MEI, ME, LTDA or S.A.: Company Types in Brazil
Company types in Brazil compared: MEI (up to R$ 81,000), ME and EPP by size, and EI, SLU, LTDA or S.A. by legal nature. How to choose the right one.
Choosing between company types in Brazil is really two decisions, not one: the size band (porte) that sets the revenue ceiling, and the legal nature that sets who owns the company and how far personal assets are protected. The MEI is capped at R$ 81,000 of revenue a year, the ME at R$ 360,000 and the EPP at R$ 4.8 million; on top of that sits the legal nature — EI, SLU, LTDA or S.A. Getting both right at the start matters, because they drive the tax regime and the paperwork for the life of the company.
Two questions, not one: size and legal nature
Brazilian company types mix up two different things. “Porte” is about revenue: MEI, ME and EPP are size bands. “Legal nature” is about ownership and liability: EI, SLU, LTDA and S.A. A business has one of each — for example an EPP organised as an LTDA. Keeping the two apart is the key to choosing well, because the size band decides which taxes are available and the legal nature decides how exposed the owner’s personal assets are.
By size: MEI, ME and EPP
The size band follows annual revenue and sets what simplified treatment the company can use:
| Porte | Annual revenue | Notes |
|---|---|---|
| MEI | up to R$ 81,000 | One employee; exempt from the legal requirement to have an accountant |
| ME | up to R$ 360,000 | Formal accounting mandatory |
| EPP | R$ 360,000 to R$ 4.8 million | Formal accounting mandatory |
Above R$ 4.8 million a year a company leaves these bands entirely and is taxed under the Lucro Presumido or Lucro Real.
By legal nature: EI, SLU, LTDA and S.A.
The legal nature decides ownership and how much of the owner’s own money is at risk:
| Legal nature | Owners | Liability | Typical use |
|---|---|---|---|
| EI | One individual | No separation of personal and business assets | Very small solo businesses |
| SLU | One | Limited to the capital invested | A single owner who wants asset protection |
| LTDA | One or more | Limited to each partner’s quotas | The most common choice for small and mid businesses |
| S.A. | Shareholders | Limited to the shares | Larger companies and those raising capital |
For most small businesses the practical choice is between an SLU (one owner) and an LTDA (with partners), both of which protect personal assets, unlike the EI.
How to choose among company types in Brazil
The size band, the legal nature and the tax regime are chosen together, because each constrains the next: the CNAE fixes which activities are allowed, the porte sets the revenue ceiling, and the regime — Simples Nacional, Lucro Presumido or Lucro Real — is defined in the MAT before the CNPJ is issued. This is why the choice is normally conducted by an accountant or an online accounting service rather than made in isolation: for most profiles the Simples Nacional is the starting point, and the legal nature is fitted around it.
Frequently asked questions
What are the main company types in Brazil? By size: MEI (up to R$ 81,000), ME (up to R$ 360,000) and EPP (up to R$ 4.8 million). By legal nature: EI, SLU, LTDA and S.A.
What is the difference between porte and legal nature? Porte is the revenue band that decides the tax treatment; legal nature is the ownership structure that decides liability. A company has one of each.
Which company type protects personal assets? The SLU, LTDA and S.A. limit the owner’s liability; the EI and the MEI do not separate personal and business assets.
When can’t a company be a MEI? When revenue passes R$ 81,000 a year, it needs more than one employee, or the activity is not on the MEI list — then it becomes an ME.
Who decides the company type? Usually an accountant or an online accounting service, together with the tax regime, which must be defined in the MAT before the CNPJ is issued.