How to Create a MEI: Guide to Individual Microentrepreneurs

The Individual Microentrepreneur (MEI) is a simplified business model designed to formalize small businesses and self-employed professionals in Brazil. We will cover in detail the concept of MEI, the requirements to qualify, your duties and the step-by-step process to request your formalization.

What is MEI?

MEI is a special tax regime aimed at the formalization of small entrepreneurs and self-employed professionals, providing benefits such as reduced tax burden, ease in obtaining credit and access to social security rights.

Requirements to be a MEI

1. Invoicing: The entrepreneur must have a maximum turnover of R$81,000.00 per year, which is equivalent to, on average, R$6,750.00 per month.
2. Allowed activities: It is essential to consult the list of permitted activities on the Entrepreneur Portal, as not all of them fall under the MEI category.
3. Number of employees: The category allows the hiring of an employee who receives up to a minimum wage or the category floor.
4. No participation in other companies: Anyone interested in becoming a MEI cannot be a partner, administrator or owner in another company.

MEI Duties

1. DAS payment: Every month, the MEI is required to pay the Simples Nacional Collection Document (DAS). The average value of this document is R$71.00, including taxes such as ICMS/ISS and the contribution to Social Security.
2. Monthly Gross Revenue Report: The MEI must record its revenues monthly in the Monthly Gross Revenue Report.
3. Annual Income Statement (DASN-SIMEI): Every year, the MEI must submit a simplified declaration regarding the previous year's revenue.
4. Labor obligations: If you have an employee, the MEI must ensure compliance with labor rights, such as FGTS and INSS.

How to apply for and create a MEI

1. Access to the Entrepreneur Portal: Access here.
2. “Formalize” option: On the portal, select the option “Formalize” or “I want to be a MEI”.
3. Personal data: Complete the form with your personal details, including CPF, date of birth, voter registration number and contact details.
4. Activity selection: Determine the main activity of your business and, if applicable, secondary activities.
5. Business address: Enter the address where your business will operate.
6. Declaration: Activate the option confirming that you understand and meet the MEI conditions.
7. Conclusion: Upon completion, you will obtain the Individual Microentrepreneur Status Certificate (CCMEI), which validates your formalization.

Conclusion

MEI is emerging as a viable alternative for entrepreneurs who aspire to formalize their activities, taking advantage of tax advantages and social security benefits. With this guide in hand, you are ready to start your entrepreneurial journey safely and efficiently.

Daniel October 11, 2023