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Ease of Doing Business in

Brazil

Brazil Download Profile (2073.7KB, pdf)
Region Latin America & Caribbean
Income Category Upper middle income
Population 207,847,528
GNI Per Capita (US$) 9,850
City covered São Paulo , Rio de Janeiro

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 123 121 down
2
56.53 56.60 down
0.07
Starting a Business 175 174 down
1
65.04 64.20 up
0.84
Dealing with Construction Permits 172 170 down
2
51.28 51.27 up
0.01
Getting Electricity 47 39 down
8
81.23 82.32 down
1.09
Registering Property 128 130 up
2
52.62 52.64 down
0.02
Getting Credit 101 97 down
4
45.00 45.00
-
Protecting Minority Investors 32 30 down
2
65.00 65.00
-
Paying Taxes 181 181
-
33.03 33.12 down
0.09
Trading across Borders 149 150 up
1
55.57 54.20 up
1.37
Enforcing Contracts 37 45 up
8
67.41 65.55 up
1.86
Resolving Insolvency 67 60 down
7
49.15 52.68 down
3.53

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

Viewing the data for

DB 2017 DTF (% points):

50.44

DB 2016 DTF (% points):

50.42

Change in DTF (% points):

up0.02

STANDARDIZED WAREHOUSE
Estimated value of warehouse BRL 1,389,467
City São Paulo
Indicator São Paulo Latin America & Caribbean OECD high income
Procedures (number) info_outline 19 14.4 12.1
Time (days) info_outline 400 181.3 152.1
Cost (% of warehouse value) info_outline 0.4 2.5 1.6
Building quality control index (0-15) info_outline 9 8.4 11.3
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Request and obtain proof of land ownership from the Real Estate Registry

    Agency: Real Estate Registry

    Attesting to proof of land ownership, this certificate is valid for only 30 days.

    1 day BRL 41
    * 2

    Obtain Technical Term of Responsibility -ART

    Agency: Engineers Syndicate (Crea)

    Before the application process, the engineer and architect responsible for the project need to obtain an ART. An ART is a document required by the Engineers Syndicate (Crea) that defines, for legal purposes, who is responsible for the execution of works or services and provides an opportunity for professionals to register their works or services with Crea.

    The ART is required for each project according to the Federal Law N° 6.496 of 7 December 1977. It is possible to obtain it online within a couple of hours and it costs BRL 167.68. The value of the fee varies according to the value of the contract or the cost of the work:
    - Contracts or works up to BRL 8,000: BRL 63.64
    - Contracts or works between BRL 8,000.01 and BRL 15,000: BRL 111.37
    - Contracts or works of more than BRL 15,000.00: BRL 167.68

    This procedure can be activated without the proof of ownership.

    0.5 days BRL 168
    * 3

    Request and obtain proof of land tax payment from the Treasury Department of the Municipality

    Agency: Treasury (Municipality)

    Attesting to payment of land taxes, this certificate may be issued online and is valid for only 30 days. This request can be done in parallel with procedure 2.

    0.5 days no charge
    4

    Register employees with the Social Security Office

    Agency: Social Security Office

    For each construction site, BuildCo must register employees separately with the Social Security Office (Instituto Nacional de la Seguridad Social, INSS). This procedure can only be done whenever there is a proof of land tax payment,so it cannot be simultaneous with the previous one

    0.5 days no charge
    5

    Request and obtain construction approval permit and construction execution permit

    Agency: Municipality

    BuildCo must apply for construction approval permit and the construction execution permit with the Municipality. If the project conforms to municipal legislation, zoning laws, and the municipal building code, the Municipality will 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.

    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.

    274 days BRL 4,200
    * 6

    Request and obtain equipment operating permit

    Agency: Municipality

    The permit allows the use of construction equipment. This can be done in parallel with the approval permit request, so it can be a simultaneous procedure.

