Secretariat of Commerce and Services National Department of Business Registry

11 September/2010 Jaime Herzog Director MINISTRY OF DEVELOPMENT, INDUSTRY AND FOREIGN TRADE SECRETARIAT OF COMMERCE AND SERVICES - SCS NATIONAL DEPARTMENT OF BUSINESS REGISTRY

2 NATIONAL POPULATION No. of inhabitants million 37 million ,1 trillon 200 million GROSS NATIONAL PRODUCT (Paper currency) million (80%) 8 million (20%) URBAN POPULATION No. of inhabitants thousand 19 million BUSINESS REGISTRY No. of companies Profile of Brazil Area: 8.5 MM square KM Amazon: 4 MM square KM

3 BR – Profile of Brazil  Number of Registered Enterprises in Brazil - 19 Million;  Number of Live (active) Registered Enterprises in Brazil - 19 Million;  Creation of Formal Enterprises in Brazil in ,000;  2010 Prospects for Creation of Enterprises in Brazil – 1,4 Million  Reasons:  Growth of GDP  Launch of the Individual Entrepreneur Program-formalization of informal enterprises  BR in Brazil  BR in Brazil is Integrated on Federal Level + 27 states  BR depends on 27 State Laws Municipal Laws  DNRC – main Responsibility: regulation, supervision and inspection on BR matters  27 State Level Commercial Boards, 650 branches – Execution of BR

4 DNRC Responsibilities I - oversee and coordinate the technical aspects, the bodies responsible for implementing the services of the Public Registry of Companies and Allied Activities; II - establish and consolidate, with exclusivity, standards and general guidelines of the Public Registry of Companies and Related Activities; III - resolve issues that occur in the interpretation of laws, regulations and other rules regarding the registration of commercial companies, editing instructions for this purpose; IV - provide guidance to Commercial Boards, in order to resolve queries about the compliance with laws and regulations of the Registry of Companies and Related Activities; V - exercise broad control over the legal bodies which the Registry of Companies and Related Activities, accounting for appropriate administrative authorities against abuses and violations of their rules, and requiring all that it appears necessary to meet those standards; VI - establish procedural rules regarding the registration of acts related to any kind of enterpreneurship;

5 VII - promote or provide, suppletivelly, measures to prevent or correct mistakes in the process of business registry; VIII - provide technical cooperation and financial assistance to Commercial Boards to improve relevant services to the Registry of Companies and Related Activities; IX - organize and update the National Directory of Enterprises which includes all companies operating in Brazil; X - instruct, review and manage requests that will be decided by the Minister of Development, Industry, Commerce and Foreign Trade, including requests for permission to nationalization or installation of branches and agencies in Brazil. XI - promote and develop technical studies, meetings and publications on relevant topics to the Registry of Companies and Related Activities. DNRC Responsibilities

6 (CNE) National Directory of Enterprises The National Directory of Enterprises contains a broad set of information about all registered enterprises in Brazil. These information will support the formulation of public policies, businesses planning and decisions. Examples: - Development of regional vocations (Planning and Sales) - Statistical Data - Dissolutions of Enterprises - Market research - Research providers Call for information to government agencies for monitoring and research with the purpose of doing research and linking of information. Call the operational needs of Commercial Boards to provide services.

7 * July 2010 Brazilian Database Formation

8 REDESIM Establishes policies and procedures for the simplification and integration of the process of registration and legalization of entrepreneurs and corporations. FIRST STEP: EI - Individual Entrepreneur Program formalization of informal enterprises Enterprise with sales up to US$ /year Very low taxes Immediate Registry through Internet Social Security included REDESIM – Law # /2007 National Network for the Simplification of Registration and Legalization of Companies and Business

9 THANK YOU! Jaime Herzog National Department of Business Registry Phone: + 55 (61) Fax: + 55 (61)

10 INFORMATION SOURCES: - CNE (National Directory of Enterprises) IBGE (Brazilian Institute of Geography and Statistics)