#

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):

52.86

DB 2016 DTF (% points):

52.86

Change in DTF (% points):

0.00

STANDARD PROPERTY TRANSFER
Property value BRL 1,389,467
City São Paulo
Indicator São Paulo Latin America & Caribbean OECD high income
Procedures (number) info_outline 14 7.1 4.7
Time (days) info_outline 25 68.6 22.4
Cost (% of property value) info_outline 3.6 5.8 4.2
Quality of the land administration index (0-30) info_outline 14 11.9 22.7
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Acquire 10 Certificates of Registries and Disputes (Certidão dos Cartórios de Protestos) from the Distributor of Disputes Registry

    Agency: Disputes Registry (Cartórios de protesto)

    The buyer can request the certificates on the existence of debts on the website: https://www.protesto.net.br/index.php?act=certidao. Although this certificate is not required by law, it is common practice to request it particularly in transactions between companies that tend to be more conservative and are usually assisted by lawyers. The seller will usually request 5-year certificates. 10-year certificates are also available for higher fees. There are 10 Protest Notaries in São Paulo, and it is necessary to research them all.

    Two days (simultaneous with procedures 1, 3, 4, 5, 6, 7, 8, 9 and 10) BRL 11.49 for each 5 year certificate (the total is BRL 114.90)
    * 2

    Acquire a Civil Distributor's Certificate (Certidão dos Distribuidores Cívies), a Fiscal Executive Certificate (Certidão de Executivos Fiscais) and a Bankruptcy Certificate (Certidão de Falencias e Concordatas) from the City Court Office

    Agency: Distributor of the State Courts ( Tribunal de Justiça de São Paulo)

    These three certificates guarantee that the seller does not owe any payment as a result of a civil, fiscal, and commercial legal dispute. Additionally, it states that no pending sentences or legal proceedings are linked to the seller.


    These certificates can be retrieve online since August 2015 at https://esaj.tjsp.jus.br/sco/abrirCadastro.do. It takes around 1 day for the certificate to be issued if it is negative (that is, that the seller does not have any pending payment nor legal proceedings)


    Certificates are issued immediately when requested in person at the Fórum do Tribunal de Justiça.

    1 day (simultaneous with procedures 1, 2, 4, 5, 6, 7, 8, 9 and 10) BRL 19.4 (x 3 certificates) + BRL 5.6 for every additional sheet
    3

    Obtain a Labor Justice Certificate (Certidão da Justiça do Trabalho) from the Regional Labor Court

    Agency: Regional Labor Court (Tribunal Regional de Trabalho No. 2)

    This document is not required by law. Technically, the buyer and seller can agree to trust that all these checks are represented and warranted by the seller without needing to submit the certificate to the public notary. In practice, however, for transactions between companies, the seller will provide these documents.

    Since January 2016, the Labor Justice certificate can be retrieved online immediately according to Act GP/CR No. 1/2016. This certificate identifies all the ongoing procedures at the Regional Labor Court in which the company (buyer) is a defendant. The certificate is valid for 90 days, and its authenticity can be verified online as well.

    Less than a day (online procedure simultaneous with procedures 2, 3, 4, 5, 6, 7, 8, 9 and 10) No cost
    * 4

    Obtain a Certificate of Good Standing on Labor Debts (Certidão Negativa de Débitos Trabalhistas)

    Agency: High Labor Court (Tribunal Superior do Trabalho)

    The Certificate of Good Standing on Labor Debts is not required by law and therefore does not prevent the registration of real estate transactions. It is, however, common practice and highly recommended to check the standing on labor debts of the seller.

    Less than a day (online procedure and simultaneous with procedures 1, 2, 3, 5, 6, 7, 8, 9 and 10) no cost
    * 5

    Obtain a 20-year certificate (Certidão Vintenária)

    Agency: Real Estate Property Registry (Cartório de Registro de Imóveis)

    The 20-year certificate (Certidão Vintenária) needs to be obtained in order to (i) certify the successive chain of owners (and ownership titles) of the plot in the past 20 years; (ii) check if the seller is really the owner of the property; and (iii) check about any encumbrances over the land.

    The certificate might be requested online at https://www.registradores.org.br/Servicos/frmTabelaCustas.aspx. The digital certificate has the same legal validity as the one issued on paper format.

    Less than a day (online procedure and simultaneous with procedure 1, 2, 3, 4, 6, 7, 8, 9 and 10) BRL 45.55 per certificate
    * 6

    Request a Land-Tax Certificate and a Cadastral Certificate (Certidão de Dados Cadastrais do Imovel) from City Hall

    Agency: Municipal Prefecture of Sao Paulo (Prefeitura Municipal de São Paulo)

    These certificates can be obtained in the website: www.prefeitura.sp.gov.br

    They will establish if there is any pending tax debt affecting the property.

    The certificate is free if obtained online.

    The buyer can waive this certificate if he assumes the obligation to pay all pending land tax debt related to the real state according to § 2 of Art. 1 of Decree 93.240/86.

