Brazil: Simpler Company Formation is a Start

As of January 9, 2012, it will be possible to establish an Individual (Single-Member) Limited Liability Company (“EIRELI”) in Brazil, following an amendment to the Brazilian Civil Code (Law No. 12.441).  While the EIRELI represents an improvement in simplifying corporate formation in Brazil, by allowing the separation of assets (i.e. assets of the company versus personal assets) and by eliminating the legal requirement of a minimum of two partners/shareholders (i.e. one shareholder is now permitted), it does not address the greater issues of effective and varied restrictions on foreign access to the Brazilian market, and makes no change to the stifling bureaucratic burden imposed on Brazilian business generally.  By way of background, the World Bank ranks Brazil 120^th out of 183 countries, on the issue of ease of commencing business.  As the economic expansion in Brazil continues, further economic liberalization will inevitably and necessarily follow.