 State profiles 327 QUALITY INDEXES DETAILS Mato Grosso and Maranhão, Rio Grande do Sul, Acre and Bahia Pernambuco Ceará and Roraima Piauí Answer Score Answer Score Answer Score Answer Score Answer Score Quality of land administration index (0–30) 13.5 13.5 13 13 13 Reliability of infrastructure index (0–8) 5 5 5 5 4 In what format land title certificates are kept at the immovable property registry of the city—in a paper format or in a computerized format (scanned or fully digital)? (0–2) Computer/Scanned 1 Computer/Scanned 1 Computer/Scanned 1 Computer/Scanned 1 Paper 0 Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? (0–1) Yes 1 Yes 1 Yes 1 Yes 1 Yes 1 In what format cadastral maps (plans) are kept at the mapping agency of the city—in a paper format or in a computerized format (scanned or fully digital)? (0–2) Computer/Fully digital 2 Computer/Fully digital 2 Computer/Fully digital 2 Computer/Fully digital 2 Computer/Fully digital 2 Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? (0–1) Yes 1 Yes 1 Yes 1 Yes 1 Yes 1 Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked Separate databases 0 Separate databases 0 Separate databases 0 Separate databases 0 Separate databases 0 databases or in separate databases? (0–1) Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? (0–1) No 0 No 0 No 0 No 0 No 0 Transparency of information index (0–6) 4 4 3.5 3.5 2.5 Is information on land ownership made publicly available without providing the title certificate number at the agency in charge of immovable property registration in the Anyone who pays 1 Anyone who pays 1 Anyone who pays 1 Anyone who pays 1 Anyone who pays 1 city? (0–1) the official fee the official fee the official fee the official fee the official fee Is the list of documents that are required to complete all types of property transactions made publicly available–and if so, how? (0–0.5) Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Is the applicable fee schedule for all types of property transactions at the agency in charge of immovable property registration in the city made publicly available–and if so, how? (0–0.5) Yes, online 0.5 Yes, in person 0 Yes, in person 0 Yes, in person 0 Yes, in person 0 Does the agency in charge of immovable property registration formally commit to deliver a legally binding document proving ownership within a specific time frame–and Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 if so, how does it communicate the service standard? (0–0.5) Is there a specific and independent mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? (0–1) Yes 1 Yes 1 Yes 1 Yes 1 No 0 Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? (0–0.5) No 0 Yes 0.5 No 0 No 0 No 0 Are cadastral maps (plans) made publicly available in the city? (0–0.5) Freely accessible by 0.5 Freely accessible by 0.5 Anyone who pays 0.5 Freely accessible by 0.5 Freely accessible by 0.5 anyone anyone the official fee anyone anyone Is the applicable fee schedule for accessing maps (plans) of land plots made easily publicly available—and if so, how? (0–0.5) Yes, in person 0 Yes, in person 0 Yes, in person 0 Yes, in person 0 Yes, in person 0 Does the cadastral/mapping agency formally specifies the time frame to deliver an updated cadastral map (plan)—and if so, how does it communicate the service standard? (0–0.5) Yes, in person 0 Yes, in person 0 Yes, in person 0 Yes, in person 0 Yes, in person 0 Is there a specific and independent mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? (0–0.5) No 0 No 0 No 0 No 0 No 0 Geographic coverage index (0–8) 0 0 0 0 2 Are all privately held land plots in Brazil formally registered at the immovable property registry? (0–2) No 0 No 0 No 0 No 0 No 0 Are all privately held land plots in the city formally registered at the immovable property registry? (0–2) No 0 No 0 No 0 No 0 No 0 Are all privately held land plots in Brazil mapped? (0–2) No 0 No 0 No 0 No 0 No 0 Are all privately held land plots in the city mapped? (0–2) No 0 No 0 No 0 No 0 Yes 2 Land dispute resolution index (0–8) 4.5 4.5 4.5 4.5 4.5 Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? (0–1.5) Yes 1.5 Yes 1.5 Yes 1.5 Yes 1.5 Yes 1.5 Is the system of immovable property registration subject to a state or private guarantee? (0–0.5) Yes 0.5 Yes 0.5 Yes 0.5 Yes 0.5 Yes 0.5 Is there a specific, out-of-court compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous No 0 No 0 No 0 No 0 No 0 information certified by the immovable property registry? (0–0.5) Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 the law)? (0–0.5) Does the legal system require verification of the identity of the parties to a property transaction? (0–0.5) Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Is there a national database to verify the accuracy of government issued identity documents? (0–1) No 0 No 0 No 0 No 0 No 0 How long does it take on average to obtain a decision from the first-instance court in charge of a case of land dispute between two local businesses over tenure rights Between 2 and 3 years 1 Between 2 and 3 years 1 Between 2 and 3 years 1 Between 2 and 3 years 1 Between 2 and 3 years 1 and located in the city (without appeal)? (0–3) Are there publicly available statistics on the number of land disputes in the first-instance court? (0–0.5) Yes 0.5 Yes 0.5 Yes 0.5 Yes 0.5 Yes 0.5 Equal access to property rights index (-2–0) 0 0 0 0 0 Do unmarried men and unmarried women have equal ownership rights to property? (-1–0) Yes 0 Yes 0 Yes 0 Yes 0 Yes 0 Do married men and married women have equal ownership rights to property? (-1–0) Yes 0 Yes 0 Yes 0 Yes 0 Yes 0 Source: Doing Business and Subnational Doing Business database. Note: Data as of September 1st, 2020. For detailed information about each location, see https://www.doingbusiness.org/brazil. The data for Rio de Janeiro and São Paulo are not considered official until published by the Doing Business 2021 report. 328 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 State profiles 329 QUALITY INDEXES DETAILS Amapá and Rondônia Sergipe Tocantins Alagoas and Paraíba Rio Grande do Norte Answer Score Answer Score Answer Score Answer Score Answer Score Quality of land administration index (0–30) 12.5 12.5 12.5 12 11.5 Reliability of infrastructure index (0–8) 4 5 4 5 4 In what format land title certificates are kept at the immovable property registry of the city—in a paper format or in a computerized format (scanned or fully digital)? (0–2) Computer/Scanned 1 Computer/Scanned 1 Computer/Scanned 1 Computer/Scanned 1 Computer/Scanned 1 Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? (0–1) Yes 1 Yes 1 Yes 1 Yes 1 Yes 1 In what format cadastral maps (plans) are kept at the mapping agency of the city—in a paper format or in a computerized format (scanned or fully digital)? (0–2) Computer/Fully digital 2 Computer/Fully digital 2 Computer/Fully digital 2 Computer/Fully digital 2 Computer/Fully digital 2 Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? (0–1) No 0 Yes 1 No 0 Yes 1 No 0 Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked Separate databases 0 Separate databases 0 Separate databases 0 Separate databases 0 Separate databases 0 databases or in separate databases? (0–1) Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? (0–1) No 0 No 0 No 0 No 0 No 0 Transparency of information index (0–6) 4 3 4 2.5 3 Is information on land ownership made publicly available without providing the title certificate number at the agency in charge of immovable property registration in the Anyone who pays 1 Anyone who pays 1 Anyone who pays 1 Anyone who pays 1 Anyone who pays 1 city? (0–1) the official fee the official fee the official fee the official fee the official fee Is the list of documents that are required to complete all types of property transactions made publicly available–and if so, how? (0–0.5) Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Is the applicable fee schedule for all types of property transactions at the agency in charge of immovable property registration in the city made publicly available–and if so, how? (0–0.5) Yes, online 0.5 Yes, in person 0 Yes, online 0.5 Yes, in person 0 Yes, online 0.5 Does the agency in charge of immovable property registration formally commit to deliver a legally binding document proving ownership within a specific time frame–and Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 Yes, online 0.5 if so, how does it communicate the service standard? (0–0.5) Is there a specific and independent mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? (0–1) Yes 1 Yes 1 Yes 1 No 0 No 0 Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? (0–0.5) No 0 No 0 No 0 No 0 No 0 Are cadastral maps (plans) made publicly available in the city? (0–0.5) Only intermediaries and 0 Only intermediaries and 0 Freely accessible by 0.5 Freely accessible by 0.5 Freely accessible by 0.5 interested parties interested parties anyone anyone anyone Is the applicable fee schedule for accessing maps (plans) of land plots made easily publicly available—and if so, how? (0–0.5) Yes, in person 0 Yes, in person 0 Yes, in person 0 Yes, in person 0 Yes, in person 0 Does the cadastral/mapping agency formally specifies the time frame to deliver an updated cadastral map (plan)—and if so, how does it communicate the service standard? (0–0.5) Yes, online 0.5 Yes, in person 0 Yes, in person 0 Yes, in person 0 Yes, in person 0 Is there a specific and independent mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? (0–0.5) No 0 No 0 No 0 No 0 No 0 Geographic coverage index (0–8) 0 0 0 0 0 Are all privately held land plots in Brazil formally registered at the immovable property registry? (0–2) No 0 No 0 No 0 No 0 No 0 Are all privately held land plots in the city formally registered at the immovable property registry? (0–2) No 0 No 0 No 0 No 0 No 0 Are all privately held land plots in Brazil mapped? (0–2) No 0 No 0 No 0 No 0 No 0 Are all privately held land plots in the city mapped? (0–2) No 0 No 0 No 0 No 0 No 0 Land dispute resolution index (0–8) 4.5 4.5 4.5 4.5 4.5 Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? (0–1.5) Yes 1.5 Yes 1.5 Yes 1.5 Yes 1.5 Yes 1.5 Is the system of immovable property registration subject to a state or private guarantee? (0–0.5) Yes 0.5 Yes 0.5 Yes 0.5 Yes 0.5 Yes 0.5 Is there a specific, out-of-court compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous No 0 No 0 No 0 No 0 No 0 information certified by the immovable property registry? (0–0.5) Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 the law)? (0–0.5) Does the legal system require verification of the identity of the parties to a property transaction? (0–0.5) Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Yes (registrar; notary) 0.5 Is there a national database to verify the accuracy of government issued identity documents? (0–1) No 0 No 0 No 0 No 0 No 0 How long does it take on average to obtain a decision from the first-instance court in charge of a case of land dispute between two local businesses over tenure rights Between 2 and 3 years 1 Between 2 and 3 years 1 Between 2 and 3 years 1 Between 2 and 3 years 1 Between 2 and 3 years 1 and located in the city (without appeal)? (0–3) Are there publicly available statistics on the number of land disputes in the first-instance court? (0–0.5) Yes 0.5 Yes 0.5 Yes 0.5 Yes 0.5 Yes 0.5 Equal access to property rights index (-2–0) 0 0 0 0 0 Do unmarried men and unmarried women have equal ownership rights to property? (-1–0) Yes 0 Yes 0 Yes 0 Yes 0 Yes 0 Do married men and married women have equal ownership rights to property? (-1–0) Yes 0 Yes 0 Yes 0 Yes 0 Yes 0 Source: Doing Business and Subnational Doing Business database. Note: Data as of September 1st, 2020. For detailed information about each location, see https://www.doingbusiness.org/brazil. The data for Rio de Janeiro and São Paulo are not considered official until published by the Doing Business 2021 report. 330 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 State profiles 331 QUALITY INDEXES DETAILS Acre, Alagoas, Amapá, Amazonas, Ceará, Federal District, Maranhão, Mato Grosso do Sul, Bahia, Goiás, Mato Grosso, Minas Gerais, Pará, Paraíba, Piauí, Rio de Janeiro, Rondônia, Paraná, Pernambuco, Rio Grande do Norte, Roraima, São Paulo, Sergipe, Tocantins Rio Grande do Sul, Santa Catarina Espírito Santo Answer Score Answer Score Answer Score Quality of judicial processes index (0–18) 12.5 11.5 9.5 Court structure and proceedings (0–5) 3.5 3.5 3.5 Is there a court or division of a court dedicated solely to hearing commercial cases? (0–1.5) No 0 No 0 No 0 Small claims court (0–1.5) 1.5 1.5 1.5 a. Is there a small claims court or a fast-track procedure for small claims? Yes Yes Yes b. If yes, is self-representation allowed? Yes Yes Yes Is pretrial attachment available? (0–1) Yes 1 Yes 1 Yes 1 Are new cases assigned randomly to judges? (0–1) Yes 1 Yes 1 Yes 1 Does a woman’s testimony carry the same evidentiary weight in court as a man’s? (-1–0) Yes 0 Yes 0 Yes 0 Case management (0–6) 3 2 1 Time standards (0–1) 0 0 0 a. Are there laws setting overall time standards for key court events in a civil case? Yes Yes Yes b. If yes, are the time standards set for at least three court events? No No No c. Are these time standards respected in more than 50% of cases? – – – Adjournments (0–1) 0 0 0 a. Does the law regulate the maximum number of adjournments that can be granted? No No No b. Are adjournments limited to unforeseen and exceptional circumstances? No No No c. If rules on adjournments exist, are they respected in more than 50% of cases? – – – Are there at least two publicly available performance reports of the following four about the competent court: Yes 1 No 0 No 0 (i) time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? (0–1) Is a pretrial conference among the case management techniques used before the competent court? (0–1) No 0 No 0 No 0 Are there any electronic case management tools in place within the competent court for use by judges? (0–1) Yes 1 Yes 1 Yes 1 Are there any electronic case management tools in place within the competent court for use by lawyers? (0–1) Yes 1 Yes 1 No 0 Court automation (0–4) 3 3 2 Can the initial complaint be filed electronically through a dedicated platform within the competent court? (0–1) Yes 1 Yes 1 No 0 Is it possible to carry out service of process electronically for claims filed before the competent court? (0–1) No 0 No 0 No 0 Can court fees be paid electronically within the competent court? (0–1) Yes 1 Yes 1 Yes 1 Publication of judgments (0–1) 1 1 1 a. Are judgments rendered in commercial cases at all levels made available to the general public through Yes Yes Yes publication in official gazettes, in newspapers or on the internet or court website? b. Are judgments rendered in commercial cases at the appellate and supreme court level made available to the Yes Yes Yes general public through publication in official gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0–3) 3 3 3 Arbitration (0–1.5) 1.5 1.5 1.5 a. Is domestic commercial arbitration governed by a consolidated law or consolidated chapter or section of the Yes 0.5 Yes 0.5 Yes 0.5 applicable code of civil procedure encompassing substantially all its aspects? b. Are there any commercial disputes—aside from those that deal with public order or public policy—that No 0.5 No 0.5 No 0.5 cannot be submitted to arbitration? Yes 0.5 Yes 0.5 Yes 0.5 c. Are valid arbitration clauses or agreements usually enforced by the courts? Mediation/Conciliation (0–1.5) 1.5 1.5 1.5 a. Is voluntary mediation or conciliation available? Yes 0.5 Yes 0.5 Yes 0.5 b. Are mediation, conciliation or both governed by a consolidated law or consolidated chapter or section of Yes 0.5 Yes 0.5 Yes 0.5 the applicable code of civil procedure encompassing substantially all their aspects? c. Are there financial incentives for parties to attempt mediation or conciliation (i.e., if mediation or conciliation Yes 0.5 Yes 0.5 Yes 0.5 is successful, a refund of court filing fees, income tax credits or the like)? Source: Doing Business and Subnational Doing Business database. Note: Data as of September 1st, 2020. The data for Rio de Janeiro and São Paulo are not considered official until published by the Doing Business 2021 report. 