    Less than a day (online procedure and simultaneous with procedure 1, 2, 3, 4, 5, 7, 8, 9 and 10) no cost if obtained online
    * 7

    Acquire a Clearance Certificate from Tax Agency and a Federal Tax Clearance Certificate (Certidão de Débitos Relativos a Créditos Tributários Federais e à Dívida Ativa da União)

    Agency: Federal Tax agency (Ministério da Fazenda, Procuradoria Geral da Fazenda Nacional, Secretaria da Receita Federal do Brasil - RFB)

    The joint certificate (Certidão de Débitos Relativos a Créditos Tributários Federais e à Dívida Ativa da União) can be obtained online at www.receita.fazenda.gov.br since November 2014. The joint certificate includes:


    (i) Clearance Certificate (Certidão Conjunta Negativa de Débitos relativos aos Tributos Federais e à Dívida Ativa da União emitida pelo Ministério da Fazenda – Procuradoria Geral da Fazenda Nacional – Secretaria da Receita Federal do Brasil) from the Tax Agency: this certificate includes the debts related to taxes administered by the Internal Revenue Service of Brazil (RFB) and the inscriptions on Union Debts with the General Attorney of National Treasury (PGFN). This certificate, which is issued in the name of the headquarters and applies to all its subsidiaries, refers only to the information of the taxpayer within the RFB and PGFN, and does not include social security contributions and the contributions due, by law, to third parties, including those debts enrolled in the National Social Security Institute (INSS), that are object of the second certificate.

    (ii) The Federal Tax Clearance Certificate (Certidão Negativa de Débitos relativos às Contribuições Previdenciárias e às de Terceiros emitida pelo Ministério da Fazenda, Secretaria da Receita Federal do Brasil) refers exclusively to social security contributions and the contributions owed by law, to third parties, including those enrolled in Union Debts (Dívida Ativa da União - DAU) and does not include other taxes administered by RFB and the remaining debts in the DAU, administered by the General Attorney of National Treasury (PGFN) object PGFN Joint Certificate / RFB.

    If one is a certified representative of the company with a passcode, one can obtain this certificate online at www.receita.fazenda.gov.br/previdencia/CND free of charge. The certificate was formerly provided by the National Social Security Institute (INSS), but is now provided by the Internal Revenue Service, after both agencies were partially unified according to Law N° 11.457/07.

    Less than a day (online procedure and simultaneous with procedure 1, 2, 3, 4, 5, 6, 8, 9 and 10) no cost
    * 8

    Acquire a Worker’s Fund Certificate (Certidão de Regularidade de Situação do FGTS) at the federal bank- Caixa Economica Federal

    Agency: Federal bank (Caixa Economica Federal)

    The Worker's Fund Certificate assures that the company has kept its pension fund plan up to date with payments. This certificate is obtained online at the site Caixa Economica (https://webp.caixa.gov.br/cidadao/Crf/FgeCfSCriteriosPesquisa.asp) free of charge. It is not required by law, but in practice it is usually requested by the buyer in transactions between companies.

    Less than a day (online procedure and simultaneous with procedure 1, 2, 3, 4, 5, 6, 7, 9 and 10) no cost
    * 9

    Acquire a Federal Justice Certificate (Certidão da Justiça Federal) from the Receita Federal - (Certidão de Distribuição de Ações e Execuções Cíveis, Fiscais, Criminais e dos Juizados Especiais Federais Criminais Adjuntos junto ao Poder Judiciário – Justiça Federal de Primeiro Grau em São Paulo)

    Agency: Justiça Federal

    This certificate is obtained online at (http://www.jfsp.jus.br/certidoes-emissaoonline/). The certificate will show if there are any pending cases at civil, tax, criminal and special federal criminal courts. If the company has any pending claims, the certificate will have to be picked up in person by a representative at the Justiça Federal.

    Less than a day (online procedure and simultaneous with procedures 1, 2, 3, 4, 5, 6, 7, 8 and 10) no cost
    * 10

    Notary obtains company information

    Agency: Company Registry (Junta Comercial de Estado de São Paulo)

    The notary will check the website of the Company Registry (Junta Comercial) to make sure that (i) the articles of association presented by the parties and (ii) the legal representatives mentioned in the articles of association correspond with the most recent ones registered.

    Less than a day (online procedure and simultaneous with procedures 1, 2, 3, 4, 5, 6, 7, 8 and 9) no cost
    11

    Pay transfer tax (ITB I) and other fees at a commercial Bank

    Agency: Municipal Prefecture of Sao Paulo (Prefeitura Municipal de São Paulo)

    The buyer has to pay the transfer tax before the parties can sign the transfer deed. The majority of notaries prefer to receive the tax payment themselves and then take care of transferring it to the Municipality because they are responsible for checking that the tax payment is correct. Notaries also have to file to the tax authorities a declaration of all the transactions that they were part of, given that they are jointly liable. For the ITBI, it is common practice for the notary to provide the payment form obtained online (http://www.prefeitura.sp.gov.br/cidade/secretarias/financas/servicos/itbi/) to the buyer.

