The recent position of the Federal Supreme Court (STF), reaffirmed by Minister Flávio Dino, by maintaining the suspension of the social network X (formerly Twitter) in Brazil, illuminates a crucial aspect for foreign companies operating or wishing to operate in the country: the appointment of legal representatives. This requirement, often seen as a formality, is in fact an essential strategic pillar for regulatory compliance and the protection of business interests
The art. 1.134 of the Civil Code, in conjunction with the regulatory instructions of the National Department of Business Registration and Integration (DREI), stipulates that foreign companies must go through strict authorization and registration processes to operate in Brazil. The appointment of a legal representative is a central element in this process., acting as an intermediary in legal and tax matters, and assuming the responsibility of receiving notifications and representing the company before the Brazilian courts
The importance of this "spokesperson" transcends mere bureaucracy, as it is an obligation to ensure the proper functioning and legal certainty of the operations of any foreign company. Without the presence of a duly appointed legal representative, Corporations are exposed to a range of legal and regulatory risks., which can seriously jeopardize reputation, both in the local market, as in the global scenario as a whole
The recent situation of social network X that, in addition to withdrawing from Brazil,announced the closure of the office in response to legal threats, exemplifies the consequences of not paying attention to this aspect. Failure to comply with court decisions has led to worrying measures for the organisation, including the possibility of fines and imprisonment of the office manager.You have to understand that, when it comes to the universe of business and operations outside the home country, The unlikely can always happen..
Prevention is better than cure.. In highly regulated sectors, as aviation, telecommunications and technology, The Brazilian government has intensified control and accountability of companies. The absence of a local representative may result in abrupt interruptions in operation, what is reflected in the results; and, as a consequence, in the reputation of the company. For those who want to succeed in other territories, Understanding the importance of a business ambassador is synonymous with ensuring survival..
The recent experience of social network X should serve as a warning. Compliance with local regulatory requirements and maintaining robust legal representation are essential practices for the stability and continuity of business in Brazil.This effort should not be seen as a bureaucratic obstacle, But an indispensable safeguard for success.
