The recent position of the Federal Supreme Court (STF), reaffirmed by Minister Flavio Dino, in maintaining the suspension of the social network X (formerly Twitter) in Brazil, illuminates 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 1134 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” transcends mere bureaucracy, as it is a requirement to ensure the proper functioning and legal certainty of the operations of any foreign company. Without the presence of a duly appointed legal representative, corporations are exposed to a number of legal and regulatory risks, which can seriously compromise the 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 withdrawing its operations in Brazil, announced the closure of the office in response to judicial threats, exemplifies the consequences of not paying attention to this aspect. The noncompliance with judicial decisions led to worrying measures for the organization, including the possibility of fines and imprisonment of the office manager.It must be understood that, when it comes to the universe of business and operations outside the country of origin, the unlikely can always happen.
In highly regulated sectors such as aviation, telecommunications and technology, the Brazilian government has intensified the control and responsibility of companies.The absence of a local representative can result in sudden interruptions in operation, which is reflected in the results and, consequently, in the reputation of the company.For those who want to be successful 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. One should not view this effort as a bureaucratic obstacle, but an indispensable safeguard for success.