    1 day 3% of the property value registered with the cadastre of the Prefecture for ITBI
    12

    Drafting of Public Deed of Purchase and Sale (Escritura Pública de Venda e Compra) by a Public Notary (Tabelião de Notas)

    Agency: Public Notary (Tabelião de Notas do Estado de São Paulo)

    The notary will review all the documents obtained in the previous Procedures and proceed to notarize the sale deed. Notary fees are incurred for the notarization of the sale and purchase agreement.

    3 days BRL 4,393.16 (according to scale on http://www.cnbsp.org.br/?pG=X190YWJlbGFzX2Vtb2x1bWVudG9z)
    13

    Register the escritura (transfer deed) at the appropriate Real Estate Registry with jurisdiction over the property to finalize registration and name change

    Agency: Real Estate Registry (Cartório de Registro de Imóveis)

    There are 18 Real Estate Registries in São Paulo. The registration of the deed at the corresponding Real Estate Registry is required for the transfer of ownership of the property. It can be arranged directly by the parties or by the notary if the notary offers this supplementary service. By law, the Real Estate Registry has 30 days to analyze the documents and register the transfer deed. Usually, the registry will come back with some issues that need to be fixed prior to registration.

    15 days BRL 3,199,70 (according to the schedule in https://www.registradores.org.br/Servicos/frmTabelaCustas.aspx)
    * 14

    Update the land taxation records (IPTU – Imposto Predial e Territorial Urbano) to the new owner's name at City Hall

    Agency: Municipal Prefecture of Sao Paulo (Prefeitura Municipal de São Paulo)

    Theoretically, the Real Estate Registry should inform the Municipality about the transfer of the real estate and the Municipality should automatically update its land taxation records. In practice, however, this automatic system does not really work. The Municipality updates the records a few times a year, sometimes even only once a year. Therefore, in practice, the parties need to go to the Municipality and request the update.

    5 days ( simultaneous with procedure 13) no cost

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Quality of the land administration index (0-30) 14.0
    Reliability of infrastructure index (0-8) 5.0
    What is the institution in charge of immovable property registration? Cartórios de Registro de Imóveis de São Paulo
    In what format are the majority of title or deed records kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Scanned 1.0
    Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? Yes 1.0
    In what format are the majority of maps of land plots kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Fully digital 2.0
    Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? Yes 1.0
    Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases? Separate databases 0.0
    Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? No 0.0
    Transparency of information index (0–6) 3.5
    Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city? Anyone who pays the official fee 1.0
    Is the list of documents that are required to complete any type of property transaction made publicly available–and if so, how? Yes, online 0.5
    Link for online access: http://www.cnbsp.org.br/index.php?pG=X19wYWdpbmFz&idPagina=6009
    Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how? Yes, online 0.5
    Link for online access: For Notaries fees: http://www.cnbsp.org.br/index.php?pG=X190YWJlbGFzX2Vtb2x...
    Does the agency in charge of immovable property registration commit to delivering a legally binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Yes, online 0.5
    Link for online access: http://www.planalto.gov.br/CCIVIL_03/leis/L6015compilada.htm (capitulo III ...
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? No 0.0
    Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? No 0.0
    Number of property transfers in the largest business city in 2015:
    Who is able to consult maps of land plots in the largest business city? Freely accessible by anyone 0.5
    Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, online 0.5
    Link for online access: Free of charge (http://www.prefeitura.sp.gov.br/cidade/secretarias/financas...
    Does the cadastral or mapping agency commit to delivering an updated map within a specific time frame—and if so, how does it communicate the service standard? No 0.0
    Link for online access: http://www.prefeitura.sp.gov.br/cidade/secretarias/financas/servicos/certid...
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? No 0.0
    Geographic coverage index (0–8) 2.0
    Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the largest business city formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the economy mapped? No 0.0
    Are all privately held land plots in the largest business city mapped? Yes 2.0
    Land dispute resolution index (0–8) 3.5
    Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? Yes 1.5
    Is the system of immovable property registration subject to a state or private guarantee? No 0.0
    Is there a specific compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? No 0.0
    Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)? Yes 0.5
    If yes, who is responsible for checking the legality of the documents? Registrar; Notary.
    Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
    If yes, who is responsible for verifying the identity of the parties? Registrar; Notary.
    Is there a national database to verify the accuracy of identity documents? No 0.0
    For a standard land dispute between two local businesses over tenure rights of a property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the first instance? Tribunal de justica do estado de Sao Paulo
    How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? Between 2 and 3 years 1.0
    Are there any statistics on the number of land disputes in the first instance? No 0.0
    Number of land disputes in the largest business city in 2015:
    Equal access to property rights index (-2–0) 0.0
    Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
    Do married men and married women have equal ownership rights to property? Yes 0.0