- About MEI:
- MEI procedures:
- Costs to have an MEI:
- Charges and benefits for MEI:
O MEI, Individual Microentrepreneur, is the best formalization option for freelance professionals who wish to become small entrepreneurs. 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 MEI as a company regime are the low monthly cost and lack of bureaucracy to open and pay taxes.
The MEI, as a company regime, was created based on 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
Brazil has more than 7 million people formalized as MEI, according to the entrepreneur's portal. Half of this number is concentrated in the southeast region, which shows the disparity in services and trade opportunities between that region and the others.
The CNAEs (activities) with the most registered users are:
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 with formalization just to guarantee some livelihood.
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.
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 the MEI is the boleto that already unifies all tax collections and charges. The fixed monthly amount of R $ 47,85 (trade or industry), R $ 51,85 (provision of services) or R $ 52,85 (trade and services).
In fact, the MEI is exempt from federal taxes (IRPJ, PIS, COFINS, IPI and CSLL). The fixed monthly 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 customers only deal with companies that have CNPJ. In other words, the opening of MEI expands the company's possibilities horizon, even allowing the search for larger contracts.
2. Registration of NIRE with the Commercial Registry
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, old age pension, maternity leave 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 boleto has a fixed monthly amount regardless of billing and it is not necessary to have an accountant. In any case, the MEI is entitled to free accounting advice to register until the first simplified annual declaration of the individual micro-enterprise (DASN - SIMEI), through a wide network of accounting companies opting for the 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 Guide and Social Security Information (GFIP) 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 [email protected] and we'll talk about our special discounts for MEIs.
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
- Pensioners and federal public servants in activity.
- State and local public servers, depending on state or city legislation.
- Foreigners with provisional visa
Situations where it is possible to open the MEI, with reservations
- Beneficiaries of unemployment insurance - lose the benefit in the month following the formalization
- Sickness benefit recipients - even unemployment insurance
- Beneficiaries of old-age assistance
- People receiving disability retirement
- Benefit of Continued Social Assistance (BPC-LOAS) - does not lose benefits immediately, but may lose when increasing family income
- Bolsa Família beneficiaries - MEI registration does not cause the Bolsa Família program to be canceled, unless there is an increase in family income above the program limit. Even so, the cancellation of the benefit is not immediate, it will only be made in the year of registration update.
Situations that do not restrict the opening of the MEI
- Employees under CLT regime - if you want to exercise a new activity in your free time. However, MEI does not replace CLT as a contracting regime if that is the objective.
- People with debt.
- Self-employed without a business address - today, only 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 it can be done almost 100% online, except for 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 permitted for MEI are those authorized by the 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
- Number of the voter's title or the number of the last delivery receipt of the Annual Personal Income Tax Return - DIRPF
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.