By Paulo Trevisani 

BRASÍLIA -- Brazil's Senate on Wednesday approved measures meant to boost a sluggish economy by simplifying business in a country known for its crippling bureaucracy.

The changes include a fast-track process to open new firms, waivers for some permit requirements and broader acceptance of digital documents, among other things. The package faced opposition from groups fearing a reduction of labor rights and environmental protections, but was saluted by businesses.

"It is an attempt to level Brazil's regulatory environment with that of global economic powerhouses by reducing the state's interference in business," said André Marques, a lawyer with the firm Guerra Batista. "They will let money circulate more freely."

The World Bank's Ease of Doing Business index ranks Brazil 109 out of 190 nations, lower than 10 other Latin American nations, including Mexico, Chile and Colombia.

The new rules allow small business such as hair salons and cafes to begin operations before getting all necessary permits. The firms remain subject to inspection and could face penalties in the event of irregularities, but they will no longer need to wait as long as several months before starting business, experts say.

Another change will protect business owners from getting their personal assets seized to cover business debt.

One of the most significant changes is the adoption of a digital version of Brazil's " carteira de trabalho," or work booklet, a passport-like document that employers must fill out by hand with salary changes, vacation taken and other information for every worker during employment.

The expected increased use of digital documents will facilitate links with foreign companies, said Adriana Piraíno, an expert in mergers and acquisitions at law firm Velloza Advogados.

"If it all works as expected, it will become easier for foreigners to navigate Brazil's bureaucracy," she said.

The deregulation package was written by the executive branch earlier this year and modified by lawmakers. Conservative President Jair Bolsonaro is now expected to quickly sign it into law.

The package's approval comes after the lower house of Congress passed in July a pension overhaul meant to reduce fiscal instability in Latin America's largest economy. The Senate is expected to approve the overhaul in the next few months.

Policy makers are also pursuing a deep overhaul of Brazil's complex tax code to reduce the cost of filing tax forms, which in Brazil takes longer than in most other countries, according to some studies.

The revisions are aimed at jolting Brazil out of a long soft patch. The country's output contracted in 2015 and 2016 and has since grown less than 1% a year. There are fears another recession is already under way. Unemployment has been around 13% for years.

Some lawmakers, however, fear a reduction of long-established labor rights.

"This is very harmful," opposition Sen. Humberto Costa from the Workers' Party, or PT, said. "Reducing bureaucracy won't create jobs."

His party removed from the final bill a provision allowing employers to increase Sunday shifts.

Environmentalists also fear some regulatory changes could make it easier to cut down Brazil's vast rain forests.

The package rolls back environmental protections by allowing some businesses to operate even before getting environmental permits, said Maurício Guetta, a law consultant with the Socio-Environmental Institute.

"We will need to battle this package in the courts," he said.

Write to Paulo Trevisani at paulo.trevisani@wsj.com

(END) Dow Jones Newswires

August 21, 2019 21:57 ET (01:57 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.