    60 days BRL 75
    * 7

    Submit project for analysis by Fire Department and obtain report

    Agency: Fire Department

    Build Co must present the building project to the Fire department for approval and obtain a report which includes all the fire security measures that need to be implemented. This can be done in parallel with the approval permit request, so it can be a simultaneous procedure.
    The cost related to obtaining the fire assessment is BRL 82.91.
    The formula that should be used for a built area superior to 750 square meters is:0.003*UFESP*sqm = 0.003*21.25*1300.6 = BRL 82.91

    30 days BRL 83
    8

    Receive random inspection from Municipality

    Agency: Municipality

    According to Law No. 11.228, annex 1, No. 6, Municipality is legally entitled to perform inspection required during the construction. The inspections can be carried out anytime, or upon complaint of a citizen. This can only happen when the construction has been started. As a result, it cannot be a simultaneous procedure.

    1 day no charge
    9

    Receive labor inspection from Labor Public Attorneys’ Office

    Agency: Labor Public Attorneys' Office

    This submission happens whenever BuildCo. was granted authorization to start construction. As a result, it cannot be done simultaneously.

    1 day no charge
    10

    Submit proof of payment to the Social Security Office

    Agency: Social Security Office

    At the end of construction, BuildCo must submit proof of payment to its construction workers.

    0.5 days no charge
    11

    Request inspection from Fire Department

    Agency: Fire Department

    The fire department can receive a request from BuildCo whenever the construction of the warehouse has been finalized.
    This means that this procedure cannot be a simultaneous one with the previous one.

    1 day no charge
    12

    Receive inspection from the Fire Department

    Agency: Fire Department

    The Fire Department must approve the warehouse safety equipment. This inspection is valid for 3 years. This request is made by BuildCo. upon finalizing the construction. As a result, it cannot be a simultaneous procedure.

    1 day no charge
    13

    Obtain Fire Department Certificate (Certificado de Aprovação - AVCB)

    Agency: Fire Department

    This certificate is only given when the Fire Department has already conducted its inspection. So this cannot be a simultaneous procedure.

    29 days BRL 111
    14

    Request final inspection from Municipality

    Agency: Municipality

    After construction is completed, BuildCo must request the certificate of occupancy ("Habite-se") from the Municipality to attest that the construction is finished and that the work was performed according to the construction approval permit and the construction execution permit. as a result, this cannot be a simultaneous procedure. The approval is valid until the first amendment of the construction project.

    To request and obtain the 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

    1 day no charge
    15

    Receive final inspection from Municipality

    Agency: Municipality

    The inspection is conducted once it has been requested by BuildCo. So this cannot be a simultaneous procedure.

    1 day no charge
    16

    Obtain certificate of occupancy ("Habite-se")

    Agency: Municipality

    In order to obtain the certificate of occupancy, the Municipality should have conducted its final inspection. So this cannot be a simultaneous procedure.

    28 days BRL 460
    17

    Request and obtain operation license

    Agency: Municipality

    Upon completing the construction and receiving the Fire Department inspection, BuildCo must apply for the relevant operation license at 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. However, in order to so the occupancy permit must be issued, so this cannot be a simultaneous procedure.

    60 days BRL 25
    * 18

    Request and connect to water and sewage

    Agency: Water and Sewerage Agencies (SABESP)

    The connection request is filed with the Waste Management Company (SABESP), a different organization regarding the operation license. So, this can be a simultaneous procedure.

    30 days no charge
    * 19

    Register building with the Real Estate Registry

    Agency: Real Estate Registry

    At the end of construction, BuildCo must register the warehouse at the Real Estate Registry. BuildCo must present the title of the land and the certificate from the Social Security Office. So, this can be a simultaneous procedure.

    15 days BRL 1,054

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 9.0
    Quality of building regulations index (0-2) 2.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals. 1.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer. 1.0
    Quality control during construction index (0-3) 0.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Unscheduled inspections. 0.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are not always done in practice during construction; Mandatory inspections are done most of the time during construction. 0.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 1.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  Architect or engineer; Professional in charge of the supervision; Construction company. 1.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0
    Professional certifications index (0-4) 2.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) University degree in architecture or engineering; Being a registered architect or engineer; Passing a certification exam. 1.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) University degree in engineering, construction or construction management; Being a registered architect or engineer. 1.0