On July 11th, 2011, Law # 12.441 changed the Brazilian Civil Code currently in force, creating the figure of the limited liability individual company. In Portuguese, this type of company is called “empresa individual de responsabilidade limitada,” which is being referred to by the initials “EIRELI.”

Individuals have been always able to constitute companies with only one partner, which were called, before the changes introduced in the Brazilian Civil Code in 2002, “firma individual.” After such changes, the designation for such type of company changed to “empresário individual.” Either way, the liability of the individual was unlimited, that is, the patrimony of the individual could be seized for the payment of debts made in name of the company.