Agtechs, startups with solutions for agribusiness, have been suppliers of a vast number of innovative tools, such as precision analysis and drones to modernize the sector. And for the CEO of Orchestra Innovation Center, Nathália Secco, these companies are protagonists in the process of digital transformation and the Legal Framework for Startups is essential for this in Brazil.
“At this time of economic recovery, digital transformation is the answer to the great challenges facing agribusiness. But, unlike some other countries, in Brazil startups do not have specific regulations ”, explains the executive.
Currently, startups follow the same rules as traditional companies. The Legal Framework for Startups, which is pending in Congress through PL 146/2019, foresees to change that. The legislation, which should be voted on later this year, wants to conceptualize what a startup is and simplify corporate models.
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In addition, the law will define tax and investor protection aspects. According to Secco, this move will provide greater legal certainty in relation to tax and labor understanding.
The CEO also states that the regulation of startups by verticals, which defines specific rules for each sector, is another point that needs attention. Known as the Sandbox, this regulation offers a safer environment for testing new business models.
Sandbox is used in several countries considered innovation hubs, such as Hong Kong, United Kingdom and Australia. In Singapore, for example, there are regulatory sandboxes for fintechs, which allows these companies to participate in the program at any time and test their technologies to understand their application in the market.
“Agribusiness is a sector that stands out among digital entrepreneurship in Brazil. The technologies are increasing the productivity power of the current engine of the Brazilian economy and the regulation helps to ensure that agtechs have a high impact on Brazilian agribusiness ”, concludes the CEO.
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