332 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Additional research State profiles 333 REGISTERING AN INDIVIDUAL MICROBUSINESS OWNER (MEI) Procedure 3. Obtain a definitive operations license LIST OF PROCEDURES Agency: Federal District Government (GDF) - AGEFIS or Posto Na Hora Legal form: Individual microbusiness owner (MEI) Time: Less than one day (online procedure) Paid-in minimum capital requirement: No minimum Cost: No cost Data as of: September 1st, 2020 Minas Gerais Amazonas Procedure 1. Create an account on the Entrepreneur Portal Procedure 1. Create an account on the Entrepreneur Portal and register the MEI on the Entrepreneur Portal and register the MEI on the Entrepreneur Portal Agency: Entrepreneur Portal Agency: Entrepreneur Portal Time: Less than one day (online procedure) Time: Less than one day (online procedure) Cost: No cost Cost: No cost Rio Grande do Sul Procedure 2. Check the feasibility of the location (Viabilidade para Legado e MEI) and obtain a definitive operations license Agency: Municipality (via Redesim and SLIM system) Procedure 1. Create an account on the Entrepreneur Portal Time: Less than one day (online procedure) and register the MEI on the Entrepreneur Portal Cost: No cost Agency: Entrepreneur Portal Time: Less than one day (online procedure) Cost: No cost Ceará Procedure 2. Check the feasibility of the location (Viabilidade Procedure 1. Check the availability of the company name and para Legado e MEI) the feasibility of the location Agency: Municipality (via Redesim) Agency: Municipality / Commercial Registry (via Redesim) Time: 2 days Time: 2 days Cost: No cost Cost: No cost Procedure 3. Obtain a definitive operations license Procedure 2. Create an account on the Entrepreneur Portal Agency: Municipal Secretariat of Economic Development and register the MEI on the Entrepreneur Portal Time: Less than one day (online procedure) Agency: Entrepreneur Portal Cost: No cost Time: Less than one day (online procedure) Cost: No cost Note: For detailed information on each procedure, see https://www.doingbusiness.org/brazil. Procedure 3. Obtain a definitive operations license Agency: Municipal Secretariat of Urbanism and Environment Time: Less than one day (online procedure) Cost: No cost Federal District Procedure 1. Check the availability of the company name and the feasibility of the location Agency: Regional Administration / Commercial Registry (via Redesim) Time: 2 days Cost: No cost Procedure 2. Create an account on the Entrepreneur Portal and register the MEI on the Entrepreneur Portal Agency: Entrepreneur Portal Time: Less than one day (online procedure) Cost: No cost Source: Subnational Doing Business database. 334 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 State profiles 335 PAYING TAXES UNDER THE SIMPLES NACIONAL TAX REGIME Time (hours per year) Total Tax and Contribution Rate (% of profit) Postfiling processes* Simples Nacional (Combines federal, state labor taxes and social Time to comply with Time to comply with and municipal taxes and taxes combined in Simples Nacional contributions) Federal taxes State taxes Municipal taxes contributions Simples Nacional tax Employer paid Corporate Total Tax and Time to Time to comply Time to Payments Time (Combines IRPJ, CSLL, - Severance income Contribution comply with Time to obtain with a tax complete a (number (hours PIS, COFINS, IPI, contribution Tax on tax over Vehicle tax Property tax Operating Garbage Rate VAT refund VAT refund correction tax correction Location per year per year) CMS, and CPP) (FGTS) interest capital gains (IPVA) (IPTU) license fee collection fee** (% of profit) (hours)*** (weeks)*** (hours) (weeks) Commercial microenterprise Amazonas (Manaus) 7 48.0 18.5 66.5 46.14% 10.16% 0.24% 0.71% 0.56% 0.57% 0.23% n/a 58.6% No refund No refund 3.5 No tax audit Ceará (Fortaleza) 7 48.0 18.5 66.5 46.14% 10.16% 0.24% 0.71% 0.38% 0.64% 0.57% n/a 58.8% No refund No refund 3.5 No tax audit Federal District (Brasília) 7 48.0 18.5 66.5 46.14% 10.16% 0.24% 0.71% 0.38% 0.66% 0.05% 0.52% 58.9% No refund No refund 3.5 No tax audit Minas Gerais (Belo Horizonte) 7 48.0 18.5 66.5 46.14% 10.16% 0.24% 0.71% 0.37% 0.65% 0.29% 1.47% 60.0% No refund No refund 3.5 No tax audit Rio Grande do Sul (Porto Alegre) 7 48.0 18.5 66.5 46.14% 10.16% 0.24% 0.71% 0.38% 0.69% 0.08% 0.66% 59.1% No refund No refund 3.5 No tax audit Small industrial firm Amazonas (Manaus) 7 343.0 193.0 536.0 215.00% 9.05% 0.51% 1.52% 0.12% 1.20% 0.06% n/a 227.5% No refund No refund 6.0 No tax audit Ceará (Fortaleza) 7 343.0 193.0 536.0 215.00% 9.05% 0.51% 1.52% 0.08% 1.71% 0.30% n/a 228.2% No refund No refund 6.0 No tax audit Federal District (Brasília) 7 343.0 193.0 536.0 215.00% 9.05% 0.51% 1.52% 0.08% 1.41% 0.03% 0.30% 227.9% No refund No refund 6.0 No tax audit Minas Gerais (Belo Horizonte) 7 343.0 193.0 536.0 215.00% 9.05% 0.51% 1.52% 0.08% 1.91% 0.12% 0.31% 228.5% No refund No refund 6.0 No tax audit Rio Grande do Sul (Porto Alegre) 7 343.0 193.0 536.0 215.00% 9.05% 0.51% 1.52% 0.08% 1.47% 0.02% 0.25% 227.9% No refund No refund 6.0 No tax audit Source: Subnational Doing Business database. * This pilot study applied the Doing Business paying taxes indicators to measure postfiling processes applicable to companies paying taxes under Simples Nacional. Scores for a Note: Data as of December 31st, 2019. The total tax and contribution rate includes only taxes that represent a cost paid by the company. In addition to those, this pilot study postfiling index not calculated due to differences in case study assumptions. records the number of payments and the tax compliance time for the employee-paid social security contributions (INSS) (not included in this table). ** Brasília applies a public cleaning fee, which includes garbage collection, among other public cleaning services. *** Taxes similar to VAT are charged in Brazil (ICMS, IPI, PIS and COFINS apply to this pilot study). However, refund is not allowed for companies paying taxes under Simples Nacional. Acknowledgments 336 Acknowledgments 337 S ubnational Doing Business in Manager) and Sophie Naudeau More than 1,500 lawyers, accoun- Brazil 2021 was produced by (Operations Manager) provided tants, engineers, architects and the Global Indicators Group guidance and leadership. Lilla Marta public officials, such as registrars, of the Development Economics Fordos and Madalina Papahagi notaries, judges and court clerks Vice Presidency of the World provided valuable assistance at dif- contributed to the Subnational Doing Bank Group. The team was led ferent stages of the project. Chisako Business in Brazil 2021 report. The by Laura Sagnori Diniz and Erick Fukuda and Nina Vucenik designed project team extends its sincere Tjong, under the guidance of and led the communication cam- thanks to the national, state and Pilar Salgado Otónel. It included paign in collaboration with Maria municipal government officials, as Bruno Fernandes Freire de Souza, Elisa Dias Diniz Costa and Juliana well as to officials from state courts, Cristina Montoya Perez, Edgar Braga Machado from the Brazilian who participated in the project and Chavez, Gabriel Moura Queiroz, communications teams. The web- who made valuable comments Gina Cárdenas Varón, Iria Buxan page (http://www.doingbusiness during the consultation and data Raposo, Liana Issa Lima, Maria .org/brazil) was developed by review period. Additionally, a Camila Roberts, Marianna Buchalla Akash Pradhan, Anna Maria Kojzar, special thanks goes to the Special Pacca, Marianna Nogueira de Arun Chakravarthi Nageswaran, Secretariat for State Modernization Moraes Jardim, Marilina Manuela Kamalesh Sengaonkar, Manasi and its team dedicated to this Vieira, Marion Pinto, Monique Amalraj, Olga Kuzmina, Shrikant project: Anna Rachel Caldeira de Pelloux Patron, Rafaela Guerrize Bhaskar Shinde, Varun Doiphode, Andrada Sobral, Carlos Eduardo Conte, Raphael Liberato Giordani and Vimlesh Tiwari. The report de Jesus, Marcelo Hiroshi Kono and Sabrina Fantoni Custódio. It was edited by Bronwen Brown and and Ricardo Vieira de Queiroz. received continued support from designed by Luis Liceaga. The team also wishes to thank Rafael Muñoz Moreno, Xavier the National Council of Justice Cirera and Tatiana Whately de The study was supported by (Conselho Nacional de Justiça), the Moura throughout implementation the Special Secretariat for State Federal Revenue Service (Receita of the study. The team also counted Modernization (Secretaria Especial Federal do Brasil), the National on the assistance of Alberto de Modernização do Estado, SEME), Department of Business Registration Fabian Arbesu Cardona, Adriane an agency within the General and Integration (Departamento Landwehr and Victor Neves. Secretariat of the Presidency of Nacional de Registro Empresarial e the Federative Republic of Brazil Integração, DREI) of the Ministry of The team is grateful for the valu- (Secretaria-Geral da Presidência Economy, the National Federation able comments provided by col- da República), and funded by the of Commercial Registries (Federação leagues across the World Bank National Confederation of Trade Nacional das Juntas Comerciais), Group. David C. Francis, Sylvia in Goods, Services and Tourism the Presidents of the state commer- Solf and Xavier Cirera reviewed of Brazil (Confederação Nacional cial registries, the property registries, the full text. Experts in each of do Comércio de Bens, Serviços the state courts, the state military the five indicator areas measured e Turismo, CNC), the Brazilian firefighters corps, the state and were consulted during the draft- Federation of Banks (Federação municipal secretariats of finance, ing process: Alejandro Espinosa- Brasileira de Bancos, FEBRABAN) the municipal licensing, environ- Wang, Daniel Alvarez, Frederic and the Brazilian Service of mental and urbanism departments, Meunier, Jayashree Srinivasan, Support for Micro and Small the state associations of notaries and Jean Nicolas Arlet, Joanna Nasr, Enterprises (Serviço Brasileiro registrars, and Sebrae’s federal and Kamal Chakaroun, Klaus Decker, de Apoio às Micro e Pequenas local state branches. Maria Antonia Quesada Gamez Empresas, Sebrae). and Marie-Lily Delion. The names of those contributors Data collection was carried out wishing to be acknowledged are Paloma Anos Casero (World Bank in collaboration with Demarest listed on the following pages and Country Director), Norman V. Advogados, whose team was led online at http://www.doingbusiness Loayza (Director, Global Indicators by João Almeida and Matheus .org/brazil. Group), Rita Ramalho (Senior Fontes Wahrsager. 338 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Luiz Eduardo de Araújo Santos AMAPÁ Luciano de Almeida Souza Coelho PRIVATE SECTOR Araújo e Almeida Advogados Associados Marcelo Porpino Nunes Coelho & Tachy Advogados CONTRIBUTORS Lawrence Santini 1º Ofício de Registro de Imóveis Eloy Nunes Michelle Nascimento Tachy Coelho ASAP Documentos Coelho & Tachy Advogados Nino Jesus Aranha Nunes ACRE Luís Guilherme Souza 1º Ofício de Registro de Imóveis Eloy Nunes Adriana Rother Lawrence Santini ASAP Documentos DD&L Advogados Associados Lawrence Santini ASAP Documentos Diego Malta Brandão ASAP Documentos Cristiane Frota Luís Guilherme Souza Brandão & Brandão Sociedade de Advogados DD&L Advogados Associados Luís Guilherme Souza ASAP Documentos Eraldo Malta Brandão ASAP Documentos Marcela Melo Carlos Eduardo Marino Orsolon Brandão & Brandão Sociedade de Advogados DD&L Advogados Associados Sidney Canezin Demarest Advogados Ronaldo de Campos Canezin Leilões Paulo Cezar Araujo Duarte Deborah Alvarez Mendes D'Campos Consultoria e Contabilidade DD&L Advogados Associados Carlos Eduardo Marino Orsolon Demarest Advogados Carlos Eduardo Marino Orsolon Demarest Advogados Rayane Cristina Carvalho Lins Fernanda Barata Santana Demarest Advogados DD&L Advogados Associados Deborah Alvarez Mendes Demarest Advogados Fernanda Barata Santana Demarest Advogados Rebeca Larrat Gabriella de Almeida Soares Demarest Advogados DD&L Advogados Associados Fernanda Barata Santana Demarest Advogados Marcello Pedroso Pereira Demarest Advogados Simone Pinto Marcello Pedroso Pereira Demarest Advogados DD&L Advogados Associados Marcello Pedroso Pereira Demarest Advogados Nicolle Marques Robles Demarest Advogados Thomás Cordeiro Nicolle Marques Robles Demarest Advogados DD&L Advogados Associados Mateus Bortolini Demarest Advogados Virgílio Vilar Brasileiro Demarest Advogados Ubaldino Meirelles Deonízia Kiratch ENGEMAP DD&L Advogados Associados Nicolle Marques Robles Deonízia Leilões Daniel Crescencio Vergetti Demarest Advogados Edson Antônio Sousa Pontes Pinto Edson Antônio Sousa Pontes Pinto FRLN Advogados DPLAW - Pontes Pinto e Pignaneli Edson Antônio Sousa Pontes Pinto Sociedade de Advogados DPLAW - Pontes Pinto e Pignaneli Gustavo Henrique Gonçalves Nobre DPLAW - Pontes Pinto e Pignaneli Sociedade de Advogados FRLN Advogados Sociedade de Advogados Flávia Torres Vinícius de Almeida Alves DPLAW - Pontes Pinto e Pignaneli Samara Noemia Marques Regis Vinícius de Almeida Alves Sociedade de Advogados DPLAW - Pontes Pinto e Pignaneli Sociedade de Advogados FRLN Advogados DPLAW - Pontes Pinto e Pignaneli Sociedade