Often, the dream of starting a business in Brazil clashes with a harsh reality: the complexity of legislation. According to a survey by the Brazilian Institute of Tax Planning (IBPT), from the promulgation of the Federal Constitution of 1988 until 2024, more than 7.8 million rules have been issued, with 517,000 just on tax matters – equivalent to a new tax rule every 25 minutes. For small business owners, who usually do not have a legal or structured compliance department, this challenge can mean financial loss or even the closure of activities.
This is what Gleison Loureiro, CEO and founder of AmbLegis, who has been working for 22 years on managing requirements and legal compliance, supporting companies of all sizes and sectors through the software developed by his team of specialists, warns about. “There is a false impression that, because they are smaller, these companies are exempt from many requirements. But the truth is that many laws apply to everyone, regardless of size,” he affirms.
Among the legal requirements often ignored by small and medium-sized companies, the expert mentions five:
- DEFIS (Declaration of Socioeconomic and Fiscal Information): mandatory for companies under Simples Nacional, must be submitted annually to the IRS;
- Regulatory Standards (NRs): determine safety and health standards at work, even in small operations, requiring specific documents, training, and controls;
- LGPD (General Data Protection Law): imposes strict rules for the collection, storage, and use of personal data, even for microenterprises;
- Environmental and sanitary licenses: even low-impact businesses need to be regularized with the competent authorities;
- ECD and ECF (Digital Accounting/Fiscal Bookkeeping): mandatory for companies outside Simples Nacional, with detailed rules and strict deadlines.
Ignoring these obligations can be costly. Penalties range from million-dollar fines, such as those provided for in LGPD (up to 2% of revenue, capped at R$ 50 million per violation), to closures, labor or civil lawsuits, as well as difficulties in obtaining credit, participating in bids, or forming partnerships. “For a small business, any unforeseen impact on cash flow can be fatal,” the CEO emphasizes.
In addition to legal consequences, non-compliance can also affect the company’s image. “Reputation is a valuable asset. Problems with consumers, data leaks, or complaints about poor working conditions can undermine market confidence,” completes Loureiro.
Technology as an Ally
With so many requirements at stake, manual control becomes practically unfeasible. This is where technology comes in as an ally of the small entrepreneur. “AmbLegis carries out a completely personalized survey of applicable legislation, automates the mapping, monitoring, and updating of legal obligations, issuing periodic notifications according to the status of each client, and providing assistance regarding deadlines, legislative updates, and pending issues,” details the CEO. “Our goal is to democratize access to legal management and compliance. With technology, even a small company can operate with the same level of control and security as a large corporation,” explains Loureiro.
In addition to avoiding risks, the use of automated tools allows for quicker tracking of the constant changes in legislation – which is essential, especially in the face of upcoming developments starting in the coming months. Among the most recent legislations that require extra monitoring are the LGPD itself, whose enforcement is increasing, the update of NR 1, and changes planned for 2025 in Simples Nacional, such as the requirement of the Tax Regime Code (CRT 4) on electronic invoices issued by MEIs.
“Entrepreneurship is already a challenge. But ignoring legislation can turn a good business into a headache. Being up to date with obligations is, above all, a way to protect the company’s future,” concludes the CEO of AmbLegis.
