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International Study Shows Brazil Leads in Speed and Low Cost to Open Businesses in 2025, but Business Maintenance Still Consumes Thousands of Hours with Tax and Labor Bureaucracy.
In 2025, Brazil ranks first in speed and is among the countries with the lowest cost to open a business, according to the Bureaucracy Index produced by the Adam Smith Center for Economic Freedom, linked to Florida International University.
The study calculates that the process of establishing a medium-sized business requires, on average, 283.92 hours in the country — about 35 working days.
The comparison with the overall average of the 21 analyzed countries, which reaches 1,850 hours, highlights the gap between Brazil’s performance and the regional scenario.
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According to the survey, Brazil’s prominent position results from the digiitalization of stages and the effects of the Economic Freedom Law, which reduced demands for activities considered low risk.
The simplification impacts everything from registration tasks to licensing requests, helping to shorten timelines across various sectors.
International Study Points to Advancements
The index evaluated 21 countries — 16 in Latin America, two in the Caribbean, and three in Europe — to measure the time and administrative effort required to open and maintain medium-sized businesses.
In the Brazilian analysis, the gain in efficiency was transversal: sectors such as cattle raising, construction, and the real estate market showed de-bureaucratization trajectories that place the country among the top performers.
Although numbers vary by sector, the pattern remains similar.
In initial tasks like registration, basic licenses, tax registrations, and minimal compliance, Brazil completes stages in shorter timeframes than its neighbors.
This combination of digital processes, integration between agencies, and requirements proportional to risk brings the country closer to good regulatory practices.
Speed in Different Sectors
In the primary sector, which includes activities related to cattle raising, Brazil ties with Portugal for the lead, with an average of 289 hours to open a business.
In construction, classified as a secondary sector, the performance is even better: the estimated time to start operations drops to 216 hours, the lowest among the evaluated countries.
In the real estate market, Brazil holds second place, with 309 hours, trailing only Portugal.
Opening Costs Are Among the Lowest
In addition to reduced time, the survey highlights a low financial cost to open a business in Brazil.
The estimated average expense is around US$ 400, one of the lowest among the countries surveyed.
This value is attributed to a relatively light initial bureaucratic burden and the wage level in comparison with other economies in the sample.
Although expenses may vary depending on activity and location, the level places the country in a competitive advantage when starting a business.
Maintaining the Business Requires More Time
The scenario changes when the analysis turns to the legal maintenance of the business.
For companies already in operation, the study estimates 1,039 hours per year — the equivalent of about 130 working days — dedicated to bureaucratic routines in Brazil.
The number is below the overall average of the sample (1,577 hours), but is still considered high by international standards.
Recurring tasks such as tax declarations, accounting assessments, labor obligations, and registration updates account for most of this time.
Despite regulatory advances, the fragmentation of rules between levels of government and the multiplicity of forms keeps operational efforts high.
Taxes and Personnel Are the Main Bottlenecks
The tax complexity remains the main obstacle.
In the sector breakdown, construction appears among the most affected.
On one hand, the high turnover of personnel imposes frequent controls over hiring, terminations, and ancillary obligations.
On the other hand, the multiplicity of taxes — especially state and corporate taxes — increases compliance burden.
In the construction sector, data indicates 1,020 hours annually dedicated to employment management and up to 1,615 hours per year to deal with taxes.
These numbers help explain why, despite being fast to open businesses, Brazil has not achieved the same efficiency in keeping them fully compliant with all requirements.
Why Does Brazil Open Fast but Operate Slowly?
On one hand, simpler initial procedures and digital platforms have lowered entry barriers.
On the other hand, everyday operations continue to be distributed among different systems, deadlines, and tax interpretations, creating redundancies.
Meanwhile, the need to comply with labor and social security obligations with high frequency increases the administrative burden.
Moreover, the variation of rules by state and municipality complicates the standardization of processes and requires ongoing monitoring.
Even with growing integration between databases, there are requirements that do not communicate with each other, leading companies to repeat steps or maintain parallel controls to ensure compliance.
Perspectives and Points of Attention
The study suggests that policies aimed at reducing tax complexity and harmonizing obligations between federal entities would have a direct impact on business productivity.
It also indicates that the continuation of digitalization — with real interoperability between systems — can cut hours of work currently spent on manual cross-checks and rework.
Another focus is on the streamlining of ancillary obligations that add little to state control but consume significant time for accountants and administrative teams.
The recent experience of simplification in the opening phase shows that gains are possible when there is focus on regulatory risk, standardization of forms, and predictable deadlines.
The question now is how to replicate this logic in the operational cycle, where the largest bottlenecks are concentrated.
If the country has already proven to be fast and cheap to start, what is needed to transform this advantage into an equally simple and predictable environment to operate month to month?
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