Digitizing business is a trend that has been spreading over time. With each passing day, more and more ventures spring up, almost like magic, rooted in the many social networks that have become part of Brazilians' daily lives. Clothing brands with no physical store, news outlets with no journalists on staff, restaurants with no dining room at all (but that deliver across the whole metro area!), transportation companies with no fleet of their own, and professionals as varied as accountants and designers who never actually meet their clients face to face. The 21st century has arrived in full force!
However, the digitization of business — both traditional and innovative — has also raised questions about the security of data and confidential information at Brazilian companies. How can you protect this information and data, for both consumers and businesses, while also streamlining processes and cutting red tape?
In the transactions that make up the buying and selling process, important information is used to verify the buyer's identity, the validity of the payment method, and the legality of the deal itself. In other words, anything that can go wrong in this process puts both the business and the consumer at risk!
Both parties' data can be compromised, giving bad actors access to information as sensitive as national ID numbers, banking details, full names, card details, and much more, belonging to the consumer or the business. With that information, there's no limit to what a creative criminal could do.
That fear is well-founded, but thanks to growing government awareness of market trends and the needs of business owners, measures have been put in place to prevent this kind of fraud. The concept behind digital certificates is built on the encryption of sensitive data on both sides of the sales process.
In simple terms, a digital certificate works like a watermark: all transactions carried out can only be viewed by the relevant institutions and the business in question. In this sense, the information contained within these processes can only be seen if the person or company involved has access to that “watermark.” If they don't have it — meaning someone is trying to intercept the data for malicious purposes — the information stays scrambled and unreadable! It's like trying to solve a Rubik's cube where every piece is the same color and each one is separated from the rest.
So, what is a Digital Certificate?
A digital certificate is an electronic file that removes the need for notary offices — in other words, a file that proves the authenticity of the person involved. It guarantees the protection, security, and speed of transactions and other services offered online, letting both individuals and businesses prove their identity from anywhere in the world.
The technology was created specifically to meet the demands of modern times, ensuring the integrity of information exchanged in the digital environment in a secure, authentic, and confidential way. In other words, it acts as a kind of digital ID card for everyone involved in exchanging information during online transactions.
Because it's a digital representation of the authenticity of the parties involved, digital certification ends up simplifying many processes that once had to be handled in person. Tasks that used to require notarizing signatures, delivering documents, and trips to the bank, to name a few, have all been made easier by the guarantee of authenticity the certificate provides. The CNPJ Digital Certificate, known as the e-CNPJ, must be issued to a company's legal representative through Receita Federal, Brazil's federal tax authority, for obvious reasons — it's valid for 1 year under the A1 model, and up to 3 years under the A3 model.
On SERASA's website, you'll be able to find all the information about digital certificates and what they're used for. Since we're (super) friendly, we've gathered the most important points here for you! Settle into a comfortable chair, grab a coffee, and get ready, because there's a lot to take in. Among the conveniences made possible by issuing this document are:
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Access e-CAC
e-CAC is the Virtual Taxpayer Service Center, an arm of Receita Federal. By logging into the portal, taxpayers can check on the tax status of their CNPJ (company tax ID); register with CEI (the Specific INSS Registry); issue tax reports; monitor their message inbox to view and promptly receive notices and summons from Receita Federal; and consult digital case files and schedule appointments with Receita Federal. Certificate holders can also register, cancel, or look up powers of attorney directly through the portal.
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Access Receitanet
The Receitanet portal was created to make it easier to submit statements to Receita Federal, such as DCTF (Declaration of Federal Tax Debts and Credits); DIPJ (Declaration of Economic and Tax Information for Legal Entities); DIRF (Declaration of Income Tax Withheld at Source); DIMOB (Declaration of Information on Real Estate Activities); DITR (Declaration of Rural Property Tax); DERC (Declaration of Income Paid to Consultants by International Organizations); DACON (Statement of Social Contribution Assessment); DIMOF (Declaration of Information on Financial Transactions); DASN (Annual Declaration for Simples Nacional); and DBF (Declaration of Tax Benefits).
In other words, Receitanet streamlines all the red tape tied to the flow of information Receita Federal requires from businesses operating in Brazil. By building this integrated database, the government aimed to make the audit and case-review process more efficient, saving time and resources for everyone involved.
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Access Conectividade Social ICP
This portal covers activities tied to Caixa Econômica Federal, and it allows FGTS (severance fund) and Social Security transactions to be carried out online, as well as the registration of representatives authorized to act on the company's behalf and handle services online. For that last case, your company's representative — whether an employee or a self-employed professional — needs to have an individual's digital certificate, the e-CPF.
- Issue and pay the DAS in installments (Simples Nacional Collection Document) for businesses enrolled in that tax regime;
- Issue and amend the REDARF (Federal Revenue Collection Document);
- Sign the EFD (Company Tax Bookkeeping) within SPED Fiscal (the Public Digital Bookkeeping System);
- Register trademarks and products with INPI (National Institute of Industrial Property);
- Obtain CEBAS certification (Certification for Charitable Social Assistance Entities), granted by the Federal Government to private nonprofit institutions working in the social, educational, and health fields; and
- Access CT-e, used to electronically monitor and register freight transport services between two companies. The legal validity and authenticity of the CT-e are guaranteed through the use of an NF-e-type Digital Certificate.
We've covered a wide range of features related to the government-issued Digital Certificate (and there really are a lot of them!), and how this has made — and will keep making — life easier for many business owners. There's a lot of nuance here, and the tool is also available for specific market niches, like healthcare professionals, among others. To help make sure everything's clear, we've put together a short executive summary of what we covered:
Your company's Digital Certificate cuts down on the red tape tied to a range of processes within your day-to-day operations. Besides saving time and resources by offering an alternative to trips to the notary and the bank for various tasks, it also lets you check your company's standing with Receita Federal, helping you resolve awkward situations (like tax non-compliance) before bigger consequences arise. In short, the benefits of a Digital Certificate can be summed up in these points:
- Signing and sending documents over the internet;
- Carrying out banking transactions;
- Submitting business filings;
- Signing invoices, registering electronic freight transport (CTs-e), and recipient acknowledgments;
- Guaranteeing the legal validity of electronic documents; and
- Saving time.
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