Understand what MEI is and how it works
Have you already regularized your work as an individual microentrepreneur? For those who work on their own, it is very important to register as an MEI. This is the category that includes, as a legal entity, small business owners who have a turnover limited to R$81,000.00 per year.
Registering as an MEI brings several benefits, such as having a CNPJ, issuing an invoice, hiring up to one employee, as well as being entitled to some employment benefits, such as retirement, maternity allowance and others. If you are interested in this subject, continue reading and check out the information we have prepared for you.
What is MEI?
The MEI or Individual Microentrepreneur is a simplified model for registering companies for self-employed individuals who have professions not regulated by councils. Some examples are: craftsman, bricklayer, salesperson, hairdresser and many others. There are more than 400 categories available.
The MEI was created based on Complementary Law No. 128/2008, which amended the General Law of Micro and Small Businesses (Complementary Law No. 123/2006) and created the figure of the Individual Microentrepreneur as we begin today.
When an individual registers as a Microentrepreneur (MEI), he or she becomes part of the Simples Nacional, which implies paying a fixed monthly amount corresponding to the taxes associated with the activity. This amount corresponds to the simplified collection of taxes and already represents a contribution to the INSS, indicating that the Microenterprise (ME) will have access to retirement and other benefits that we will discuss later.
According to the Entrepreneur Portal, the monthly payment of taxes costs R$52.25 (INSS), plus R$5.00 (for Service Providers) or R$1.00 (for Commerce and Industry). The amount is collected through a payment slip called DAS or can be paid by direct debit or online payment.
Who can be an Individual Microentrepreneur?
There are some requirements for a businessman to fit into the MEI category. They are:
- Have a turnover limited to R$81,000.00 per year;
- That he does not hold positions as a partner, administrator or owner in another company;
- Hire a maximum of one employee;
- Carry out one of the economic activities provided for by Law.
On the other hand, they cannot be MEIs under 18 years of age, foreigners without a permanent visa, pensioners and public servants and professionals who want to perform a function that is regulated by a professional body, such as doctors, psychologists and lawyers, for example.
If you have a job under the CLT regime and also want to develop some business activity on the side, you can register as an MEI. However, in the event of dismissal from your job, the employee loses the right to unemployment insurance, as it is understood that he or she has a second source of income.
What are the benefits of being an MEI?
Now that you have a better understanding of how the regularization of an individual microentrepreneur works, you may be wondering what the advantages are, since it is necessary to contribute monthly, with tax payments.
Some of the advantages were mentioned above, such as having your own CNPJ, being able to issue an invoice, the possibility of hiring an employee, as well as having access to exclusive conditions for credit lines aimed at entrepreneurs, with credit cards on loan.
Furthermore, MEIs tend to get better prices from suppliers and wholesale stores. But these are not the only benefits. By paying their DAS every month, the MEI is also collecting INSS contributions at a reduced rate. This entitles them to the following social security benefits:
- retirement by age;
- disability retirement;
- sickness benefit;
- maternity pay;
- prison assistance for dependents;
- survivor's pension for dependents.
As we have seen, registering as a MEI is a way to become a professional, have access to better working conditions, as well as be assured of social security benefits, such as retirement and sickness benefits. It is worth noting that the entire MEI registration process is done free of charge by Entrepreneur Portal.
Now that you've finished reading, how about checking out Is it possible to open MEI with a bad credit rating?? Read it!