de Advogados Vinícius de Almeida Alves Marcus de Sales Loureiro Filho DPLAW - Pontes Pinto e Pignaneli Diego Rosi DRS Advocacia e Consultoria Jurema Loureiro Normande e Alves Luis Antonio Ribeiro Sociedade de Advogados Pinto Advogados Associados Ribeiro & Veronice Alves Advogados Karoline Nobre Fraga Tognere Walter Lima Damascenno Lauro Braga Andrea Balzano Ilarri Hunters Engenharia e Consultoria LTDA DRS Advocacia e Consultoria LB Imóveis RSM Brasil Consultoria Empresarial LTDA Luis Paulo Silva Evangelista Cesar Dias Dalmo M. Peixoto Neto Alex Sampaio do Nascimento Marchiori, Sachet, Barros & Dias Advogados LCA Construções e Serviços LiveCon Empreendimentos Sampaio do Nascimento Advogados Raiff Pimentel Soares Emerson Ferreira das Neves Andrea Feitosa Sanrlei Polini Marchiori, Sachet, Barros & Dias Advogados Mafra & Soares Advogados Associados Martorelli Advogados Sanrlei Polini Engenharia Consultiva Renata Lima de Oliveira Geraldo Vinícus dos Santos Daniel Conde Barros Carla Dutra Marchiori, Sachet, Barros & Dias Advogados Renata Lima Arquitetura Martorelli Advogados Vers Contabilidade Andrea Balzano Ilarri Luiz Fernando Sachet Everton Leite Didoné Priscilla Oliveira Marchiori, Sachet, Barros & Dias Advogados RSM Brasil Consultoria Empresarial LTDA Martorelli Advogados Vers Contabilidade Amanda Martins Mário de Castro Marchiori Fabiana Nunes Costa Liliane Guerra Marchiori, Sachet, Barros & Dias Advogados Sanrlei Polini Engenharia Consultiva Martorelli Advogados Márcio Rodrigo Nunes de Souza Mirella de Castro Nanni Fabiana Barrocal Jorge Fausto de Souza Neto Marchiori, Sachet, Barros & Dias Advogados Sanrlei Polini Engenharia Consultiva Martorelli Advogados AMAZONAS Sanrlei Polini Bárbara Mendes Pedro Becker Calheiros Ana Paula Mota da Silva PLC Advogados Sanrlei Polini Engenharia Consultiva Martorelli Advogados 2º Ofício de Registro de Imóveis de Manaus Tatiana Zanella Afife Martins Rafael Oliveira Soares Marcelo Lima Filho Primers Consultoria e Legalização Imobiliária Sanrlei Polini Engenharia Consultiva Martorelli Advogados 2º Tabelionato e Registros Carla Dutra Públicos de Manacapuru/AM Caroline Delmondes Sérgio Lúdmer Primers Consultoria e Legalização Imobiliária Vers Contabilidade Martorelli Advogados Silvana Martins da Silva Lima Priscilla Oliveira 4º Tabelionato de Notas de Manaus Sabrina Rampim Vitor Piatti Paiva Primers Consultoria e Legalização Imobiliária Vers Contabilidade Piatti & Paiva Advogados Carlos Renner Cardoso Bentes Costa Andressa Melo de Siqueira Andrade GC Advogados Tiago Barbosa Leite Andrea Balzano Ilarri Primers Consultoria e Legalização Imobiliária Zanin & Siqueira Advogados RSM Brasil Consultoria Empresarial LTDA Victor Bastos da Costa Andrade GC Advogados Renata Lima de Oliveira ALAGOAS Sanrlei Polini Renata Lima Arquitetura Sanrlei Polini Engenharia Consultiva Lawrence Santini João Toledo de Albuquerque ASAP Documentos Andrea Balzano Ilarri 1º Registro de Imóveis e Hipotecas de Maceió Tiago Risco Padilha RSM Brasil Consultoria Empresarial LTDA TRP Advocacia Luís Guilherme Souza Lara Cansação de Albuquerque Ayres ASAP Documentos Sanrlei Polini 3º Registro de Imóveis e Distribuição Carla Dutra Sanrlei Polini Engenharia Consultiva de Protesto de Maceió Vers Contabilidade Silvya Neves Associação dos Notários e Registradores Miguel Capobiango Osman Sobral e Silva Priscilla Oliveira do Estado do Amazonas (ANOREG/AM) Solaris Serviços e Construção LTDA Agência de Leilões Freire Vers Contabilidade João Henrique Gasparino Cristiane Melo Sotto Mayor Andrey Felipe dos Santos Diego Monteiro Ballstaedt Gasparino & Leite Advogados Sotto Mayor Arquitetura e Urbanismo Andrey Felipe dos Santos Sociedade Individual de Advocacia Igor Pacheco Acknowledgments 339 João Pedro Castro Pérola de Abreu Farias Carvalho Gilmara Barbosa Drauzio Barros Lea Valdo Castro Engenharia MMC & Zarif Advogados Abreu, Barbosa e Viveiros Advogados R. Amaral Advogados Valdo Castro Vilmar Rocha Juliana Abreu Gustavo Bevilaqua Valdo Castro Engenharia MONTEC Engenharia Abreu, Barbosa e Viveiros Advogados R. Amaral Advogados Priscilla Oliveira Cezar Valante Marcos Viveiros Igor Azevedo Vers Contabilidade Organização Silveira Abreu, Barbosa e Viveiros Advogados R. Amaral Advogados Wesley Silva Ramos Tania Azevedo André Milério de Aguiar Ilo Marques WR Leilões Organização Silveira Albuquerque Pinto Advogados R. Amaral Advogados Agnailde Rodrigues da Cunha Tavares Gabriela Romero Coelho Jonathan Melo BAHIA R. Amaral Advogados PRCont Contabilidade e Consultoria LTDA Albuquerque Pinto Advogados Maurício da Silva Lopes Filho Laerte de Castro Alves 2º Ofício do Registro de Imóveis de Salvador Bruna da Costa Melo Cabral Giuliano Pimentel Fernandes Primers Consultoria e Legalização Imobiliária Albuquerque Pinto Advogados R. Amaral Advogados Diogo Oliveira Canuto Larissa Freitas 4º Ofício do Registro de Imóveis de Salvador Sabrina Rampim Juliana Lousada Primers Consultoria e Legalização Imobiliária Albuquerque Pinto Advogados R. Amaral Advogados Roberto Paulino de Albuquerque Junior Lauro Leite 5º Ofício de Registro de Imóveis de Salvador Renata Lima de Oliveira Luciana Gurgel Lopes Frota Renata Lima Arquitetura Albuquerque Pinto Advogados R. Amaral Advogados Murilo Mattos Lorenna Barros Albuquerque Pinto Advogados Andrea Balzano Ilarri Marcus Vinícius de Almeida R. Amaral Advogados RSM Brasil Consultoria Empresarial LTDA Albuquerque Pinto Advogados Gustavo Amorim Luis Armando Saboya Amorim Marinho Advogados Sanrlei Polini Mariella Gondim Rocha R. Amaral Advogados Sanrlei Polini Engenharia Consultiva Albuquerque Pinto Advogados Elizabete Oliveira Marcus Vinícius Souza ASAP Documentos Carla Dutra Nicole Coutinho Bezerra R. Amaral Advogados Vers Contabilidade Albuquerque Pinto Advogados Lawrence Santini Marina Faust ASAP Documentos Priscilla Oliveira Pedro Albuquerque R. Amaral Advogados Vers Contabilidade Albuquerque Pinto Advogados Luís Guilherme Souza Raphael Araujo ASAP Documentos Robson Luis dos Santos Cardoso Rômulo Alexandre Soares R. Amaral Advogados Albuquerque Pinto Advogados Sandra Blanco CEARÁ Raul Amaral ASCONT Consultoria Contábil Thiago Gomes de Matos Augusto Borges R. Amaral Advogados Werbster Bezerra Frota Albuquerque Pinto Advogados Renata Malcon M. Badaró de Almeida 1º Ofício de Notas e Protestos de Fortaleza Rejanne Almeida Badaró Almeida & Advogados Associados Lawrence Santini R. Amaral Advogados Emanuella Lopes ASAP Documentos Diego Bomfim 1º Ofício de Registro de Imóveis de Fortaleza Sami Arruda Bomfim Novis Advogados Luís Guilherme Souza R. Amaral Advogados Ingrid Fatori ASAP Documentos Marselle Bomfim 1º Ofício de Registro de Imóveis de Fortaleza Silvio Almeida Bomfim Novis Advogados Miguel Jefferson do N. Ferreira R. Amaral Advogados Ívina Gê Trigueiro Associação dos Notários e Registradores André Bittencourt 1º Ofício de Registro de Imóveis de Fortaleza do Ceará (ANOREG/CE) Ted Pontes Borel e Prates Advogados Associados R. Amaral Advogados Francisco Vagner Queiroz Rodrigues Leonardo Tavares de Souza Marcus Borel 3º Ofício de Registro de Imóveis de Fortaleza Capta Engenharia Victor Reis Borel e Prates Advogados Associados R. Amaral Advogados Karla Patrícia de Castro Almeida Vieira Daniel Bezerra Lima Verde Vitor de Azevedo Cardoso 3º Ofício de Registro de Imóveis de Fortaleza Conttax Eficiência Tributária Renata Lima de Oliveira Cardoso, Brito & Paes Lomes Renata Lima Arquitetura Advogados Associados Sérgio Vicente Marcos Jeferson Spiering Böes 3º Ofício de Registro de Imóveis de Fortaleza Inova Engenharia Andrea Balzano Ilarri André Luís Barbosa dos Santos RSM Brasil Consultoria Empresarial LTDA Connect Contabilidade e Consultoria Icaro Andrade Martins Luciano Ramos Leite 5º Ofício de Registro de Imóveis de Fortaleza Luciano Ramos Arquitetura Sanrlei Polini Antonio Carlos Ribeiro da Silva Sanrlei Polini Engenharia Consultiva Connect Contabilidade e Consultoria Manuel Candido Filho Diego Paulino 5º Ofício de Registro de Imóveis de Fortaleza Marcos Inácio Advogados Carlos Siebra Marcelo Perez Siebra & Rocha Advogados CST Expansão Urbana LTDA Francisco de Sales Alcântara Passos Mariana Santoro 6º Ofício de Registro de Imóveis de Fortaleza Marcos Inácio Advogados Bernardo Macêdo Martins Anna Fernandes Teles e Alves Advogados Associados GAM Arquitetos Pablo Cavalcante e Silva Fernando Montenegro 6º Ofício de Registro de Imóveis de Fortaleza Montenegro Leilões Deborah de Figueiredo Satiro Lordao Irena Martins Teles e Alves Advogados Associados Gomes Martins Advocacia Empresarial Taís Alcântara Braga Eleonora Santiago 6º Ofício de Registro de Imóveis de Fortaleza Portela, Lima, Lobato & Colen Advogados Haylton de Souza Alves José Carlos Mosselman Pereira Junior Teles e Alves Advogados Associados K10 Contadores Associados LTDA Carlos Augusto de Oliveira Júnior Elizeth Alves Abax Auditoria e Consultoria Portela, Lima, Lobato & Colen Advogados José Teles Bezerra Junior Carlos Correa Ribeiro Teles e Alves Advogados Associados Luz & Arquitetos Associados Felipe da Silva Martins Natália Meirelles Abax Auditoria e Consultoria Portela, Lima, Lobato & Colen Advogados Priscilla Oliveira Artur Tanuri Vers Contabilidade Matos e Tanuri Advogados Fernando Serejo Tiago Valadares Abax Auditoria e Consultoria Portela, Lima, Lobato & Colen Advogados Daniel Medina Ataíde ESPÍRITO SANTO Medina & Menezes Advogados Associados Ítalo Bandeira Fernandes Alexandre Linhares Helvecio Duia Castello Abax Auditoria e Consultoria R. Amaral Advogados 2º Ofício do Registro de Imóveis de Vitória Eberte da Cruz Menezes Medina & Menezes Advogados Associados Nayana Inácio Alice Nogueira Leonardo Gonoring Abax Auditoria e Consultoria R. Amaral Advogados Abreu Judice Advogados Diego Rodrigues Melo, Lavigne, Chaves & Rodrigues Sany Ferreira Guerra Alysson Bezerra Luciana Marques de Abreu Judice Advogados Associados Abax Auditoria e Consultoria R. Amaral Advogados Abreu Judice Advogados Luana Pessoa Buzanelli André Passos Arabella Pinheiro Renan de Angeli Prata MMC & Zarif Advogados Abreu, Barbosa e Viveiros Advogados R. Amaral Advogados Abreu Judice Advogados 340 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Lawrence Santini Vítor Grasselli Victor Rufino Afife Martins ASAP Documentos Mudrovitsch Advogados Primers Consultoria e Legalização Imobiliária FEDERAL DISTRICT Luís Guilherme Souza Nagib Maluf Caroline Delmondes ASAP Documentos Lawrence Santini NGB Engenharia Primers Consultoria e Legalização Imobiliária ASAP Documentos Marcos Vinícius Pinto Marlon Piza Sabrina Rampim Bachour, Dalvi, Pinto & Oliveira Luís Guilherme Souza Piza Contabilidade Primers Consultoria e Legalização Imobiliária Santos Advogados Associados ASAP Documentos Afife Martins Guerreiro Arco Melo Bernardo Leite Danielle Freitas Primers Consultoria e Legalização Imobiliária Registro de Imóveis da 1ª Bortot Cesar e Advogados Associados Azevedo Sette Advogados Circunscrição de Goiânia Caroline Delmondes Débora Morais Patrocínio Danilo Lemos Loli Primers Consultoria e Legalização Imobiliária Juliana Tosta Da Luz, Rizk & Nemer Advogados Associados Azevedo Sette Advogados Sabrina Rampim Renova Engenharia Felipe Itala Rizk Roberto Mariano Soares Primers Consultoria e Legalização Imobiliária Bruno Damas Albuquerque Da Luz, Rizk & Nemer Advogados Associados Azevedo Sette Advogados Maíra Mendonça de Castilho Rocha, Carneiro e Albuquerque Advogados Jaqueline Silva João Henrique Gasparino Projettus LTDA Luiz Carlos Cezar Ferreira Da Luz, Rizk & Nemer Advogados Associados Ballstaedt Gasparino & Leite Advogados Bruno Damas Albuquerque Rocha, Carneiro e Albuquerque Advogados Lucas Corradi Ferreira Brandão Hércules Benício Rocha, Carneiro e Albuquerque Advogados Rafael Macedo Da Luz, Rizk & Nemer Advogados Associados Cartório do 1º Ofício do Maria Julia de Souza Rocha de Macedo Rocha, Carneiro e Albuquerque Advogados Núcleo Bandeirante/DF Rocha, Carneiro e Albuquerque Advogados Pedro Cota Passos Álvaro Augusto Camilo Mariano Da Luz, Rizk & Nemer Advogados Associados João Pedro Câmara Rafael Macedo Rodovalho Advogados Companhia Imobiliária de Brasília (Terracap) Rocha, Carneiro e Albuquerque Advogados Rafael Ramos Friggi Cynthia Almeida de Oliveira Da Luz, Rizk & Nemer Advogados Associados Anderson Nunes Andrea Balzano Ilarri Rodovalho Advogados Expert Assessoria RSM Brasil Consultoria Empresarial LTDA Viviane Menzes Eléia Alvim Barbosa de Souza Da Luz, Rizk & Nemer Advogados Associados Gabriela Marcondes Sanrlei Polini Rodovalho Advogados Gabriela Marcondes Advocacia Sanrlei Polini Engenharia Consultiva David Hadley Flávio Rodovalho Demarest Advogados Fernanda Flecha Renata Tuma e Pupo Rodovalho Advogados Gonçalves Flecha Advocacia Tuma e Pupo Advocacia Deborah Alvarez Mendes Ivan Sousa Demarest Advogados Marco Antônio Coêlho Lara Jacques Veloso Rodovalho Advogados Lara, Pontes & Nery Advogados Veloso de Melo Advogados Walter Lima Damascenno José Carlos Issy Hunters Engenharia e Consultoria LTDA Alberto Malta Priscilla Oliveira Rodovalho Advogados Malta Advogados Vers Contabilidade Diego Carlos Pinasco Juliana Cardoso Menezes & Pinasco Advogados Associados Davi Ory Rodovalho Advogados Malta Advogados GOIÁS Felipe Barbosa de Menezes Marcelo Magalhães Mesquita Menezes & Pinasco Advogados Associados Cesar Dias André Luiz Aidar Alves Rodovalho Advogados Marchiori, Sachet, Barros & Dias Advogados André Aidar Sociedade Bruna da Costa Melo Cabral Individual de Advocacia Marciel Augusto Raimundo Lira Primers Consultoria e Legalização Imobiliária Emerson Ferreira das Neves Rodovalho Advogados Marchiori, Sachet, Barros & Dias Advogados Arthur Rios Junior Renata Amorim Arthur Rios Advogados Rafael Mendes Guimarães Primers Consultoria e Legalização Imobiliária Luiz Fernando Sachet Rodovalho Advogados Marchiori, Sachet, Barros & Dias Advogados Lawrence Santini Sabrina Rampim ASAP Documentos Raquel Pagliaro Primers Consultoria e Legalização Imobiliária Mário de Castro Marchiori Rodovalho Advogados Marchiori, Sachet, Barros & Dias Advogados Luís Guilherme Souza Simone Neves Alvim ASAP Documentos Andrea Balzano Ilarri RS Construtora e Incorporadora LTDA Mirella de Castro Nanni RSM Brasil Consultoria Empresarial LTDA Marchiori, Sachet, Barros & Dias Advogados Mateus da Silva Andrea Balzano Ilarri Cartório Silva Sanrlei Polini RSM Brasil Consultoria Empresarial LTDA Davi Sá Sanrlei Polini Engenharia Consultiva Marcos Inácio Advogados Mateus Carvalho Carlos Gerhard Cesar Containers Humberto Silva Lima RSM Brasil Consultoria Empresarial LTDA Diego Paulino UNYT Arquitetura de Resultados Marcos Inácio Advogados Paulo Fernandes Filho Eduardo Negrão Cesar Containers Priscilla Oliveira RSM Brasil Consultoria Empresarial LTDA Raphaela Neves Vers Contabilidade Marcos Inácio Advogados Igor França Guedes Juan Farias Colégio Registral