Kenia de Aguiar Blanco
Lawyer at Marcos Martins Advogados
On June 1, 2021, a law was passed called the Legal Framework for Startups and Innovative Entrepreneurship, which recognizes the importance of innovation as a point of economic, social and environmental development.
Under the terms of the law, startups are defined as companies under any form of constitution that are innovative in nature, have an annual turnover of up to R$16,000,000.00 (sixteen million reais) and have been registered with the CNPJ for a maximum of 10 (ten) years.
The Framework brought several important points, among which we highlight the regulation of angel investment and its right of redemption, as well as its disengagement from membership. It also introduces the possibility of a simpler process for testing new products and technologies.
The law also encourages the creation of measures to bring the public sector closer together, with the aim of encouraging government agencies to contract startups, including proposing that solutions be contracted using differentiated bidding models.
It is believed that these characteristics of the Law will favor a more sustainable development of Startups and, as a consequence, the promotion of innovative companies that contribute to the development of Brazilian entrepreneurship in an organic and regulated way.
