For many managers, opening a company in São Paulo is the simplest part of the process. Registration, CNPJ (Brazilian tax ID), and municipal registration are procedures that can be resolved relatively quickly. The challenge begins when the activity requires an operating license and, due to the type of operation, the process is classified as high risk.

At this point, the nature of the procedure changes. The deadline, which for low-risk activities can end in a few hours, can extend for months or even years for high-risk activities in the city of São Paulo. Understanding where the company fits in is the first strategic decision in any licensing process in São Paulo.

Low risk: the shortest route, but with conditions

The municipality of São Paulo defines low-risk activities as those whose sanitary, environmental, and safety impact is considered mild or irrelevant, regulated by Decrees No. 57,298/2016 and No. 58,419/2018. 58.419/2018.

To qualify for this category, the activity must be included in the municipal list and the company must be located in a building with a total area of up to 1,500 m² (or in a location with an area of up to 500 m²). In these cases, the license can be issued automatically by the Municipal Government’s Licensing Portal, based on a self-declaration by the responsible party and without prior inspection.

One point to note: automatic licensing does not eliminate the need for subsequent inspections. If irregularities are found, the permit can be revoked. Compliance needs to be effective, not just stated.

High risk: when the process changes in nature

The high-risk classification is not simply a different category. It represents a complete change in the process flow. The application process begins electronically through the Licensing Portal. However, once qualified as high risk, the process shifts to an in-person and administrative format, requiring the opening of a physical process at one of the capital’s 32 Subprefectures.

The volume of requests and the limited number of technical teams in the Subprefectures explain the average timeframe of approximately two years to obtain a high-risk permit in São Paulo. This difference compared to other municipalities is significant and directly impacts the companies’ operational planning.

What determines the classification and where the bureaucracy complicate things

The legislation of São Paulo lists the low-risk activities; anything not included in this list tends to be treated as high risk, particularly when the activity involves impacts on health, safety and the environment, or when the physical space exceeds the established area limits.

There is a relevant technical detail: the company’s CNAE (National Classification of Economic Activities) must be aligned with applicable regulatory standards, such as NR-1 or NR-2. This cross-referencing, when done incorrectly, generates requirements that halt the process and restart the deadline countdown.

Another recurring issue is the incorrect submission of the property’s Technical Responsibility Certificate (ART or RRT). Many applicants submit the Technical Responsibility (RT) for the construction work at the site, which is not valid for this purpose. The correct document must be issued specifically for the purpose of licensing usage. This distinction, although technical, has a direct impact on the progress of the process.

When the process stops: supplementary licenses

If the activity requires Health Permit, Fire Department Certificate, or Environmental License, the administrative process for obtaining the permit is suspended until these licenses are submitted. Therefore, the strategy is to initiate requests for supplementary licenses in parallel with the permit process.

Companies in leased buildings: a dependency that needs to be mapped

Most companies in São Paulo are established in leased buildings. In these cases, several documents required in the process – such as the building safety report, the fire department certificate, and the property’s RT – are tied to the property and are the responsibility of the owner, which makes the tenant dependent on the compliance of the property itself.

When a property has outstanding building compliance issues, a possible alternative is the Conditional Operating License (ALF-C) which allows activities to begin while the building’s regularization process is underway. The ALF-C is valid for two years, renewable, but does not apply to all cases: properties in contaminated areas, in permanent preservation areas, or subject to legal action for demolition are outside its scope.

High risk in São Paulo demands infrastructure, not just patience

High-risk licensing in São Paulo is a long, technical process with several simultaneous points of attention: the correct classification of the activity, cross-referencing with regulatory standards, specific property documentation, management of supplementary licenses, and, when applicable, coordination with the owner regarding the compliance of the building.

PLBrasil Paralegal assists companies in these processes across all Brazilian states, focusing on mapping out the steps, obtaining supplementary licenses in advance, and structuring documentation to avoid requirements that could halt your business schedule.