Learn all about MEI, Microentrepreneur Individual

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What does MEI mean?

O MEI, Individual Microentrepreneur, is the best formalization option for freelancers who wish to become small business owners. Legalization allows the issuance of invoices, access to credit and social security coverage, among other benefits that we will see later.

To be an individual microentrepreneur, you must have billing limit of annual R $ 60.000 and have no interest in other companies, as a partner or holder. The scheme is also limited to only one employee receiving minimum wage or floor category.

The great advantages in choosing the MEI as a business regime are the low monthly cost and lack of bureaucracy to open and pay taxes.

The MEI, as a business regime, was created from two legislations:

  • Complementary Law 123 / 2006 - establishes the National Statute of Microenterprise and Small Business, also known as the General Law of Micro and Small Enterprises
  • Complementary Law 128 / 2008 - creates the figure of the Individual Microentrepreneur - MEI and modifies parts of the General Law of Micro and Small Business - 123 / 2006 Complementary Law

MEIs in Brazil

Brazil has more than 7 millions of people formalized as MEI, according to the portal of the entrepreneur. Half of this number is concentrated in the Southeast region, which shows the disparity of services and trade opportunities between this region and the others.

The CNAEs (activities) with more registered users are:

Top 5 CNAEs registered in the MEI

Initiatives such as SIMEI and Simples Nacional helped Brazil to reduce informality among its entrepreneurs. However, with the last crisis, still in number of informal reached 10 million in the middle of 2016.

A high unemployment rate ends up influencing the increase of entrepreneurship by necessity, in which, for obvious reasons, there is not much concern about formalization only in guaranteeing some sustenance.

Anyway, if you came to this article, it is because you are thinking of formalizing yourself and we totally encourage you to follow this plan! See the section below and you will better understand the benefits.

Why formalize through MEI?

It is common sense that starting a business in Brazil is very difficult due to bureaucracy and high costs with taxes and charges. The individual microentrepreneur registry was created precisely to break this down and take away from the informality millions of Brazilians.

A bureaucracy is practically zero. Just sign up for portal of the entrepreneur and follow the instructions. There are no registration fees. The only monthly cost with MEI is the ticket that already unifies all taxes and charges. The monthly fixed amount of R $ 47,85 (trade or industry), R $ 51,85 (service rendering) or R $ 52,85 (commerce and services).

In fact, the MEI is exempt from federal taxes (IRPJ, PIS, COFINS, IPI and CSLL). The monthly fixed amount corresponds to ICMS, ISS and INSS.

Others benefits in leaving the informality as an individual microentrepreneur:

1. Registration in the National Registry of Legal Entities (CNPJ)

Many suppliers and even clients only deal with companies that have CNPJ. That is, the opening of the MEI expands the horizon of possibilities of the company, allowing even the search for larger contracts.

2. Registration of the NIRE in the Board of Trade

Usually this would be one of the most complicated and bureaucratic parts of the opening of a company. But with the MEI, the registration of the Registration Number of the Companies Register, at the State Board of Trade, is automatically obtained after the process.

3. Invoice issuance

Some large clients do not deal with those who do not issue NF. The informal worker loses a lot of possibilities. The other option, which would be the RPA - Receipt of Autonomous Payment - has a much higher discount of charges.

4. Social security coverage

The entrepreneur and his / her family are protected with sickness, retirement by age, maternity salary after grace, pension and confinement help. The contribution is already included in the monthly ticket: R $ 44 - INSS corresponding to 5% of the minimum wage.

5. Access to financial services and bank credit

With the CNPJ, MEI will be able to open a corporate account and separate the personal finances of the company's finances. In addition to having access to various credit and financing options. Some even specific to microentrepreneurs.

6. Issuance of an operating license over the internet

As we said earlier, the bureaucracy in the whole process is very low. Wish it were for any type of company.

7. Simpler controls

The ticket has a monthly fixed amount independent of billing and it is not necessary to have a meter. In any case, the MEI is entitled to free accounting advice for the registration until the first simplified annual declaration of the individual microenterprise (DASN - SIMEI), through a large network of accounting firms that are Simple national.

8. Possibility to sell to the government

An informal self-employed would have difficulties selling to the public sector, but an MEI can sell to all walks of it.

9. Hiring an employee to help with the venture

The employee must receive a minimum wage or the floor of the category. The entrepreneur must complete the FGTS and Social Security Information (GFIP) Guide monthly, in addition to depositing 8% of FGTS.

