Often, the dream of entrepreneurship 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 regulations were issued, of which 517,000 were solely on tax matters—equivalent to a new tax regulation every 25 minutes. For small business owners, who usually lack a structured legal or compliance department, this challenge can mean financial loss or even business closure.
This is what Gleison Loureiro, CEO and founder of AmbLegis, warns about. He has been working for 22 years in legal requirement management and compliance, supporting companies of all sizes and sectors through software developed by his team of experts. “There’s a false impression that, because they’re smaller, these companies are exempt from a range of requirements. But the truth is that many laws apply to everyone, regardless of size,” he says.
Among the legal requirements often ignored by small and medium-sized businesses, the expert cites five:
- DEFIS (Declaration of Socioeconomic and Tax Information): mandatory for companies under Simples Nacional, it must be submitted annually to the Federal Revenue Service;
- Regulatory Standards (NRs): establish workplace safety and health standards, even for 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, including for micro-enterprises;
- Environmental and sanitary licenses: even low-impact businesses must be registered with the appropriate authorities;
- ECD and ECF (Digital Accounting/Tax 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 under the LGPD (up to 2% of revenue, capped at R$50 million per violation), to shutdowns, labor or civil lawsuits, and difficulties in obtaining credit, participating in bids, or closing partnerships. “For a small business, any unexpected impact on cash flow can be fatal,” emphasizes the CEO.
Beyond legal consequences, noncompliance can also affect a company’s image. “Reputation is a valuable asset. Issues with consumers, data leaks, or complaints about poor working conditions can undermine market trust,” adds Loureiro.
Technology as an ally
With so many requirements at stake, manual control becomes practically unviable. This is where technology comes in as an ally for small entrepreneurs. “AmbLegis conducts a fully customized survey of applicable legislation, automates the mapping, monitoring, and updating of legal obligations, issuing periodic notifications based on each client’s status and compliance regarding deadlines, legislative updates, and pending items,” the CEO explains. “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,” says Loureiro.
In addition to avoiding risks, automated tools allow for quicker tracking of constant legislative changes—essential, especially with new regulations set to take effect in the coming months. Among the recent legislations requiring heightened vigilance are the LGPD itself, whose enforcement is intensifying, updates to NR 1, and changes expected in 2025 for Simples Nacional, such as the mandatory Tax Regime Code (CRT 4) in electronic invoices issued by MEIs.
“Entrepreneurship is already a challenge. But ignoring legislation can turn a good business into a headache. Staying up to date with obligations is, above all, a way to protect the company’s future,” concludes AmbLegis’ CEO.
