When starting a business in Brazil, one of the first decisions to make is the type of company to be formed. This choice directly impacts tax burden, legal responsibilities, and corporate structure, for example. In addition, it is also essential to define the size, which influences tax obligations, access to credit, and eligibility for government programs.
See below for the types and sizes of Brazilian companies.
Types of companies
The legal type of a company defines how it will be formally recognized. Among the main models are:
MEI (Individual Microentrepreneur): aimed at those who work alone or with a maximum of one employee. It allows access to INSS (Brazilian social security system) benefits and has simplified taxation.
EI (Sole Proprietor): allows you to operate without partners, under your own name. In this model, the entrepreneur is liable for any company debts with their personal assets.
Simple Partnership: formed by two or more professionals who provide intellectual services, such as doctors, dentists, and lawyers. Liability may be unlimited, depending on the contract.
Limited Liability Company (LTDA): a very common model, requiring two or more partners and guaranteeing limited liability to the participation quotas.
Single-Member Limited Liability Company: allows you to open a company with limited liability and without the requirement for partners or high minimum capital.
Corporation (S/A): allows the division of capital into shares, with control proportional to the number of shares. It can be publicly traded or privately held.
Company size
Company size is related to annual revenue or number of employees, according to different agencies:
BNDES: microenterprise (up to R$ 360,000), small (up to R$ 4.8 million), medium (up to R$ 300 million), large (over R$ 300 million).
ANVISA: uses specific revenue ranges, with five groups ranging from micro to large companies with revenues over R$ 50 million.
IBGE: based on the number of employees, varying according to the sector (industry, commerce, or services).
Need help determining the best type and size for your company? Pryor Global is ready to assist you with expert guidance.
Pryor offers comprehensive paralegal services, assisting with the opening, alteration, and closure of companies, issuance of certificates, tax regularization, and other procedures with public agencies. With a specialized team, we guarantee agility, compliance, and more time for you to focus on growing your business.
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