Will you unlock MEI? Stay informed of these rules before formalizing them and avoid losses!

Those who are going to open MEI should realize that such formalization requires compliance with the rules. When this does not happen, there are some penalties.

The formalization of micro-individual enterprises (MEI) has brought many advantages to small businesses in Brazil, such as easier access to credit and social security rights.

However, not all entrepreneurs are aware of the obligations that come with this formality, which can lead to financial problems, such as default. This eventually leads to fines and even a bad reputation.

Lack of knowledge of MEI payments and legal obligations may result in losses. Especially for those who do not closely follow the CNPJ maintenance rules.

The number of struggling small business owners will grow in 2024

According to Serasa Experian, in January 2024, Brazil reached the highest number of small and micro enterprises in default since the beginning of the historical series, in 2016.

About 6.3 million businesses had outstanding debt, representing a significant increase in defaults among small business owners.

Many of these entrepreneurs didn’t even know they were in default. In many cases, these people did not receive information about the need to pay mandatory monthly subscriptions, even if they did not make a profit or actively use CNPJ.

For example, it’s a common mistake to think that because a company isn’t moving, there’s no need to make monthly payments or send out statements.

However, the MEI needs to be regulated, regardless of income generation, which ultimately surprises many. Furthermore, default can result in penalties and interest, making the final value higher.

To try to reduce this number, the federal government has adopted measures such as the possibility of debt renegotiation.

By the end of 2024, distressed debts may be renegotiated and included in the banks’ assumed credit calculation. To do this, simply take advantage of Tasdak program.

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What are the rules for formalizing MEI?

MEI has a series of obligations that must be followed to keep the business organized. These obligations apply even if CNPJ is not generating profits or is not actively used:

• DAS monthly payment (simple national collection document): Even if MEI has no income during the month, it is mandatory to pay DAS monthly. This includes contributions to INSS and state or municipal taxes.
• Annual Declaration of National Simples (DASN-SIMEI): Each MEI must submit an annual return by May 31 of each year, stating the previous year’s revenues, even if there are no revenues.
• Issuing invoicesMEI is committed to issuing an invoice for sales or services provided to other companies, even if the customer is an individual, and upon request.

What if I don’t use my MEI?

For small business owners who no longer use MEI, it is important to close the CNPJ properly to avoid future problems, such as accumulating fines and debt. Closing must be done correctly:

1. Access to Entrepreneur portal: Go to the official website and select the “Download MEI” option.
2. Fill out the registration form: Complete the form with the required data and complete the application.
3. Introducing DASN-SIMEI extinction: After closing, MEI must submit an annual return informing the bill up to the CNPJ closing date.
4. Check for potential debts: If there is an outstanding DAS, it must be paid to avoid fines and legal problems.

By following these steps, MEI prevents continued accumulation of debts and maintains an orderly position, even after the end of its activity.

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