The recent position of the Supreme Federal Court (STF), reaffirmed by Minister Flávio Dino, in maintaining the suspension of the social network X (previously Twitter) in Brazil, sheds light on a crucial aspect for foreign companies operating or wishing to operate in the country: the appointment of legal representatives. This requirement, often seen as a formality, is actually an essential strategic pillar for regulatory compliance and the protection of business interests.
Article 1,134 of the Civil Code, together with the normative instructions of the National Department of Business Registration and Integration (DREI), stipulates that foreign companies must undergo rigorous authorization and registration processes to operate in Brazil. The appointment of a legal representative is a central element in this process, acting as an intermediary in legal and tax matters, and assuming the responsibility of receiving notifications and representing the company before the Brazilian justice.
The importance of this “spokesperson” goes beyond mere bureaucracy, as it is a requirement to ensure the proper functioning and legal security of the operations of any foreign company. Without a properly appointed legal representative, corporations are exposed to a range of legal and regulatory risks, which can seriously compromise their reputation, both in the local market and on the global stage as a whole.
The recent situation of social network X, which not only removed its operation in Brazil, but also announced the closure of the office in response to legal threats, exemplifies the consequences of not paying attention to this aspect. Non-compliance with judicial decisions led to concerning measures for the organization, including the possibility of fines and imprisonment of the office’s responsible person. It is important to understand that when it comes to the business world and operations outside the country of origin, the unexpected can always happen.
Prevention is better than cure. In highly regulated sectors such as aviation, telecommunications, and technology, the Brazilian government has stepped up control and corporate responsibility. The absence of a local representative can lead to abrupt interruptions in operations, which reflects on the results and, consequently, on the company’s reputation. For those aiming to succeed in other territories, understanding the importance of a business ambassador is synonymous with ensuring survival.
The recent experience of social network X should serve as a warning. Compliance with local regulatory requirements and the maintenance of robust legal representation are essential practices for the stability and continuity of operations in Brazil. This effort should not be seen as a bureaucratic hindrance, but as a necessary safeguard for success.
