The Federal Senate approved last night the text of the conversion bill of law related to the Provisional Measure 881, also known as Provisional Measure on Economic Freedom (“PLV 21/2019”), with the purpose to simplify the bureaucratic procedures for the development of economic activities in Brazil. The approved text embraces several areas related to the performance of the economic activities which will result in significant changes for companies, business owners and their employees.
PLV 21/2019 brings several changes to corporate, regulatory, labor, capital markets and contractual law, among others. Some of the main changes are: (i) the possibility to incorporate a limited liability company with only one partner; (ii) the simplification of the bureaucratic procedures and the flexibilization of labor relationships; (iii) the exclusion of the necessity of permits and licenses for business with low risk; (iv) the respect by public authorities of what has been agreed by private parties; and (v) the creation of a new chapter in the Brazilian Civil Code to address the investment funds.
Despite the fact that PLV 21/2019 has been already approved by both of the National Congress houses, the text still depends on the sanction by the President to be published.
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