Formalizing the business is expensive but has long-term benefits

By ETCO

Source: A Tarde Online, 18/02/2008

Yes, opening a company in Brazil is expensive. If that were not enough, there is still the weight of taxes, which consume a very considerable slice of the revenue of any project.

That is why many entrepreneurs prefer to remain informal.

But working outside the law is not the best option for those who want to build a lasting enterprise.
Do the costs of running a business scare you? Calm! You will find that there are inexpensive solutions for every type of business and tips that avoid paying unnecessary fees.

The size of the company is defined by the business plan. If the annual revenue forecast does not exceed R $ 240 thousand, it is possible to form a micro company and join the Simples program, which helps to reduce the weight of taxes by up to 30%.

RATE - Taxes are known by acronyms and their rates vary according to the geographic region and the activities carried out.


Those who only work providing services pay the ISS (Service Tax). If there is any type of trade, ICMS (Tax on Circulation of Goods and Services) is charged.

The firm's billing is also charged with PIS (Social Integration Program), Cofins (Social Security Financing Contribution), Social Contribution on Net Income (CSLL) and Corporate Income Tax (IRPJ).

But the payment of taxes only happens when the company is already functioning. At the opening, the future entrepreneur has to bear the fees charged by the municipal administration, Federal Revenue, registry offices and the Commercial Registry of the State of Bahia (Juceb). In addition, it is necessary to hire an accountant or a lawyer, who will be in charge of drafting the company's social contract. In practice, this document is the company's birth certificate, but it also defines the participation of the partners, if the venture is incorporated into a partnership. According to analyst Joana Sá, of the Brazilian Micro and Small Business Support Service (Sebrae), the entire bureaucratic process can be resolved within 30 days. For this to happen, it is necessary to advance all the required documents (see box) and define the place of operation of the company.

In addition to fulfilling these requirements, the future entrepreneur must also prove that he has no debts with the Municipality, the State or the Union. “If the debt was paid in installments and is being paid on time, there is no impediment”, notes Joana. Adding all the fees, the process of opening a micro-company in Salvador costs around R $ 400. To keep the firm's accounting records, you must have an accountant. In Salvador, it is possible to hire the service for a monthly minimum wage (R $ 380).

CLUB - Using the virtual office is an interesting alternative to reduce the company's fixed costs. The virtual office address can be used as a tax domicile for other companies. That is, depending on the size of his business and type of activity, the entrepreneur pays a monthly fee instead of renting a commercial room.

Many virtual offices also offer meeting rooms that can be booked as needed by the entrepreneur. In addition, it is also possible to hire the work of secretaries and office-boys, who take notes and do external work such as paying bills and issuing certificates, but it is not any business that can work this way. allows trading companies to operate in virtual offices. But this limitation does not affect service providers. “Most of the people who come to us are consultants, engineers and doctors who provide services to other companies”, details Rosani Silva, owner of RS Centro de Negócios, in Salvador.

NEW LIFE - Changing the life of an employee for the routine of an entrepreneur was a natural path for the accountant duo Jorge Luís Silva Santos and Adson Santos Nascimento. After spending four years working in a large accounting firm in Salvador, they decided to make a business plan to open their own company.

The enterprise was born only six months ago and already serves many entrepreneurs interested in leaving informality. We did a good survey of costs and expenses, but it is difficult to organize accounting before the company is up and running.

Most of the time, it is necessary to make some adjustments according to the scenario initially foreseen in the business plan ”, reveals Adson.