Opening and maintaining a company in Brazil can raise many questions, especially when it comes to tax regimes such as MEI and Simples Nacional. In this article, we will explore what each of these regimes means, their differences, limits, and answer important questions on the subject.
Frequently Asked Questions
- What is MEI?
- What is Simples Nacional?
- What is the difference between MEI and Simples Nacional?
- Can a company be MEI and cashapp database Nacional at the same time?
- How to open a MEI?
- What is the MEI limit per year?
- What is the Simples limit per year?
What is MEI?
MEI stands for Microempreendedor Individual , a simplified formalization regime for small entrepreneurs. Created in 2008, MEI deterioration of driver reaction the regularization of self-employed workers and small businesses, allowing the payment of reduced and unified taxes.
The MEI is intended for those who wish to open a company with an annual turnover of up to R$144,900.00 and that has, at most, one registered employee. In addition, the MEI offers benefits such as access to the INSS, issuance of invoices and the possibility of having a CNPJ, which facilitates relationships with suppliers and customers.
What is Simples Nacional?
Simples Nacional is a simplified tax chine directory created to make life easier for micro and small businesses. It unifies several taxes into a single payment slip (DAS), simplifying tax management and reducing the tax burden for many companies.
The Simples Nacional system covers companies with annual revenues of up to R$4.8 million and may include businesses of different sizes and legal natures, such as microenterprises (ME) and small businesses (EPP). When opting for the Simples system, the company pays taxes on gross revenues, with rates that vary according to the sector of activity and revenue range.
What is the difference between MEI and Simples Nacional?
The main difference between MEI and Simples Nacional is the size of the company and the revenue limits:
- MEI : Individual Microentrepreneurs have an annual revenue limit of R$144,900.00 and can have only one employee. In addition, the MEI can only work in activities predetermined by the government and cannot be a partner in another company.
- Simples Nacional : Companies registered under Simples Nacional have a higher revenue limit of up to R$4.8 million per year and may have more than one employee. This regime is aimed at micro and small businesses, with a wider range of permitted activities.
Can a company be MEI and Simples Nacional at the same time?
No, a company cannot be a MEI and a Simples Nacional at the same time. The MEI is a category within the Simples Nacional, but with specific rules. If the revenue of a MEI exceeds the annual limit or if it hires more than one employee, the company will need to migrate to a microenterprise (ME) or small business (EPP), thus falling within the Simples Nacional more broadly.
