New rules for foreign investment in Brazilian government biddings
Brazil’s Ministry of Economy recently simplified the rules for foreign investment in government biddings. The new Normative Instruction nº 10/2020 was publicized in February 11, 2020 with aims to reduce the bureaucracy for foreign companies interested in investing in the country.
The new rules will be made effective starting May 11, 2020 and will allow foreign companies to participate in 99% of the government biddings, with special interest on the construction sector, which in 2018 composed 81% of a R$ 6,2 billion federal government fund to Brazilian cities. The pharmacy sector is also expected to receive investments, which in 2019 sold R$ 12,9 billion for the government.
To participate in the government biddings, the foreign company will have to register before the SICAF system. The companies will not need a tax registration or a legal representative in Brazil in order to participate in the deals. Sworn translations also will not be necessary, with the company required to provide only a simple translation to Portuguese of the requested documents. These measures aim to reduce the bureaucracy currently present in many of the government procedures.
Only when a foreign company has won a particular bidding, which happens at the end of the procedures, is that a legal representative and the sworn translations of the requested documents will be required.
The system is currently being updated will be made available in English for all companies to use. More updates concerning the rules for this new opportunity will published soon.
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