Dealing with Construction Permits in Brazil

The table below summarizes the procedures, time, and costs to build a warehouse in Brazil.

Export to Excel | Local partners | Methodology

   View all indicator data and topic details for this economy.

Change Selection

Building a warehouse

Data as of: January 2009
Estimated Warehouse Value: BRL 1,203,055
City: São Paulo

Requirements Summary:


  Procedure Time to complete: Cost to complete:
1 Request and obtain proof of land ownership from Real Estate Registry Office 2 days BRL 30
*2 Request and obtain proof of land tax payment from Treasury of the Municipality 7 days no charge
3 Register employees with the Social security Office 1 day no charge
4 Submit proof of payment to Social security 1 day no charge
5 Request and obtain Construction Approval Permit and Construction Execution Permit 274 days BRL 4,053
*6 Request and obtain Equipment Operating Permit 60 days BRL 75
7 Request and receive frame inspection from Municipality 1 day no charge
8 Request and receive inspection of the structures from Municipality 1 day no charge
9 Request and receive labor inspection from Labor Public Attorneys’ Office 1 day no charge
10 Request and receive sanitary inspection from Municipality 1 day no charge
11 Request and obtain conclusion approval 60 days BRL 460
*12 Receive final inspection from Municipality 1 day no charge
13 Request and receive Fire Department Inspection 31 days BRL 700
14 Request and obtain operation License 60 days BRL 25
15 Request and connect to water and sewage 30 days no charge
*16 Request and connect to telephone 15 days BRL 100
*17 Request and connect to electricity 10 days no charge
*18 Register with the Real Estate Registry Office 15 days BRL 2,000
* Takes place simultaneously with another procedure.

Requirement Details

Procedure 1.
Request and obtain proof of land ownership from Real Estate Registry Office
Time to complete:
2 days
Cost to complete:
BRL 30
Name of Agency:
Real Estate Registry
Comment:
Attesting to proof of land ownership, this certificate is valid for only 30 days. Procedures 1 and 2 can run in parallel.
Procedure 2.
Request and obtain proof of land tax payment from Treasury of the Municipality
Time to complete:
7 days
Cost to complete:
no charge
Name of Agency:
Treasury (Municipality)
Comment:
Attesting to payment of land taxes, this certificate is valid for only 30 days. Procedures 1 and 2 can run in parallel.
Procedure 3.
Register employees with the Social security Office
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Social Security Office
Comment:
For each construction site, BuildCo must register employees separately with social security (Instituto Nacional de la Seguridad Social, INSS).
Procedure 4.
Submit proof of payment to Social security
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Social Security Office
Comment:
At the end of construction, BuildCo must submit proof of payment to its construction workers and file a request with the Social Security Office to obtain a clearance certificate.
Procedure 5.
Request and obtain Construction Approval Permit and Construction Execution Permit
Time to complete:
274 days
Cost to complete:
BRL 4,053
Name of Agency:
Municipality
Comment:
To obtain the construction approval permit and the construction execution permit on the warehouse project, BuildCo must apply for them with the municipality. If the project conforms to municipal legislation, zoning law, and the municipal building code, the municipality would issue a document approving construction. To apply for these permits, BuildCo must submit the architectural drawings and real estate documentation (real estate title or real estate tax).

After examining the project’s architecture and engineering and issuing the permit, the municipality examines the practical and installation aspects and begins the process of issuing an execution permit.

BuildCo can request both permits simultaneously, but the municipality grants the permits in a specific order.

The permit fee can vary drastically, depending on the project size and location. However, the basic fee for this size of project is BRL 3,252 plus BRL 354.

Valid for a year, the construction approval permit is a prerequisite for subsequent procedures. The construction execution permit is valid for 3 years. Due to backlog of projects, the time required for this procedure is at least 9 to 10 months.
Procedure 6.
Request and obtain Equipment Operating Permit
Time to complete:
60 days
Cost to complete:
BRL 75
Name of Agency:
Municipality
Comment:
The permit allows the use of construction equipment.
Procedure 7.
Request and receive frame inspection from Municipality
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipality
Comment:
The inspection is carried out 2 weeks after it is requested.
Procedure 8.
Request and receive inspection of the structures from Municipality
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipality
Comment:
Procedure 9.
Request and receive labor inspection from Labor Public Attorneys’ Office
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Labor Public Attorney
Comment:
Procedure 10.
Request and receive sanitary inspection from Municipality
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipality
Comment:
Procedure 11.
Request and obtain conclusion approval
Time to complete:
60 days
Cost to complete:
BRL 460
Name of Agency:
Municipality
Comment:
After construction is completed, BuildCo must request this approval from the municipality to attest that the construction is finished and work performed according to the construction approval permit and the construction execution permit. The approval is valid until the first amendment of the construction project. To request and obtain conclusion approval, BuildCo must submit the following documents:
- Application form, addressed to the São Paulo Municipal Secretariat of Housing and Urban Development (SEHAB).
- First page of construction and territorial booklet.
- Construction permit.
- Engineering and CREA card.
- Receipt evidencing payment of construction work tax.
- Sets of approved plans (two).
- Administrative tax.
- ART of chief engineer.
Procedure 12.
Receive final inspection from Municipality
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipality
Comment:
The final inspection applies to larger scale projects. However, small-scale projects may receive random inspections.
Procedure 13.
Request and receive Fire Department Inspection
Time to complete:
31 days
Cost to complete:
BRL 700
Name of Agency:
Fire Department
Comment:

The fire department must approve the warehouse safety equipment. This inspection is valid for 3 years.
Procedure 14.
Request and obtain operation License
Time to complete:
60 days
Cost to complete:
BRL 25
Name of Agency:
Municipality
Comment:
Upon completing the construction procedure and the fire department inspection, BuildCo must apply for the relevant operation license before the municipality and show evidence that the company can develop the specific business at the site. To obtain this license, the company must present all warehouse project documentation.

If the warehouse is to be sold after completion, this procedure might be done by the buyer and not BuildCo.
Procedure 15.
Request and connect to water and sewage
Time to complete:
30 days
Cost to complete:
no charge
Name of Agency:
Water and Sewerage Agencies
Comment:
This procedure can begin after Procedure 14 has been completed. The connection request is filed with the Water Agency and Sewerage Agency.
Procedure 16.
Request and connect to telephone
Time to complete:
15 days
Cost to complete:
BRL 100
Name of Agency:
Local Concessionary of Telecommunications
Comment:
The company must file a request with the Local Concessionary of Telecommunications to obtain the telecommunications connection.
Procedure 17.
Request and connect to electricity
Time to complete:
10 days
Cost to complete:
no charge
Name of Agency:
Concessionary of Electric Energy
Comment:
The company must file a request before the Concessionary of Electric Energy to connect the warehouse to the distribution lines of electric energy by submitting the warehouse address and the General Taxpayers' Registry.
Procedure 18.
Register with the Real Estate Registry Office
Time to complete:
15 days
Cost to complete:
BRL 2,000
Name of Agency:
Real Estate Registry
Comment:
At the end of construction, BuildCo must register the facility at the Real Estate Registry. BuildCo must present the title of the land and certificate from the Social Security Office.