Many entrepreneurs start as MEIs (Microempreendedores Individuais) due to low taxes and simplified bureaucracy, but as the business grows, transitioning to a Microenterprise (ME) becomes necessary.
This article will explain when to make the transition, the benefits of becoming an ME, and how to switch tax regimes smoothly.
1. Signs That It’s Time to Become an ME
✔ Your revenue exceeds BRL 81,000 per year (or will soon).
✔ You need to hire more than one employee.
✔ Larger clients require a more formal business structure.
✔ You want access to business loans and government contracts.
💡 Tip: If you expect revenue growth, it’s better to plan the transition early to avoid tax complications.
2. Benefits of Becoming an ME
✔ Higher Revenue Limit – Up to BRL 4.8 million per year under Simples Nacional.
✔ No Restriction on Employees – You can hire multiple workers legally.
✔ More Business Opportunities – Many companies only contract MEs, not MEIs.
✔ Access to Credit and Investments – Banks prefer lending to MEs.
3. How to Transition from MEI to ME
✔ Step 1: Go to the gov.br portal and request the transition.
✔ Step 2: Choose a tax regime (Simples Nacional or Lucro Presumido).
✔ Step 3: Register with SEFAZ for ICMS and ISS tax payments.
✔ Step 4: Hire an accountant to manage financial records.
4. Final Thoughts
Transitioning from MEI to ME is a natural step for growing businesses. By planning ahead, entrepreneurs can expand legally, increase revenue, and access more business opportunities.
