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Need for Registration with the Commercial Board for granting RJ for rural producers.

February 17, 2023

By: Vitor Ferrari and Ivan Kubala

As the Brazilian legal system disciplines, The entrepreneur who wishes to obtain approval for the judicial recovery process for his company must, mandatorily, comply with certain prerequisites, among which are: regularly exercising, up until the time of the request, his activities for at least 2 years; and be duly registered with the State Commercial Board.

With the innovations of Law 14,112/20, judicial recovery for rural producers, who are nothing more than entrepreneurs in the agricultural sector, was made positive. However, the Civil Code allows rural entrepreneurs to register with the Commercial Board, not being a mandatory measure for the recognition of your business activity.

Thus, the controversy arose: must the rural producer be registered with a commercial board to apply for judicial recovery? As it is mandatory for entrepreneurs in other areas to register with the Commercial Board before effectively starting their activities, Will the 2-year period for granting the rural producer's request for judicial recovery only begin after its effective registration?

Based on such information alone, it is clear that there is controversy. In order to avoid such problems, the legislator decided to keep the registration of agricultural entrepreneurs with a commercial board optional and to disregard the existence of registration for the approval of future requests for judicial recovery.

In this way, the rural entrepreneur who wishes to obtain the granting of judicial recovery for his company can prove the period of regular exercise of his activities by other means, such as the presentation of Fiscal Accounting Records and even through the Cash Book. Rural Producer's Digital ID, if it is necessary to calculate the period of rural activity per individual.

Therefore, even though a period of 2 years of regular exercise of agricultural activity is necessary for the granting of judicial recovery, registration with the commercial board is completely optional and not necessarily used to measure the period of activity, facilitating the granting of the request for judicial recovery of the agricultural entrepreneur.

With the collaboration of Luis Felipe Simão

If you have any questions about the topics covered in this publication, please contact any of the lawyers listed below or your usual Mazzucco&Mello contact.

Victor Ferrari

+55 11 3090-7310

vitor.ferrari@br-mm.com

Ivan Kubala

+55 11 3090-9195

ivan.kubala@br-mm.com

Louis Philippe Simon

+55 11 3090-9195

luisfelipe.simao@br-mm.com

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