For those who think of starting a business without partnership and does not have a great initial sum of resources, a good alternative can be the MEI. In addition to being accessible, this legal format has some advantages to the novice entrepreneur, such as reduced tax burden, access to certain social benefits, and simplicity in both the structuring of the model and in the fulfillment of legal obligations.
As with any other type of legal entity, there are their own rules for MEI, which involve allowed activities, boundary limits, who may or may not adhere to the format, among other peculiarities. And these rules suffer updates from time to time – including or excluding a certain segment, changing values and obligations, and so on.
If you are on your plans start to undertake, or if you already do it but still unregistered, continue reading to understand how MEI works and if this structure can make sense for your project.
What is Mei?
MEI is the acronym for individual microentrepreneur, a modality created by Complementary Law 128/2008 with the objective of taking from informality millions of Brazilians who work on their own.
In practice, registration as MEI gives rise to a company. Thus, professional activity is linked to a CNPJ, and the entrepreneur is subject to all relative legal obligations that Brazilian law determines for legal entities, such as invoice issuance, tax payment, and so on.
Definition of individual microentrepreneur
For the CNPJ to be considered as MEI, one of the aspects to observe is the limit of revenue, which is currently R $ 81 thousand per year.
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But beware: this amount considers 12 months of activity, which represents a monthly average of R $ 6,750. If the company was constituted on May 1, for example, and ended its first year with accumulated revenues of R $ 81,000, the total volume of sales was within the ceiling of the MEI, but the monthly average went beyond R $ 10,125 . (R $ 81,000 / 8 months). In this case, the MEI does not apply, because the average monthly revenues exceeded the limit of $ 6,750.
Other criteria that define this legal format are as follows:
- MEI cannot have a partner in the company that wants to formalize, nor be a partner or administrator of any other company.
- The company cannot have a branch.
- You may only have one employee, and your remuneration cannot exceed the minimum wage or category floor (when applicable).
- It cannot be an active federal civil servant. State and municipal servants can open MEI, provided that their local legislations allow.
Who can be MEI?
Respect all the previous items, it is still necessary to analyze the business activity to find out whether the professional who exercises it may or may not be MEI.
By law, activities allowed for this legal figure cannot be regulated by class entities. This includes, for example, doctors, dentists, lawyers, psychologists, architects, engineers and many others who have professional advice. And the reason is simple: the purpose of MEI is precisely to regulate activities that do not require specific academic education – which encompasses the great mass of the Brazilian population that lives in informality.
You will find the full list of occupations that can be MEI on the entrepreneur portal. Each is associated with a code of the National Classification of Economic Activities (CNAE).
Once a year, the government reviews this list and can make changes, including or excluding activities. Therefore, it is important that the MEI follows it regularly, so that it can be informed about any changes that will reach your business.
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Advantages of being MEI
Whatever the legal format, formalizing an activity makes it easier for its management, financial control and planning for the future. In the case of MEI, the formalization process is quite simple – starting with the opening of CNPJ, which is fast and free.
In addition, there are advantages that go through tax, social security and financial aspects, as we will see below.
Reduced tax burden
Mandatory taxes for MEI are social security contribution (INSS), and those related directly to the type of activity, which may be ICMS and ISS.
The MEI INSS corresponds to 5% of the current minimum wage, today at R $ 1,518.00. Therefore, every MEI pays R $ 75.90 to Social Security today.
The ICMS (Tax on Circulation of Goods and Services) covers trade and industry activities. For the MEI, its value is $ 1 monthly.
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The ISS (Service Tax) is due when there is trade and services or only provision of services. Its value is also fixed, from $ 5 to the month.
The collection of these three taxes is unified in the DAS (Simples Nacional Collection Document). For 2025, the values are as follows:
| Activity | INSS | Additions | Value of |
| trade or industry | R$ 75,90 | R$ 1 de ICMS | R$ 76,90 |
| services | R$ 75,90 | R$ 5 de ISS | R$ 80,90 |
| Trade and Services | R$ 75,90 | R $ 1 ICMS + R $ 5 of ISS | R$ 81,90 |
Simplicity in accountability to the tax authorities
Every year, the microentrepreneur needs to be accountable to the IRS for its revenue.
