Bearing in mind that micro, small and medium-sized enterprises (MSMEs) represent 75% of the Gross Domestic Product and employ 70% of the Economically Active Population, the Government decided to take measures to achieve their formalization. The benefits of doing so are several, among them, better tariffs, information and access to training, as well as advice on procedures.

The formalization of a company is achieved in three phases:

1. Obtaining the Single Taxpayer Registry (RUC): it is a free procedure and is obtained in 48 hours at the Undersecretariat of Taxation (SET),
2. Registration with the Ministry of Labor and the Social Security Institute (IPS): the fees are not high and take about 30 days; and
3. Application for the commercial patent to the municipality: this is sometimes the most complicated phase, since the municipalities are autonomous and, therefore, have their own rules, which is something we are still trying to solve.

Despite the benefits, so far only 3,000 of the 230,000 companies registered with RUC have the Mipymes card, and only 50,000 are registered with the IPS and the Ministry of Labor. To improve this situation, the Ministry of Industry and Commerce (MIC) is working to simplify the procedures digitally and reduce fees, which have already been reduced by half.

The formalization of MSMEs will also benefit them within the framework of the Cooperation Agreement on Intellectual Property signed in Rio de Janeiro by the National Director of DINAPI (National Directorate of Intellectual Property) and the President of ASIPI (Inter-American Association of Intellectual Property) on November 23. One of the axes of the agreement is the mutual cooperation for the training of actors in the field, as well as the creation of a pro-bono assistance system for MSMEs duly registered and registered with the Vice Ministry of MSMEs.

In addition, a working group has also been set up with representatives of the private sector to provide technology to MSMEs. The objectives include obtaining the fund for compliance with the law for the promotion of the National Software Industry and the promotion of the zero paper law, also including MSMEs in the digital economy. The massification of electronic government will benefit MSMEs by facilitating real-time access to the data of entrepreneurs' cards in open format and by implementing online procedures and the exchange between institutions involved in the management of this type of companies.