Brazil sees 27.6% decline in new business start-ups in April

In April, Brazil’s net total of new businesses was 136.1 thousand, derived from the opening of 296.5 thousand companies and the closure of 160.3 thousand.

This represents a 27.6% decrease compared to the same month in 2022 when 188,000 businesses were launched.

From January through April, 595 thousand new businesses were established in the country, showing a significant reduction of 26.2% from the same period last year when 805,700 companies were created.

This data was gathered by Poder360 from the Company Map Panels, a division of the Ministry of Development, Industry, Commerce, and Services.

On average, it took one day and six hours to establish a new company.

The individual micro-entrepreneurs (MEIs), typically taking 25 hours to set up, significantly reduced this average.

Other types of businesses generally require a longer setup time, with the overall average also being influenced by the processing capacity of commercial registries in different states.

Sergipe was the fastest state in registering new businesses by the end of the first four months of 2023, with an average processing time of only 7 hours.

Conversely, São Paulo had the longest average business opening time, at 2 days and 2 hours.

The most popular sectors for new businesses included:

• Sales promotion;
• Retail sale of clothing and accessories;
• Document preparation and specialized administrative support services;
• Hairdressing, manicure, and pedicure services;
• Masonry work.

As of last month, Brazil had 21 million active companies. A majority of these businesses were individual micro-entrepreneurs (69%), followed by Limited Liability Companies (30%).

With information from Poder360

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