How to Register a Sole Proprietorship (Microempreendedor Individual) in Brazil

Becoming a self-employed entrepreneur in Brazil, known as a Microempreendedor Individual (MEI), is one of the most accessible ways to formalize your independent work and gain access to essential business tools. A key attraction is the simplified tax regime: instead of managing multiple filings, MEIs pay a single low monthly fee that covers social security and local taxes, with no separate VAT returns required.

The registration process itself is remarkably streamlined thanks to Brazil’s centralized GOV.br system, though newcomers may still find choosing the right activity code (CNAE) or staying on top of obligations a little tricky. With its mix of lower costs, simplified compliance, and easier access to credit, MEI status has become a highly appealing path for freelancers and small business owners alike.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in Brazil?

In Brazil, a sole proprietorship (or MEI) in Brazil may also be referred to as:

• Sole trader
• Self-employed worker
• Independent contractor

These terms all describe the same business model: one person operating a business without forming a company.

How does a sole proprietorship (Microempreendedor Individual) work in Brazil?

Microempreendedor Individual (MEI) vs. alternative business structures in Brazil

While the MEI is the simplest way to operate as a sole proprietor in Brazil, it isn’t the only option. The main alternative is setting up a limited company (LTDA), which comes with different costs, obligations, and protections.

Step-by-Step guide: How to register a sole proprietorship (MEI) in Brazil

Step 1: Check your eligibility

You must:

• Have a Cadastro de Pessoas Físicas (CPF) and voter registration — the CPF is Brazil’s taxpayer ID, needed for most legal and financial activities. Foreigners can register as MEI if they hold a CPF and a residence permit; some may need a legal representative, depending on visa status
• Stay within the revenue limit — up to R$81,000 per year for most activities, or R$251,600 for truck drivers
• Choose an eligible activity — only those on the official CNAE list qualify
• Not own or manage another business
• Employ no more than one person

Step 2: Choose your business name

You may operate under your own name—no special trade name is required. To formalize, select your activity using the appropriate CNAE code via the government portal.

Step 3: Gather required documents

You will need:

• Your CPF
• Personal details: full name, date of birth, and address
• CNAE activity code

Step 4: Register with DREI through GOV.br

Visit the official MEI service portal, log in or register via your CPF account, and complete the MEI registration ("Quero ser MEI"). Once registered, you immediately receive your CCMEI certificate.

Step 5: Pay registration fees and contributions

There is no registration fee. The only cost is the simplified monthly tax (DAS-MEI), which consolidates your main obligations.

Step 6: Complete post-registration obligations

Once registered as an MEI, your main ongoing duty is to issue invoices (notas fiscais) whenever requested by clients, especially other businesses, which can be done through your local city hall’s online system. In addition, you must pay your taxes each month via the DAS-MEI and file an annual declaration (DASN-SIMEI) every May to report your total revenue. Finally, you are expected to maintain simple income records and update your registration details on the government website if your business information changes.

Financial and tax obligations for sole proprietors in Brazil

You are responsible for:

• Monthly DAS-MEI payment and revenue limits: MEIs benefit from a simplified tax regime, paying a fixed monthly amount (R$66–72 in 2025). However, this only applies if annual revenue stays under R$81,000 (or R$251,600 for truck drivers). If you exceed the cap by up to 20%, you keep MEI until year-end but must switch to Microempresa the following January. If you exceed it by more than 20%, MEI status is canceled retroactively, and you must pay Microempresa taxes for the whole year.
• Annual declaration (DASN-SIMEI): File every May to confirm your revenue stayed within the limit.
• Personal income tax (IRPF): May still apply at progressive rates (7.5%–27.5%) if your personal income exceeds exemption thresholds.
• VAT (ICMS/ISS): VAT is already built into the DAS-MEI. You don’t need to file separate VAT returns, but you must pay attention to whether your activity falls under ISS (services) or ICMS (commerce/industry).
• Record-keeping and invoicing: Keep simple income records and issue compliant invoices (notas fiscais) whenever requested, particularly when working with other businesses.

Launch your contracting career and stay compliant with Deel

Registering a sole proprietorship gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential Bookkeeping tools
• Create, send, and sign localised work agreements
• Keep accurate records for tax season
• Access expert tax advice and compliance support
• Get paid through multiple payment and withdrawal methods
• Spend your earnings in USD with the Deel Card
• Access funds early with Deel Advance
• Enjoy contractor perks from 150+ partners

Stay independent, without the admin overload. Sign up to Deel for free today.

FAQs

What is the minimum capital required to start an MEI in Brazil?
None—it’s free to register online.

Do MEIs need to register for VAT/GST?
No. Taxes are consolidated into the monthly DAS-MEI payment.

How much are the standard monthly or annual contributions?
You pay a small fixed amount each month via DAS-MEI; in 2025, this is around R$66–72, depending on activity.

Can a MEI hire employees?
Yes—up to one employee is permitted.

How long does it take to register as an MEI in Brazil?
Usually immediate. You receive the CCMEI certificate right after registration.

Can foreign nationals register as MEIs in Brazil?
Foreigners need a CPF and sometimes a legal representative; many foreign entrepreneurs instead use other structures like Microempresa (ME).

Do MEIs need a separate business bank account?
Not mandatory, but recommended for financial clarity.

What happens if I stop working as an MEI?
You must deregister via the same government portal and file final tax declarations.

Are there any government incentives or reduced rates for new MEIs?
Beyond simplified taxes, MEIs access social benefits like health and sick pay; sometimes, municipal incentives are available.

Can I use Deel as an MEI to get paid by international clients?
Yes. Deel allows MEIs and freelancers to receive payments from clients worldwide, offering multi-currency support, low fees, and transparent exchange rates.

Does Deel generate compliant invoices for MEIs?
Absolutely. Deel automatically generates invoices that meet legal and tax requirements, helping you stay compliant with Brazilian regulations—and beyond.

Can Deel help me with taxes as a sole proprietor in Brazil?
Yes. Deel provides downloadable tax reports and payment records you can use when filing returns. While Deel doesn’t replace your accountant, it simplifies record-keeping and compliance.

Does Deel offer contracts for freelancers and MEIs?
Yes. Deel includes contract templates that are compliant with local laws, so you can work with clients safely and professionally.

Can I access benefits through Deel as an MEI?
Yes. Deel offers optional perks like health insurance, retirement savings plans, and other benefits that are usually only available to employees—giving independent workers more security.