RIO DE JANEIRO, BRAZIL – Over 1,500 App drivers such as Uber, Cabify, and 99 have already registered as individual micro-entrepreneurs (MEI) in Brazil. App drivers have been authorized to join the MEI in August under the “other unspecified passenger road transportation” category.
By becoming an individual micro-entrepreneur, drivers are covered by social welfare and may issue invoices. As such, professionals are entitled to government benefits such as sick pay, retirement by age or disability, and maternity leave.
“The greatest advantage is that the individual leaves informality behind,” said Carlos Melles, president of the Brazilian Micro and Small Business Support Service (SEBRAE). “By registering as a MEI, individuals enjoy social welfare protection and health system protection for themselves and their families. And this is also the job of the future,” added Melles.
There are currently some 1.1 million app drivers in Brazil. The government expects more than half of these drivers to become micro-entrepreneurs.
The registration process at MEI is carried out in a simplified, electronic, and free way. Drivers who choose to join the program will pay a fixed monthly tax of R$49.90 to the National Institute of Social Security (INSS), plus R$5 (for service providers).
To join the MEI under this category, the maximum gross revenue cannot exceed R$81,000 per year or R$6,750 per month.
The legislation establishing the individual micro-entrepreneur has been in existence for ten years. Since the legislation came into force in July 2009, Brazil has already registered 8.551 million microentrepreneurs in diverse business activities.
In June, the state with the most significant number of registrants was São Paulo, with approximately 2.3 million.