If you’re currently working under Brazil’s CLT employment model and considering starting a business, you’ve likely heard of the MEI (Microempreendedor Individual) program. It’s one of the easiest ways to formalize a small business in Brazil—but it also comes with important rules, limits, and implications, especially if you’re still employed.

In this article, we’ll explore exactly what you need to know about becoming an MEI before resigning from your job.

What Is MEI?

MEI is a simplified legal business format created by the Brazilian government to encourage small-scale entrepreneurship. It allows you to:

• Issue invoices
• Access social security benefits
• Pay low monthly taxes (Simples Nacional)
• Operate legally without complex bureaucracy

It’s designed for solo entrepreneurs with modest income and no employees (except one, under specific conditions).

Key MEI Rules You Must Understand

Before registering as MEI while employed, pay close attention to the following:

1. Annual Revenue Limit

As of 2025, an MEI can earn up to R$ 81,000 per year (around R$ 6,750/month). If you exceed this, you’ll need to migrate to a different business category (such as Simples Nacional).

Tip: If you register mid-year, this limit is proportional to the number of months you’re registered.

2. Only Certain Activities Are Allowed

MEI isn’t for every business. Your activity must be listed on the official CNAE list for MEI.

Examples of allowed activities include:

• Digital marketing
• Handmade product sales
• Online teaching
• IT support
• Beauty and wellness services

Not allowed: medical professions, law, consulting for companies (in some cases), and other regulated services.

3. You Can Have Only One Employee (Optional)

MEIs can hire one employee, who must receive minimum wage or the wage for the category. This person must be registered properly and included in your monthly tax.

If you’re just starting out, you don’t need to hire anyone—it’s optional.

Can You Be MEI While Employed?

Yes—but it depends on a few conditions.

If You Work in the Private Sector (CLT):

✅ You can register as MEI, unless your employment contract specifically forbids it (check for non-compete clauses).

✅ You can keep both the job and the MEI status, as long as your business doesn’t interfere with your main work.

⚠️ However, you won’t be eligible for unemployment benefits if you’re fired while registered as an MEI.

If You Work in the Public Sector:

🚫 Most public servants cannot register as MEI due to legal restrictions.
Check with your HR department or legal advisor before proceeding.

Will Your Employer Know?

Technically, MEI registration is public information. While it’s not automatically reported to your employer, they could find out if they check CPF/CNPJ databases.

Be transparent if your contract requires disclosure—and avoid using company time or resources to run your side business.

MEI and INSS: How Social Security Contributions Work

When you register as MEI, part of your monthly payment goes to INSS (Brazil’s Social Security).

💰 Monthly MEI tax: Around R$ 70–80 (2025 average)
📌 This contributes to retirement, maternity leave, and other benefits

But if you already contribute to INSS via CLT, you won’t receive double benefits—your MEI contribution simply adds up.

Important: To receive full retirement benefits, you must pay 20% of your income via a different category (like GPS).

What About Taxes?

MEI simplifies taxes through Simples Nacional:

• One monthly payment (DAS) that covers everything
• No need to hire an accountant (unless you want help)
• No income tax up to the MEI limit

You’ll need to:

• Issue invoices (when applicable)
• Keep a basic revenue report
• Submit a simple annual declaration (DASN-SIMEI)

How to Register as an MEI

It’s free and takes 15–30 minutes:

1. Go to gov.br/mei
2. Use your CPF login (gov.br account)
3. Provide your business activity (CNAE), address, and contact info
4. Download your CNPJ and MEI certificate

Easy—and official.

Final Thoughts: Don’t Register Just to “Feel Legitimate”

MEI is an excellent tool—but only if it makes sense for your current situation.

✅ Register if you’re already earning from your business or want to issue invoices
❌ Don’t register if you’re still testing your idea and haven’t made sales

And most of all: make sure it aligns with your CLT contract and long-term goals.

With clarity and legal awareness, you can use MEI as a stepping stone from CLT to full-time entrepreneurship—without rushing or risking your stability.