How To Start a Kindergarten In Brazil
As the bureaucratic process of starting any business in Brazil is quite complicated, it is to be expected that starting a Kindergarten might not be the easiest task. In this article we will explain how to start a Kindergarten in Brazil.
First of all, it is necessary to say that Brazilian law splits Kindergartens into two categories:
- Creches, which is Portuguese for Day Care Centers, for children up to three years old
- Pré-escolas, which is Portuguese for Pre-schools, for children from four to six years old
Registering the company
Furthermore, it is worth mentioning that a Kindergarten is a company, and thus must be duly registered as such.
Registering with the state’s Board of Trade
Any person - or partners, if it´s a liability company - wanting to establish a company must first register the company’s activities with the Junta Comercial, which is Portuguese for Board of Trade in the state in which the company will establish itself. In order to do this, the following documents and procedures must be followed:
- Verify that the company’s name is not already in use, since two companies with the same name cannot exist in the same state
- DARF, Documento de Arrecadação da Receita Federal which is Portuguese for Collection Document of the Federal Revenue, is a payment slip used to pay fees to the Federal Revenue. The code that should be used is 6621, which is for the registration of a business
- Capa de processo, which is a document that requires that the Board of Trade files the act
- Ficha de Cadastro Nacional, the National Registration Form, informing the identification of the company (name, location, legal nature), equity and economic activities
- Articles of association also known as Estatuto Social da Empresa
- If the company is a Micro or Small Business, the owner must present a Declaração de Enquadramento, stating that the business fits the definition of a Micro or Small Business
- Notarized copy of Identification Document and CPF of the owner or of the partners. In case there is a legal entity that is a partner in the new business, a notarized copy of the CNPJ must also be provided
- Copy of proof of residence of the holder or of the partners
- Declaração de Desimpedimento dos sócios, a statement informing that any partner is not convicted or is under effects of conviction, to become an administrator of a company
When the registration of the company is completed by the state’s Board of Trade, a NIRE, Company Registration Identification Number, is issued.
Registering for a CNPJ
After receiving the NIRE, you need to register the company as a taxpayer, which means getting a CNPJ.
By means of an agreement between the Federal Revenue Service and most states’ Board of Trade, the process for applying or changing a CNPJ can be done through most state’s Board of Trade, which can accelerate the process. A network - REDESIM, National Network for Simplification of Registration and Legalization of Business - has been established to simplify the process.
To start the process, the applicant, who is responsible for the legal entity, must download software called PGD to generate the required forms from the Federal Revenue Service’s website. It is necessary to complete the DBE, Basic Entry Form. Once this is complete, the applicant must download the software application named ReceitaNet, available here.
Through ReceitaNet, the DBE, along with the Ficha Cadastral de Pessoa Jurídica which is Portuguese for Registration Form for Corporate Entities, are sent to the state’s Board of Trade. The Board of Trade will check all the documentation and once verification is complete they will send it to the Federal Revenue Service office where the CNPJ number will be issued.
Applying for a Business License
With a registered CNPJ number, the applicant must then contact the municipality or state government to obtain a Licença de Funcionamento, Portuguese for Business License. This license allows the operation of commercial activities. This is done at the Treasury Department in each State. The necessary documentation for obtaining a Business License is:
- Prior consultation of address made by the local authority, since each municipality has different laws concerning where specific activities can be carried out
- Application for business license
- Statement of Responsibility
- Articles of Association registered with the Board of Trade
- CNPJ card
- Documento de Arrecadação Avulso, DAR, a document, similar to the DARF, for the payment of administrative fees to the government
Registry on the INSS
After receiving the Business License, the company is able to start trading. Regardless of whether the company employs people, it is required to register with the INSS, Brazilian’s Social Security institution. Despite being just the initial partners, the company must be registered with Social Security and pay the corresponding taxes. Thus, the company representative must contact a Social Security Agency to request the registration of the company and the people responsible for it. The deadline for registration is 30 days from when trading commenced.
Authorization to print invoices
The company must apply for authorization to print invoices and authentication of tax books. This is done at the local administration of each city. Companies that perform activities relating to industry and commerce should contact the Department of Treasury of each state.
Further information on how to register for this authorization can be found in this article.
Fire security measures
All facilities must be compliant with the fire department requirements regarding prevention, adoption of security measures and fire fighting actions. Each state has its own firefighters’ department responsible for supervising all companies.
School Operating License
It is necessary to apply for an Autorização de Funcionamento da Escola, which is Portuguese for School Operating License before commencing Kindergarten’s activities. This application is requested at the nearest Diretoria Regional de Ensino, which is Portuguese for Regional Board of Education and Secretaria Municipal de Educação, which is Portuguese for Municipal Secretary of Education.
For this, it is necessary to present the following documentation:
- Education plan, containing goals, rights and duties, pedagogical proposals and staff details
- Report containing proof of professional qualifications of the teachers, state of maintenance of the building in which the Kindergarten will be established, business licenses, space for children’s outdoor and indoor activities
Staff qualifications
As the legal registration of the company has already been handled, it is time to take a look at what is expected from the staff working at the Kindergarten.
All teachers working with Early Childhood Education must have graduated in university courses addressing specific content related to this stage of education. The following graduates are authorized to be teachers in Kindergartens:
- Bachelors in Pedagogy, with or without specialization in Early Childhood Education
- Diploma in Habilitação Específica para o Magistério, which is Portuguese for Specific Qualification for Teaching
- Graduates of High School
The Brazilian law does not have a specific teacher to children ratio, although it advises that one teacher should be responsible for:
- Up to one year old - up to six children
- One and two year olds - up to eight children
- Two and three year olds - up to 10 children
- Three and four year olds - up to 15 children
- Four and five year olds - up to 20 children
- Five years and above - up to 25 children
In cases where a group of children have different ages, the government advises not to have more than 15 children up to three years old or more than 25 children from four to five years old in the same group for one teacher.