Company Types in Brazil: MEI, LTDA and S.A. Explained
In Brazil, company type means two things: size (MEI, ME, EPP) and legal nature (EI, SLU, LTDA, S.A.). Here is what each means and who each one fits.
Company types in Brazil actually cover two separate decisions. The first is the company size (porte) — MEI, ME or EPP — set by annual revenue, which defines the tax rules a business can use. The second is the legal nature (natureza jurídica) — EI, SLU, LTDA or S.A. — which defines how many owners there are, whether their personal assets are protected, and how the company is governed. The same one-person business can be a MEI in size and an SLU in legal nature at once. Choosing both is one of the first decisions when opening a company, usually made with an accountant — a traditional firm or an online accounting service.
Company types in Brazil: size versus legal nature
The two axes are often confused. Size (porte) is about how much the business earns and which tax rules it can access. Legal nature (natureza jurídica) is about ownership and liability — how many people own the company and whether their personal assets are shielded from its debts. Every company has one of each.
Company sizes (porte): MEI, ME and EPP
The size is defined by annual revenue and caps who can use the simplest tax rules:
| Size | Annual revenue | Partners | Employees |
|---|---|---|---|
| MEI | Up to R$ 81,000 | 1 only | Max. 1 |
| ME | Up to R$ 360,000 | 1 or more | Larger teams |
| EPP | R$ 360,000 to R$ 4.8 million | 1 or more | Larger teams |
The MEI is the only size that pays a fixed monthly amount (SIMEI) and needs no accountant. The ME and the EPP can use the Simples Nacional regime up to R$ 4.8 million in revenue, and both require an accountant from the day they open.
Legal natures: EI, SLU, LTDA and S.A.
The legal nature sets ownership, liability and governance:
| Legal nature | Owners | Liability shield | Capital | Best suited to |
|---|---|---|---|---|
| EI (Empresário Individual) | 1 | None — personal and business assets mix | Free, no minimum | Self-employed in non-regulated activities |
| SLU (Sociedade Limitada Unipessoal) | 1 | Yes — assets separated | Free, no minimum | A single owner who wants asset protection |
| LTDA (Sociedade Limitada) | 2 or more | Yes — limited to each quota | Free, no minimum | Partnerships and joint investment |
| S.A. (Sociedade Anônima) | 2 or more shareholders | Yes — limited to the share value | Divided into shares | Large businesses that need investors |
The LTDA is the most common company in Brazil: it is formed by a contract (contrato social), its capital is split into quotas, and each partner answers only up to the value of their quotas. The SLU works the same way for a single owner, and is what separates a one-person company from the EI, where personal and business assets are not separated.
The S.A. is a different structure. Its capital is divided into shares (ações) held by shareholders (acionistas), and it is run through defined bodies — a general meeting (Assembleia Geral), a board of directors (Conselho de Administração), an executive board (Diretoria) and, when required, a fiscal council (Conselho Fiscal). It can be closed (shares traded privately) or open (shares traded on the stock exchange). Because this governance is more complex and costly, the S.A. is used mainly by large businesses that raise capital from investors.
How size and legal nature combine
Every company picks one size and one legal nature, and the two are independent: an SLU or an LTDA can be an ME or an EPP depending on revenue. That combination, together with the expected revenue, points to the tax regime — Simples Nacional up to R$ 4.8 million, Lucro Presumido up to R$ 78 million, and Lucro Real above that. An accountant, traditional or an online accounting service, defines the combination and files it during registration.
Frequently asked questions
What are the main company types in Brazil? They fall into two groups: size (MEI, ME, EPP), set by annual revenue, and legal nature (EI, SLU, LTDA, S.A.), set by ownership and liability. Every company has one of each.
What is the difference between an LTDA and an S.A.? An LTDA splits its capital into quotas among partners and is formed by a contract; an S.A. splits its capital into shares held by shareholders and is run through a general meeting, a board of directors and an executive board. The S.A. suits large businesses that raise investment.
What is the difference between EI and SLU? Both have a single owner, but the SLU separates personal and business assets, while the EI does not — in an EI, personal assets can answer for business debts.
Which company type does not need an accountant? Only the MEI, which pays a fixed monthly amount (SIMEI). Every other size and legal nature requires an accountant with an active CRC registration from the day the company opens.