The recent stance of the Supreme Federal Court (STF), reaffirmed by Minister Flávio Dino, in maintaining the suspension of the social network X (formerly Twitter) in Brazil, highlights a crucial aspect for foreign companies that operate or wish 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 strict 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 taking responsibility for receiving notifications and representing the company before the Brazilian justice system.
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 the presence of a duly appointed legal representative, corporations are exposed to a series of legal and regulatory risks, which can seriously compromise their reputation, both in the local market and in the global scenario as a whole.
The recent situation of social network X, which, in addition to ceasing operations in Brazil, announced the closure of the office in response to legal threats, exemplifies the consequences of not paying attention to this aspect. The non-compliance with judicial decisions led to concerning measures for the organization, including the possibility of fines and the imprisonment of the responsible party of the office.It is important to understand that when it comes to the universe of business and operations outside the country of origin, the unlikely can always happen.
Prevention is better than cure. In highly regulated sectors such as aviation, telecommunications, and technology, the Brazilian government has intensified control and responsibility over companies. The absence of a local representative can lead to abrupt disruptions in operation, which is reflected in the results and, consequently, in the company's reputation. For those who want to succeed in other territories, understanding the importance of a business ambassador is synonymous with ensuring survival.
The recent experience of the social network X should serve as a warning. Compliance with local regulatory requirements and maintaining a strong legal representation are essential practices for stability and continuity of operations in Brazil.This effort should not be viewed as a bureaucratic obstacle, but as an essential safeguard for success.
