Could Programmers Become MEIs? Understanding the Proposal Advancing in Brazil

Could Programmers Become MEIs? Understanding the Proposal Advancing in Brazil

A proposal that could affect thousands of technology professionals has advanced in Brazil's National Congress.

A committee in the Brazilian Chamber of Deputies approved a bill that seeks to include programmers and software developers among the occupations allowed under the Individual Microentrepreneur regime, known in Brazil as MEI.

The announcement attracted attention from freelance developers, independent professionals and people who provide technology services as legal entities. However, the proposal has not yet become law.

This means programmers cannot currently register as MEIs specifically for software development activities based on this proposal.

What is the MEI regime?

MEI stands for Microempreendedor Individual, which can be translated as Individual Microentrepreneur.

It is a simplified Brazilian business and tax regime created for self-employed professionals and very small businesses.

The model allows eligible workers to obtain a business registration, issue invoices and pay taxes through a simplified monthly contribution.

However, only occupations officially authorized by the Brazilian government can use the regime. Software programming and development activities are currently not included in the permitted list.

What does the proposal seek to change?

The proposal aims to allow programmers and software developers to register under the MEI regime, provided they comply with its legal requirements and limitations.

Today, developers who need to issue invoices and provide services formally usually have to establish a company under another legal structure or tax framework.

Depending on the situation, the professional may operate as an individual entrepreneur, create a single-member limited liability company or register a business under Brazil's Simples Nacional tax regime.

If the proposal is ultimately approved, eligible technology professionals could gain access to a simpler and less bureaucratic formalization process.

Can programmers already register as MEIs?

No.

Approval by a committee of the Chamber of Deputies represents only one stage of Brazil's legislative process.

For the change to take effect, the proposal must continue through Congress, receive all necessary approvals and be sanctioned by the President of Brazil.

Until the legislative process is completed and the new rules are officially published, the current situation remains unchanged.

What are the next steps?

The proposal still needs to complete several stages before it can become effective.

• Review by other relevant committees.
• Approval through the required stages in the Chamber of Deputies.
• Review and voting in the Federal Senate.
• Presidential approval or veto.
• Official publication and possible regulation of the new rules.

The text may still be amended during this process.

For that reason, it is not currently possible to confirm when the change could take effect or whether the final conditions will remain identical to those being discussed today.

Who could benefit from the measure?

If the proposal is definitively approved, it could mainly benefit independent professionals whose annual revenue falls within the MEI limit.

• Freelance software developers.
• Independent programmers.
• Professionals who work on short-term projects.
• Technology students beginning to offer paid services.
• Developers who serve small businesses.
• Professionals who occasionally need to issue invoices.

The measure could also make formalization easier for people who currently provide technology services informally because of the costs or complexity associated with other business structures.

What would be the advantages of MEI for programmers?

The MEI regime is one of the simplest business formalization models available in Brazil.

Its main advantages include:

• A simplified process for obtaining a business registration.
• Monthly taxes paid through a single fixed contribution.
• The ability to issue invoices.
• Fewer administrative obligations.
• Access to certain social security benefits.
• Easier access to business bank accounts.
• The ability to provide formal services to companies.

For developers who are beginning to work as freelancers, these characteristics may reduce the barriers to starting a formal business.

Does the MEI regime have limitations?

Yes. Even if programmers are included among the permitted occupations, all general MEI rules will continue to apply.

The main limitations include:

• An annual revenue limit established by Brazilian law.
• Restrictions on the owner participating in other companies.
• The ability to hire only one employee under the current rules.
• The requirement to perform only activities permitted under the regime.
• The need to migrate to another business framework when the limits are exceeded.

For this reason, MEI may be attractive to professionals at the beginning of their careers or those with smaller operations, but it will not necessarily be suitable for every developer.

Would MEI always be the best option for developers?

Not necessarily.

The most appropriate business structure depends on factors such as annual revenue, the type of clients served, operating expenses, plans to hire employees and the way the professional provides services.

