What is an EIRELI:(Individual Limited Liability Company)

EIRELI is an acronym that stands for Individual Limited Liability Company.  It is a type of company that is formed by a single partner , that is, by the entrepreneur himself who wants to start a business and be the sole owner.EIRELI has existed since the year 2011, its operation is regulated by Law nº 12.441 / 11.The name of an EIRELI is different from other business types. In choosing the name of a company of this type, the name EIRELI must be included in the chosen business name , so that it is clear that it is a company of this type.

Advantages and disadvantages of EIRELI

For small and microentrepreneurs EIRELI has more advantages than disadvantages, but it is necessary to analyze the conditions of the business to make the right decision.

Here are the main advantages of starting a company in the EIRELI category:

  • EIRELI does not need the presence of other partners in order for the company to be open,
  • has no cap on the annual billing amount,
  • the personal property of the entrepreneur and the company is accounted for separately, so there is no risk of compromising personal assets to pay company debts (except in case of fraud or any illegal activity in relation to company accounting),
  • can be opened in many branches of activity, both for service provision, as for the trade or industry activities,
  • can be used by self-employed professionals, such as journalists, physicians and psychologists,
  • it is permissible for EIRELI to use the Simple National model for the tax burden, thus the collection of taxes is facilitated.

They can be pointed out as disadvantages  of EIRELI:

  • the entrepreneur can not have more than one EIRELI registered in his name, so if you want to open another company you will have to choose another business type,
  • it is required that the minimum capital of the company is the value corresponding to at least 100 times the value of the minimum wage in force at the time the company is registered. Any type of property that can be monetarily evaluated can be used.

How to open an EIRELI?

The procedure for opening an EIRELI includes the same steps as opening up other types of business. Look:

  1. search and choice of a business name available in the chosen market,
  2. make the document of incorporation of the company (Constitutive Act), which must be signed by a lawyer and registered in the Commercial Board of the State where the company will operate,
  3. after the company is registered the entrepreneur will receive the Company Registration Number (NIRE),
  4. to register at the CNPJ (National Registry of Legal Entities) at the Federal Revenue Service,
  5. make the registration of the company in the Municipal Department of Finance,
  6. request the Permit of Operation in the City,
  7. register the company in Social Security,
  8. make a registration at the State Treasury Department (for commercial or industry activities) or at the Municipal Finance Secretariat (for service activities).
by Abdullah Sam
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