Gabriela de Ávila Machado
Lawyer at Marcos Martins Advogados
Complementary Bill (Bill) No. 249 of 2020, which “establishes the legal framework for startups and innovative entrepreneurship” was presented to the Chamber of Deputies on October 20 for consideration.
The Bill, which amends Law No. 6,404/1976 and Complementary Law No. 123/2006, aims, according to Article 1, to establish principles and guidelines for the actions of the public administration, as well as present measures to foster the business environment, increase the supply of capital for investment in innovative entrepreneurship; and regulate the bidding and contracting of innovative solutions by the public administration.
Article 3 of the Bill sets out the definition of a Startup, which must meet certain requirements, such as, but not limited to: “annual gross revenue of up to R$ 16,000,000.00 (sixteen million reais) in the previous calendar year or R$ 1,333,334.00 (one million three hundred and thirty-three thousand three hundred and thirty-four reais) multiplied by the number of months of activity in the previous calendar year, when less than twelve months”; ‘up to six years of registration in the National Register of Legal Entities of the Special Secretariat of the Federal Revenue of Brazil of the Ministry of Economy’; among others.
The Bill also provides for the forms of investment in innovation, as well as contributions that will not be part of the startups’ share capital, and the incentive for the public administration to hire tests of innovative solutions developed by startups, which, according to the Ministry of Science, Technology and Innovation, recognizes the “role of the State in fostering innovation and the potential opportunities for economy, benefit and solving public problems with innovative solutions”.
According to the executive secretary of the Ministry of Science, Technology and Innovation, the Bill is fundamental for improving the regulatory environment related to startups, seeking to reduce bureaucracy; create mechanisms that facilitate participation in public procurement processes; regulate the concept of ‘angel investor’”, among others.
If approved by the House, the bill will go to the Senate for approval, and then on to presidential sanction.
The Bill is an important milestone for the development of technology in the country and follows in the footsteps of other countries that already have this type of legislation, such as Argentina, Germany and Austria, and could benefit a number of initiatives.