Imobiliário de Goiás Dirce Socorro Guizzo RSM Brasil Consultoria Empresarial LTDA Wilder de Paula Sateles Mezza Engenharia e Soluções Ambientais Carlos Eduardo Marino Orsolon Eloizio Rezende Viviane Pereira Demarest Advogados RSM Brasil Consultoria Empresarial LTDA Samanta Souza Paulo Emílio de Oliveira e Silva Moura e Souza Advogados Fernanda Barata Santana Amanda Martins Demarest Advogados Rafaela Campelo Sanrlei Polini Engenharia Consultiva Gabriel Ávila Mudrovitsch Advogados Marcello Pedroso Pereira MARANHÃO Fabiana Barrocal Demarest Advogados Sanrlei Polini Engenharia Consultiva Laís Porto Zenildo Bodnar Mudrovitsch Advogados Nicolle Marques Robles 1º Cartório de Registro de Imóveis de São Luís Sanrlei Polini Demarest Advogados Sanrlei Polini Engenharia Consultiva Maria Eduarda Eiras Lucas Cardoso Lopes Semeghini Mudrovitsch Advogados Hugo Moreira 4º Cartório de Registro de Imóveis de São Luís Tatiana Zanella Keep Training Assessoria e Consultoria Sanrlei Polini Engenharia Consultiva Pedro Abaurre Welligton Garcez Silva Mudrovitsch Advogados Leandro Alves da Silva Acontab Contabilidade e Consultoria Rider Rodrigues Pontes Leandro Alves Sociedade Unicon - União Contábil LTDA Raphael Marcelino Individual de Advocacia Antonio Zacarias Ferreira de Castro Mudrovitsch Advogados Agrasty Construções Carla Dutra Wilder de Paula Sateles Vers Contabilidade Rodrigo Mudrovitsch Mezza Engenharia e Soluções Ambientais Lawrence Santini Mudrovitsch Advogados ASAP Documentos Priscilla Oliveira Cristiane Morgado Vers Contabilidade Morgado Advocacia Acknowledgments 341 Luís Guilherme Souza José de Arimateia Francisco Pereira Gonçalves João Hercílio de Araújo Filho ASAP Documentos Associação dos Notários e Registradores do AF Gonçalves Empreendimentos Contabeis Sindicato dos Corretores de Imóveis de Estado de Mato Grosso (ANOREG/MT) Mato Grosso do Sul (Sindimóveis-MS) Celso Henrique Borgneth Roberto Arruda de Amorim CB Engenharia Leonardo Sülzer Parada Amorim Contábil Leandro Pavão Aued & Sülzer Parada Sottoriva Advogados Associados Carlos Eduardo Marino Orsolon Advogados Associados Lawrence Santini Demarest Advogados ASAP Documentos Lucas Sottoriva Munir Martins Salomão Sottoriva Advogados Associados Daniela Onici Carlos, Marques, Vieira & Luís Guilherme Souza Demarest Advogados Davanso Advogados Associados ASAP Documentos Carla Dutra Vers Contabilidade Deborah Alvarez Mendes Djalma Ribeiro Tiago Bana Franco Demarest Advogados Central Eletrônica de Integração Bana Franco, Vilela Neto Priscilla Oliveira e Informações dos Serviços e Andreasi Advocacia Vers Contabilidade Fernanda Barata Santana Notariais e Registrais do Estado Demarest Advogados de Mato Grosso (CEI-MT) Vinícius Carlotto Gonçalves Eduardo Gomes Bana Franco, Vilela Neto WGSA Wanderley Gomes Marcello Pedroso Pereira Beatriz de Oliveira Freitas Neiva e Andreasi Advocacia Demarest Advogados Demarest Advogados Fernando Henrique Borges Leal Ramos Alessandra Arce Fretes Nicolle Marques Robles Carlos Eduardo Marino Orsolon Carlos, Marques, Vieira & Lucas Santos Demarest Advogados Demarest Advogados Davanso Advogados Associados Marcos Tadeu Lázaro de Lima Luís Eduardo Caldas Santos Deborah Alvarez Mendes Mariana Marques Lara, Pontes & Nery Advogados Vera Lucia Giraldelli Peri Demarest Advogados Carlos, Marques, Vieira & Davanso Advogados Associados Marco Antônio Coêlho Lara Fernanda Barata Santana MINAS GERAIS Lara, Pontes & Nery Advogados Demarest Advogados Matheus Camy Duarte Eduardo Calais Carlos, Marques, Vieira & Rafael Bayma de Castro Ian Delgado de Oyague Diniz de Oliveira 1º Cartório de Notas de Igarapé Davanso Advogados Associados Lara, Pontes & Nery Advogados Demarest Advogados Emerson Rodrigues Neiva João Luis Ribeiro de Almeida Noely Vieira Vinicius Cesar Santos de Moraes 1º Registro de Imóveis de Belo Horizonte Demarest Advogados Carlos, Marques, Vieira & Lara, Pontes & Nery Advogados Davanso Advogados Associados Fernando Pereira do Nascimento Ariza Cavedon Marcello Pedroso Pereira 1º Registro de Imóveis de Belo Horizonte Demarest Advogados Yan Queiroz Marshelli Contabilidade LTDA Carlos, Marques, Vieira & Taline Gabriela de Oliveira Soares Renata Lima de Oliveira Marcus Castro Brumano Ferreira Davanso Advogados Associados 1º Registro de Imóveis de Belo Horizonte Renata Lima Arquitetura Demarest Advogados Beatriz de Oliveira Freitas Neiva Lawrence Santini Andrea Balzano Ilarri Matheus Fontes Wahrsager Demarest Advogados ASAP Documentos RSM Brasil Consultoria Demarest Advogados Carlos Eduardo Marino Orsolon Luís Guilherme Souza Empresarial LTDA Nicolle Marques Robles Demarest Advogados ASAP Documentos Sanrlei Polini Demarest Advogados Fernanda Barata Santana Leticia Maculan Sanrlei Polini Engenharia Consultiva Elizabete Pereira Demarest Advogados Cartório de Registro Civil Emerson Barros Ernesto Borges Advogados e Notas do Barreiro João Luis Ribeiro de Almeida TECPROJ Plotagem e Projetos Flavia Benites Demarest Advogados Tiago Moreira Ernesto Borges Advogados Tayssa Mohana D Carvalho Consultoria e Engenharia Marcello Pedroso Pereira Ulisses Sousa Advogados Associados Vitor Toré Negrão Demarest Advogados Mauro Conte Filho Exatus Contabilidade Ulisses Sousa Demarest Advogados Marcus Castro Brumano Ferreira Ulisses Sousa Advogados Associados Gustavo Fernandes da Silva Peres Demarest Advogados Alberto Gontijo Mendes Ferreira Franco e Peres Advogados Carla Dutra Gontijo Mendes Advogados Associados Matheus Fontes Wahrsager Vers Contabilidade Taísa Fernandes da Silva Peres Demarest Advogados Lorena Neves Ferreira Franco e Peres Advogados Priscilla Oliveira Gontijo Mendes Advogados Associados Nicolle Marques Robles Vers Contabilidade Luiz Gustavo Derze Villalba Carneiro Demarest Advogados Paulo Amaral Oliveira Gonzaga Advogados Associados José Inácio Vilar Guimarães Rodrigues Gontijo Mendes Advogados Associados Andrea Balzano Ilarri Felipe Accioly de Figueiredo Vieira, Lima & Vilar Rodrigues Advocacia RSM Brasil Consultoria Empresarial LTDA Epelbaum Advogados Vanessa Cavalcanti Ronaldo Santos Gontijo Mendes Advogados Associados Amanda Martins Matheus Wrubel Sanrlei Polini Engenharia Consultiva Epelbaum Advogados Cintia Castro MATO GROSSO J. Lemara Fabiana Barrocal Rodrigo Giraldelli Peri Julia Asckar Sanrlei Polini Engenharia Consultiva Giraldelli Advogados Cristina Santana 6º Ofício de Registro de Imóveis de Cuiabá K2 Arquitetura e Interiores Sanrlei Polini Max Lázaro Trindade Nantes Flávio Santos Sanrlei Polini Engenharia Consultiva Karmouche & Nantes Advogados Associados Leirson Cunha Appoint projetos e construções LTDA K2 Arquitetura e Interiores Tatiana Zanella Gustavo Correa Pereira da Silva Karina Volkmann Ultramare Santos Sanrlei Polini Engenharia Consultiva Leilões Online MS Humberto Rossetti Portela Appoint projetos e construções LTDA PLC Advogados Carla Dutra William Nascimento Tavares José Pedro de Araújo Vers Contabilidade Oliveira & Tavares Advogados Associados Mariana da Silva Santos Araújo Leilões PLC Advogados Priscilla Oliveira Hilário Henrique Medeiros Borges Lawrence Santini Vers Contabilidade Oliveira, Vale, Securato & Eleonora Santiago ASAP Documentos Abdul Ahad Advogados Portela, Lima, Lobato & Colen Advogados Luís Guilherme Souza MATO GROSSO DO SUL Ruberle Bulgareli Elizeth Alves ASAP Documentos João Gilberto Gonçalves Filho RB2 Consultoria Portela, Lima, Lobato & Colen Advogados Carlos Antonio Perlin 1º Ofício de Registro de Andrea Balzano Ilarri Josiane Moreira Assis, Perlin & Florêncio Advocacia Imóveis de Campo Grande RSM Brasil Consultoria Empresarial LTDA Portela, Lima, Lobato & Colen Advogados Anete Ribeiro José Paulo Baltazar Junior Sanrlei Polini Mariana Santos Associação dos Notários e Registradores do 3º Ofício de Registro de Sanrlei Polini Engenharia Consultiva Portela, Lima, Lobato & Colen Advogados Estado de Mato Grosso (ANOREG/MT) Imóveis de Campo Grande 342 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Natália Meirelles Luís Guilherme Souza Esdras Carvakgi Luiz Boscardin Portela, Lima, Lobato & Colen Advogados ASAP Documentos Carvalho e Silva Advogados 5º Ofício de Registro de Imóveis de Curitiba Tiago Valadares Amanda Ferreira Carlos Eduardo Marino Orsolon Jorge Luis Moran Portela, Lima, Lobato & Colen Advogados Centeno, Nascimento, Pinheiro, Almeida Demarest Advogados 6º Ofício de Registro de Imóveis de Curitiba & Graim Advogados Associados Marcus Felipe Rezende Deborah Alvarez Mendes Irani Salgado de Souza Villen Rezende & Gonçalves Sociedade de Advogados Arthur Siso Pinheiro Demarest Advogados 7º Ofício de Registro de Imóveis de Curitiba Centeno, Nascimento, Pinheiro, Almeida Alessandra Rezende Torres & Graim Advogados Associados Fernanda Barata Santana Astrogildo Gobbo Rolim, Viotti & Leite Campos Advogados Demarest Advogados 9º Ofício de Registro de Imóveis de Curitiba Bernardo Almeida Andresa Cunha de Faria Centeno, Nascimento, Pinheiro, Almeida Giovanna Montera Arthur Achiles de Souza Correa Rolim, Viotti & Leite Campos Advogados & Graim Advogados Associados Demarest Advogados AASC Trade Law Antonio José Ferreira Levenhagen Marcello Pedroso Pereira César Laitner Paula Cerqueira Rolim, Viotti & Leite Campos Advogados Demarest Advogados ALLCON Engenharia Centeno, Nascimento, Pinheiro, Almeida Camila Ramos Quirino & Graim Advogados Associados Nicolle Marques Robles Ocimar Pereira Rolim, Viotti & Leite Campos Advogados Demarest Advogados ALLCON Engenharia Carlos Eduardo Marino Orsolon Deliana Salomão de Castro Demarest Advogados João Guilherme Quirino Nelo Lawrence Santini Rolim, Viotti & Leite Campos Advogados DON Engenharia Fernanda Barata Santana ASAP Documentos Fábio Diniz Appendino Demarest Advogados Diego Rosi Luís Guilherme Souza Rolim, Viotti & Leite Campos Advogados DRS Advocacia e Consultoria Marcello Pedroso Pereira ASAP Documentos Frederico de Almeida Fonseca Demarest Advogados Karoline Nobre Fraga Tognere Cláudio Bega Rolim, Viotti & Leite Campos Advogados DRS Advocacia e Consultoria Nicolle Marques Robles Bega, Sbrissia & Alarcão Advogados Helvécio Franco Maia Junior Demarest Advogados Rômulo Thomaz de Figueiredo Borja Izabella Romero Rolim, Viotti & Leite Campos Advogados Estrutural Projetos Edson Antônio Sousa Pontes Pinto Bega, Sbrissia & Alarcão Advogados Hugo Barbosa Veneroso DPLAW - Pontes Pinto e Pignaneli Eduardo Marques de Lucena Sociedade de Advogados Gomes & Marques Advogados Associados Jaime Rafael Alarcão Rolim, Viotti & Leite Campos Advogados Bega, Sbrissia & Alarcão Advogados Vinícius de Almeida Alves José Gomes de Lima Neto Luís Felipe Bernardes Sá Teles Thaís Magrini Schiavon DPLAW - Pontes Pinto e Pignaneli Gomes & Marques Advogados Associados Rolim, Viotti & Leite Campos Advogados Bega, Sbrissia & Alarcão Advogados Sociedade de Advogados Diego Paulino Luis Gustavo Miranda Jefferson Comelli Flaviana Aoki Marcos Inácio Advogados Rolim, Viotti & Leite Campos Advogados Casillo Advogados Formatus Engenharia Rafael Marques Nóbrega Natália Miranda Sadi Letícia Maria Benvenutti Tesser Gabriel Creão de Oliveira Marcos Inácio Advogados Rolim, Viotti & Leite Campos Advogados Casillo Advogados Gabriel Creão Advocacia Carlos Frederico Nóbrega Farias Patrícia Pilo Bittencourt Redig Nóbrega Farias Advogados Associados Luiz Phillip Nagy Guarani Moreira Rolim, Viotti & Leite Campos Advogados Mirian Camanes Vidal Telles M274 Arquitetura Casillo Advogados Eduardo Maia Paiva Tomás Vaz de Oliveira Brandão Nóbrega Farias Advogados Associados Ângela Estorilio Silva Franco Rolim, Viotti & Leite Campos Advogados Márcio Maués Márcio Maués Advogado Tributarista Casillo Advogados George Ottavio Brasilino Olegário Andrea Balzano Ilarri Nóbrega Farias Advogados Associados Carlos Eduardo Makoul Gasperin RSM Brasil Consultoria Empresarial LTDA Diego Felipe Reis Pinto Reis Pinto Sociedade Individual de Advocacia Casillo Advogados Rodrigo Nóbrega Farias Sanrlei Polini Nóbrega Farias Advogados Associados Guilherme Gomes X. de Oliveira Sanrlei Polini Engenharia Consultiva Andrea Balzano Ilarri RSM Brasil Consultoria Empresarial LTDA Casillo Advogados Marcelo Pupe Braga Lucimar Cristina Mendes Cançado Pupe Braga Zirpoli Advogados Gustavo Henrique Ellerbrock Serkoa Arquitetura Engenharia Sanrlei Polini Sanrlei Polini Engenharia Consultiva Casillo Advogados Rodrigo Zirpoli Marianne Drumond Pupe Braga Zirpoli Advogados Michel Guerios Netto Serkoa Arquitetura Engenharia Tadeu Alves Sena Gomes Tadeu Alves Sena Gomes Casillo Advogados Rafael Thiamer Ana Paula Melo Sociedade de Advogados Rafael Thiamer Advocacia Patrícia de Barros Correia Casillo Sgarbi & Magalhães Advogados Casillo Advogados Carla Dutra Renata Lima de Oliveira André de Albuquerque Sgarbi Vers Contabilidade Renata Lima Arquitetura Renato Farto Lana Sgarbi & Magalhães Advogados Colégio Notarial do Brasil – seção Paraná Priscilla Oliveira Andrea Balzano Ilarri Bruno Horta Alvim Vers Contabilidade RSM Brasil Consultoria Empresarial LTDA Deborah Alvarez Mendes Sgarbi & Magalhães Advogados Demarest Advogados Marco Lima Sanrlei Polini Daniel de Magalhães Pimenta Sanrlei Polini Engenharia Consultiva Luis Felipe Richter Ferrari Sgarbi & Magalhães Advogados PARAÍBA Demarest Advogados Daniel Sebadelhe Aranha Carla Dutra André Elali Sebadelhe Aranha & Vasconcelos Advocacia Giulia Fontana Bolzani Vers Contabilidade André Elali Advogados Fachin Advogados Associados Carla Dutra Priscilla Oliveira André Felipe Alves da Silva Vers Contabilidade Melina Girardi Fachin Vers Contabilidade André Elali Advogados Fachin Advogados Associados Priscilla Oliveira Fernanda Basques Francisco André Alves Moura Vers Contabilidade Renata Trajan Viabile Arquitetura André Elali Advogados Fachin Advogados Associados PARANÁ Liliane Guerra Georghia Oliveira Costa Patricía Hladczuk André Elali Advogados Luis Flávio Fidelis Gonçalves HLA Engenharia & Consultoria PARÁ Lawrence Santini 1º Ofício de Registro de Imóveis de Curitiba Hélcio Kronberg Cleomar Moura ASAP Documentos Mariana Carvalho Pozenato Martins Kronberg Leilões 1º Ofício de Registro de Imóveis de Belém 2º Ofício de Registro de Imóveis de Curitiba Luís Guilherme Souza Gabriele Cristina Coutinho Larissa Ferreira Rosso Nelson ASAP Documentos Thaís Helena Oliveira Carvajal Mendes Martinelli Advogados 5º Tabelionato de Notas de Belém 3º Ofício de Registro de Imóveis de Curitiba Rogerio Fernandes Walkiria Nossol Lawrence Santini Bureau Contábil Assessoria Marcio de Vasconcelos Martins NossolPontoCom ASAP Documentos Empresarial Eireli 4º Ofício de Registro de Imóveis de Curitiba Acknowledgments 343 Carlos Muller Nethânya Cavalcante Yasmin Azevedo Lawrence Santini Organização Contábil Carlos Muller 7º Ofício de Registro de Imóveis do Recife Franceschini e Moraes Advogados ASAP Documentos Afife Martins Osman Sobral e Silva Alan Vaz de Almeida Luís