Legal Framework for Startups: Who Qualifies and What You Get
Learn how your startup can access simplified investment tools and regulatory sandboxes to help your business scale in Brazil.
This framework provides a specialized legal structure designed to help new, innovative companies grow by reducing bureaucratic hurdles.
Who it's for
This scheme is available to startups that have an annual revenue of up to R$ 16 million.
What you get
You gain access to a regulatory sandbox, which is a controlled environment that allows you to test new business models with fewer regulatory constraints. You also get access to simplified investment instruments, specifically known as CPEs, which make it easier to bring in capital.
What it costs you
To participate, you must follow specific corporate governance rules to ensure your business is managed according to the required standards.
The catch to know
Even though these simplified investment instruments are designed to help, some investors may still prefer to use traditional equity structures instead.
How to apply
- Verify that your annual revenue stays within the allowed limit.
- Review the specific corporate governance requirements for your business type.
- Consult with legal experts regarding the use of CPEs for your investment rounds.