Brazil startups association backs govt initiatives

Brazilian startups association ABstartups defended a set of measures proposed by the federal government, including a new legal framework specifically designed for startups.

Among other initiatives praised, ABstartups backed the recent provisional measure of “economic freedom,” which exempts small businesses and startups from business licenses to test new products and services, as long as the items do not affect public health, safety and sanitation and do not involve use of restricted materials.

Praise received also a bill known as Inova Simples to facilitate the opening and closing of small businesses as well as tax collection by startups.

The set of initiatives provides legal security, consolidates the role of startups as an inducing agent of tech advances and increases the generation of jobs and income, ABstartups said.

"These are proposals and bills that de-bureaucratize companies that have declared themselves startups, improving the business environment of a growing sector," ABstartups president Amure Pinho said in a statement.

The executive has participated in discussions with the government regarding part of the initiatives.

According to the executive, particularly the new framework is a legal "political-private" initiative with potential to modernize legislation and reduce bureaucracy.

In a conversation with BNamericas in December, Pinho said said that the Bolsonaro administration was seen as more sensitive to advancing on the regulation of the segment and the creation of a specific legal status entity for startups, a long-standing request of the sector.

The legal framework for startups is still being drafted and should be put to public consultation soon.

The provisional measure of economic freedom was presented last week and needs to be ratified by congress in 120 days.

The Inova Simples bill was signed into law by Bolsonaro in April.

According to ABstartups, there are around 15,000 startups in operation in Brazil, of which 12,000 have been mapped by the entity.