Guilherme Souza Primers Consultoria e Legalização Imobiliária Agência de Leilões Freire ISC Consultores Associados ASAP Documentos Caroline Delmondes André Elali Paulo Gustavo Cruz Sampaio Eduardo Nehme Primers Consultoria e Legalização Imobiliária André Elali Advogados ISC Consultores Associados Associação dos Notários e Registradores do Estado do Piauí (ANOREG/PI) Sabrina Rampim André Felipe Alves da Silva Caroline Ribeiro Souto Bessa Primers Consultoria e Legalização Imobiliária André Elali Advogados Martorelli Advogados Francisco Campelo Filho Dóris de Souza Castelo Branco Campelo Filho Leonardo Bibas Francisco André Alves Moura Ramina de Lucca, Bibas & Siqueira Advogados André Elali Advogados Martorelli Advogados Carlos Yury Araújo de Morais Fabiana Nunes Costa Carlos Yury Araújo de Morais - José Augusto Hey Georghia Oliveira Costa Sociedade Individual de Advocacia Roberto Ferraz Advogados André Elali Advogados Martorelli Advogados João Amadeus Santos Eduardo Pires Luiz Alfredo Boareto Antônio Mota CEP Engenharia Roberto Ferraz Advogados Antônio Mota Advocacia Estratégica Martorelli Advogados Lara Santos Carlos Eduardo Marino Orsolon Madian Luana Bortolozzi Betti Lawrence Santini Demarest Advogados Martorelli Advogados Roberto Ferraz Advogados ASAP Documentos Marcelle Penha Deborah Alvarez Mendes Nathalia Luize Cafareli Luís Guilherme Souza Demarest Advogados Martorelli Advogados Roberto Ferraz Advogados ASAP Documentos Maria Eduarda da Fonte Fernanda Barata Santana Nelson Souza Neto Igor Meireles Demarest Advogados Martorelli Advogados Roberto Ferraz Advogados Bernhoeft Contadores Nayra Moura Lima Marcello Pedroso Pereira Patrícia Schmitt Mirian Paulo do Amaral Souza Martorelli Advogados Demarest Advogados Roberto Ferraz Advogados Bernhoeft Contadores Paulo Cunha Lima Monique Dias Roberto Catalano Botelho Ferraz Daniela Braga Guimarães Martorelli Advogados Demarest Advogados Roberto Ferraz Advogados Braga Stelitano Advocacia Empresarial Thainá Falcão Nicolle Marques Robles Andrea Balzano Ilarri Fernando Araújo Martorelli Advogados Demarest Advogados RSM Brasil Consultoria Empresarial LTDA Braga Stelitano Advocacia Empresarial Adalberto Arruda Francisco Tales Carlos Gerhard Amanda Rodrigues Ventura Nelson Wilians & Advogados Associados Dias Contador RSM Brasil Consultoria Empresarial LTDA Da Fonte Advogados Barbara Goerlando Emilio Macela Nunes Leal Eduardo Negrão Carlos André Pereira Lima Primers Consultoria e Legalização Imobiliária Macela Leal Advocacia & RSM Brasil Consultoria Empresarial LTDA Da Fonte Advogados Gestão de Conflitos Sabrina Rampim Juan Farias Daniel Valença Primers Consultoria e Legalização Imobiliária Elane Saritta Paulino Moura RSM Brasil Consultoria Empresarial LTDA Da Fonte Advogados Moura & Paulino Sociedade de Advogados Wully Leal Viviane Pereira Eduardo Oertli Primers Consultoria e Legalização Imobiliária Rômulo Freire de Moura Júnior RSM Brasil Consultoria Empresarial LTDA Da Fonte Advogados Moura & Paulino Sociedade de Advogados Maria Betânia Genuíno do Nascimento Sanrlei Polini Felipe Alburquerque Raymundo da Fonte Érica Feitosa Coelho Marinho de Andrade Sanrlei Polini Engenharia Consultiva Da Fonte Advogados Nelson Wilians & Advogados Associados Renata Lima de Oliveira Claudio Roberto Padilha Francisco Siqueira Muniz Renata Lima Arquitetura Paulo Sérgio Damasceno Staut, Fonseca & Padilha Da Fonte Advogados PS Damasceno (Premier André Marinho Advogados Associados Contabil & Despachante) Heliópolis Godoy Rosado, Medeiros & Rêgo Advogados Luciano Giambarresi Ganho Da Fonte Advogados Jerônimo Dix-Neuf Rosado dos Santos Renata Lima de Oliveira Staut, Fonseca & Padilha Rosado, Medeiros & Rêgo Advogados Renata Lima Arquitetura Advogados Associados Jasmin Guimarães Da Fonte Advogados Andrea Balzano Ilarri Raphael Marinho de Andrade Betina Grupenmacher RSM Brasil Consultoria Empresarial LTDA RMA Engenharia Treiger Grupenmacher Advogados Associados Magda Maria Neves Maranhão Leite Da Fonte Advogados Sanrlei Polini Andrea Balzano Ilarri Carla Dutra Sanrlei Polini Engenharia Consultiva RSM Brasil Consultoria Empresarial LTDA Vers Contabilidade Maria Elizabete Queiroz Silva Da Fonte Advogados Frederico Feitosa da Rosa Sanrlei Polini Priscilla Oliveira SFCS Advogados Sanrlei Polini Engenharia Consultiva Vers Contabilidade Mateus Pereira Da Fonte Advogados Carla Dutra Adriana Castelo Branco Soares da Silva Claudiane Abreu Vers Contabilidade Soares Silva Assessoria e Mirella Lucena Consultoria Contábil Tributária Da Fonte Advogados PERNAMBUCO Priscilla Oliveira Vers Contabilidade Stael Freire Miriam Holanda de Vasconcelos Myrtis Costa Stael Freire Sociedade de Advogados 1º Ofício de Registro de Imóveis do Recife Da Fonte Advogados Andre Ayres Carla Dutra André Villaverde de Araújo Rafaela Morais Daniela Schuler Vers Contabilidade 2º Ofício de Registro de Imóveis do Recife Da Fonte Advogados Marcos Pontes Priscilla Oliveira Paulo Olegário Raphaela Gonçalves Vers Contabilidade Da Fonte Advogados 2º Ofício de Registro de Imóveis do Recife PIAUÍ Thiago Normando Simone Dourado Pessoa de Melo Aragão Simony Braga Maria Elizabeth Paiva e Silva Müller 3º Ofício de Registro de Imóveis do Recife Da Fonte Advogados 1º Registro de Imóveis de Teresina RIO DE JANEIRO Valdecy José Gusmão da Silva Junior Mateus Bortolini Meirylane de Oliveira Sousa Sérgio Ávila Doria Martins 3º Ofício de Registro de Imóveis do Recife Demarest Advogados 2º Ofício de Notas e Registro 12º Ofício de Registro de de Imóveis de Teresina Imóveis do Rio de Janeiro Sandra Dourado Gusmão Felipe de Moraes 4º Ofício de Registro de Imóveis do Recife Franceschini e Moraes Advogados Fernanda Maria Ribeiro Gonçalves de Fernando Bezerra Falcão Ricardo Franceschini Sampaio 2º Ofício de Registro de Roberto Lucio de Souza Pereira 3º Ofício de Notas, Protestos, Franceschini e Moraes Advogados Imóveis do Rio de Janeiro 6º Ofício de Registro de Imóveis do Recife RTD e RCPJ de Teresina 344 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Gustavo Mendes Felipe Pestana Gabriel Prado Amarante de Mendonça RIO GRANDE DO SUL 9º Ofício de Registro de Grupo Planus Sacha Calmon Misabel Derzi Imóveis do Rio de Janeiro Consultores e Advogados Lawrence Santini Janaina Torres ASAP Documentos Manuel Fiaschi Grupo Planus Sanrlei Polini a+arquitetura Sanrlei Polini Engenharia Consultiva Luís Guilherme Souza Sueli Diegues ASAP Documentos Priscila Infante Prudente Corrêa Grupo Planus Carla Dutra Aprovcon - Aprovação e Consultoria Vers Contabilidade Ismael Nascente Gonçalves em Legalização de Imóveis LTDA Walter Lima Damascenno Avola Contabilidade, Auditoria e Consultoria Hunters Engenharia e Consultoria LTDA Priscilla Oliveira André Machado Vers Contabilidade Marcelo Fichera Lourenzi Aprove Rio Luciane Reís Avola Contabilidade, Auditoria e Consultoria M. Tavares Consultoria Contábil Vanessa Ruas Fernandes Pereira Lawrence Santini VR Consultoria, Legalizações e Projetos Marcia Oliveira ASAP Documentos Marcia Tavares Sobral de Sousa Avola Contabilidade, Auditoria e Consultoria M. Tavares Consultoria Contábil Anna Carolina Antunes Luís Guilherme Souza Cesar Verch ASAP Documentos Cesar Dias Danielle Pessin Carpena Advogados Marchiori, Sachet, Barros & Dias Advogados João Henrique Gasparino RIO GRANDE DO NORTE Daniela Medeiros Ballstaedt Gasparino & Leite Advogados Emerson Ferreira das Neves Carpena Advogados Marchiori, Sachet, Barros & Dias Advogados Ana Carolina Araujo Maia Aline Coelho 7º Ofício de Notas de Natal Guilherme Guimarães Barbosa, Raimundo, Gontijo Luiz Fernando Sachet Carpena Advogados e Câmara Advogados Marchiori, Sachet, Barros & Dias Advogados Ana Isaura Portela de Macedo Damasceno 7º Ofício de Notas de Natal Julia Feijó Bernardo Steinitz Mário de Castro Marchiori Carpena Advogados Barbosa, Raimundo, Gontijo Marchiori, Sachet, Barros & Dias Advogados José Dantas Lira Júnior Albuquerque Pinto Advogados Valternei Melo e Câmara Advogados Mirella de Castro Nanni Carpena Advogados Cristina Justo Marchiori, Sachet, Barros & Dias Advogados André Elali André Elali Advogados Victoria Leal Barbosa, Raimundo, Gontijo Priscila Calmon Carpena Advogados e Câmara Advogados Marchiori, Sachet, Barros & Dias Advogados André Felipe Alves da Silva André Elali Advogados Fernando Bertuol Renata Gontijo Samanta Souza Construire Arquitetura Projetos Barbosa, Raimundo, Gontijo Moura e Souza Advogados Francisco André Alves Moura e Câmara Advogados Carlos Eduardo Marino Orsolon André Elali Advogados Rodrigo Albuquerque Maranhão de Demarest Advogados Rodrigo Câmara Oliveira Georghia Oliveira Costa Barbosa, Raimundo, Gontijo Fernanda Barata Santana Norval Valério Advogados André Elali Advogados e Câmara Advogados Demarest Advogados Humberto Rossetti Portela Lawrence Santini Marcella Souza Gomes de Britto Freire Marcello Pedroso Pereira PLC Advogados ASAP Documentos Cartório do 1º Ofício de Notas Demarest Advogados Mariana da Silva Santos Luís Guilherme Souza Renato Camilo Perez Melyssa Cogo PLC Advogados ASAP Documentos Cartório do 1º Ofício de Notas Demarest Advogados Bruna da Costa Melo Cabral Débora Medeiros Teixeira de Araújo Leilane Tauil Nicolle Marques Robles Primers Consultoria e Legalização Imobiliária F. Teixeira Advogados Associados Consultor Municipal Demarest Advogados Sabrina Rampim Jose María Montenegro Ribeiro Marcelito Antonio Machado Arthur Rocha Benevides Magalhães Primers Consultoria e Legalização Imobiliária K Contabilidade Consultor Municipal Diego Galbinski Advocacia Alessandra Rezende Torres Francisco Doege Roberto Tauil Diego Galbinski Rolim, Viotti & Leite Campos Advogados Lance Certo Leilões Consultor Municipal Diego Galbinski Advocacia Andresa Cunha de Faria Jonathan Santos Sousa Victor Igrejas Jacquelyne Fleck Rolim, Viotti & Leite Campos Advogados Meireles e Freitas Advogados Associados Consultor Municipal Diego Galbinski Advocacia Cristiano Viotti Kleberson Lopes Adriana Costa Elisa Ribeiro Rolim, Viotti & Leite Campos Advogados OPTE Consultores Domingues e Pinhos Contadores Eichenberg & Lobato Advogados Associados Deliana Salomão de Castro Thiago Magalhães Luciana Arakaki Alessandra Hudson Rolim, Viotti & Leite Campos Advogados OPTE Consultores Domingues e Pinhos Contadores Martinelli Advogados Fábio Diniz Appendino Pedro Henrique Junior Luciana Lopes Patrícia de Pádua Rodrigues Rolim, Viotti & Leite Campos Advogados Patrio Assessoria Contábil Domingues e Pinhos Contadores Martinelli Advogados Helvécio Franco Maia Júnior Jerônimo Dix-Neuf Rosado dos Santos Marcelo Gomez Cláudia Marques de Lima Rolim, Viotti & Leite Campos Advogados Rosado, Medeiros & Rêgo Advogados Domingues e Pinhos Contadores Melnick Even Desenvolvimento Luís Felipe Bernardes Sá Teles André Marinho Imobiliário S.A. Daniel Pena Rolim, Viotti & Leite Campos Advogados Rosado, Medeiros & Rêgo Advogados Engepred Paulo Mayorca Patrícia Pilo Bittencourt Redig Andrea Balzano Ilarri Melnick Even Desenvolvimento Luís Carlos Ferreira dos Santos Junior Rolim, Viotti & Leite Campos Advogados RSM Brasil Consultoria Empresarial LTDA Imobiliário S.A. Ferreira dos Santos Advogados Tomás Vaz de Oliveira Brandão Sanrlei Polini Silvia Dahmer Joaquim Chacur Biasotto Mano Rolim, Viotti & Leite Campos Advogados Sanrlei Polini Engenharia Consultiva Organização Contábil Dahmer LTDA FreitasLeite Advogados Andrea Balzano Ilarri Luiz Felipe Monteiro Seixas Arthur Carvalho Pippi Matheus Sousa Ramalho RSM Brasil Consultoria Empresarial LTDA Universidade Federal Rural do Semi-Árido Píppi e D'Aló Advogados Associados FreitasLeite Advogados Carlos Gerhard Carla Dutra Daniel D'Aló de Oliveira Pedro Afonso Avvad RSM Brasil Consultoria Empresarial LTDA Vers Contabilidade Píppi e D'Aló Advogados Associados FreitasLeite Advogados Eduardo Negrão Priscilla Oliveira Eduardo Caletti Thiago Marigo RSM Brasil Consultoria Empresarial LTDA Vers Contabilidade Píppi e D'Aló Advogados Associados FreitasLeite Advogados Juan Farias Igor Cesar Patrícia Pippi Dyemison Oliveira RSM Brasil Consultoria Empresarial LTDA Píppi e D'Aló Advogados Associados Grupo Planus Ricardo Souza Viviane Pereira Aglaia Cerri RSM Brasil Consultoria Empresarial LTDA Wilivan Silva Primers Consultoria e Legalização Imobiliária Acknowledgments 345 Camila Sfreddo Eduarda Meyka Ramires RORAIMA Eduardo Abreu Alves Barbosa Primers Consultoria e Legalização Imobiliária Andrey Cavalcante & Serpa Best Leilões Advogados Associados Nerli Farias Caroline Delmondes 1º Cartório de Registro de Eduardo Irani Silva Primers Consultoria e Legalização Imobiliária Lawrence Santini Imóveis de Boa Vista Conselho Regional de Engenharia e ASAP Documentos Agronomia de Santa Catarina (CREA-SC) Jéssica Lima José Ruyderlan Ferreira Lessa Primers Consultoria e Legalização Imobiliária Luís Guilherme Souza AB & DF Alexandra da Silva ASAP Documentos Contale Serviços Contábeis LTDA João Pedro Lamana Paiva Lawrence Santini Registro de Imóveis da 1ª Milton Sigrist ASAP Documentos Rodrigo Brandeburgo Curi Zona de Porto Alegre Associação dos Registradores de Curi, Araújo e Machado Imoveis de Rondônia (ARIRON) Luís Guilherme Souza Advogados e Consultores Andrea Balzano Ilarri ASAP Documentos RSM Brasil Consultoria Empresarial LTDA Rose Santos Deborah Alvarez Mendes D.Duwe Contabilidade Antônio Cezar da Silva Robalo Demarest Advogados Sanrlei Polini Cezar Robalo Advogados Sanrlei Polini Engenharia Consultiva Beatriz de Oliveira Freitas Neiva Ricardo Bittar Filho Demarest Advogados Carlos Eduardo Marino Orsolon Demarest Advogados Juliana Sisson Demarest Advogados Studio T - Consultoria e Arquitetura Carlos Eduardo Marino Orsolon Darley Grando Demarest Advogados Deborah Alvarez Mendes Dugrand Contabilidade Pryscilla Zamberlan Demarest Advogados Studio T - Consultoria e Arquitetura Carolina Moran Berto Ivanir Dutra Demarest Advogados Desirreé Franco Dugrand Contabilidade Bernardo Mascarenhas Mardini Demarest Advogados Tozzini, Freire, Teixeira e Silva Advogados Deborah Alvarez Mendes Fernando Jacó Anderle Demarest Advogados Fernanda Barata Santana Faz Construçoes Claudia Morais Demarest Advogados Tozzini, Freire, Teixeira e Silva Advogados Fernanda Barata Santana Henrique Franceschetto Demarest Advogados Marcello Pedroso Pereira Henrique Franceschetto Daniel Born Roman Demarest Advogados Advocacia Tributária Tozzini, Freire, Teixeira e Silva Advogados João Luis Ribeiro de Almeida Demarest Advogados Nicolle Marques Robles Bernardo Wildi Lins Daniela Scheuermann Celada Demarest Advogados Leduc Lins Advogados Tozzini, Freire, Teixeira e Silva Advogados Marcello Pedroso Pereira Demarest Advogados Edson Antônio Sousa Pontes Pinto Leandro Antonio Godoy Oliveira Filipe Marmontel Nasi DPLAW - Pontes Pinto e Pignaneli Leduc Lins Advogados Tozzini, Freire, Teixeira e Silva Advogados Marcus Castro Brumano Ferreira