A developer with higher revenue, a team or involvement in a software company may require a more complete corporate structure.

The tax framework must also be evaluated carefully. A model that appears cheaper at first may not be the most appropriate once all legal, financial and operational aspects are considered.

Impact on freelance developers

Freelancers are among the professionals who could be most affected by the proposal.

Many developers work on specific projects, build websites, mobile applications, APIs and internal systems, or provide maintenance services to small businesses.

For these professionals, being able to issue invoices under a simplified regime could make client relationships easier and improve their professional positioning.

Formalization may also help developers organize their finances, separate personal and business expenses and build a documented revenue history.

Impact on technology companies

Companies that hire independent professionals may also be affected.

A larger number of formally registered developers could simplify hiring, payment and invoice management processes.

However, allowing a professional to operate as a MEI would not eliminate companies' responsibilities under labor law.

When a working relationship includes characteristics such as subordination, personal service, regularity and payment, it may still be legally recognized as an employment relationship, regardless of whether the professional has a business registration.

The proposal should therefore not be interpreted as authorization to replace formal employment contracts with MEI arrangements.

Possible benefits of the proposal

Including programmers in the MEI regime could generate benefits for different areas of Brazil's technology market.

• Reduced informality among independent professionals.
• Easier invoice issuance.
• Less bureaucracy for entry-level developers.
• Greater encouragement for entrepreneurship in technology.
• Improved access to development services for small businesses.
• Formalization of services provided by students and freelancers.

The proposal also reflects the growing number of technology professionals who work independently on small digital projects and software services.

Possible risks and points of attention

Despite the potential benefits, the proposal also raises important concerns.

One of the main risks is the use of the MEI regime to disguise employment relationships, especially when a professional works exclusively for one company and follows a routine similar to that of a regular employee.

Another concern is that developers may choose MEI without properly evaluating the regime's revenue limits or their expected business growth.

It will also be necessary to examine which occupations and official activity codes are included if the proposal becomes law.

Depending on the final wording, different technology-related services may receive different classifications or requirements.

What should developers do now?

For now, the most important step is to follow the proposal's progress and avoid making decisions based only on headlines or social media posts.

Approval by a congressional committee does not mean programmers can immediately change their business classification.

Anyone planning to open a business today should review the options available under the current rules and seek guidance from a qualified accounting professional when necessary.

Frequently asked questions

Can programmers currently register as MEIs in Brazil?

Not specifically for programming or software development activities based on this proposal. The bill is still moving through the legislative process and is not yet in effect.

Has the proposal already been fully approved by the Chamber of Deputies?

No. The text advanced through a committee, but it still needs to complete other stages of the legislative process.

When could programmers become eligible for MEI?

There is no confirmed date. The change depends on the completion of the legislative process, presidential approval and the official publication of the applicable rules.

Would freelance developers be required to become MEIs?

No. MEI would be an optional business framework. Each professional would need to evaluate whether it is suitable for their activity, revenue and business plans.

Would working as a MEI eliminate employment rights?

No. Having a MEI registration does not automatically prevent the recognition of an employment relationship. Brazilian authorities may evaluate the actual working conditions between the professional and the company.

Would MEI be cheaper than Simples Nacional?

In many cases, the monthly MEI contribution is lower and more predictable. However, the best option depends on revenue, business structure, services provided and the professional's specific needs.

Conclusion

The proposal to allow programmers and software developers to register as individual microentrepreneurs represents an important discussion about the formalization of technology professionals in Brazil.

If definitively approved, the measure could reduce bureaucracy, make invoice issuance easier and encourage entrepreneurship among freelancers and entry-level developers.

However, the new rule is not yet in effect.

The proposal must continue through Brazil's National Congress and complete all required stages before producing any practical consequences.

Until then, developers should continue following the current rules and monitor the legislative process carefully to avoid confusing an initial committee approval with the measure becoming law.