EPP: Brazil's Empresa de Pequeno Porte Category, Explained
An EPP in Brazil is a company earning R$ 360,000 to R$ 4.8 million a year — the porte between an ME and mandatory exit from the Simples Nacional. See the rules.
An EPP (Empresa de Pequeno Porte) is the company size category for businesses earning between R$ 360,000 and R$ 4.8 million a year in Brazil — the band above the ME and up to the ceiling of the Simples Nacional. Like size does not determine legal structure, an EPP can be organized as an LTDA, an SLU or an EI; the EPP label only defines the revenue bracket and the obligations that come with it.
Where the EPP sits among Brazil’s company sizes
| Porte | Annual revenue | Accounting |
|---|---|---|
| MEI | Up to R$ 81,000 | Not required |
| ME | R$ 81,000 to R$ 360,000 | Required |
| EPP | R$ 360,000 to R$ 4.8 million | Required |
Crossing R$ 360,000 moves a company from ME to EPP automatically, based on revenue — there is no separate application, and the choice between company types is made independently of this size threshold.
What changes for an EPP
An EPP keeps the same core obligations as an ME — mandatory accounting, monthly DAS under the Simples Nacional, annual DEFIS — but faces one extra rule: the R$ 3.6 million sublimite. Once revenue passes that mark, still inside the R$ 4.8 million ceiling, the company keeps paying federal taxes through the DAS but starts paying ICMS and ISS separately, under each state’s or city’s own rules, instead of inside the single slip.
Leaving the EPP band
An EPP that exceeds R$ 4.8 million a year must leave the Simples Nacional the following year, moving to Lucro Presumido or Lucro Real. If the excess is more than 20% over the ceiling, the exit is immediate rather than waiting for the next calendar year — the same rule that applies to any company leaving the regime, detailed in the comparison of company types in Brazil.
EPP vs MEI: the obligations an EPP cannot skip
Unlike the MEI, which pays one fixed monthly amount and has no legal requirement for an accountant, an EPP must have an accountant with an active CRC registration from the day it registers, since its revenue already places it well above the MEI’s exemption. This accountant — traditional or an online accounting service — defines the CNAE, sets up the Simples Nacional enrollment and monitors the R$ 3.6 million and R$ 4.8 million thresholds month to month, since crossing either changes the company’s tax bill.
Frequently asked questions
What is the revenue range for an EPP in Brazil? From R$ 360,000 to R$ 4.8 million a year, the band directly above the ME and up to the Simples Nacional ceiling.
Does an EPP need an accountant? Yes. Like every company type except the MEI, an EPP is required by law to have accounting from the day it registers.
What happens when an EPP crosses R$ 3.6 million? It keeps paying federal taxes through the Simples Nacional’s single DAS, but starts paying ICMS and ISS separately, outside that slip, under normal state and municipal rules.
Is EPP a legal structure like LTDA or SLU? No. EPP is a size category based on revenue, not a legal structure — an EPP can be organized as an LTDA, an SLU or an EI, depending on how many partners it has and how it separates liability.