Sociedade de Advogados Demarest Advogados Victor Leduc Machado Guilherme Carneiro Monteiro Nitschke Vinícius de Almeida Alves Leduc Lins Advogados Tozzini, Freire, Teixeira e Silva Advogados Matheus Fontes Wahrsager DPLAW - Pontes Pinto e Pignaneli Demarest Advogados Sociedade de Advogados Luís Felipe Espindola Gouvêa João Ricardo Bet Viegas Leduc Lins Advogados Tozzini, Freire, Teixeira e Silva Advogados Nicolle Marques Robles Ariane Silva Magalhães Demarest Advogados Magalhães & Franz Soluções Cesar Dias Maria Medeiros Bofill Empresariais LTDA Marchiori, Sachet, Barros & Dias Advogados Tozzini, Freire, Teixeira e Silva Advogados Deonízia Kiratch Deonízia Leilões Danielle Viviane Medeiros da Silva Emerson Ferreira das Neves Rafael Mallmann Medeiros Advocacia Marchiori, Sachet, Barros & Dias Advogados Tozzini, Freire, Teixeira e Silva Advogados Marcelo Rodrigues Xavier DM Advogados Associados Ângelo Peccini Luiz Fernando Sachet Vinícius de Oliveira Berni Peccini, Werner & Apoliano Advocacia Marchiori, Sachet, Barros & Dias Advogados Tozzini, Freire, Teixeira e Silva Advogados Carlos Eduardo Ferreira Levy DPLAW - Pontes Pinto e Pignaneli Andrea Balzano Ilarri Mário de Castro Marchiori Frederico Weingartner Sociedade de Advogados RSM Brasil Consultoria Empresarial LTDA Marchiori, Sachet, Barros & Dias Advogados Trench, Rossi e Watanabe Edson Antônio Sousa Pontes Pinto Sanrlei Polini Mirella de Castro Nanni Lucas Mota DPLAW - Pontes Pinto e Pignaneli Sanrlei Polini Engenharia Consultiva Marchiori, Sachet, Barros & Dias Advogados Trench, Rossi e Watanabe Sociedade de Advogados Carla Dutra Eirick Ramírez Merlo Thales Stucky Kareline Staut Vers Contabilidade Martinelli Advogados Trench, Rossi e Watanabe DPLAW - Pontes Pinto e Pignaneli Sociedade de Advogados Priscilla Oliveira Patrícia de Pádua Rodrigues Diego Lerner Vers Contabilidade Martinelli Advogados Veirano Advogados Associados Lucas Nandim DPLAW - Pontes Pinto e Pignaneli Wesley Silva Ramos Douglas Dal Monte Fernanda Fossati WR Leilões Mosimann-Horn Advogados Sociedade de Advogados Veirano Advogados Associados Vinícius de Almeida Alves Isaque Castro Fábio Kunz da Silveira Fernando Verzoni Mosimann-Horn Advogados DPLAW - Pontes Pinto e Pignaneli Veirano Advogados Associados Liliane Guerra Sociedade de Advogados Ítalo Augusto Mosimann Filipe Scherer Oliveira Perildes Silva Mosimann-Horn Advogados Mirian Camanes Vidal Telles Veirano Advogados Associados M274 Arquitetura SANTA CATARINA Lio Vicente Bocorny Paulo Pasqual Mosimann-Horn Advogados Andrea Balzano Ilarri Veirano Advogados Associados Jordan Fabrício Martins RSM Brasil Consultoria Empresarial LTDA 3º Ofício de Registro de Luana Debatin Tomasi Priscilla Oliveira Imóveis de Florianópolis Mosimann-Horn Advogados Sanrlei Polini Vers Contabilidade Sanrlei Polini Engenharia Consultiva Luís Henrique Cury Marcelo Sardá RONDÔNIA Carla Dutra Albert Zilli dos Santos e Mosimann-Horn Advogados Vers Contabilidade Advogados Associados Caroline Braga de Almeida Andrea Balzano Ilarri 1º Ofício de Registro de Priscilla Oliveira Lawrence Santini RSM Brasil Consultoria Empresarial LTDA Imóveis de Porto Velho Vers Contabilidade ASAP Documentos Sanrlei Polini Francisco Jacinto Luiz Flaviano Volnistem Luís Guilherme Souza Sanrlei Polini Engenharia Consultiva 2º Ofício de Registro de Volnistem Advocacia ASAP Documentos Imóveis de Porto Velho Sérgio Luiz Platt Nahas Kamilla Ramires May Ildefonso Assing Sindicato dos Corretores de Imóveis Guilherme Bueno Assing & Poli Assessoria Contábil e Auditoria de Santa Catarina (Sindimóveis-SC) 2º Ofício de Registro de Imóveis de Porto Velho João Henrique Gasparino Carla Dutra Ballstaedt Gasparino & Leite Advogados Vers Contabilidade 346 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Priscilla Oliveira Vicente Russo Leonardo Biar Carlos Eduardo Marino Orsolon Vers Contabilidade Grupo UOL RSM Brasil Consultoria Empresarial LTDA Demarest Advogados Bruno Carvalho Heitor Ronaldo de Freitas Viviane Pereira Deborah Alvarez Mendes Heitor Freitas Sociedade RSM Brasil Consultoria Empresarial LTDA Demarest Advogados Fábio Elias Araújo Individual de Advocacia Sanrlei Polini Fernanda Barata Santana Marcelo de Almeida Sarkis Walter Lima Damascenno Sanrlei Polini Engenharia Consultiva Demarest Advogados Hunters Engenharia e Consultoria LTDA SÃO PAULO Tatiana Zanella Kaique Sá do Nascimento Paulo Figueira Sanrlei Polini Engenharia Consultiva Demarest Advogados André de Azevedo Palmeira IIPR Gestões e Regularizações 1º Registro de Imóveis de São Ronaldo Pupinski Marcello Pedroso Pereira Bernardo do Campo/SP Douglas Albrecht Novo de Oliveira Sugoi Construtora e Incorporadora Demarest Advogados JRNOVO Serviços Técnicos LTDA Odair Fantoni Luiz Fernando Blumenthal Pardell Nicolle Marques Robles ABF Rodrigo Avancine Travaglini Ferreira, Sacamoto, Demarest Advogados KRAV Consultoria Ambiental Jacopetti & Pardell Advogados Priscila Infante Prudente Corrêa Rodrigo Dias de Oliveira Rosa Aprovcon - Aprovação e Consultoria Mirian Camanes Vidal Telles Marcus Vinícius Travaglini Ferreira Dias Rosa Consultoria em Legalização de Imóveis LTDA M274 Arquitetura Travaglini Ferreira, Sacamoto, Jacopetti & Pardell Advogados Diogo de Calasans Melo Andrade Lawrence Santini Cesar Dias Diogo Calasans Advocacia e Consultoria ASAP Documentos Marchiori, Sachet, Barros & Dias Advogados Rámilton Henrique Sawaya Sacamoto Travaglini Ferreira, Sacamoto, Mirian Camanes Vidal Telles Luís Guilherme Souza Emerson Ferreira das Neves Jacopetti & Pardell Advogados M274 Arquitetura ASAP Documentos Marchiori, Sachet, Barros & Dias Advogados Tato Alves Ramos Jacopetti Stella Maris Nelson de Mello Manier Flaviano Galhardo Luiz Fernando Sachet Travaglini Ferreira, Sacamoto, Manier & Manier Consultoria Associação dos Registradores Marchiori, Sachet, Barros & Dias Advogados Jacopetti & Pardell Advogados Empresarial LTDA Imobiliários de São Paulo (ARISP) Mário de Castro Marchiori Carla Dutra Afife Martins Lucilene Jacinto da Silva Marchiori, Sachet, Barros & Dias Advogados Vers Contabilidade Primers Consultoria e Legalização Imobiliária Azambuja & Jacinto Advocacia Mirella de Castro Nanni Priscilla Oliveira Caroline Delmondes João Henrique Gasparino Marchiori, Sachet, Barros & Dias Advogados Vers Contabilidade Primers Consultoria e Legalização Imobiliária Ballstaedt Gasparino & Leite Advogados Maria do Rosário Pereira Esteves Felipe de Moura Jesus Bernardo Steinitz Maria do Rosário Esteves Advocacia SERGIPE Primers Consultoria e Legalização Imobiliária Barbosa, Raimundo, Gontijo Estelita Nunes de Oliveira e Câmara Advogados Samanta Souza Marcos Natercio Silva Raimundo Moura e Souza Advogados 11º Ofício da Comarca de Aracaju Primers Consultoria e Legalização Imobiliária Cristina Justo Gustavo do Nascimento Silva Barbosa, Raimundo, Gontijo Amanda Soares Curcio João Rafael Lago 11º Ofício da Comarca de Aracaju e Câmara Advogados Primers Consultoria e Legalização Imobiliária RFL Construções e Reformas João Wile Santos do Nascimento Pedro Teixeira Caroline Delmondes Gleide Selma Santos 11º Ofício da Comarca de Aracaju Barbosa, Raimundo, Gontijo Primers Consultoria e Legalização Imobiliária Ricarte Contabilidade e Câmara Advogados Silvana de Jesus Barbosa Nascimento Sabrina Rampim Andrea Balzano Ilarri 11º Ofício da Comarca de Aracaju Rodrigo Câmara Primers Consultoria e Legalização Imobiliária RSM Brasil Consultoria Empresarial LTDA Barbosa, Raimundo, Gontijo Adilson Bento de Araújo Renata Lima de Oliveira ABA Leilões Sanrlei Polini e Câmara Advogados Renata Lima Arquitetura Sanrlei Polini Engenharia Consultiva Tamyelle Saldanha Adelson Rios Alessandra Rezende Torres Adelson Rios Engenharia LTDA Carla Dutra Barbosa, Raimundo, Gontijo Rolim, Viotti & Leite Campos Advogados Vers Contabilidade e Câmara Advogados Lawrence Santini Andresa Cunha de Faria ASAP Documentos Priscilla Oliveira Maria Anselma Coscrato dos Santos Rolim, Viotti & Leite Campos Advogados Vers Contabilidade Contac Contabilidade Luís Guilherme Souza Danilo Breve ASAP Documentos Fabio Santana Bruna Monique Vaccarelli Rolim, Viotti & Leite Campos Advogados Demarest Advogados Henrique Maciel TOCANTINS Deliana Salomão de Castro Associação dos Notários e Registradores Elisa Ribeiro Rolim, Viotti & Leite Campos Advogados do Estado do Sergipe (ANOREG/SE) Emanuel Acaiaba Reis de Sousa Eichenberg & Lobato 1º Tabelionato de Notas de Palmas Advogados Associados Fábio Diniz Appendino Matheus de Abreu Chagas Rolim, Viotti & Leite Campos Advogados Barretto Chagas Advocacia Sagramor Angela Píccoli Caio Maschião da Costa 2º Tabelionato de Notas de Palmas Even Construtora e Incorporadora S.A. Helvécio Franco Maia Júnior Ana Maria Soares de Abreu Rolim, Viotti & Leite Campos Advogados Cartório Eduardo Abreu Suraika Paiva de Sousa Luís Carlos Ferreira dos Santos Junior 2º Tabelionato de Notas de Palmas Ferreira dos Santos Advogados Luís Felipe Bernardes Sá Teles José Alberto Nonato Rolim, Viotti & Leite Campos Advogados Conplus Contabilidade Rigoalberto Mendes Sousa Junior Fernando Rodrigues Altíssimo Engenharia FLi9 Engenharia Luís Felipe de Campos Aline Barros Feitosa Rolim, Viotti & Leite Campos Advogados Construtora Celi José Fernando Melo Carlos Sanches Argo Engenharia GFDS Advogados Patrícia Pilo Bittencourt Redig Clara Carvalho Rolim, Viotti & Leite Campos Advogados Construtora Celi Lawrence Santini Anderson Ferreira ASAP Documentos Grupo Planus Romes Paulo de Oliveira Jr. Elis Santana Rolim, Viotti & Leite Campos Advogados Construtora Celi Luís Guilherme Souza Fabio Gomes ASAP Documentos Grupo Planus Tomás Vaz de Oliveira Brandão Haullen Vieira Rolim, Viotti & Leite Campos Advogados Construtora Celi Valdir Cassimiro Felipe Pestana Associação dos Notários e Registradores Grupo Planus Andrea Balzano Ilarri David Sampaio Barretto do Tocantins (ANOREG/TO) RSM Brasil Consultoria Empresarial LTDA Construtora Santa Maria Janaina Torres Misleny Rodrigues Grupo Planus Carlos Gerhard Fagner dos Santos Valença Cartório de Registro de Imóveis de Palmas RSM Brasil Consultoria Empresarial LTDA Construtora Santa Maria Sueli Diegues Danyllo Maia Grupo Planus Juan Farias João Victor Barros Santana Danyllo Maia Leilões Judiciais RSM Brasil Consultoria Empresarial LTDA DAS Advogados Acknowledgments 347 Beatriz de Oliveira Freitas Neiva Carlos Araújo Wellison Luís Santos da Silva Demarest Advogados PUBLIC SECTOR Junta Comercial do Estado de Alagoas Tribunal de Justiça do Estado do Amapá Carlos Eduardo Marino Orsolon CONTRIBUTORS Arypuanã Santiago Neto Arauna Almeida Demarest Advogados Prefeitura Municipal de Maceió ACRE AMAZONAS Deborah Alvarez Mendes Diocesar Taffarel Demarest Advogados Eurico Pismel Prefeitura Municipal de Maceió Danizio Valente Gonçalves Neto Corpo de Bombeiros Militar do Acre Corpo de Bombeiros Militar do Amazonas Fernanda Barata Santana Gilberto Meister Demarest Advogados Daniela Tamwing Prefeitura Municipal de Maceió Anny Karolliny Silveira Saraiva Departamento Estadual de Água Governo do Estado do Amazonas João Luis Ribeiro de Almeida Marineide Palmeira e Saneamento (DEPASA) Demarest Advogados Prefeitura Municipal de Maceió Aurelio Leite Edmilso Palmeira Governo do Estado do Amazonas Marcello Pedroso Pereira Rosângela Azevedo Governo do Estado do Acre Demarest Advogados Prefeitura Municipal de Maceió Diego Silveira Israel Souza Governo do Estado do Amazonas Marcus Castro Brumano Ferreira Edmundo Jorge Lins da Silva Filho Governo do Estado do Acre Demarest Advogados Redesim Jeibi Medeiros da Costa Duanne Carol Governo do Estado do Amazonas Matheus Fontes Wahrsager Alexandre de Caiado Castro Moraes Junta Comercial do Estado do Acre Demarest Advogados Tribunal de Justiça do Estado de Alagoas Karen Monteiro Peter Aquino Governo do Estado do Amazonas Nicolle Marques Robles Amós Araújo Junta Comercial do Estado do Acre Demarest Advogados Tribunal de Justiça do Estado de Alagoas Carolina Fogaça Bruna Benedita Instituto Municipal de Planejamento Urbano Thais Meirelles Pedro Ivens Simões de França Prefeitura Municipal de Rio Branco Demarest Advogados Tribunal de Justiça do Estado de Alagoas Cláudio Guenka Cesar Menezes Instituto Municipal de Planejamento Urbano Edson Antônio Sousa Pontes Pinto Prefeitura Municipal de Rio Branco AMAPÁ DPLAW - Pontes Pinto e Pignaneli Marcelo Megali Sociedade de Advogados Claudia Cunha Mateus Picanço Almeida Instituto Municipal de Planejamento Urbano Prefeitura Municipal de Rio Branco Corpo de Bombeiros Militar do Amapá Vinícius de Almeida Alves Cristiano Chíxaro DPLAW - Pontes Pinto e Pignaneli Cláudio Rommero Wagner Coelho Pereira Junta Comercial do Estado do Amazonas Sociedade de Advogados Prefeitura Municipal de Rio Branco Corpo de Bombeiros Militar do Amapá Edna Lindoso Gabriel Oliveira da Silva Cunha Deane Fernandes Benedito Paulo de Souza Junta Comercial do Estado do Amazonas Foco Contabilidade Prefeitura Municipal de Rio Branco Governo do Estado do Amapá Jaqueline Alfaia Jalson Galvão Lopes Edson Rigaud Elielson Santana Junta Comercial do Estado do Amazonas Foco Contabilidade Prefeitura Municipal de Rio Branco Governo do Estado do Amapá Alain Gian Ribeiro da Costa Fernanda Bueno Sousa e Silva Ezequiel Carvalho Gilson Carlos Rodrigues Prefeitura Municipal de Manaus Machado e Cunha Advocacia Prefeitura Municipal de Rio Branco Governo do Estado do Amapá Aldenira Rodrigues Queiroz Matheus Sales de Oliveira Lopes Keilly da Silva Gilberto Laurindo Prefeitura Municipal de Manaus Moreira & Cury Advogados Associados Prefeitura Municipal de Rio Branco Junta Comercial do Estado do Amapá Armando C. Simões da Silva Renato Martins Cury Marky Brito Charles Reis Prefeitura Municipal de Manaus Moreira & Cury Advogados Associados Prefeitura Municipal de Rio Branco Prefeitura Municipal de Macapá Cristiane Souto Maior Poliana dos Reis da Luz Monique Morais Danilo Ramos Prefeitura Municipal de Manaus Moreira & Cury Advogados Associados Prefeitura Municipal de Rio Branco Prefeitura Municipal de Macapá Cyrillo Neves Filho Renata Lima de Oliveira Samya Assis Ereny Melo Prefeitura Municipal de Manaus Renata Lima Arquitetura Prefeitura Municipal de Rio Branco Prefeitura Municipal de Macapá Erivelto Leal Andrea Balzano Ilarri Vanilce de Paula Lima Fernanda Barbosa Pinheiro Prefeitura Municipal de Manaus RSM Brasil Consultoria Empresarial LTDA Prefeitura Municipal de Rio Branco Prefeitura Municipal de Macapá Islanes Souza Flávio Henrique de Oliveira Wilson Leite Michele Raya Prefeitura Municipal de Manaus Tabelionato Taquaralto Prefeitura Municipal de Rio Branco Prefeitura Municipal de Macapá Jeane da R. Mota Carla Dutra Jesse Drumond Nayara Barbosa Prefeitura Municipal de Manaus Vers Contabilidade Tribunal de Justiça do Estado do Acre Prefeitura Municipal de Macapá José Lima Priscilla Oliveira Jovanny