In Practice

Operating license: when there is a license or exemption

Understand the difference between permit, licensing and exemption, how activity and address define risk and what to check before starting to operate.

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Operating license: when there is a license or exemption

Having an active CNPJ does not mean that the company is authorized to carry out any activity at any address. Licensing comes after — or in parallel — registration and may involve city hall, health surveillance, the environment, the Fire Department and other bodies.

“Alvará” is the best known name, but the document, the procedure and even the possibility of exemption change depending on the municipality, activity, location and risk classification.

Permit, license and exemption are not the same thing

  • Alvará or license: act of the public authority that authorizes a certain activity under the declared conditions.
  • Licensing: verification process before one or more authorities.
  • Exemption: removal from a certain public act for an activity classified as low risk; does not eliminate other legal obligations.

A company may be exempt from a municipal act and still need to comply with sanitary, environmental, condominium, land use or fire safety rules.

What defines the requirement

The diagnosis starts with four data points:

  1. CNAE and description of what will actually be done;
  2. address and area of ​​use;
  3. form of action — establishment, residence, external service, internet or third party location;
  4. concrete conditions of the operation, such as area, stock, public, equipment and products handled.

Don’t just use the main CNAE. A secondary activity carried out on site may also trigger a license.

How risk classification works

CGSIM Resolution No. 51 created national references for low risk, but states, the Federal District and municipalities can issue their own rules. Furthermore, each licensing authority can assess risk within its field of competence.

In practical terms:

  • low risk A: there may be exemption from public release acts, without exemption from compliance with the rules;
  • medium risk or low risk B: may admit automatic or provisional license, with subsequent inspection, according to the applicable rule;
  • high risk: normally requires analysis or inspection before starting the activity.

These categories should not be promised without consulting the rules and system at the location of the establishment.

Does working from home require a permit?

Not automatically. The residential address remains subject to zoning, municipal rules, the condominium and the characteristics of the activity. An office without service and without stock may have different treatment for production, food handling or customer circulation in the same property.

Step by step to check your situation

  1. List all activities and how each one operates.
  2. Check the viability of the address with the state or municipal integrator.
  3. Answer the risk questionnaire with real data from the operation.
  4. Identify each authority involved and the document issued.
  5. Save protocols, terms of knowledge, licenses and their respective validity.
  6. Redo the analysis when changing address, activity, area or form of operation.

What not to do

  • assume that registration with the CNPJ authorizes operation;
  • declare low risk without validating the conditions;
  • copy the license of another company in the same sector;
  • ignore secondary activity;
  • start a high-risk operation before authorization;
  • forget about renewals or conditions.

Include licensing in the company-formation plan

In the how to open a company and obtain a CNPJ roadmap, licensing is a distinct step, not a detail to address later. VMAHUB can map the authorities involved and distinguish an exemption, automatic license, document review or inspection for your case.

Sources and references

  1. Redesim — Licensing guidelines
  2. CGSIM — Resolution No. 51 and amendments
  3. São Paulo City Hall — Operating License Notice
Experience that connects decisions

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VMAHUB combines accounting, tax, legal and business strategy with more than 26 years of experience, including work connected to the pharmaceutical industry, retail and agribusiness. The next step is to understand how this scenario applies to your operation.

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