Brazil is about to approve the legalization of games of chance in the country.

Brazil is about to approve the legalization of games of chance in the country.

With the legalization and regulation of games, large corporations are expected to invest in this industry, mainly through the installation of resorts, casinos and bingo halls. These ventures will create a new production chain, as they will require companies to design and produce specific software, machinery and equipment, as well as products and services for such flourishing market. In effect, the game legalization will be followed by a number of legal requirements so that entrepreneurs willing to take this opportunity should be prepared, particularly as regards to business formalization. That is because, in addition to a whole new regulatory framework required with the game regulation, incorporating a company in Brazil is a slow process in which one has to go through a lot of red tape and requires the assistance of legal and accounting experts, at the least. Incorporating and formalizing a company in Brazil take many steps, such as choosing the type of company, identifying a place and conducting surveys on the legal possibility of exploiting the business in such real property, choosing a corporate name and conducting surveys on the name availability on registries of commerce, registering a trademark, identifying the most appropriate and less costly tax regime, preparing either articles of organization or articles of incorporation, registering with the board of trade and federal, state and municipal tax authorities, obtaining operating permits and licenses, complying with labor regulations and taking notes of specific case laws established by Labor Courts, among others. Foreign investors also have to deal with other specific rules, such as registering with the Brazilian tax authorities and the Central Bank of Brazil, obtaining sworn translations of documentation, carrying out capital transfer, electing a legal representative in Brazil, and facing restrictions on the acquisition of large rural land in the country. Additionally, considering the current Brazilian political and judicial scenario, it is of the utmost importance to plan how to organize, improve and fine tune a compliance program able to, besides ensuring legal compliance, prevent unlawful conducts inside or by the company or any administrative and/or criminal liability to be held by the company and management members, as well as any expenditures required due to implications from illegal acts practices. Therefore, although games of chance are not regulated in Brazil yet, entrepreneurs and investors willing to take the lead and take this business opportunity must waste no more time to begin to adapt their companies accordingly. That being the case, law firm DAMIANI SOCIEDADE DE ADVOGADOS provides professionals specialized in several legal fields to design any and all projects related to the exploitation of games of chance in Brazil.