MEI – How to Open Your Company

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The Individual Microentrepreneur (MEI) is a system created by the Brazilian government to facilitate the formalization of small businesses.

This modality allows individual entrepreneurs to open a company in a simplified way, reducing the bureaucracy and costs involved.

In this article, we will cover the necessary steps to open your MEI company and the benefits that this modality offers.

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1. What is MEI?

MEI emerges as an alternative for self-employed workers and small entrepreneurs who wish to formalize their activities.

The MEI is a legal and tax categorization, which allows the entrepreneur to be classified as an individual, with its own CNPJ.

Thus, he now has rights and benefits that were previously exclusive to larger companies.

To be considered a MEI, the entrepreneur's annual gross revenue cannot exceed R$ 81,000.00.

In addition, it is allowed to have a single employee hired, as long as it is a minimum wage or the minimum wage for the category.

2. How to open a MEI?

To open a MEI company, you need to follow a few simple steps. Let's see:

2.1. Check Permitted Economic Activity

Before starting the formalization process, it is important to check if the activity you intend to carry out is among those allowed for the MEI.

There are more than 400 activities listed, but some have restrictions or require specific licenses.

It is essential to consult the list on the Entrepreneur Portal to ensure that your activity is included.

2.2. Register on the Entrepreneur Portal

After verifying the permitted activity, the next step is to register as a MEI on the Entrepreneur Portal (www.portaldoempreendedor.gov.br).

The process is completely online and free. It will be necessary to inform your personal data, such as name, CPF, date of birth, voter registration and contact details.

2.3. Choice of Business Name

When registering in the Entrepreneur Portal, it is necessary to choose a business name for your MEI company.

It is important to verify that the chosen name is not already registered by another company. The query can be made directly on the Federal Revenue website.

2.4. Set a Business Address

To have a MEI, you need to have a valid business address. It can be your residential address, as long as it is regularized and allows this activity.

It is important to remember that some activities have restrictions on where they can be carried out.

Check municipal legislation to find out if there are any restrictions specific to your activity.

2.5. Issue the CNPJ and Operating Permit

After registering on the Entrepreneur Portal, a CNPJ number will be issued for your MEI company. This number must be used in all commercial and tax transactions of your business.

In addition, some activities require an operating license for regularization. Check your city's requirements and arrange to obtain a permit if necessary.

3. Benefits of the MEI

MEI offers several benefits to individual entrepreneurs. Let's see the main ones:

3.1. Simplicity and Red tape reduction

MEI is a modality created precisely to simplify the lives of individual entrepreneurs.

Registration, tax payment and accounting control processes are simplified, reducing bureaucracy and costs involved.

This facility allows the micro-entrepreneur to focus more on business growth and less on administrative issues.

3.2. Exemption from Federal Taxes

One of the great advantages of the MEI is the exemption from federal taxes, such as the Corporate Income Tax (IRPJ), Social Contribution on Net Income (CSLL) and PIS/PASEP. The MEI only pays a fixed monthly amount, which varies according to the activity carried out, called the Simples Nacional Collection Document (DAS). This amount includes all taxes and contributions necessary to keep the company regularized.

3.3. Access to Social Security

By becoming a MEI, the entrepreneur has access to Social Security benefits, such as retirement, sick pay, maternity pay, among others. It is necessary to contribute monthly with a fixed amount, which is also included in the DAS paid to MEI.

3.4. Electronic invoice

MEI can issue electronic invoices to its customers, which provides greater professionalism and credibility for the business. Issuing invoices is mandatory for some commercial activities, and the MEI can fulfill this requirement in a simplified way.

4. Final Considerations

MEI is an excellent option for individual entrepreneurs who want to formalize their business in a simple and economical way.

When opening a MEI company, it is possible to enjoy the benefits of formalization, such as the ease of opening a bank account, access to credit lines, among others.

It is essential to follow all the steps correctly and keep up to date with fiscal and tax obligations to ensure the regularity of your MEI company.

Now that you already know the process to open a MEI company, take advantage of this opportunity and start formalizing your business.

Be sure to enjoy the benefits and opportunities that MEI can provide for your individual venture.