Last Friday, September 20, President Jair Bolsonaro signed into law the so-called Economic Freedom Act (Law No. 13,874) aimed at simplifying doing business requirements in Brazil. Among the innovations, was the elimination of the requirement that Brazilian limited liability companies have at least 2 quotaholders. The Law is effective immediately, so from now on, Brazilian LLCs, whether or not controlled by foreign investors may become “single-member LLCs”, with all quotas being held by the respective current majority quotaholder, thus eliminating the need for a “nominee” second quotaholder, with the consequent simplification of corporate compliance procedures. Other than that important change, for a more detailed description of the characteristics of the Brazilian Limited Liability Company, please access our brief article published in the following link:
http://www.almeidalaw.com.br/en/midia/2018/03/brazilian-limited-company-brief-overview-for-the-foreign-investor/