City Hall bill changes the rules on closing businesses and on construction noise

São Paulo City Hall submitted Bill No. 403 of May 21, 2026. It amends Law No. 16.402/2016, on land subdivision, use and occupancy, and Law No. 15.031/2009, which exempts the individual microentrepreneur (MEI) from the operating license.

Closure and penalties

Under the new article 140-A of the Zoning Law, an establishment whose use facilitates or constitutes a crime, as found by the Metropolitan Civil Guard or the police, must be closed immediately, whether or not it has an operating license. After an administrative closure or a stop-work order (embargo) on construction, reopening happens only when the irregularities are corrected and the request is approved.

Read alsoDoes an MEI (individual microentrepreneur) need an Operating Permit in São Paulo? See when it does and when it does not

Penalties start to be applied in stages: on a first violation, enforcement issues a guidance notice with a warning; later violations may lead to a fine, administrative closure or a stop-work order (embargo).

Construction noise

The new Article 146-A prohibits noise above the levels set by law at construction sites that require a Construction Permit. Public and emergency works are excluded, and the exception for educational institutions continues when the noise comes from educational activities.

Legislative progress

The bill went through public hearings at the Constitution, Justice and Participatory Legislation Committee in early June, and at the Urban, Metropolitan and Environmental Policy Committee on June 15, 2026. At that hearing, Professor Rami Michalski, of USP (University of São Paulo), stated that the bill allows noise of up to 85 decibels, above the 55 decibels recommended by the WHO during the day.

Because it is a bill, the rules only take effect if they are approved by the City Council and signed into law.