Find out more about MEI, the gateway to entrepreneurship Brazil is a country of entrepreneurs. In 2023, there were as many as 90 million Brazilians who were realizing (or planning to realize) the dream of owning their own business, according to the Global Entrepreneurship Monitor (GEM) survey, commissioned by SEBRAE […]
Learn more about MEI, the gateway to entrepreneurship
Brazil is a country of entrepreneurs. In 2023, there were as many as 90 million Brazilians who were realizing (or planning to realize) the dream of their own business, according to the Global Entrepreneurship Monitor – GEM survey, commissioned by SEBRAE and the National Association of Entrepreneurship and Small Business Studies Business Management (Anegepe). And if you are part of these 90 million, we have collected everything you need to know about registering as an Individual Microentrepreneur, the famous MEI.
Individual microentrepreneur: what is it?
It is the category of self-employed workers, such as small seamstresses, pastry shops and hairdressers, among many others, regulated in 2008 by the federal government. It is through registration as an MEI that a microentrepreneur is guaranteed advantages such as the INSS payment and the right to the CNPJ, to formalize their business with simpler rules than those established for larger companies. “Starting a business is a great option, since your residence can be registered as a company headquarters and registering as an MEI avoids problems of inspection and informality, as well as having a lower tax burden,” adds Lídia Dantas, analyst at business in Sebrae-SP.
Main obligations of the MEI
MEI registration allows for more than 400 microbusiness activities for a self-employed person. So, the first step before becoming one is to check if your entrepreneurial dream falls into one of the categories. To open your company you will also need to have a GOV account, preferably a high category (silver or gold) on the federal government website. “In addition, the MEI has some tax obligations, such as the payment of the Simples Nacional Collection Document (DAS), which must take place on the 20th. It is with this payment that he contributes to the INSS and will be able to retire in the future., for example”, explains Lídia.
Other obligations that the analyst highlights are the need for an annual tax return, to be declared to the RF by May 31st of each year (and is different from the famous tax return). And issuing invoices for legal entities, i.e. every service provided as MEI for another company must be declared on the invoice.
It’s less complicated than it seems!
Do all these difficult names make your head spin? Rest assured, you can usually fulfill these obligations online. Below we have listed the main sites you need to access.
- To open a CNPJ MEI: individual microentrepreneur registration (MEI).
- To pay the Simples National Collection Document (DAS): PGMEI
- DAS generation program for individual micro-entrepreneurs.
- To issue the annual tax return: DASN SIMEI – Annual Declaration of Semplici Nacional – Individual Microentrepreneur.
- To issue an invoice: National biller.
For those in trade and industry, the process is different. You need to register with your state Treasury Department, purchase a digital certificate, and finally download a billing program. Sebrae provides a free one at this link.
The SEBRAE course platform for those who want to become MEI or have already opened their own business. But you have to become a pro, it is available here at this link: MEI Sebrae Journey.
Do you need help with MEI?
Avoiding failure due to lack of knowledge to maintain the business is the biggest challenge microentrepreneurs face today. This category of businesses has a failure rate of 29%, considered the highest in Brazil, according to the “Company Survival” study, commissioned by Sebrae in 2021.
The advice to avoid problems is to contact your municipality, which will have more information on which activities are accepted as MEI in your city. Additionally, another great option is to look for Sebrae itself, which offers several entrepreneurship courses that provide theoretical support for small businesses. “Unfortunately in Brazil we do not have an entrepreneurial education. The majority of MEIs undertake out of necessity and, for this reason, do not have knowledge of business management, marketing, production, people management and, above all, in the financial area, all issues that This is essential to ensure the sustainability of the business. The business, be it a dream or a necessity, must be a well-considered and studied decision”, concludes the expert.
Source: Terra
Ben Stock is a lifestyle journalist and author at Gossipify. He writes about topics such as health, wellness, travel, food and home decor. He provides practical advice and inspiration to improve well-being, keeps readers up to date with latest lifestyle news and trends, known for his engaging writing style, in-depth analysis and unique perspectives.