This process is quite accessible. Just go to the Simples Nacional portal, inform the full CNPJ and fill in Dasn Simei – Annual Declaration of Billing of Simples Nacional.
Social security benefits
Another advantage of MEI is the guarantee of some INSS benefits for you and your dependents, such as:
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- Retirement by age;
- permanent disability retirement (former disability retirement);
- temporary disability assistance (former sickness allowance);
- maternity salary;
- reclusion allowance;
- pension for death.
It is important to note that you must be up to date with social security contributions to be entitled to these benefits. According to the federal government, they do not necessarily need to be consecutive; The insured can not be long without contributing, to the point of losing the bond with Social Security – which happens, as a rule, up to 12 months after the last contribution.
Specific lines of credit
Being MEI also gives access to facilitated credit conditions, with normally lower interest and more flexible deadlines than financial institutions usually offer.
Among the best known examples are PRONAMPE, BNDES Microcredit and CAIXA CAIXA has. From time to time, new credit programs may emerge, with certain deadlines and volumes.
Model Limitations
MEI’s main disadvantage has to do with the potential growth of the activity, precisely because the model was designed for those who are starting to undertake with few resources.
Depending on the case, if sales exceed the current ceiling of R $ 81 thousand per year, it will be necessary to frame the activity in another legal type. Another point that can make the lives of those growing difficult is the impediment of having partners, branches and more than one employee. Theoretically, increasing sales is healthy for business, but this needs to be planned so that costs make up for greater revenue.
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Another limitation is the ceiling of INSS retirement, which is from a minimum wage. Therefore, for those who choose MEI, it is interesting to consider the possibility of one to ensure a higher income in retirement.
How to formalize as mei?
After confirming if the activity is among those allowed for MEI, the next step is to register on the Entrepreneur Portal. The person himself can do the whole process, as there is no obligation to have an accountant for the MEI.
In the option I want to be MEI, the user will find guidelines on necessary documents, rights and obligations, safety and environmental tips and various other important information.
By clicking on the “Formalize” tab, the system requests the login on the Gov.br account. You must have the number of the Individual Income Tax (IRPF) in hand, as this is one of the first information that the system asks for registration. If the person does not declare to go, the system automatically calls for the voter registration number.
In the next screens, personal data (name, CPF, date of birth, nationality, among others) and about the business (main and secondary activity, capital, fantasy name, email and contact telephone, will be requested, and so on ).
Once you have completed the entire form, you need to click on “Continue” for a data conference screen to appear. If everything is in agreement, just click “Confirm” so that the system issues the Certificate of Individual Microentrepreneur Condition (CCMEI). This is the valid document as MEI CNPJ.
Tips for the success of MEI
To ensure good business performance over time, some important care is needed, including the following:
Organized Accounting
Keeping organized revenue and expenses organized is critical to the success of any company. In the case of MEI, even if it is not mandatory to have an accountant, the guidance of this professional can greatly help maintain the financial health of the business.
Open a PJ account
Unlike other legal formats, in the case of MEI there is no separation between the heritage of the individual and the CNPJ. Even so, opening an exclusive activity account helps a lot to maintain organized accounting and financial management.
In addition, it is in which the differentiated lines of credit, the card machine and other commercial facilities will be offered.
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Attention to tax obligations
As we have seen, MEI’s tax obligations are quite simple. But if they are not done correctly, there may be problems with the business, ranging from fines to loss of social security benefits or even cancellation of the CNPJ.
Contact network and partnerships
Anyone who is a microentrepreneur knows how difficult it is to handle the entire operation alone or with little support. However, it is very important to cultivate a good network of contacts, as they end up opening doors for new partnerships and business opportunities.
