Portuguese 
English 
Spanish 
4 min of reading 
0 comments 
New Law Brings More Security for MEI and Can Relieve Thousands of Entrepreneurs
The Individual Microentrepreneur (MEI), which is already an essential figure for millions of Brazilians seeking to formalize their small businesses, may face important changes with a new law approved by the Chamber of Deputies. This new law promises to automatically cancel the MEI after 24 months of fiscal inactivity, but also brings a series of advantages and greater security for entrepreneurs.
How MEI Closure Works Today
Currently, if you are a MEI and have gone 12 consecutive months without paying your taxes or submitting the required declarations, your registration will be automatically canceled. That’s right, without prior notice. However, in 2021, a resolution changed this deadline to 24 months and required that the entrepreneur be notified before cancellation. These notifications are sent via messages, emails, and even through the Electronic Tax Domicile (DTE) of the Federal Revenue, giving the MEI one chance to regularize their situation before the worst happens.
TO KNOW MORE: The popular one that doesn’t break, is automatic and still runs 12 km/l: Nissan’s compact for 40 thousand
-
The TCU discovered that the FAB made over 100 flights with only one person on board in planes designed for 50 passengers, and the waste of public money revealed in the report surprised even the auditors.
-
Monterrey is erecting a 484-meter tower that will dethrone all the skyscrapers in Latin America — it has already surpassed the 52nd floor and there are 170 meters left to the top…
-
War in the Middle East is making Brazil richer: the country has returned to the IMF’s global top 10 thanks to the rise in oil prices, and the projection is to surpass Russia by 2027 and Italy by 2028.
-
Resident refuses to sell house for R$ 15 million to construction company and sees luxury condominium surround his property on all sides.
What Changes with the New Law
The big news is that the new law approved makes this 24-month rule definitive and, more importantly, incorporates this standard into the law, ensuring that it will not change overnight. In other words, now the MEI has the security that the rules will not be altered without notice. The idea is to avoid unpleasant surprises for those already facing the challenge of doing business in Brazil.
With this new law, if the MEI remains inactive for 24 consecutive months, the cancellation will be automatic, but always with that prior notification, as has been happening. This gives entrepreneurs plenty of time to regularize their situation before cancellation is finalized. This measure aims to provide more peace of mind and predictability, especially in a scenario where fiscal rules can seem complex and even confusing for those focused on growing their business.
Why This Change Is Important
Imagine that you are a MEI who had to stop working for a while. With the previous rules, it could happen that your registration was canceled without you even knowing, simply for failing to pay taxes or submit annual declarations. This would create a major headache when you decided to return to the market, with outstanding debts and great difficulty in regularizing your situation.
Now, with the new law, the entrepreneur will have greater clarity about what they need to do and what may happen if they fail to meet their tax obligations. This is a true relief, especially for those already feeling overwhelmed by everyday bureaucracy.
And If MEI Is Not Closed Correctly
If you, as a MEI, do not close your activity correctly, the consequences can be quite complicated. Even if you are not active, you remain responsible for paying taxes and submitting annual declarations. If you fail to do this, you will end up accumulating debts and risk entering active debt, which can lead to fines and even prevent you from obtaining credit in the future.
If you do not resolve these outstanding issues, you may have difficulties obtaining negative debt certificates, which are essential for a number of activities, such as participating in bidding processes or requesting loans. In other words, it’s a problem that can close many doors for you.
More Security for MEI
This new law approved is an important step to provide more security and peace of mind for microentrepreneurs. With the clear legal provision regarding the automatic cancellation of MEI after 24 months of fiscal inactivity, and with the guarantee of prior notification, entrepreneurs now have a more stable and predictable environment to keep their businesses up to date.
Therefore, if you are a MEI, pay attention to your tax obligations and take advantage of the extra time and notifications to regularize your situation, avoiding unpleasant surprises. The new law came to bring more clarity and relieve the concerns of those trying to grow their business in Brazil.
If this news made sense to you or if you have something to add, leave your comment here! Your opinion is super important and helps us continue bringing information that truly makes a difference.
Seja o primeiro a reagir!