Post written by Frederico Fernandes da LA Contab.
The social object is the heart of the company contract. In the social object determines what the company intends to perform as an economic activity to generate revenues to the business. In short, what will you do to make money. The definition of economic purpose directly influences the company's tax options, especially SIMPLE NATIONAL. Therefore, the description of the social object should be precise and detailed for the activities to be developed, mentioning gender and species. For example, "retailing of garments, shoes and accessories".
In the above example, the company proposes to sell clothing, footwear, and any accessory for clothing, such as belts, for men and women, adults or children.
Let's explore the example above and analyze each of its parts.
The object begins with the term "trade". Therefore, it is established that she buys from someone to sell to other people. Could this company sell clothes that it produced? No. For this, the object would need to have the term "make-up" or "production". If it were Manufacture and sale of clothes she could sell herself and others' clothes.
Note that the term "retailer" was used. The classification between retailer and wholesaler is very interesting. The general understanding is that the wholesaler is the one who sells in large quantities and the retailer in small quantities. In this same assumption, the City of Rio de Janeiro understands the same way, so much so that it only authorizes a permit for real estate that has an area available for freight unloading of goods (trucks).
The state farm (which takes care of the ICMS) understands that the retailer is the one that sells to the final consumer of the product, regardless of the quantity sold, and the wholesaler sells it to the retailers. It would be the intermediary of the operation. For ICMS, this difference represents different legal obligations. Therefore, it is required that the social contract informs if the company will be wholesaler, retailer or both when it will act in the commerce branch.
To help group activities, the Ministry of Planning through CONCLA (National Classification Commission), makes available through the web (http://www.cnae.ibge.gov.br/) the economic classification research service applicable to companies or individuals wishing to have economic activity in Brazil. This classification table is used to classify the activity in the National Register of Legal Entities (CNPJ) and by almost all the states and municipalities of the federation.
The CNAEs codes are also used by the Federal Revenue Service of Brazil to authorize or not the option of a company to the regime of SIMPLES NACIONAL. Two important comments on this point: 1) allowed economic activity is just one of more than twenty conditions imposed for adoption to SIMPLES NACIONAL; 2) The SIMPLE NATIONAL page offers the CNAEs codes who can not enter SIMPLES.
So, in our first example, the social object Retail trade in garments, shoes and accessories will receive 2 CNAEs - RETAIL TRADE IN CLOTHING AND ACCESSORY ITEMS (4781-4 / 00) and RETAIL TRADE IN FOOTWEAR (4782-2 / 01).
The precise and clear description of the corporate purpose is fundamental to the correct tax and operational planning of your company.