Discover the main types of companies in the country

[seonajmulislam00]

We know that there is a lot of information to absorb, so taking it slow and learning each process little by little can make a difference for your company.

Understanding the types of companies in Brazil is essential to choosing the option that offers the most advantages to your business.

And that’s what we’ll cover in this article!

Continue reading to learn about the main types of companies in the country.

Discover the main types of companies in the country
1. Individual Microentrepreneur (MEI)
If you are just starting out and the prospects are for a slower and more controlled start, registering as an Individual Microentrepreneur may be your best alternative!

This is because MEI is a formalization that gives uae phone number lead small entrepreneurs the opportunity to guarantee various rights and benefits, and best of all: it fits the budget of every beginner in the business world.

Access to social security, government credit lines and a CNPJ card are some of the services provided to those who register as MEI.

Some points must be observed, such as, for example, the annual revenue limits of R$81,000 and the hiring of only one employee.

Among the types of companies that exist in Brazil, this is the most accessible and least bureaucratic, bringing several facilities to the entrepreneur's life.

6 tools for budding entrepreneurs
2. Individual Entrepreneur (EI)
An Individual Entrepreneur is someone who carries out business activities in his own name.

This means that the EI does not have partners, so the company is made up of a single person.

Therefore, there is no separation between the assets of the individual and the legal entity and, as with MEI, in cases of business debts, personal assets can be taken.

From here on, the types of companies begin to differ from MEI in several points: the turnover limit is higher, as is the number of employees.

In addition, bureaucratic processes also appear: the EI registration must be done at the Commercial Board of your state and some obligations such as hiring an accountant and paying taxes also take place.

How to change the MEI Fiscal Address after registration?
3. Individual Limited Liability Company (EIRELI)
In general, EIRELI has similarities with EI, differing mainly in the possibility of separating personal assets from the assets of the legal entity.

But for this to happen, a high investment is required: the share capital must be at least 100 minimum wages.

4. Limited Liability Company (Ltda.)
Among the main types of companies, this is the most common.

From the Limited Liability Company onwards, one or more partners are allowed to enter the business.

In this case, liability is, as the name suggests, limited to the company's capital, and the functions of each partner must be agreed upon in a Social Contract.

Map of entrepreneurship in Brazil: an overview
5. Public Limited Company
To close the list of the most common and most sought-after types of companies in Brazil, the Public Limited Company, better known as SA

In it, the capital is divided into shares, which define the participation and responsibilities of the shareholders in the company .

The SA may have its capital open, and thus its shares are sold on the stock exchange, or closed, so that these same shares can only be traded among other partners or invited persons.

There are also other types of companies that can be opened in Brazil.

However, these are the main ones and, by understanding each one of them, it will be much easier to take the first step towards opening your business.
If you still need a helping hand and that push to start your company, check out our solutions for entrepreneurs to get results!