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Início » COMPLEMENTARY LAW 167 ON THE SIMPLE CREDIT COMPANY

COMPLEMENTARY LAW 167 ON THE SIMPLE CREDIT COMPANY

On 24th of April 2019, the current President of the Republic, Jair Messias Bolsonaro, promulgated the Complementary Law No. 167/2019, which disciplines the simple credit company (ESC) and amends Law No. 9.613 / 98 (Anti-Money Laundering Law) , the Law nº 9.249 / 95 and the Complementary Law nº 123/06 (Simples Nacional Law), in order to regulate the ESC in Brazil.

The law governing this type of company allows natural persons to set up companies, so that, with their own resources, they can make loans and discounts on credit instruments for micro and small businesses. The operations, which can only be carried out in the municipality in which the company is installed, have as a purpose to make accessible and reduce the costs of credits, developing the regional economy and generating jobs and wealth.

Individuals interested in this new type of operation will have to establish their own ESC as a limited liability individual company (EIRELI), a sole proprietorship or a limited liability company, having to indicate the expression “Simple Credit Company” in the company name. The company will have a limit of R $ 4.8 million for its gross revenues and will be subject to the tax regime of a conventional company, whose taxation falls on the real or presumed profit.

The Government, together with the Brazilian Service of Support for Micro and Small Businesses (SEBRAE), estimates that the application of this measure will make available to micro and small businesses about R $ 20 billion a year, which represents a 10% increase in the credit market in favor of this category.

Furthermore, in order to regulate the movements, guarantee legal, and tax security in the Country, the law requires that the transactions shall be registered before the Financial Activities Control Board (COAF).

Therefore, it is believed that this measure leverages the Brazilian economy, promoting an equal commercial space for micro and small businesses.

Our corporate sector is available to provide more clarification.