The legal implications of informal entrepreneurship as a source of family subsistence in the Covid-19 pandemic scenario

Abstract

The present study aims to analyze the possible legal implications arising from informal entrepreneurship as a result of the Covid-19 pandemic, which continue to persist to this day. This is a study with a theoretical-reflective approach. It is based on conceptual aspects of the general analysis of doctrine and business legislation to demonstrate the legal implications that may arise from the informality of a business in the context of the Covid-19 pandemic. Bibliographic research was also utilized to identify works related to the topic at hand. The operation of businesses in an irregular manner limits the legal protections available to a properly established company, in addition to excluding them from the benefits guaranteed by law. Four possible legal implications arising from irregular businesses were identified, namely: civil liability, bankruptcy declaration, judicial recovery, consumer liability, and the impact on the general data protection law. It becomes necessary for irregular businesses to seek ways to regularize themselves, as informal businesses will have all the obligations of a properly constituted company but will not enjoy the same benefits and protections available to them. Furthermore, it is essential that public authorities provide incentives for more businesses operating informally to seek regularization.