Fogaça Raimundo Sergio Prefeitura Municipal de Manaus Vers Contabilidade Tribunal de Justiça do Estado do Acre Prefeitura Municipal de Macapá Keppler Pena de Araújo Junior Leandro Gross Vera Almeida Prefeitura Municipal de Manaus Tribunal de Justiça do Estado do Acre Prefeitura Municipal de Macapá Paulo Rodrigues Thais Khalil Alaíde Maria de Paula Prefeitura Municipal de Manaus Tribunal de Justiça do Estado do Acre Tribunal de Justiça do Estado do Amapá Roberto Uchoa Zenice Mota Cardozo Antônio José de Menezes Prefeitura Municipal de Manaus Tribunal de Justiça do Estado do Acre Tribunal de Justiça do Estado do Amapá Sandra Dantas Rodrigo Santos Elayne Cantuária Prefeitura Municipal de Manaus Tribunal de Justiça do Estado do Amapá Danielly Fernandes da Silva ALAGOAS Ivanny Monteiro Tribunal de Justiça do Estado do Amazonas Darbio Renato Alvim Santos Tribunal de Justiça do Estado do Amapá Mônica Raposo da Câmara Chaves Corpo de Bombeiros Militar de Alagoas Job Duarte Morais do Carmo Sérgio André Silva Verçosa Tribunal de Justiça do Estado do Amapá Tribunal de Justiça do Estado do Amazonas Corpo de Bombeiros Militar de Alagoas Laeyny Benedito Silva Carvalho Ricardo Câmara Alexandra Vieira Tribunal de Justiça do Estado do Amapá Tribunal de Justiça do Estado do Amazonas Governo do Estado de Alagoas Moisés Ferreira Diniz Eugenio Filho Tribunal de Justiça do Estado do Amapá Governo do Estado de Alagoas Simone Moraes dos Santos Tribunal de Justiça do Estado do Amapá 348 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 BAHIA Argemiro de Azevedo Dutra ESPÍRITO SANTO Daniel Barbosa Pereira Tribunal de Justiça do Estado da Bahia Tribunal de Justiça do Distrito Major Marcos Vinicius Carneiro Moreira Karla Ponzo Federal e dos Territórios Corpo de Bombeiros Militar da Bahia Fábio Alexsandro Costa Bastos Companhia Espírito Santense Tribunal de Justiça do Estado da Bahia de Saneamento (Cesan) Pacífico Nunes Tenente Pedro Andrade Tribunal de Justiça do Distrito Corpo de Bombeiros Militar da Bahia Joanísio de Matos Dantas Andrison Cosme Federal e dos Territórios Tribunal de Justiça do Estado da Bahia Corpo de Bombeiros Militar do Espírito Santo Alexandre Silva Victor Abreu da Silva Governo do Estado da Bahia Moacir Reis Fernandes Filho Lauro Ribas Vianna Filho Tribunal de Justiça do Distrito Tribunal de Justiça do Estado da Bahia Governo do Estado do Espírito Santo Federal e dos Territórios Carlos Mauricio de Sena Cova Governo do Estado da Bahia Marcelo Moraes Wesley Pestana Baratela Rafael Mall Governo do Estado do Espírito Santo Guilherme Teixeira Rocha CEARÁ GOIÁS Governo do Estado da Bahia Henrique Gonçalves Ribeiro Nonato Oliveira Junta Comercial do Estado do Espírito Santo Mario Bacelar Jadson Bitencourt Andrade Oliveira Governo do Estado do Ceará Governo do Estado de Goiás Governo do Estado da Bahia Andréa P. Mesquita Raimundo Frutuoso de Oliveira Júnior Prefeitura Municipal de Vitória Ana Paula Chaves Amador Paulo Deodoro Medrado Sobrinho Governo do Estado do Ceará Junta Comercial do Estado de Goiás Governo do Estado da Bahia Edinaldo Rossi Eduardo Jereissati Prefeitura Municipal de Vitória Euclides Barbo Siqueira Andrea Mendonça Junta Comercial do Estado do Ceará Junta Comercial do Estado de Goiás Junta Comercial do Estado da Bahia Glacilda Rodrigues Lourenço Arrais Prefeitura Municipal de Vitória José Óscar Estevão Alves Marcus Ferreira Simoes de Oliveira Junta Comercial do Estado do Ceará Junta Comercial do Estado de Goiás Junta Comercial do Estado da Bahia Henrique Valentim A. Augusto F. de Oliveira Prefeitura Municipal de Vitória Fernanda Arantes Paula Miranda Ribeiro Prefeitura Municipal de Fortaleza Prefeitura Municipal de Goiânia Junta Comercial do Estado da Bahia Lúcia Regina Senna Miranda Tourino Águeda Muniz Prefeitura Municipal de Vitória Germana Arantes Tiana Araujo Prefeitura Municipal de Fortaleza Prefeitura Municipal de Goiânia Junta Comercial do Estado da Bahia Marcos Santana Amanda Ribeiro Pessoa Serpa Prefeitura Municipal de Vitória Giovanna Sodré Aline Castro Lessa Prefeitura Municipal de Fortaleza Prefeitura Municipal de Goiânia Prefeitura Municipal do Salvador Maria Cristina Dalcolmo Andrei Simonassi Prefeitura Municipal de Vitória Gustavo Abdo Ana Vitória Gomes Prefeitura Municipal de Fortaleza Prefeitura Municipal de Goiânia Prefeitura Municipal do Salvador Nathalia Melo Camila Claudino Prefeitura Municipal de Vitória Janamaina Costa Bezerra de Azevedo Anderson Peixoto Sampaio Prefeitura Municipal de Fortaleza Prefeitura Municipal de Goiânia Prefeitura Municipal do Salvador Otto Furtado Grellert Daniela Vasconcelos Prefeitura Municipal de Vitória Luiz Lucas André Amado Gomes Prefeitura Municipal de Fortaleza Prefeitura Municipal de Goiânia Prefeitura Municipal do Salvador Renzo Nagem Nogueira David Pizol Prefeitura Municipal de Vitória Rafael Lúcio de Souza Olinto Meirelles Augusto Cezar Guenem da Fonseca Prefeitura Municipal de Fortaleza Prefeitura Municipal de Goiânia Prefeitura Municipal do Salvador Samantha Correia Maciel Eliene Barbosa Prefeitura Municipal de Vitória Renan Santana Braga Cilene Azevedo Prefeitura Municipal de Fortaleza Prefeitura Municipal de Goiânia Prefeitura Municipal do Salvador Marco Antonio Severnini Fernanda Farias Gimenes Tribunal de Justiça do Estado Rhuan Pablo Batiam Ferreira Dilson Tanajura Moreira Prefeitura Municipal de Fortaleza do Espírito Santo Prefeitura Municipal de Goiânia Prefeitura Municipal do Salvador Heloiza Beatriz da Silva Muniz Rodrigo Cardoso Freitas Romério do Carmo Cordeiro Frederico Gunnar Durr Prefeitura Municipal de Fortaleza Tribunal de Justiça do Estado Tribunal de Justiça do Estado de Goiás Prefeitura Municipal do Salvador do Espírito Santo Mairlon Moreira de Souza Jealva Fonseca Prefeitura Municipal de Fortaleza MARANHÃO Prefeitura Municipal do Salvador FEDERAL DISTRICT Marcela Napoleão César Augusto Carvalho Costa Filho João Melo dos Santos Filho Claudio Barbosa Miranda Governo do Estado do Maranhão Prefeitura Municipal de Fortaleza Governo do Distrito Federal Prefeitura Municipal do Salvador Maryvone Moura Gomes Irene Ferreira Costa Jorge Luiz Santos Gonzaga Heber Niemeyer Botelho Governo do Estado do Maranhão Prefeitura Municipal de Fortaleza Governo do Distrito Federal Prefeitura Municipal do Salvador Ney Lopes Barbosa Júnior Jorge Luís Castro dos Santos José Alberto Reis Sampaio Márcio Gonçalves Governo do Estado do Maranhão Prefeitura Municipal de Fortaleza Governo do Distrito Federal Prefeitura Municipal do Salvador Raphael Cavalcante Kelder Fiorotti Juliana Setenta Mariela Palmeira Oliveira Governo do Estado do Maranhão Prefeitura Municipal de Fortaleza Governo do Distrito Federal Prefeitura Municipal do Salvador Ronald Holanda Naudimar Campos Leonardo Lima Albuquerque Ricardo Noronha Governo do Estado do Maranhão Prefeitura Municipal de Fortaleza Governo do Distrito Federal Prefeitura Municipal do Salvador Alex Barbosa Savio Amorim Liliana Silva e Almeida Sandra Maria Carneiro Macedo Governo do Estado do Maranhão Redesim Governo do Distrito Federal Prefeitura Municipal do Salvador Italo Lima Demétrio Saker Neto Anna Cláudia Leite Mesquita Garcia Marcus Vinícius Reis Alcântara Junta Comercial do Estado do Maranhão Tribunal de Justiça do Estado do Ceará Junta Comercial, Industrial e Prefeitura Municipal do Salvador Serviços do Distrito Federal Ricardo Diniz Dias Luana Lima de Souza Oliveira Paloma Cunegundes Junta Comercial do Estado do Maranhão Tribunal de Justiça do Estado do Ceará Juliana Dato Leal Prefeitura Municipal do Salvador Junta Comercial, Industrial e Sergio Silva Sombra Márcia Aurélia Viana Paiva Ricardo Maracaja Pereira Serviços do Distrito Federal Junta Comercial do Estado do Maranhão Tribunal de Justiça do Estado do Ceará Prefeitura Municipal do Salvador Marcella França Athayde Browne Alice Christiane Rodrigues Cardoso Maria Magdalena Rufino Magalhães Rita de Cássia Araújo Ramalho Junta Comercial, Industrial e Prefeitura Municipal de São Luís Tribunal de Justiça do Estado do Ceará Prefeitura Municipal do Salvador Serviços do Distrito Federal Gabriel Henrique Nilsiton Aragão Rosiclea Sabino dos Santos Coelho Walid de Melo Pires Prefeitura Municipal de São Luís Tribunal de Justiça do Estado do Ceará Prefeitura Municipal do Salvador Junta Comercial, Industrial e Luis André Grangeiro Tavares Oliveira Victor Alves Dias Serviços do Distrito Federal Valdir Brito Prefeitura Municipal de São Luís Tribunal de Justiça do Estado do Ceará Prefeitura Municipal do Salvador Acknowledgments 349 Milena Cardoso Augusto César Ferreira de Castro Tatiana de Melo Braga Lilian Palmeira Costa Prefeitura Municipal de São Luís Junta Comercial do Estado Prefeitura Municipal de Belo Horizonte Governo do Estado da Paraíba de Mato Grosso do Sul Thiago Afonso Giovana Moura Marconi Campelo Prefeitura Municipal de São Luís Nivaldo Domingos da Rocha Tribunal de Justiça do Governo do Estado da Paraíba Junta Comercial do Estado Estado de Minas Gerais Wilson França Ribeiro Filho de Mato Grosso do Sul Petrônio Rolim Prefeitura Municipal de São Luís João Rezende Governo do Estado da Paraíba Agnaldo Ruiz Tribunal de Justiça do Bianca Giordana Soares Gouveia Prefeitura Municipal de Campo Grande Estado de Minas Gerais Fátima Ventura Tribunal de Justiça do Estado do Maranhão Junta Comercial do Estado da Paraíba Clara Kohl Cássio da Silva Duarte Cristiano Simas de Sousa Prefeitura Municipal de Campo Grande Rafaela Santos Tribunal de Justiça do Estado do Maranhão Daniel Vitor Moreira Junta Comercial do Estado da Paraíba Emerson Augusto Maeda Taira MATO GROSSO Anderson Menezes Prefeitura Municipal de Campo Grande PARÁ Prefeitura Municipal de João Pessoa Leonel Macharet João Augusto Clara Cardoso Ferreira Governo do Estado de Mato Grosso Prefeitura Municipal de Campo Grande Companhia de Saneamento Brunno Sitônio Fialho de Oliveira do Pará (COSANPA) Prefeitura Municipal de João Pessoa Marcone Gonçalves Pinheiro Laerte Cavalari Governo do Estado de Mato Grosso Prefeitura Municipal de Campo Grande René Souza Fernando Luiz Zandona Governo do Estado do Pará Prefeitura Municipal de João Pessoa Vinícius José Simioni Silva Marco Antonio Miranda Tomi Governo do Estado de Mato Grosso Prefeitura Municipal de Campo Grande Rose Fernandes Giovanni Alencar Governo do Estado do Pará Prefeitura Municipal de João Pessoa Kenner Langner da Silva Alessandro Meliso Junta Comercial do Estado de Mato Grosso Tribunal de Justiça do Estado Aiua Queiroz Jordania Coimbra de Mato Grosso do Sul Junta Comercial do Estado do Pará Prefeitura Municipal de João Pessoa Rafael Vitaliano Ferreira Coelho Junta Comercial do Estado de Mato Grosso Fernando Chemin Cury Cilene Moreira Sabino de Oliveira Osman Junior Tribunal de Justiça do Estado Bittencourt Prefeitura Municipal de João Pessoa Ana Paula Nunes de Mato Grosso do Sul Junta Comercial do Estado do Pará Prefeitura Municipal de Cuiabá Rayssa Nóbrega Juliano Rodrigues Valentim Marcelo Cebolão Prefeitura Municipal de João Pessoa Andréa Franchello Dinardi Rangel Tribunal de Justiça do Estado Junta Comercial do Estado do Pará Prefeitura Municipal de Cuiabá Samya Negreiros de Mato Grosso do Sul Rodney Aquino Prefeitura Municipal de João Pessoa Beatriz Bandeira Mariel Cavalin dos Santos Junta Comercial do Estado do Pará Prefeitura Municipal de Cuiabá Jailson Suassuna Tribunal de Justiça do Estado Rondy Araujo Tribunal de Justiça do Estado da Paraíba Chádia Sebba de Mato Grosso do Sul Junta Comercial do Estado do Pará Rodrigo Nóbrega Prefeitura Municipal de Cuiabá Ely Ayache Américo Ricado Tribunal de Justiça do Estado da Paraíba Débora Marques Vilar MINAS GERAIS Prefeitura Municipal de Belém Prefeitura Municipal de Cuiabá PARANÁ Clovis Horta Correa Filho Ana Carolina Fernandes Elisabeth Teixeira Antonio Carlos Gerardi Prefeitura Municipal de Cuiabá Companhia de Saneamento de Prefeitura Municipal de Belém Companhia de Saneamento Minas Gerais (COPASA) Annete Klatau de Amorim Ferreira do Paraná (Sanepar) Jefferson Vilela Prefeitura Municipal de Cuiabá Capitão Rodrigo Alves Prefeitura Municipal de Belém Luciana Dolci Corpo de Bombeiros Militar de Minas Gerais José Antonio de Angelis Paloma Santos de Morais Companhia de Saneamento Prefeitura Municipal de Cuiabá Lúcia Helena Castro Lopes Almeida Prefeitura Municipal de Belém do Paraná (Sanepar) Governo do Estado de Minas Gerais José Batista Capeloni Júnior Pollyana Beatriz Bandeira Antonio Garcia Prefeitura Municipal de Cuiabá Renato Oliveira Delucca Prefeitura Municipal de Belém Governo do Estado do Paraná Governo do Estado de Minas Gerais Márcio André Amorim da Silva Thiago Moacir Dias Guerra Semensato Gilberto Calixto Prefeitura Municipal de Cuiabá Ricardo Alves de Sousa Prefeitura Municipal de Belém Governo do Estado do Paraná Governo do Estado de Minas Gerais Marcos Vinicius Lisboa Dioclides da Costa Macedo Neto Juliano Brun Binder Redesim Ricardo Sousa Prefeitura Municipal de Belém Governo do Estado do Paraná Governo do Estado de Minas Gerais Maurício Otávio de Almeida Marcio Wagner Cavalcanti Luciana Nara Trintim Redesim Bruno Selmi Dei Falci Prefeitura Municipal de Belém Governo do Estado do Paraná Junta Comercial do Estado de Minas Gerais Pio Menezes Veiga Netto Renatta Tirapelle Luciano Taho Tribunal de Justiça do Henrique Peixoto Petrocchi da Costa Prefeitura Municipal de Belém Governo do Estado do Paraná Estado de Mato Grosso Junta Comercial do Estado de Minas Gerais Reginaldo da Silva Sanchez Marlon Jorge Liebel Rafael Leonardo Ligia Xenes Prefeitura Municipal de Belém Governo do Estado do Paraná Junta Comercial do Estado de Minas Gerais Jéssica de Bosi e Araújo Rafael Carlos Casanova Neto MATO GROSSO DO SUL Tribunal de Justiça do Estado do Pará Governo do Estado do Paraná Ana Paula Zoroastro Amanda Cristina Irie Prefeitura Municipal de Belo Horizonte José Antônio Ferreira Cavalcante Marcus Vinicius Tadeu Pereira Governo do Estado de Mato Grosso do Sul Flávio Luiz de Andrade Tribunal de Justiça do Estado do Pará Junta Comercial do Estado do Paraná Bruno Bastos Prefeitura Municipal de Belo Horizonte Kátia Patrícia Brasil da Silva Cristiano Yonamine Governo do Estado de Mato Grosso do Sul Jean Mattos Duarte Tribunal de Justiça do Estado do Pará Prefeitura Municipal de Curitiba Fernando Peretti Prefeitura Municipal de Belo Horizonte Luiza Freitas Evelize Andrade Destefani Tarasiuk Governo do Estado de Mato Grosso do Sul Juliana Santos Ribeiro Tribunal de Justiça do Estado do Pará Prefeitura Municipal de Curitiba Gilberto Uechi Prefeitura Municipal de Belo Horizonte Sílvio César dos Santos Maria Francisco de Assis Inocêncio Governo do Estado de Mato Grosso do Sul Lívia Monteiro Tribunal de Justiça do Estado do Pará Prefeitura Municipal de Curitiba Jaime Verruck Prefeitura Municipal de Belo Horizonte