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In Brazil, MEI refers to “Microempreendedor Individual” a legal framework for small business owners to formalize their operations.
If you own a small business in Brazil, registering as a Microempreendedor Individual (MEI) can be a simple and affordable way to formalize your business and access various benefits and protections. This post will provide a comprehensive guide to MEI in Brazil and cover the essential information you need.
What is MEI?
MEI, or Microempreendedor Individual, is a simplified and low-cost business registration option for small business owners in Brazil. The Brazilian government created MEI to help small business owners formalize their businesses, gain access to benefits, and simplify tax processes.
Benefits of MEI
Registering as an MEI offers several benefits for small business owners in Brazil, including:
- Simplified Registration: MEI registration is quick, easy, and low-cost, allowing small business owners to formalize their operations easily.
- Tax Benefits: MEI business owners are exempt from federal, state, and municipal taxes, except the monthly MEI tax.
- Social Security Benefits: MEI business owners are eligible for social security benefits, including retirement, disability, and survivor benefits.
- Business Banking: MEI business owners can open a business bank account and access business credit.
- E-Invoicing System: As of January 2023, MEI business owners must issue service invoices from the NFS-e system, a national standard for service e-invoices in Brazil.
Requirements for MEI Registration
To be eligible for MEI registration, small business owners must meet the following requirements:
- Be a Small Business Owner: You must be a small business owner with an annual revenue of R$ 81,000.
- Work in a Permitted Industry: Your business must operate in a permitted industry, which includes a wide range of activities such as retail, food service, and personal services.
- Be a Brazilian Citizen: You must be a Brazilian citizen or a legal resident of Brazil.
- Have No Employees: You cannot have employees, including family members.
How to register for MEI
To register as an MEI in Brazil, follow these steps:
- Verify Eligibility: Verify that your business meets the requirements for MEI registration.
- Register Online: Register for MEI online through the MEI Portal or at a local government agency.
- Obtain a Business License: If your business requires a license, obtain it from your local government agency.
- Pay Monthly MEI Tax: The monthly MEI tax is currently R$ 56. This tax covers social security and other benefits.
