São Paulo takes first place in bureaucracy ranking

By ETCO

Source: Diário de Santa Bárbara - CITIES - 25/07/2010

A survey by Firjan (Federation of Industries of the State of Rio de Janeiro) mapping the existing bureaucracy for opening businesses in the country shows that São Paulo is the state where it is most difficult to obtain the necessary information.
The researchers needed to make 102 calls to gather all data on costs, fees and procedures. The easiest place was Paraíba, where 12 phone calls were needed.


For Cristiano Prado, manager of Infrastructure and New Investments at Firjan, there is a lack of qualified personnel.
"The bodies are structured, the calls are answered, but people do not know how to provide information and transfer the interested parties from one sector to another", he said.
The federation defines the process of opening businesses in the country as a “pilgrimage between agencies, which is not very transparent and very expensive”. The entrepreneur willing to start a company must pay 12 to 16 fees and obtain 43 documents.
The cost of opening a company in Brazil was also researched. On average, it is R $ 2.038, but varies up to 274% between States.


Despite the excessive bureaucracy, São Paulo is the seventh most affordable place in the country to open a company, with an estimated cost of R $ 1.711. The State does not charge feasibility fees for the location of the project or feasibility research on the name of the company.
In addition to the price difference and the lack of trained personnel, in some cases the researchers received personal cell phones from employees or had to contact the board of an agency for basic information.
On the website of the Junta Comercial do Amapá, the phone number available is that of a pizzeria.


WITHOUT INTERNET - The attorney's visa on the company's social contract and the Fire Department's license together represent more than 60% of the costs of opening a business.
According to the survey, the main difficulties encountered by entrepreneurs are the lack of communication between agencies, the scarcity of services via the Internet, the lack of transparency of information and the lack of standardization of fees.
In international comparisons, Brazil's position is unfavorable in relation to other emerging economies.


The cost of opening a company in the country is three times the average for Russia, India and China. In relation to South America, the cost of Brazil is twice that of Colombia.
The annual expense for opening companies in Brazil reaches R $ 430 million. In comparison with expenses recorded in the average of the other Brics, Brazilian inefficiency is estimated at R $ 264 million / year.