Brazil's Legal Framework for Startups

The Brazilian government believes in the power of innovation and has created new legislation to support startups and innovative companies - the Legal Framework for Startups, encouraging the creation of companies and attracting investments.

Startups can receive investments that may or may not result in participation in the startup's share capital, depending on the modality chosen by the parties. In the latter scenario, the investor will not be considered a partner or liable.

The Law also creates an experimental regulatory environment, the “Regulatory Sandbox”: agencies with regulatory competence can set aside norms, so as to allow innovative companies to experiment with new business models and technologies, always under the regulator's monitoring.