If a citizen seeks to invest in his small business with more advantages, having an MEI (Individual Microentrepreneur) registration can be an option.
By being part of the category, entrepreneurs who manage small companies autonomously enter the formal labor market regulated by law. Thus, the worker has access to several benefits.
One of the advantages is the possibility of issuing a CNPJ (National Register of Legal Entities) and, in a way, represent your own company.
The MEI also pays less taxes than if it acted as an individual. Instead of contributing with an amount proportional to its billing, it pays a fixed monthly amount in the range of BRL 60 (in 2022). You also receive access to labor rights, such as maternity leave, sick pay and contributing to INSS (National Social Security Institute) for retirement.
Here are the other benefits:
- you can sell to the government;
- access to banking products and services such as credit;
- issuance of invoices;
- by disability retirement
- death pension (for family).
THE law that establishes the modality was sanctioned in the 2nd mandate of Luiz Inacio Lula da Silva (PT). It came into effect in 2009. After that, the number of people registered in the category only grew. At the end of this year, it broke a record: 14.8 million Brazilians already had the registration, according to data from IRS.
CRITERIA TO BE A MEI
There are more than 460 activities that can be carried out by MEIs. The federal government provides a list of professions that authorize registration.
The other criteria deal with the following topics:
- age and nationality – It is Brazilian nationality and over 18 years old are required.
- billing – can earn up to BRL 81,000 annually (BRL 6,750 per month). If the amount exceeds the stipulated amount by more than 20% (BRL 97,200), the worker must change his business model. There is no minimum amount imposed to register.
- Business – The MEI cannot be associated with another company as a partner or holder. It is also forbidden to have partners in your own company.
- employees – The Entrepreneur can only have one contractor in his business. Hiring must be in accordance with the CLT (Consolidation of Labor Laws) regimes.
People who exercise professions of an intellectual nature, such as lawyers, dentists and engineers, are not entitled to an MEI registration, as they generally have a high income. Pensioners and civil servants are also banned.
Foreigners can become MEIs, provided they have a National Migration Registration Card, Provisional Document of National Migration Registration or Refuge Request Protocol.
For people of other nationalities with a temporary visa in Brazil, registration is only granted to those born in Mercosur countries.
REGISTER AS MEI
If you meet the requirements, you must open your MEI record. You must have the following documents on hand:
- CPF (Individual Taxpayer Registration);
- RG (General Registration);
- Proof of residence and/or business address.
A register on the federal government’s digital platform gov.br it is also mandatory. If the interested party does not have one, it can be done on here.
THE Power360 produced a video with a detailed tutorial on how to register to become MEI.
Watch (3min23s):
If you prefer, read the step by step:
- access the portal “I want to be MEI” of the federal government and click on “Formalize”;
- login gov.br. If registration is required goldjust provide the necessary data;
- complete the application form;
- select an Main activity. For example, check “Hairdressers, manicures and pedicures” if this is the main focus of the business;
- if the business fits into more than one area, it is possible to select up to 15 secondary activities;
- select a form of action. For example, if you are an online company, you should check “Internet”;
- provide home and business address. If it is the same, fill in the 2 fields equally;
- read and accept system declarations.
After following the entire tutorial, citizens will have access to the CCMEI (Individual Microentrepreneur Condition Certificate).
OBLIGATIONS OF A MEI
Once MEI, there are obligations to be followed by the entrepreneur:
Monthly payment:
The individual micro-entrepreneur must pay mandatory taxes monthly. The value varies according to the area of operation and is found in the DAS (Simplified Collection Document). THE MEI contributes with 5% of the minimum wage plus R$1 of ICMS and/or R$5 of ISS. In 2022, the values looked like this:
- trade and industry: BRL 61.60;
- services: BRL 65.60;
- trade and services: R$ 66.60.
Billing statement:
It is necessary to make the DASN-Simei (Annual Billing Declaration) to inform the gross income obtained by the company in the period of one year.
MEI FUTURE
Since it came into effect in 2009, the MEI law has faced a series of changes. One of the most significant was the increase in the maximum revenue per business: from R$36,000 to the current R$81,000.
In 2023, there may be even more changes. One supplementary bill to set the revenue ceiling at R$ 144,913.41 (R$ 10,800 monthly) awaits approval by the plenary of the Chamber of Deputies. The project also stipulates that MEI is entitled to employ up to 2 employees, unlike the current limit of one.
If it comes into effect, the trend is for the number of MEIs to increase, as the expansion opens up space for more Brazilians to fit the criteria.
Authored by the Federal Senator Jayme Campos (DEM-MT), the proposal has already received approval from the upper house of Congress, but when it stipulated a lower value of R$ 130 thousand.
In the Chamber, when passing through the committee ofand Finance and Taxation was approved, but with a suggestion of amendment to stipulate the limit that is currently being processed. Afterwards, it received approval from the Constitution, Justice and Citizenship commission.
Even approved by the deputies, the project must return to the Senate because of the change in the text.
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