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Committee defines activities exempted from prior license to operate

Reduction of bureaucracy

Regulatory Measure MP of Economic Freedom and liberates operation of low risk activities from the need for prior authorization

The Managing Committee of the National Network for Simplifying the Registration and Legalization of Business and Businesses (CGSIM) published on Wednesday (12) Resolution No. 51 . The measure is provided in Article 3, item I of Provisional Measure No. 881, of April 30, 2019, the MP of Economic Freedom . The standard establishes categories of risk for commercial establishments and brings the list of activities that come to be considered low risk.

As of the publication of the standard, any citizen who wants to economically exploit activity classified as low risk, in accordance with the terms and criteria adopted by the Resolution, will be exempted from requesting any prior authorization from the Public Authorities, except for registrations for tax purposes, such as CNPJ , for example.

According to Paulo Uebel, the Special Secretary for Debureaucratization, Management and Digital Government, the measure is fundamental and part of a government commitment "We are fulfilling a popular mandate, simplifying the life of the citizen, that is what our country needs and according to President Bolsonaro determined, we have to take the weight of the state from above people and companies. "

States and municipalities

Regarding the autonomy of federative entities, the CGSIM Resolution on the classification of low risk activities should be observed only in the absence of specific state, district or municipal legislation. Thus, the application of the Federal Resolution becomes a right of the entrepreneurs in the states and municipalities in which there is no own legislation defining the activities of low risk, for those ends, that are exempted of public acts of liberation.

States and municipalities that define low risk should report to the Ministry of Economy. So far only a municipality in the center-west of Brazil has defined it, so the expectation is that the resolution of the CGSIM will be valid for almost the entire country instantly.

Categorization

The resolution classifies companies into three categories:

  • Low risk or "low risk A": exempts the need for any public acts of liberation of economic activity for full and continuous operation and operation of the establishment. Companies in this category will not need an inspection for the continuous and regular exercise of their activities.
  • Medium risk or "low risk B": they  will be allowed to start their operations soon after the registration act, but with provisional licenses, permits and similar. They need a posterior survey for the continuous and regular exercise of the activity.
  • High risk : thus defined by other resolutions of the CGSIM and its competent bodies, in compliance with the requirements of sanitary safety, metrology, environmental control and fire prevention. Require prior inspection to start the operation of the establishment.

 

'Low risk' totals 287 activities

The Resolution defines 287 activities framed as "low risk" or "low risk A". Among them are news agencies; accounting and tax consulting and auditing; psychology and psychoanalysis; hairdressers, manicure and pedicure; bars; teaching of dance, music and languages; services for automotive industry.

According to the text of the MP of Economic Freedom will be considered low risk or "low risk A", for the specific and exclusive effect of dispensing with the need for public acts of liberation of economic activity, those activities that qualify, at the same time such as low risk or "low risk A" in fire and panic prevention, relating to health, environmental safety, including on the work environment and economic security.

Requirements for qualification as low risk

If the activity is carried out in an urban area, it will only qualify as a low risk or "low risk A" when performed in an area where it is fully regulated, according to urban zoning regulations, including municipal legislation. If the establishment operates in the residence of the entrepreneur, owner or partner, it will only be considered low risk if it does not generate large circulation of people or if it is a typically digital activity that does not require physical establishment for its operation.

Regarding fire and panic prevention, only those activities carried out in the residence of the entrepreneur will be classified as low risk, without reception of persons or, if it does not occur in the residence, it is necessary that the place has, in all, up to 200 square meters and at most three floors, without subsoil.

If it is a place for a public meeting, the allowance must be up to one hundred people; without subsoil with separate parking use; without having flammable liquid or fuel above 1000 L (thousand liters); and without having liquefied petroleum gas (LPG) above 190 kg (one hundred and ninety kilograms).

The classification does not dispense with the need for professional licensing, when required by federal law. The entity or the regulatory council of the profession may, in its own normative act, define low risk situations that exempt the respective professional licensing. It is worth remembering that the low risk classification does not exempt the business owner from having records and tax and social security records.

Economic freedom

The new regulation brought by Resolution 51 is one of the principles of the MP of Economic Freedom. It is part of the Federal Government's efforts to reduce bureaucracy around opening and maintaining businesses in the country. In line with international best practices, and especially MP 881 enhances the economic freedom of citizens and entrepreneurs, at the same time as it requires more responsibility, rationality and predictability of the State in its performance.

The MP states that it is the right of every person, whether natural or legal, to "develop low-risk economic activity, for which it relies solely on its own private property or on consensual third parties, without the need for public acts of liberation of economic activity."

About the management committee

The Steering Committee of the National Network for the Simplification of Registration and Legalization of Business and Businesses (CGSIM) is one of the bodies responsible for managing the differentiated and favored treatment provided for in the Statute of Micro and Small Enterprises. Composed by representatives of the Union, the States and the Federal District, the Municipalities and other support and business registration bodies, the CGSIM deals with the process of registration and legalization of businessmen and legal entities.