Is it worth having an Individual Microenterprise?

O MEI é uma forma de formalizar seu negócio de maneira rápida e com baixo custo, além de trazer diversas vantagens, como credibilidade profissional, acesso a novos fornecedores, benefícios previdenciários e expansão de oportunidades.

Many people have doubts about how to create an Individual Microenterprise (MEI) and the advantages of having one. The truth is that this type of formalization can be a great option for those who already provide services or want to start their own business in a simple and advantageous way. Let's find out more.

What is MEI and how do I create it? Simplicity and Agility in Creation

The MEI (Individual Microentrepreneur) is a type of business formalization that allows small businesses to be regularized. It was created to encourage the formalization of self-employed entrepreneurs with a limited annual turnover of up to R$ 81,000.00.

This model is ideal for those who provide services, sell products or trade independently and want to guarantee more benefits and legal security.

One of the biggest advantages of the MEI is that it is easy to open. The process is simple, unbureaucratic and can be done in less than five minutes on the official government website (Gov.br under “Quero ser MEI”). Without the need for intermediaries or additional costs, formalization is accessible to anyone who meets the requirements and is done online and free of charge.

Conditions: (1) no participation in another company as a partner or owner; (2) annual turnover (even with an active company) of up to R$ 81,000; (3) one of the activities on the list of permitted occupations (it is possible to register one main occupation and up to 15 secondary occupations).

What are the advantages of having an MEI?

As well as being a gateway to entrepreneurship, the MEI has numerous advantages:

1. Simple Formalization and Credibility at Low Cost: Having a CNPJ is essential for providing services in a more professional manner, accessing better suppliers and even offering services to companies that require this formalization.

2. Reduced tax burden: Creating an MEI is simple and inexpensive. The MEI unifies the payment of taxes such as ICMS, ISS and INSS in a single monthly bill (DAS), with reduced amounts. This allows the micro-entrepreneur to contribute to their retirement and other social security benefits, such as sick pay and maternity pay, in a simplified way.

3. Expansion and Opportunities: MEI makes it possible to issue invoices, which expands the reach of your business and makes it easier to negotiate with larger companies that require this formalization. As a result, you can sell to other companies, take part in tenders and access credit lines with special conditions for small entrepreneurs.

4. Social Security Security: For those who already contribute to the INSS, MEI offers a more affordable alternative for maintaining regular contributions.

MEI limitations

Although MEI brings many benefits, it is important that the entrepreneur is aware of the monthly and annual obligations to maintain the regularity of the business, as well as some important limitations to consider:

• Annual turnover is limited to R$ 81,000 (an average of R$ 6,750 per month).

• Only one employee may be hired.

• Not all activities can be registered as an MEI; it is necessary to consult the list of permitted activities.

The only declaration required for the MEI is the DASN-Simei, which must be submitted annually by the last day of May of the following year. In it, the MEI reports the previous year's turnover. This declaration is important to ensure that the business stays within the MEI limits and to avoid problems with the tax authorities.

Every MEI needs to fill in a monthly gross revenue report, stating the total amount of their income. This report must be kept together with the invoices issued during the calculation period. The government recommends that the MEI keep this set of documents for at least 5 years, for possible inspection.

The MEI must pay the monthly Simples Nacional Collection Document (DAS), which corresponds to 5% of the minimum wage in force. This amount includes the INSS contribution, as well as the ICMS (for commercial activities) and ISS (for service activities) taxes, when applicable. Even if the MEI has no turnover for the month, payment of the DAS is mandatory.

For those who already provide services, is it worth it?

MEI is an excellent option both for those starting a business and for those looking to formalize their activity with low costs and simplicity. As well as offering tax and social security benefits and the possibility of issuing invoices, the MEI also allows you to have a CNPJ, which opens the door to new contracts, better conditions for negotiating with suppliers and expanding your business.

On the other hand, it's important to assess whether the model's turnover and conditions meet your business needs. If MEI isn't enough, there are other business options you can explore.

If you have any questions about creating or managing an MEI, contact us!