Bearing in mind that micro, small and medium enterprises (MSMEs) represent 75% of the Gross Domestic Product and employ 70% of the Economically Active Population, the Government decided to take measures to achieve their formalization. There several benefits for doing so, among them, better official fees, information and access to training, as well as advice for the procedures.
The formalization of a company is achieved in three phases:
1. Obtaining the Taxpayer ID (RUC): it is a free procedure and it is obtained in 48 hours at the Tax Office (SET);
2. Registration before the Ministry of Labor (MTESS) and the Social Security Institute (IPS): tariffs are not high and it takes around 30 days; and,
3. Application of the Municipal license: it is the most cumbersome long phase sometimes, since the municipalities are autonomous and, therefore, have their own rules, which is still sought to be solved.
Despite the benefits, so far only 3,000 of the 230,000 registered companies with RUC have the MSMEs card, and only 50,000 are registered with the IPS and MTESS. To improve this situation, the Ministry of Industry and Commerce (MIC) is working to simplify procedures digitally and reduce official fees, which have already been reduced 50%.
The formalization of MSMEs is also supported by the Cooperation Agreement on Intellectual Property signed in Rio de Janeiro by the National Director of DINAPI (National Office of Intellectual Property) and the President of ASIPI (Inter-American Association of Intellectual Property) on November 23. One of the axes of the agreement is mutual cooperation for the training of actors in the field, as well as the creation of a pro-bono assistance system for MSMEs duly registered with the Vice Ministry of MSMEs.
In addition, a working group has also been formed with representatives of the private sector to provide technology to MSMEs. Among the objectives are obtaining the fund to comply with the law promoting the National Software Industry and the promotion of the zero paper law, including MSMEs in the digital economy as well. The massification of electronic government will benefit MSMEs by facilitating access in real time to the data of entrepreneurs' ID cards in open format and by implementing online procedures and exchanges between institutions involved in the management of this type of companies.
