The departure of many professionals in this pandemic, whether to start their own business or continue their chosen career with more flexibility, has been to become Individual Small Entrepreneur (MEI). But the terms of this type of legal entity may change soon.
A bill under consideration in the House of Representatives – The PL 108/2021 This broadly expands MEI’s revenue and operations. Among the major changes is the expansion of the total annual revenue limit from R$81,000 to R$130,000.
Currently, about 466 professional activities can be carried out through the registration of a single legal entity for small entrepreneurs (CNPJ MEI), ranging from training dogs to opening a small business in any branch.
In other words, manufacturing, marketing and service-delivery activities, including in rural areas, can be covered by the CNPJ MEI.
According to the latest Mapa de Empresas bulletin, released in June by the Special Secretariat for Productivity and Competitiveness of the Ministry of Economy, nearly 70% of companies operating in Brazil are formed by MEIs.
In numbers, there are more than 13 million entrepreneurs who fit this method, and most of them work in the service sector.
The main billing change is the expansion of the billing limit, which in turn changes other framework terms.
One of them is the possibility to hire up to employees. In the current law, a small business owner can have only one employee. However, there is one caveat: the employee must receive the value of the minimum wage or the minimum level of the respective occupational category.
The benefits, in turn, will not change. Today, individual small business owners are included in the Simples Nacional tax system, which is nothing more than a single monthly payment that consolidates taxes and equals 5% of the current minimum wage – plus a guarantee of Social Security rights.
MEIs also have access to lines of credit at lower interest rates, such as Pronampe.
Additionally, existing micro-entrepreneurs will be able to benefit from the change, especially those who earn close to their current limit. So says Fernando Brandárez, attorney and chair of the Corporate Law Commission of the Brazilian Bar Association (OAB) Pineros.
What are the effects of a (potential) change in MEI?
In the Sebrae assessment, the action is positive for those who wish to operate as a legal entity in this type of framework. In addition to reducing the risk of a small entrepreneur being excluded from the tax system, if the bill is approved, it will allow the business to grow.
The proposal, prepared by Senator Jaime Campos (DEM-MT), has been approved in the Senate and has already been considered by the House Finance and Tax Committee.
It is worth noting that in the last analysis, the text also states that MEI can have an annual gross income of just over R$ 144,000.
The matter was referred to the House Main Committee, Constitution, Justice and Citizenship (CCJC) and then, if approved, must move to deliberations by Federal Representatives in plenary.
Finally, there are still no expectations as to when the amendment to the MEI will be approved and will enter into force. In times of election campaigning, it is possible that the text will only be put to the vote after October. But since this is such a common story, it may be on the agenda in the weeks leading up to the election.
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