President Jair Bolsonaro delegates decision making to the Ministry of Economy concerning foreign companies

On May 8, 2019 President Jair Bolsonaro issued Decree 9.787/2019, which assigns to the Ministry of Economy, headed by Mr. Paulo Guedes, the responsibility for authorizing the establishment and operation of foreign entities branches in Brazil.

The purpose of the Decree 9.787/2019 is to simplify the process of operation of foreign companies in Brazil and by facilitating the process for foreign airlines to establish Brazilian branches, as required to enter into the Brazilian aviation market, without being a Brazilian airline.

The Ministry of Economy also has now the power to approve nationalization processes and to revoke previous authorizations granted to foreign companies. Such measure was published today (May 9, 2019) in the Official Gazette and became effective immediately.

For more information about the matter, please contact João Paulo Servera, partner of the Aviation & Aircraft Finance Practice at Cascione, at jpservera@cascione.com.br