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Brazil registers a record number of new companies

By Danielle Nader

In the first four months of 2023, the number of companies starting up in Brazil reached a new record, with 1,331,940 new registers, adding up to 21 million active companies in the national territory.

Of these companies, 93.7% are classified as micro or small companies.

This data comes from the Company Map, a report prepared by the Ministry of Development, Industry, Commerce, and Services (MDIC) in collaboration with the Federal Data Processing Service (Serpro).

Of the total number of companies opened in Brazil between January and April, 83.8% are in the Trade and Services sectors (Photo internet reproduction)

Compared to the previous four-month period, the 21.8% increase in company openings between January and April this year is a positive indication.

However, compared to the same period in 2022, there was a drop of 1.6%.

At the same time, company closures were observed in both comparisons: an increase of 34.3% compared to the previous four-month period and 34.7% compared to the same period last year.

In total, 736,977 registers were closed in the first four months of 2023.

Despite this, the overall balance of companies opened at the beginning of this year remains positive, with a net addition of 594,963 companies.

Of the total number of companies opened in Brazil between January and April, 83.8% are in the Trade and Services sectors, representing 59.5% of all sectors.

The activities that stood out the most in the new companies include sales promotion, clothing and accessories retail trade, document preparation, administrative support services, hairdressers, manicures and pedicures, and masonry work.

An important point is the time required to open a company, which averaged one day and six hours during the year’s first four months.

Although this time increased by six hours compared with the previous four-month period, there was a reduction of 10 hours compared with the same period last year.

This reflects the progress made in standardizing procedures and flows in the country’s 27 federal units and the advances in digitalization and automation of the processes required to formalize new businesses.

The director of the Department of Enterprise Registration and Integration (DREI), Amanda Souto, expressed optimism about this trend of reducing the time needed to open a company.

It is worth pointing out that the time it takes to open a company can vary according to the capacity of the Boards of Trade in the states, including factors such as computer systems and the number of employees.

Regarding the regional highlight, São Paulo and Minas Gerais lead the list of states with the highest number of companies opened in the period, followed by Rio de Janeiro.

Paraná, Rio Grande do Sul, Santa Catarina, Bahia, and Goiás also stand out in companies’ opening and closing.

These eight states concentrated 75% of the companies that opened and 75% that closed in the country during the analyzed period.

With information from Contábeis

News Brazil, English news Brazil, Brazilian economy

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