In Brazil, companies are classified into different sizes according to their annual revenue and, in some cases, the number of employees. This classification is essential to determine tax obligations, access to credit lines, incentive programs and other regulations applicable to each business. Below, we explain in detail the company sizes in Brazil and what they mean for the entrepreneur.
What are the company sizes in Brazil?
- Individual fantuan database (MEI)
- Microenterprise (ME)
- Small Business Enterprise (EPP)
- Medium-sized company
- Big Company
Individual Microentrepreneur (MEI)
The Individual Microentrepreneur (MEI) is a type of aimed at small entrepreneurs who earn up to R$81,000.00 per year. The MEI is a simplified form of formalization for those who work on their own and wish to have access to bruderschaft is the establishment such as the issuance of invoices and contributions to Social Security. The main characteristics of the MEI include:
- Annual billing limit of R$81,000.00 .
- Possibility of hiring an employee.
- Reduced tax burden, with fixed monthly payments.
Microenterprise (ME)
A Microenterprise (ME) is classified as a business that has an annual turnover of up to R$360,000.00 . MEs have chine directory tax obligations, and many opt for the Simples Nacional to pay their taxes in a unified manner. Among the main characteristics of a microenterprise, the following stand out:
- Annual revenue of up to R$ 360,000.00 .
- There may be several employees, depending on the sector of activity.
- Simplified taxation, especially for those who adhere to Simples Nacional.
Small Business Enterprise (EPP)
A Small Business (EPP) is a company that has an annual revenue between R$360,000.01 and R$4,800,000.00 . Like MEs, EPPs can also opt for the Simples Nacional, but with a higher tax rate due to higher revenue. Features of EPPs include:
- Annual revenue between R$ 360,000.01 and R$ 4,800,000.00 .
- Largest number of employees allowed, varying according to the sector.
- Access to incentive programs for small businesses.
Medium-sized company
Medium-sized companies are those with annual revenues between R$4,800,000.01 and R$300,000,000.00 . These companies already have a more robust structure and are subject to more complex taxes, such as Presumed Profit or Real Profit, depending on their activities and revenue. Some characteristics include:
- Annual revenue between R$4,800,000.01 and R$300,000,000.00 .
- More developed organizational structure, with more departments and a greater number of employees.
- More complex taxes, generally outside the Simples Nacional.
