Understanding What MEI Means
A microentrepreneur, commonly referred to as MEI (Microempreendedor Individual), is a simplified legal status created to formalize small-scale entrepreneurs and freelancers. It was designed to make it easier and more affordable for individuals to operate legally, access benefits, and reduce bureaucracy. While this framework is primarily associated with Brazil, the concept has inspired other simplified business categories globally. In 2022, many aspiring entrepreneurs and gig workers are asking: is MEI still a worthwhile path?
Benefits of Being a MEI in 2022
There are several key advantages to registering as a microentrepreneur.
First, the low tax burden is a major draw. MEI contributors pay a fixed monthly fee that covers social security (INSS), and municipal or state taxes depending on the activity. This makes tax planning simple and predictable.
Second, MEIs gain access to social security benefits such as retirement, sick leave, and maternity leave. These protections are especially valuable for freelancers and gig economy workers who might otherwise be left unprotected.
Third, MEI registration allows individuals to issue invoices, which is essential for doing business with larger clients and accessing credit. Without formal status, many opportunities remain closed off.
Lastly, MEIs benefit from simplified bookkeeping requirements. Unlike larger companies, they don’t need to hire accountants or maintain complex records, which significantly reduces overhead.
Who Should Consider MEI Status?
The MEI status is ideal for solo entrepreneurs who earn modest revenue. In Brazil, for instance, the income cap for MEIs was R$81,000 annually, though this number may change over time. Individuals who provide services, sell products, or operate small trades such as hairdressers, delivery workers, or online resellers often qualify.
If you’re starting a small venture, freelancing, or selling handmade goods, MEI offers a low-risk, low-cost entry point into formal entrepreneurship. It also makes it easier to build a credit history and gain legitimacy in the eyes of clients and suppliers.
Limitations to Be Aware Of
Despite its many benefits, MEI status comes with limitations that must be considered.
First and foremost is the income ceiling. If your business starts doing well and exceeds the revenue cap, you will be required to migrate to a different tax structure, which brings more bureaucracy and costs.
Additionally, MEIs are restricted from hiring more than one employee. For those who want to grow a team or expand operations, MEI is only a temporary solution.
Another concern is the limited list of permitted activities. Not all business types qualify for MEI. High-risk professions or regulated industries may be excluded entirely.
Moreover, while social security benefits exist, they may not match the level of coverage provided to formal employees. For instance, MEIs are only entitled to minimum wage retirement unless they contribute additional voluntary payments.
The 2022 Context: Is MEI Still Relevant?
As of 2022, the global economy is experiencing rapid shifts. Inflation, supply chain challenges, and changes in consumer behavior have impacted small businesses worldwide. For many, MEI represents a flexible and resilient solution during uncertain times.
Digital transformation has created new opportunities for remote workers, digital service providers, and online sellers. MEI status enables them to operate formally with minimal red tape. For example, someone offering graphic design services on platforms like Fiverr or selling on Etsy can use MEI registration to receive payments legally and reduce friction with banks and clients.
Additionally, governments in many countries, including Brazil, are expanding incentives and simplifying the process to encourage formalization. This includes online registration platforms, partnerships with banks, and training programs—making MEI even more accessible.
Case Studies: Real-Life Examples
Maria, a 29-year-old from São Paulo, started baking cakes during the pandemic. What began as a side hustle became a full-fledged business. Registering as a MEI allowed her to start selling to corporate clients and participate in local fairs, giving her credibility and new streams of income.
Meanwhile, Lucas, a freelance programmer, used MEI status to invoice international clients. This helped him build trust and allowed access to government-subsidized health insurance.
These stories demonstrate how MEI can be a stepping stone to financial stability and long-term growth.
When MEI Might Not Be the Best Choice
If your business is rapidly scaling or involves multiple partners, MEI may not be a sustainable structure. In such cases, it’s better to plan early for transitioning to other business formats like microenterprises or limited liability entities.
Similarly, if you offer services not included in the MEI activity list—such as legal consulting or engineering—you may need to explore alternative legal options.
Lastly, if your income is close to the MEI ceiling and fluctuates unpredictably, it may be wise to choose a structure that gives more room for growth without requiring abrupt changes.
Conclusion: Is MEI Worth It in 2022?
The answer depends on your business goals and current situation. For solo entrepreneurs, digital freelancers, and those testing new ideas, MEI provides an affordable and flexible way to formalize operations. It’s a powerful gateway into the entrepreneurial world, offering legitimacy, benefits, and simplified obligations.
However, it’s crucial to remain aware of the income limits and activity restrictions. If your business is likely to grow beyond those boundaries, plan ahead and consider your next steps early.
Ultimately, MEI is still a valuable tool in 2022—especially in an economy where agility, autonomy, and cost control matter more than ever.