The answer to this question is quite simple: yes, MEI companies can participate in bidding processes, however, not in all of them.
This is because, by participating in very high-value bids, the company would cease to be MEI precisely because it receives more than what is provided for by law.
However, MEIs have several advantages when participating in bids.
Do you want to clear up all your doubts about MEI and the world of bidding? Then read the special text that the Public Procurement Portal has prepared for you today!
What is MEI?
what is MEI
MEI is the acronym for Individual Microentrepreneur. This is an individual entrepreneur who must meet the following conditions:
- Have an annual turnover limited to R$81,000.00
- Do not participate as a partner, administrator or owner of another company;
- Have a maximum of one employee hired;
- Exercise one of the economic activities provided for in Annex XI of Resolution No. 140 of 2018 , which lists all activities permitted for MEI.
In 2008, Complementary Law No. 128 amended the General Law of Micro and Small Businesses ( Complementary Law No. 123/2006 ) to establish the MEI figure.
It was created so that informal workers could enter the formal sector and its implementation made it possible for self-employed professionals and micro-businesses to choose to open an MEI.
How to become a MEI?
The formalization process to open a MEI is very easy and grants the professional, among other things, a CNPJ and the possibility of issuing an invoice.
Since January 2010, it has been possible to complete the entire formalization process online, which eliminates the need for a paper declaration and the corresponding physical signature.
The objective of this accessibility is to make the registration process simpler and faster, facilitating registrations and avoiding cancellations.
The opening can be done directly on the Federal Government's Microentrepreneur Portal or, if you prefer, you can count on the assistance of accounting offices or consulting companies to help you.
What documents are required to participate in a tender as a MEI?
What documents are required to participate in a bidding process as a MEI?
When you are an Individual Microentrepreneur who wants to sell to the government, you need to obtain some documents to ensure that, if you win the bidding process, you will be able to complete the sale.
Therefore, check out some of the main documents required to participate in a bidding process as an MEI:
Federal Tax Compliance
These are documents that prove that everything is up to date with the Federal Treasury, that is, that prove that you are paying your taxes on time.
From there, there are two situations: MEI companies that have one employee and companies that are individual.
Check out which documents are required in each of the situations, below.
Individual Microentrepreneur without an employee
An MEI who does not have an employee registered in his company may need to submit the following documents to the bidding agency:
- Proof of Settlement with the Federal Treasury (Federal Revenue Service mobile phone number database and Attorney General's Office of the National Treasury - Active Debt);
- Negative Certificate from the INSS.
Individual Microentrepreneur with Employee
MEIs who have an employee registered in their company will need to provide the following documents to the bidding public agency:
- Proof of Payment of Indebtedness to the Federal Treasury (Federal Revenue Service and Attorney General's Office of the National Treasury - Active Debt);
- Negative FGTS Certificate;
- Negative INSS Certificate.
State and Municipal Tax Compliance
State or Municipal tax compliance refers to documents that prove that the company is up to date with State and Municipal taxes.
In this case, the Individual Microentrepreneur will need to present the following documents:
- Proof of Registration in the State or Municipal Taxpayer Registry, if applicable;
- Proof of Payment of Indebtedness to the State Treasury;
- Proof of Payment of Indebtedness to the Municipal Treasury.
Technical Qualification
As we have seen in other texts on the Public Procurement Portal, public agencies may often request a technical qualification certificate.
In the case of individual microentrepreneurs, especially when hiring for a service, government agencies may require registration or enrollment with the competent professional association.
These registrations must be made with SICAF (Unified Supplier Registration System), a system that constitutes the registration record of the Federal Executive Branch and is maintained by the agencies and entities that make up the General Services System (SISG).
All companies interested in supplying services to the Federal Government must be registered with SICAF.
It can be carried out free of charge at any Registration Unit (UASG) and there are several located throughout the country.
For bids for public bodies that do not belong to the Federal Executive Branch, such as municipal bids, for example, there may be other requirements and other types of registration.
Therefore, it is essential to read the notice carefully and, if you have any questions, ask the bidding body for clarification.
What are the benefits of being an MEI in a bidding process?
What are the benefits of being an MEI in a bidding process?
Individual Microentrepreneurs, Microenterprises and Small Businesses usually receive special treatment in Brazilian government procurement.
Since the approval of Complementary Law No. 123/2006 , a major change in the world of bidding processes has begun to take place.
This is because microenterprises and small businesses have gained more advantages when participating in bidding processes.
One of them is the exclusive contracting of microenterprises and small businesses in bids of up to R$80,000.00, as defined in article 47. As
an MEI entrepreneur, you can benefit from this and start obtaining contracts with the government.
One way to do this is by registering on the Public Procurement Portal, as we will offer you a Bidding Notice that will show you the main bids in your area.
Frequently Asked Questions about MEI and Tenders
Check out some of the most frequently asked questions when it comes to Individual Microentrepreneurs and the world of bidding:
I won the bid as an MEI, what now?
If you won a bidding process, then you must prepare for the next steps that will take place until you actually provide the product or service.
First of all, you need to keep in mind that there is a process called the Qualification Phase.
This phase is for the government to ensure that your company has all the necessary documents and is up to date with taxes. We saw what these documents are in the previous topics, remember?
In addition, there are a series of other procedures that need to be taken before the sale actually takes place.
If you want to find out about everything you need to do after winning a bidding process, then read the other text that the Public Procurement Portal wrote on the subject in the link below. Check it out:
I won the bid, what should I do now? Find out what to do!
Can MEI participate in a tender for more than 80 thousand?
One of the essential characteristics of an Individual Microentrepreneur is to have an annual turnover of up to R$81,000.00, as defined in article 18 of the Micro and Small Business Statute.
If an MEI wins a contract with a value higher than this limit, he/she will lose the status of Individual Microentrepreneur, since his/her revenue will exceed the amount stipulated by law.
Therefore, the MEI cannot participate in bids with values above R$80,000.00.
Therefore, if you have a company registered as an MEI, it is recommended that you seek bids directed at Companies (MEs) or Small Businesses (EPPs).
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Conclusion
As we have seen, MEIs can participate in bidding processes, as long as the contracted value is up to R$80,000.00.
Furthermore, for contracts that are below this value, the government is required to conduct bidding processes exclusively for Microenterprises and Small Businesses.
The Portal wants to contribute to your sales journey to the government, so here you can find several opportunities that may be the right fit for your company.
We will help you with the Bidding Notice, which will send you, three times a week, emails with the main bidding processes recently opened in your region.