It has become increasingly common in Brazil for e-commerce micro-entrepreneurs (MEI) to grow in size. This is the time when entrepreneurs say, "My e-commerce business has grown, now what?". What to do?
Well, the MEI is suitable for companies that earn up to R$ 81 thousand per year. In addition, this type of company can have at most one employee in addition to the owner. So, if your e-commerce has exceeded this billing limit, if you intend to hire more employees, or even open a branch, it is essential that you migrate to Microenterprise.
The leap from MEI to ME
When a person starts a business and wants to do so legally, it's necessary to obtain a National Registry of Legal Entities ( CNPJ ). The easiest way to do this is by registering as a Microentrepreneur Individual (MEI).
However, as the company grows and revenue increases, it is no longer legally possible to remain in this category. When this happens, it is necessary to transform into a Microenterprise (ME).
This change is a sign that your business was successful and that the time has come to take higher flights. Congratulations on the achievement!
But it is important that you know that this exchange will directly impact your company's accounting.
Then see what changes in this aspect. Also find out at what point in your business's life you should migrate from MEI to ME.
WHEN TO MIGRATE FROM ME TO ME
Did you set up an e-commerce and, over the months, saw your sales increase? One of the reasons that may have contributed to you is that e-commerce is one of the fastest growing segments in Brazil.
The estimate of the Brazilian Association of Electronic Commerce (ABComm) is that e-commerce will grow 18% in 2020. This will certainly lead this sector to move more than R$ 106 billion.
So, if your company has followed this growth trend and has been earning more than BRL 81 a year, the time has come to switch from MEI to ME.
This annual revenue limit is the main requirement to remain classified as a Microentrepreneur. If this limit is exceeded, the entrepreneur is required to transform into a Microenterprise under the Simples Nacional tax regime.
But, in addition, there are other points at the current moment of your company that indicate the need to change business category, such as:
- need to hire more employees (MEI allows only 1);
- expand the business by opening branches;
- have other partners.
MAIN DIFFERENCES BETWEEN MEI AND ME
MEI is usually the first alternative for those who are opening their own business. This is the case both in e-commerce and in other segments.
As mentioned, it is suitable for businesses that invoice up to R$ 81 per year. Businesses that operate well with only one employee in addition to the owner. It is worth remembering, however, that it only applies to economic activities listed in Annex XI of CGSN Resolution No. 140.
In addition, the entrepreneur cannot be a partner, owner or administrator of another company, regardless of the category.
On the other hand, ME serves businesses with annual revenues of up to R$360. In addition, it also has the advantages of:
- allow the hiring of up to 9 employees for commerce and 19 for industry;
- choose between different legal types, for example, EIRELI (Individual Limited Liability Company) or Individual Entrepreneur;
- choose between the tax regimes Real Profit, Presumed Profit or Simples Nacional.
HOW TO CHANGE FROM MEI TO ME
Has your e-commerce grown and now fits the conditions we have described? So there is no longer any doubt that the time has come to change from MEI to ME, do you agree?
There are two ways to do this:
- migrating from Individual Microentrepreneur to Microenterprise;
- dropping your MEI CNPJ and opening a new one as ME.
Learn more about these two alternatives now:
Migrating from Individual Microentrepreneur to Microenterprise
The migration from MEI (Individual Microentrepreneur) to ME (Microenterprise) begins with requesting the change of category on the Simples Nacional Portal.
If you're making this change because of your company's annual revenue, you'll also need to remember to adjust the DAS collection amount for the previous year.
You will then need to notify the Board of Trade about the change. In addition, you must update your registration (Social Name and Social Capital) in this body and also in the city hall, Sefaz and others. All this according to the legislation of your municipality.
Dropping your MEI CNPJ and opening a new one as ME
To register the CNPJ of MEI, just access the Contact Us | and make the request.
To complete this process, it is necessary to pay off DAS-MEI debts, if any. In addition, it is necessary to send the Annual Declaration of Simples Nacional Situação Especial referring to the closing of the company.
Once this is done, you will open a new company. This process can be carried out virtually with the help of online accounting.
This is where the changes in your accounting begin. While an accountant isn't mandatory for opening a business, this professional is necessary for managing your monthly accounting. Either way, you can hire a traditional accountant or an online accountant for this purpose.
Furthermore, to become a Microenterprise, it will be necessary to verify issues that include the choice of legal structure and the best tax regime, definition of the National Classification of Economic Activities ( CNAE ), among others.
Thus, counting on the support of an accountant from the first moment will give you the certainty that you are doing the process in the right way. This includes paying the correct taxes and other details that ensure the legality of your business.
E-COMMERCE GROWN: WHAT CHANGES IN YOUR COMPANY'S ACCOUNTING LIFE
As mentioned, one of the first changes in the accounting life of your business when you become an ME is the need to have an accountant follow up every month.
This accounting professional will help you with various issues while your company exists. He can, for example, make sure that his tax obligations are up to date and maintain his accounting books.
Another point that changes with the migration from MEI to ME is the issuance of invoices, which becomes mandatory for all sales made (for individual Microentrepreneurs, this process is optional).
ADVANTAGES OF BEING ME
But even though there are these changes in the accounting of your business, it is essential to emphasize that becoming a Microenterprise generates numerous advantages, such as:
- higher annual billing limit;
- to be able to expand the number of employees;
- possibility of opening branches;
- coverage of a greater number of activities;
- permission to participate in bids;
- framework of the General Law for Micro and Small Businesses, which aims to simplify and reduce bureaucracy in the opening process, among other issues.
Added to all this, you can still continue in Simples Nacional, as it was in MEI, and benefit from all the facilities of this tax regime.
Also remember that you can expand your e-commerce at any time. That is, you do not have to wait to exceed the annual billing limit established for the MEI.
The idea is to do this as soon as you see that your business is growing and that is the best time to turn it into an even bigger business!
Access and read the article " How much does it cost to set up an online store ?" and learn about price ranges for sole proprietors, micro-enterprises, small businesses, and large companies.
This article was produced by Contabilizei Contabilidade
