The Senate approved on November 9th amendments to the General Corporations Law, so that in a single day and with zero-cost, companies can be open, registered in the Public Registry of Commerce, have the Federal Register of Taxpayers and operate immediately.

The approved reform defines Sociedades por Acción Simplificada (SAS), as those that are constituted by one or more individuals, who are only required to pay their contributions in order to facilitate admission to formality and simplify the process constitution for micro and small businesses.

Another purpose of the SAS is to create a new corporate regime consisting of one or more shareholders and to establish a process of administrative constitution with all legal purposes. The objective of the reforms approved by the Senate is to establish a mechanism for simple operation that meets the needs of micro and small enterprises and encourage the growth of companies in the future to adopt more sophisticated methods of operation and administration.

According to figures from the Center for the Development of Enterprise Competitiveness, 75% of new businesses close before 2 years of life and only 10% of them transcends beyond 5 years.