Many entrepreneurs start as MEI (Microempreendedor Individual) but eventually outgrow the revenue limit of BRL 81,000 per year. When this happens, transitioning to a Microenterprise (ME) is necessary. However, changing tax regimes without proper planning can lead to unexpected tax costs. In this article, we’ll guide you through the process to ensure a smooth transition.
1. When Should You Upgrade from MEI to ME?
✅ If your annual revenue exceeds BRL 81,000
✅ If you need to hire more than one employee
✅ If your business activity is not allowed under MEI rules
✅ If you want to issue more invoices and access larger contracts
2. Steps to Upgrade from MEI to ME
📌 Step 1: Request the Change on the Simples Nacional Portal
Go to gov.br/mei and select the “Desenquadramento do MEI” option.
📌 Step 2: Register as a Microenterprise (ME)
Apply for a new business category (ME) with your state’s Board of Trade (Junta Comercial).
📌 Step 3: Choose the Right Tax Regime
Most businesses under ME register with Simples Nacional, which offers lower tax rates for small businesses.
📌 Step 4: Hire an Accountant
A professional accountant will ensure a smooth financial transition and help you avoid penalties.
3. How to Avoid Losing Money During the Transition
✅ Plan ahead to avoid unexpected tax debts
✅ Separate personal and business finances
✅ Monitor revenue growth to switch tax regimes at the right time
Conclusion
Upgrading from MEI to Microenterprise (ME) is a sign that your business is growing. By following the right steps and planning your transition carefully, you can ensure financial stability and avoid unnecessary costs.
