The decline of bureaucracy facilitates the establishment of branches of foreign companies

Isabelle Barone

Picture is for illustration purposes only. Before the process was digitized, only 21 applications and authorizations were registered for the installation of foreign companies in the country.| Photo: Unsplash

The number of foreign companies that requested the installation of branches in Brazil reached a record high in 2021, from 36 requests. According to the federal government, a reduction in the bureaucracy of the process, as a result of the digitization of a series of public services, was responsible for this achievement. In the administration of President Jair Bolsonaro (PL) alone, 99 companies have requested to open branches in Brazil.

The Economy Ministry says the average time to review applications of this type has been reduced from 45 days to just three. Before digitization, on the other hand, it was necessary to hand all the required documents in duplicate, in person or through the post office, to the National Administration for Business Registration and Integration (Drei), associated with the volume.

“The digital transformation of this service has made life easier for those interested in investing in Brazil, as well as for Brazilian professionals working in the field of business registration,” the ministry said in a statement.

“Development, conservation (-papers), removal of bureaucracy, economy and jobs!” , books o President Jair Bolsonaro (PL) em seu perfil no Twitter em Referência à marca recorde.

Between 2019 and 2021, according to data sent by the Ministry of Economy to People’s NewspaperThe government allowed the opening of 88 branches in Brazil. Between 2016 and 2018, before the process was digitized, only 21 requests and authorizations were registered.

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If the historical series of branches of foreign companies authorized to operate in Brazil is analyzed, then 303 companies have requested installation in the country since 1899.

At least 72% of federal public services have been digitized

Of all federal government services, 72% have already been digitized on the gov.br platform, focusing on high-impact digital solutions such as emergency aid, Meu INSS, unemployment and unemployment insurance for home employees, digital business cards and traffic and Pix.

Since January 2019, the federation has managed to save at least 3 billion Brazilian reals annually through the digitization process, according to the Ministry of Economy.

Brazil is the seventh country in the “maturity of digital public services”

A survey published by the World Bank in 2021 showed that Brazil ranks seventh – out of 198 countries – in terms of “maturity of digital public services”. It was the only country with a population of over 100 million to appear in the top ten on the list.

In the ranking, the country surpassed all other countries in the Americas, including the United States and Canada, and lagged behind only South Korea, Estonia, France, Denmark, Austria and the United Kingdom.

The World Bank’s 2020 Government Technology Maturity Index assessed the country’s performance in four aspects: support for key government systems; improve service delivery; integration of citizen participation; Encouraging the digital skills of individuals in the public sector, the appropriate legal and regulatory system, capacity building and innovation.

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