The National Registry of Legal Entities (CNPJ) is essential for the regularization and legalization of companies in Brazil. It serves as the company’s identity before the government and society.
It is important to know that, in addition to the MEI (Individual Microentrepreneur), there are a variety of types of companies that require a CNPJ , each with its own opening process.
If you want to know how to open a CNPJ, learn about the types available and choose the most suitable one for your business, this guide is for you. Keep reading to understand better!
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What are the types of CNPJ?
Before diving headfirst into forms philippines whatsapp number data bureaucracy, it’s essential to understand the different business categories available .
This is because they vary according to characteristics, such as whether there is more than one partner, expected revenue, among other details. Let’s take a closer look at each of them :
EI (Individual Entrepreneur)
The Individual Entrepreneur, as the name suggests, is a type of business in which the entrepreneur works alone, without the need for partners. It is a popular choice for those who want to start small businesses in a simplified way and build a winning marketing strategy low initial costs.
However, it is important to highlight that, in this category, there is no legal separation between personal assets and those of the company , which means that the entrepreneur is unlimitedly liable for debts incurred in the exercise of business activity.
Furthermore, the Individual Entrepreneur must choose the Taxation Regime, either via Simples Nacional or Presumed Profit , as this directly impacts the company’s tax burden.
LTDA (Company LTDA)
A Limited Liability Company, or LTDA, is by two or more partners. Who share ownership of the company in shares and may even be numbers out different economic activities.
This model offers partners greater protection in relation to their personal finances, since, in the event of company debts, the partners’ personal assets are not compromised beyond the value of the shares that each one has in the company.
It is a common option for ventures that involve more than one person and want a more formalized and secure structure.
SLU (Single-Member Limited Liability Company)
The Single-Member Limited Liability Company is a relatively new type of company in Brazil. To allow a single person to set up a company with limited liability , without the need for partners.
This category offers entrepreneurs the security of limited liability without the complexity of managing a company with multiple partners. It is a great option for entrepreneurs who want to operate alone, but with a formalized business structure .