How does MEI work for the self-employed?

Knowing how MEI works for self-employed workers is essential to ensure the professionalization of those who work on their own. 

This is because, by joining the MEI, citizens can escape informality and have access to a series of opportunities.

And, if you want to better understand how this program works, and what benefits it offers, you've come to the right place.

That's because today's material will explain everything about MEI in detail.

That said, if you want to stay up to date on the subject and perhaps become an MEI, follow the content! 

What is MEI and how does it work for the self-employed?

Whenever we talk about work, many people immediately think of formal employment, with a signed work contract.

However, it is important to remember that a large portion of Brazilian workers are not currently under this regime.

This is due to the fact that many people need to work for themselves, either by choice or due to a lack of opportunities.

But for a long time there were only three possibilities: being an employee, being an entrepreneur or being an informal worker.

For a long time, entrepreneurs were those who owned established companies, with relevant market presence.

Informal workers were those who wanted to start a business, but without all the necessary support to have a business. 

The MEI (Individual Microentrepreneur) program was created to provide opportunities for informal workers.

The idea is to register a series of services as independent services, and provide a CNPJ, formalizing the activity of this worker in the market.

In this way, what was once informal can now finally be treated as a business, and receive the benefits and records as such.

Having a CNPJ allows workers to issue invoices, open legal accounts, and even obtain business loans.

Furthermore, with MEI it is much easier to record earnings and pay taxes in a more organized manner.

This is a general explanation of how MEI works for self-employed individuals. Below, we'll go over the rules in more detail.

What are the rules and possibilities for being an MEI?

As we have seen, the program was created to assist informal self-employed workers, bringing formality to the business.

But, it is worth mentioning that MEI for self-employed people is focused precisely on small businesses.

This means that to be an individual microentrepreneur the business must have an income of up to R$ 6,750.00 per month.

If this happens, the company will leave the MEI category.

Additionally, there are some other rules, these being:

• Not having any other company open under the CPF, regardless of its category;
• Not being a partner or having a stake in other companies; 
• Carry out an activity belonging to the list of included activities; 
• Have only 1 registered employee; 

Paying attention to these rules is essential to understanding how MEI works for self-employed people! 

Are all activities accepted? How does the MEI program work for self-employed individuals?

A very common question among those who want to know how MEI works for self-employed people is about the permitted activities.

This is because there are those who think that any and all activities can open a CNPJ as an MEI.

We must remember that the MEI was created with the aim of regularizing the situation of informal workers.

Therefore, permitted activities do not include those that require a higher education degree or professional registration to practice.

This means that architectural firms, dentist offices or similar businesses cannot be registered as MEI.

The services included generally involve the provision of services, such as beauty salons, mechanic shops, restaurants, among others. 

It is worth mentioning that it is not just the provision of services that is included. 

The official and complete list can be found on the MEI website. 

What are the advantages of becoming a MEI?

When we talk about MEI, many people see the category as an excellent opportunity.

Some others, however, cannot understand the advantages; after all, what is the difference in working informally? 

As we have already mentioned, the idea of MEI is precisely to avoid informality.

Informality ends up not guaranteeing workers certain benefits, such as retirement and registration of their activity.

Without registration, workers end up unable to prove their income, which makes it difficult to obtain loans and financing.

Furthermore, without a registered business, it can be more difficult to calculate profits, and consequently, it can hinder the regularization of taxes due.

When opening a MEI, you have a few possibilities, which are:

• Opening of CNPJ;
• Registration with the INSS, which helps with future retirement;
• Registration with the commercial board;
• Possibility of opening an account for a legal entity;
• Access to credit and programs for companies;
• Access to the microentrepreneur gate and all its services;
• Possibility of issuing invoices
• Among other opportunities. 

Did you see how interesting it is to know how MEI works for self-employed people? 

There are many advantages, which would certainly help you a lot in your professional life!

It is worth noting that many credit companies offer special conditions to microentrepreneurs.

This means that by joining the program you have access to better credit possibilities.

This helps you grow both professionally and personally.

So, much more than just a simple registration, MEI is also a bag full of opportunities for your life. 

Fees for Individual Microentrepreneurs

Talking about fees and taxes is essential when dealing with any business.

The MEI program even considered this, since the category has different rates.

It is common knowledge that the business environment can be a real challenge, due to the taxes charged.

For MEIs this can be simpler, since the only tax charged is the INSS + ISS or ICMS rate.

This rate varies depending on the activity carried out by the company, but it is certainly much cheaper than the taxes charged on other categories of companies.

For MEI that operates in the commerce and industry sector, the ICMS rate charged is R$ 67,00.

For micro-entrepreneurs in the service sector, the tax charged is the ISS in the amount of R$ 71,00.

And finally, activities in the trade and services sector pay a rate of R$ 72,00. 

It is worth noting that this fee is monthly, meaning the Microentrepreneur must issue the payment slip and pay it every month.

Furthermore, they are subject to annual adjustments, so it is important to keep track of updated values. 

So, keep an eye out, because, in addition to knowing how MEI works for the self-employed, it is essential that you stay up to date with the fees charged. 

See how to open a MEI 

At this point, you already know everything about how MEI works for self-employed workers.

That's because we've already explained the rules, included activities, and even the fees charged.

So, we just need to help you open it, after all, knowledge must be accompanied by practice! 

So, now see a simple step-by-step guide to opening your MEI.

1. Have your CPF at hand;
2. Make sure you comply with all required rules;
3. Access the MEI entrepreneur portal. 
4. Access the “I want to be a MEI” tab;
5. Access your Gov.br account; 
6. Fill in the requested information and choose your exercise activity.
7. Finish filling out the form and at the end you will receive your CNPJ number.
8. Issue the Individual Microentrepreneur Status Certificate (CCMEI) 

With the CCMEI in hand, you will already have your company open, and you will have access to all the benefits of being a MEI.

The opening process is very simple, and through the MEI Entrepreneur Portal you have access to a series of services.

So, now that you know how to do it, open your micro-business right now and enjoy the benefits of this choice!