In Brazil, every registered company has a National Registry of Legal Entities (CNPJ), which identifies its status with the Federal Revenue Service. This registration status is a way of reflecting the company’s status in terms of its commercial, tax and legal activities.
Understanding the different registration situations is essential to ensure that the business complies with the laws and avoids penalties.
What are the Registration Situations of a Company in Brazil?
- In activity
- Active
- Suspended
- Unfit
- Lowland
- Null
- Pending Regularization
In activity
When a company is in business , it skype database that it is operating normally and carrying out its commercial activities. This includes issuing invoices, making sales, and fulfilling all its tax and legal obligations.
In short, a company “in operation” is fully operational, without any type of restriction or legal impediment.
Active
The active status indicates that the is regularly registered with the Federal Revenue Service and can operate normally. All company data is up to date and its tax and fiscal obligations are being met. An active company has no pending issues that impede its commercial activities.
Suspended
The suspended status indicates that the what does it mean to drink on has had its activities suspended by the Federal Revenue Service. This usually occurs due to non-compliance with tax obligations, such as failure to submit tax returns or non-payment of taxes.
When a company is suspended, it cannot chine directory invoices, make sales or operate normally until its situation is regularized.
Unfit
A company is considered unfit when it fails to comply with its tax obligations, such as not declaring taxes or not updating its registration.
When the registration status is unsuitable, the company’s CNPJ becomes inactive, which means that it cannot carry out commercial operations, issue invoices, or participate in bidding processes, for example. The company can only resume operations after regularizing its situation with the Federal Revenue Service.