Luciane Schafauzer de Pauli Governo do Estado de Mato Grosso do Sul PARAÍBA Milla Fernandes Prefeitura Municipal de Curitiba Marlene Fernandes Cruz Prefeitura Municipal de Belo Horizonte Bruno de Sousa Frade Governo do Estado de Mato Grosso do Sul Governo do Estado da Paraíba Mara Lucia Ferreira Roberto Freitas Prefeitura Municipal de Curitiba Wilson Taira Prefeitura Municipal de Belo Horizonte Francisco Petrônio de Oliveira Rolim Governo do Estado de Mato Grosso do Sul Governo do Estado da Paraíba Sedenir Gomes Prefeitura Municipal de Curitiba 350 SUBNATIONAL DOING BUSINESS IN BRAZIL 2021 Viviane da Silva Galdino Renata Walmsley Rodrigues Bianca Simões RIO GRANDE DO SUL Prefeitura Municipal de Curitiba Prefeitura Municipal do Recife Junta Comercial do Estado do Rio de Janeiro Lisiane Nunes Andreia Karla Dorce Ricardo Pena Delmir Custodio da Silva Corpo de Bombeiros Militar Tribunal de Justiça do Estado do Paraná Prefeitura Municipal do Recife Junta Comercial do Estado do Rio de Janeiro do Rio Grande do Sul Daniel Pereira Barbosa Frederico de Moraes Tompson Suzana Mileto Paulo Ricardo Mattos Gonçalves Tribunal de Justiça do Estado do Paraná Tribunal de Justiça do Estado de Pernambuco Junta Comercial do Estado do Rio de Janeiro Governo do Estado do Rio Grande do Sul Noeval de Quadros Alexandre Calvet Lima Pedro Kohls Toralles PIAUÍ Governo do Estado do Rio Grande do Sul Tribunal de Justiça do Estado do Paraná Prefeitura da Cidade do Rio de Janeiro Luiz Cláudio Rodrigo Becker de Araújo Águas de Teresina Ana Paula Perini José Waldemar de Oliveira Pinto Tribunal de Justiça do Estado do Paraná Prefeitura da Cidade do Rio de Janeiro Junta Comercial, Industrial e Serviços Jose Veloso do Estado do Rio Grande do Sul Rogério de Assis Corpo de Bombeiros Militar Claudio José Escaleira da Silva Tribunal de Justiça do Estado do Paraná Prefeitura da Cidade do Rio de Janeiro Silvio Moisés Ramão do Estado do Piauí Junta Comercial, Industrial e Serviços Sylvia Castello Branco Gradowski Emílio Joaquim de Oliveira Júnior Cristina Maria Miranda Soares do Estado do Rio Grande do Sul Tribunal de Justiça do Estado do Paraná Governo do Estado do Piauí Prefeitura da Cidade do Rio de Janeiro Adriano Boff Fátima Costa Pimentel de Souza Prefeitura Municipal de Porto Alegre PERNAMBUCO Graça Ramos Governo do Estado do Piauí Prefeitura da Cidade do Rio de Janeiro Roberto Abreu e Lima Almeida Airana Ramalho do Canto Agência de Desenvolvimento Matheus Cortes José Augusto da Silva Machado Prefeitura Municipal de Porto Alegre Econômico de Pernambuco Governo do Estado do Piauí Prefeitura da Cidade do Rio de Janeiro Artur Ribas Nyadja Menezes Maria Alzenir Porto da Costa Marcelo de Oliveira São José Prefeitura Municipal de Porto Alegre Companhia Pernambucana de Junta Comercial do Estado do Piauí Prefeitura da Cidade do Rio de Janeiro Christian Fouchard Justin Saneamento S.A. (COMPESA) Márcio Fleury Monteiro Júnior Prefeitura Municipal de Porto Alegre Abilio Xavier de Almeida Neto Junta Comercial do Estado do Piauí Prefeitura da Cidade do Rio de Janeiro Christiane Salomoni Governo do Estado de Pernambuco Ridualdo Portilho Pettena Rafael Sampaio Oliveira Prefeitura Municipal de Porto Alegre Allan Santana de Vasconcellos Junta Comercial do Estado do Piauí Prefeitura da Cidade do Rio de Janeiro Cristiane Dias Pasqualon Governo do Estado de Pernambuco Sandra Nunes da Rocha Fagundes José Maria de Moura e Vasconcelos Prefeitura Municipal de Porto Alegre Ana Paula Silva Prefeitura Municipal de Teresina Prefeitura da Cidade do Rio de Janeiro Daniela Machado Governo do Estado de Pernambuco Luiz Mello Serra Neide Maria Viana de Sousa Ribeiro Prefeitura Municipal de Porto Alegre Jose Oscar de Oliveira Lyra Prefeitura Municipal de Teresina Tribunal de Justiça do Estado do Rio de Janeiro Lourenço Prati Governo do Estado de Pernambuco Elvanice Pereira de Souza Prefeitura Municipal de Porto Alegre Lissandra de Andrade Lima Tribunal de Justiça do Estado do Piauí RIO GRANDE DO NORTE Marcelo Grunwald Governo do Estado de Pernambuco Fernando Melo Álvaro Luiz Bezerra Prefeitura Municipal de Porto Alegre Manoel Vasconcelos Tribunal de Justiça do Estado do Piauí Governo do Estado do Rio Grande do Norte Maria Clara Ribeiro Governo do Estado de Pernambuco Francisco Damasceno Carlos Eduardo Xavier Prefeitura Municipal de Porto Alegre Mauricio J. S. Neves Tribunal de Justiça do Estado do Piauí Governo do Estado do Rio Grande do Norte José Luiz Leal Vieira Governo do Estado de Pernambuco Lucicleide Pereira Belo Jairo Maranhão Tribunal de Justiça do Estado Stephanie Christini Gomes Pereira Tribunal de Justiça do Estado do Piauí Governo do Estado do Rio Grande do Norte do Rio Grande do Sul Governo do Estado de Pernambuco Sebastião Firmino Lima Filho Jane Araújo Juliano Stumpf Suzana Freire Lobo Tribunal de Justiça do Estado do Piauí Governo do Estado do Rio Grande do Norte Tribunal de Justiça do Estado Governo do Estado de Pernambuco do Rio Grande do Sul Sérgio Gonçalves de Miranda Neil Armstrong Heitor Moura Tribunal de Justiça do Estado do Piauí Governo do Estado do Rio Grande do Norte Mariana Araújo Lopes Junta Comercial do Estado de Pernambuco Tribunal de Justiça do Estado Thalison Costa Raffaele Giglio do Rio Grande do Sul llayne Larissa Leandro Marques Tribunal de Justiça do Estado do Piauí Governo do Estado do Rio Grande do Norte Junta Comercial do Estado de Pernambuco Mauricio Ramires Rodrigo Otávio Tribunal de Justiça do Estado Mirtys Kerolaynne Batista Queiroz RIO DE JANEIRO Governo do Estado do Rio Grande do Norte do Rio Grande do Sul Junta Comercial do Estado de Pernambuco Alinor de Almeida Valeriano Almeida Rosane Bordasch Governo do Estado do Rio de Janeiro Taciana Coutinho Bravo Governo do Estado do Rio Grande do Norte Tribunal de Justiça do Estado Junta Comercial do Estado de Pernambuco Bianca Perez Barcellos do Rio Grande do Sul Wellington Leite Governo do Estado do Rio de Janeiro Ana Carolina Ferraz Governo do Estado do Rio Grande do Norte Sander Cassepp Fonseca Prefeitura Municipal do Recife Douglas Cesar Sgarbi Jr Tribunal de Justiça do Estado Carlos Augusto Paiva Maia Governo do Estado do Rio de Janeiro do Rio Grande do Sul Bartolomeu de Figueiredo Alves Filho Junta Comercial do Estado Prefeitura Municipal do Recife Fábio Rocha Verbicário do Rio Grande do Norte Willian Couto Machado Governo do Estado do Rio de Janeiro Tribunal de Justiça do Estado Bruno Cabral Francisco Neto do Rio Grande do Sul Prefeitura Municipal do Recife Fernando Teixeira Pinto Junta Comercial do Estado Governo do Estado do Rio de Janeiro do Rio Grande do Norte Carlos Filho RONDÔNIA Prefeitura Municipal do Recife Flavia Domingas Guerra Joanna de Oliveira Guerra José Constantino da Silva Júnior Governo do Estado do Rio de Janeiro Prefeitura Municipal do Natal Cássia de Sá Carneiro Corpo de Bombeiros Militar Rembrandt Coura Vasconcelos do Estado de Rondônia Prefeitura Municipal do Recife Priscila Sakalem Governo do Estado do Rio de Janeiro Prefeitura Municipal do Natal Conceição Almeida Cristiano Petroli Prefeitura Municipal do Recife Thayane Ataide Ronaldo José Rêgo de Araújo Governo do Estado de Rondônia Governo do Estado do Rio de Janeiro Prefeitura Municipal do Natal Jonas Bezerra de Melo Coutinho Darlene Amaral de Souza Prefeitura Municipal do Recife Vinicius Goulart Angelici dos Santos Thiago Mesquita Governo do Estado de Rondônia Governo do Estado do Rio de Janeiro Prefeitura Municipal do Natal Patricia Lobo Edmar Lima Prefeitura Municipal do Recife Walter Roza Junior Cleofas Coelho de Araújo Júnior Governo do Estado de Rondônia Governo do Estado do Rio de Janeiro Tribunal de Justiça do Estado Rayana Valle do Rio Grande do Norte Emerson Boritza Prefeitura Municipal do Recife Governo do Estado de Rondônia Acknowledgments 351 Flaudemir Reis de Oliveira Denison Almeida Juliana Correa Canto Andre Omena Governo do Estado de Rondônia Prefeitura Municipal de Boa Vista Tribunal de Justiça do Estado Prefeitura Municipal de Aracaju de Santa Catarina Iemeton França Rhauan Leal Antônio Sergio Ferrari Vargas Governo do Estado de Rondônia Prefeitura Municipal de Boa Vista Silvio José Franco Prefeitura Municipal de Aracaju Tribunal de Justiça do Estado José de Souza Silvana Maia Barros de Santa Catarina Avilé Campos Dantas Governo do Estado de Rondônia Prefeitura Municipal de Boa Vista Prefeitura Municipal de Aracaju Marcelo Melo Breno Coutinho SÃO PAULO Carlos Augusto de Oliveira Governo do Estado de Rondônia Tribunal de Justiça do Estado de Roraima Adriana Flosi Prefeitura Municipal de Aracaju Marcus Cardoso Inaiara Milagres Carneiro de Sá Junta Comercial do Estado de São Paulo Éderson Zucolotto Governo do Estado de Rondônia Tribunal de Justiça do Estado de Roraima Angela Regina Berteli Prefeitura Municipal de Aracaju Miguel Abrão Dib Neto Phillip Barbieux Sampaio Junta Comercial do Estado de São Paulo Ignez Melo Souto Maior Governo do Estado de Rondônia Tribunal de Justiça do Estado de Roraima Giovana Cunha Prefeitura Municipal de Aracaju Rose Silva Vandré Peccini Junta Comercial do Estado de São Paulo Josiane Oliveira Governo do Estado de Rondônia Tribunal de Justiça do Estado de Roraima Gisela Simiena Ceschin Prefeitura Municipal de Aracaju Sandra Araújo Junta Comercial do Estado de São Paulo Juliana de Santana Lima Campos SANTA CATARINA Governo do Estado de Rondônia Osmar Vitor dos Santos Neto Prefeitura Municipal de Aracaju Dilson Takeyama Junta Comercial do Estado de São Paulo Éder Neves Falcão Governo do Estado de Santa Catarina Márcio Sobral Porto Junta Comercial do Estado de Rondônia Walter Shindi Ihoshi Prefeitura Municipal de Aracaju Juliano Kahl Junta Comercial do Estado de São Paulo Jose Alberto Anísio Governo do Estado de Santa Catarina Maria H. Andrade Santos Junta Comercial do Estado de Rondônia André Tomiatto de Oliveira Prefeitura Municipal de Aracaju Marcos Gesser Prefeitura da Cidade de São Paulo Roger Francis Cardoso Ribeiro Governo do Estado de Santa Catarina Wallace Souza Junta Comercial do Estado de Rondônia Antonio Alves Rodrigues Prefeitura Municipal de Aracaju Omar Roberto Afif Alemsan Prefeitura da Cidade de São Paulo Maria Sandra Bandeira Governo do Estado de Santa Catarina Alice Emanuela de Oliveira Santos Prefeitura Municipal de Porto Velho Carlos Alberto Guimarães Crede Tribunal de Justiça do Estado de Sergipe Pablo Costa Beber Prefeitura da Cidade de São Paulo Nílson Barros de Souza Governo do Estado de Santa Catarina Danielle Vidigal Prefeitura Municipal de Porto Velho Carlos Augusto Silva Barros Tribunal de Justiça do Estado de Sergipe Ricardo Lonzetti Prefeitura da Cidade de São Paulo Romulo Barbosa Maltez Governo do Estado de Santa Catarina Fabrizio Silvestre Prefeitura Municipal de Porto Velho Douglas de Souza Alencar Tribunal de Justiça do Estado de Sergipe Deoclesio Beckhauser Prefeitura da Cidade de São Paulo Sandra Bandeira Junta Comercial do Estado de Santa Catarina Jesy Sales Prefeitura Municipal de Porto Velho Hélio Koiti Kobayashi Tribunal de Justiça do Estado de Sergipe Renata Wiezorkoski Prefeitura da Cidade de São Paulo Sidnei Ferreira Junior Junta Comercial do Estado de Santa Catarina TOCANTINS Prefeitura Municipal de Porto Velho Itamar Wallace Tertuliano Daniele Dagort Angoneze Prefeitura da Cidade de São Paulo Cristiane Malta Yaylley Coelho da Costa Jezini Prefeitura Municipal de Florianópolis Governo do Estado do Tocantins Prefeitura Municipal de Porto Velho Luciano Felipe de Paula Capato Eduardo de Sá Ferreira Prefeitura da Cidade de São Paulo Guilherme Sales de Carvalho Audarzean Santana da Silva Prefeitura Municipal de Florianópolis Governo do Estado do Tocantins Tribunal de Justiça do Estado de Rondônia Luisa Hernandes Moura Georges Mavros Filizzola Prefeitura da Cidade de São Paulo Hélder Francisco dos Santos Guilherme Ribeiro Baldan Prefeitura Municipal de Florianópolis Governo do Estado do Tocantins Tribunal de Justiça do Estado de Rondônia Mariana Corrêa Barra Ivanna Carla Tomasi Prefeitura da Cidade de São Paulo João Herculano Jorge Amaral Prefeitura Municipal de Florianópolis Governo do Estado do Tocantins Tribunal de Justiça do Estado de Rondônia Renato Ferreira da Cunha Juliano Richter Pires Prefeitura da Cidade de São Paulo José Cristovão dos Santos Mayra Magalhães Prefeitura Municipal de Florianópolis Governo do Estado do Tocantins Tribunal de Justiça do Estado de Rondônia Sarah de Oliveira Alcantara Martins Marcos Roberto José Wagner Pio Rinaldo Forti da Silva Prefeitura da Cidade de São Paulo Prefeitura Municipal de Florianópolis Governo do Estado do Tocantins Tribunal de Justiça do Estado de Rondônia Thiago Demétrio Souza Pedro Soares de Paula Leonel Santos Vaz Úrsula Gonçalves Theodoro de Faria Prefeitura da Cidade de São Paulo Prefeitura Municipal de Florianópolis Governo do Estado do Tocantins Souza Vivian Satiro Tribunal de Justiça do Estado de Rondônia Piter Santana Nayara Medina Vieira Prefeitura Municipal de Florianópolis Prefeitura da Cidade de São Paulo Governo do Estado do Tocantins RORAIMA Dayane Cristina Tonielo Carmen Giadans Corbillon Tribunal de Justiça do Estado de São Paulo Paulo Bispo Claudevam Farias Tribunal de Justiça do Estado Governo do Estado do Tocantins de Santa Catarina Corpo de Bombeiros Militar de Roraima João Baptista Galhardo Junior Tribunal de Justiça do Estado de São Paulo Sonia Mara Fabíola Ames Ana Claudia Freitas Gomes Governo do Estado do Tocantins Tribunal de Justiça do Estado Governo do Estado de Roraima José Augusto Genofre Martins de Santa Catarina Helivan Araújo Lopes Tribunal de Justiça do Estado de São Paulo Bruno Jacinto Junta Comercial do Estado do Tocantins Filipe Ramos Governo do Estado de Roraima Tribunal de Justiça do Estado SERGIPE Emerson Parente Elivan Holanda de Santa Catarina Prefeitura Municipal de Palmas Dimas Goes da Silva Filho Governo do Estado de Roraima Companhia de Saneamento de Sergipe (DESO) Gilmara Sbissa Jorge Mota de Oliveira Ifrahim Lopez Tribunal de Justiça do Estado Prefeitura Municipal de Palmas Luiz Roberto Dantas de Santana Junta Comercial do Estado de Roraima de Santa Catarina Empresa Municipal de Serviços Raimundo Cavalcante Júnior Marcos de Meira Lins Filho Gilson Luís Nórcio Urbanos (EMSURB) Prefeitura Municipal de Palmas Junta Comercial do Estado de Roraima Tribunal de Justiça do Estado Erivaldo Santos Rosana Delmundes de Santa Catarina Aline Lopes Governo do Estado de Sergipe Prefeitura Municipal de Palmas Prefeitura Municipal de Boa Vista Jeferson Puel Marco Antônio Pinho de Freitas Sandra Cristina Severino Tribunal de Justiça do Estado Carlos Monteiro de Santa Catarina Junta Comercial do Estado de Sergipe Prefeitura Municipal de Palmas Prefeitura Municipal de Boa Vista 352 SUBNATIONAL DOING BUSINESS IN 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