10. LUZ technical support

LUZ is interested in helping small businesses in Brazil. We believe that entrepreneurship is what moves the country forward. We have spreadsheet, presentations e courses that may interest you. Contact us via contato@luz.vc and we'll talk about our special discounts for MEIs.

LUZ Spreadsheets

And what are the restrictions to open an MEI?

The registration as MEI has some restrictions, mainly in terms of activity, structure and billing. To be an individual microentrepreneur, it is necessary to have annual earnings of up to R $ 60.000, that is, $ 5.000 monthly. Above this range, it is more interesting to open a Microenterprise - ME.

To open an MEI, the applicant can not integrate the corporate structure of other companies. Some activities can not also be included in the MEI.. To find out if your activity (CNAE) whether it fits or not, you should contact the City Hall of your city.

Other restrictions on the opening of the MEI

  1. Pensioners and federal public servants in activity.
  2. State and local public servers, depending on state or city legislation.
  3. Foreigners with provisional visa

Situations where it is possible to open the MEI, with reservations

  1. Beneficiaries of unemployment insurance - lose the benefit in the month following the formalization
  2. Sickness benefit recipients - even unemployment insurance
  3. Beneficiaries of old-age assistance
  4. People receiving disability retirement
  5. Benefit of Continued Social Assistance (BPC-LOAS) - does not lose benefits immediately, but may lose when increasing family income
  6. Beneficiaries of the Bolsa Família - registration in the MEI does not cause the cancellation of the Bolsa Família program, unless there is an increase in family income above the program limit. Even so, the cancellation of the benefit is not immediate, will only be effected in the year of registration update.

Situations that do not restrict the opening of the MEI

  1. Employees under the CLT regime - if you wish to exercise new activity in your free time. However, the MEI does not replace the CLT as a contracting regime if this is the objective.
  2. People with debt.
  3. Self-employed without a business address - today, only a business address is required, if the activity requires one.

How to open a MEI?

We did a step by step explaining how to open a MEI. But in short, process of opening the MEI is quite simple. and can be done almost 100% online, with rare exceptions, queries and restrictions. The cadastral part is made in the portal of the entrepreneur, but before you should know your activity and have the right documents at hand.

Let us take the most important steps necessary to register as an individual microentrepreneur.

1 - Activity Search

The first step is to find out if your activity can be framed in the scheme of microentrepreneur. Possible activities are represented by CNAEs, National Classification of Economic Activities. It is an attempt to standardize groups of activities and apply legislation and taxation on them.

Imagine that you give marketing advice. You can call it marketing advice, advertising consulting, and even more creative. But regardless of the name you will give to your customer service, you must frame it in a CNAE.

The activities allowed for MEI are those authorized by Annex XIII to Resolution CGSN No. 94 / 2011. If you are still in doubt, you can make an appointment at your city hall and find out if your activity fits.

2 - Documentation and Initial Registration

To be formalized as MEI in the portal of the entrepreneur, it is necessary to inform:

  • CPF number and date of birth of the holder

Formalization as MEI - Individual Microentrepreneur

  • Number of the voter's title or the number of the last delivery receipt of the Annual Personal Income Tax Return - DIRPF

Learn all about MEI, Individual Microentrepreneur 1

If the completed CPF has no IRPF delivered for the last two calendar years, the voter title field will appear.

After completing this step, you will only need to complete the registration with your step, complete the requested data and print your MEI certificate. This certificate also has the function of Permit of Permit and Provisional Operation, for up to 180 days.

After completing your registration, remember to pay your ticket monthly. One tip of ours is to print all the cards for payment on the Federal Revenue website to not forget and contract debts.

Good luck and remember: anyone who undertakes helps Brazil!

Any help you may need in this regard, the LIGHT will be happy to help you. Leave your comment below.

See also about MEI

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8 COMMENTS

  1. I would like to know, I have an employee registered by mei, she is pregnant, I will have to pay maternity insurance? Or the INSS?

  2. Good afternoon. I have a membership in a CNPJ but the same has been inactive for more than 10 years and in the negative certificate appears as inapta.Meu partner has passed away and the accountant and the accounting firm that administered us has closed for years. I can open a MEI ? Thank you

  3. Hi Alessandra, he asked his son to become MEI so he could legally compensate him without having to hire him by the CLT. This is normal market practice (I do not know exactly how it works in barbershops). About him opening the MEI in your child's name, it is possible if he has his data and information, but I believe it is not likely to happen.

  4. A barber shop owner called my son to work with him and he asked my son to take a certificate from the MEI. What will that certificate be for? He even asked for all my son's data. I'm afraid he'll open Mei in my son's name. It is possible

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