The Department of Business Registration and Integration – DREI revises its normative instruction to allow national or foreign legal entities to be holder of a Limited Liability Single Enterprise – EIRELI
DREI has amended, through the Normative Instruction # 38/2017, its Normative Instruction # 10/2013, which stated (mistakenly) that only individuals could be holders of an EIRELI (and not legal entities), unduly restricting what was set forth in Article 980-A of the Civil Code (Law #10,406 / 2002), which made no distinction between individuals and legal entities.
The Normative Instruction # 38/2017 has now included national or foreign legal entities in the list of allowed EIRELI’s holders, and shall put an end to numerous lawsuits, unnecessary bureaucracy, transaction costs and court fees.
EIRELI is a limited liability corporate type with only one holder, which, depending on the specific case, may be an option for succession planning and corporate restructuring, since it would eliminate the necessity of inclusion of a second individual or legal entity in corporate structures. It is worth highlighting, however, that EIRELI requires a minimum paid-in capital of one hundred (100) times the national minimum wage.
The DREI’s Normative Instruction # 38/2017 shall enter into force on May 2, 2017.
The corporate law team of Azevedo Sette is available for any additional clarifications, including the analysis of the suitability of incorporating an EIRELI for each case.