The suspension was primarily due to the lack of a legal representative/attorney-in-fact appointed in Brazil, as determined by Minister Alexandre de Morais of the Superior Federal Court (STF). This case highlights the critical role of a legal representative for foreign companies operating in the country
Failing to meet the deadline to appoint a legal representative was a key factor in the decision to block the platform.
What does Brazilian law say?
Brazilian legislation, under the Civil Code (Law No. 10.406/2002), mandates the appointment of a legal representative/ attorney-in-fact for foreign companies operating in the country. This individual must have broad authority, including handling legal and tax matters, ensuring compliance with the General Data Protection Law (LGPD), and maintaining formal communication with the National Data Protection Authority (ANPD).
A legal representative is essential for obtaining the necessary governmental authorizations, registering with agencies such as the Board of Trade and the Federal Revenue Service, and ensuring compliance with local regulations.
The legal representative can be either Brazilian or a foreign resident in Brazil. For “S.A.” companies, the representative must also be a board member and hold a power of attorney for at least three years after their term ends to ensure continued legal compliance.
Beyond legal and regulatory responsibilities, the representative plays a crucial role in tax compliance and in managing interactions with public and tax authorities. In X’s case, the absence of a legal representative led to severe operational limitations. This underscores the importance of appointing a qualified legal representative to ensure regulatory compliance and safeguard the company’s operations and interests in Brazil.
Foreign companies entering the Brazilian market can benefit from working with firms specializing in legal representation to meet local requirements effectively.
How Pryor Global can help
Pryor Global has nearly 30 years of experience representing foreign companies in Brazil. We ensure that our international clients maintain compliance, facilitate communication with authorities, and navigate the Brazilian market efficiently.
If you have any questions about our services, feel free to contact our team! Discover more about our representation services for foreign companies by clicking here.
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