Starting a Business in Brazil: From Idea to CNPJ
Starting a business in Brazil runs from idea to CNPJ: validate the idea, write a plan, then register through REDESIM. Steps, time and cost explained.
Starting a business in Brazil has two halves: the planning, which turns an idea into a validated plan, and the formalisation, which ends with the CNPJ. In practice you validate the idea, write a business plan, and then hire an accountant — a traditional firm or an online accounting service — who sets the company size, legal nature and tax regime and files the registration through REDESIM: viability check, DBE, the Junta Comercial and the MAT, until the CNPJ is issued. The formalisation takes about 30 to 48 days; a MEI is free, and other models cost up to around R$ 3,000.
Starting a business in Brazil: the two halves
The first half is entrepreneurial and happens before any document is filed: deciding what the business is and whether it works. The second is bureaucratic, when the idea leaves the page and becomes a registered company with a CNPJ. Skipping the first is the common mistake — decisions like the tax regime have to be thought through before the CNPJ exists, not after.
Part 1: from idea to plan
- Validate the idea. Define the variables — who the customer is, where and when to test — then run a small test, such as an MVP or a round of interviews, and read the results before committing money.
- Write a business plan. Set the main objective, break it into phases, and build a financial plan that covers the start-up investment, materials, staff, suppliers, working capital and fixed costs such as rent, power and water. The plan is what later guides how the business grows.
Part 2: from plan to CNPJ
Once the plan is set, the first logical step of formalisation is to bring in an accountant, who then conducts the rest:
| Step | What is decided or done |
|---|---|
| Hire an accountant | A traditional firm or an online accounting service, required by law except for a MEI |
| Company size (porte) | MEI, ME or EPP, by expected revenue |
| Legal nature | EI, SLU, LTDA or S.A. |
| Tax regime | Simples Nacional, Lucro Presumido or Lucro Real |
| Registration | Viability check, DBE, filing at the Junta Comercial, then the MAT |
| CNPJ | Issued by the Receita Federal after the MAT |
Since 1 December 2025 the CNPJ is released only after the MAT step, where the tax regime is confirmed, and there are 90 days to complete it.
After the CNPJ
The company exists once the CNPJ is issued, but a few steps remain before it can trade: the municipal alvará (operating licence) and any state registration for the activity, opening a business bank account, and issuing the first invoice. From then on the company has recurring monthly duties — the tax payment, bookkeeping and, when it has staff, payroll — which the accountant or online accounting service keeps up.
Time and cost
The formalisation takes about 30 to 48 days depending on the state, from roughly 30 days in São Paulo to 48 in Porto Alegre. A MEI is free through the Portal do Empreendedor; other models cost from about R$ 500 to R$ 3,000, and with an online accounting service the opening is often included in a monthly plan that starts around R$ 150 to R$ 200.
Frequently asked questions
How do I start a business in Brazil? First validate the idea and write a business plan; then hire an accountant who defines the size, legal nature and tax regime and registers the company through REDESIM until the CNPJ is issued.
What has to be decided before the CNPJ? The company size, the legal nature and the tax regime. Since December 2025 the tax regime is confirmed in the MAT step before the CNPJ is released, so it cannot be left for later.
How long does it take and how much does it cost? About 30 to 48 days depending on the state. A MEI is free; other models run from about R$ 500 to R$ 3,000, and online accounting services often include the opening in the monthly fee.
Do I need an accountant to start a business in Brazil? Yes, except for a MEI. For every other model an accountant with an active CRC registration is required from the day the company opens, and an online accounting service is the common way to meet that remotely.