OCTIS vs MEI vs ME vs LTDA: which Brazilian company type fits you
One is a tiny sole trader, one is a size class, one is a company form. Here is how they fit together, and where a foreign founder gets stuck.
Last checked · 5 sources
Otty's short answer
MEI suits one person selling up to R$81,000 per year with a fixed monthly DAS and at most one employee. Past that, or with partners, you need a Microempresa or larger company, usually an LTDA or single-partner SLU, taxed under Simples Nacional up to R$4.8 million. A foreign partner living abroad blocks Simples Nacional and needs a resident attorney.
Side by side
Swipe to see every column
| What matters | OCTISHong Kong company + OCTIS global plan | MEI (Microempreendedor Individual) | ME (Microempresa) | LTDA or SLU |
|---|---|---|---|---|
| What it is | Hong Kong limited company | Sole trader regime | Size class, not a legal form | Limited company form |
| Annual revenue cap | Not needed for the Hong Kong company; local rules apply if you trade there | R$81,000 | R$360,000 (EPP to R$4.8 million) | No cap in the form itself |
| Monthly tax | 8.25% on the first HK$2 million of assessable profits, 16.5% above | Fixed DAS, check current amount | Simples DAS on revenue | Simples, or Lucro Presumido |
| Simples rate at entry | No VAT/GST in Hong Kong | Not a percentage | 4.00% commerce, 6.00% services | Same tables apply |
| Owners allowed | At least 1 director (an individual) and 1 shareholder | One, no partners | Depends on legal form | One (SLU) or more |
| Employees | Not needed for the Hong Kong company; local rules apply if you trade there | One, at minimum wage or floor | No cap from the class | No cap from the form |
| Foreign founder | 100% foreign ownership allowed | Only with legal residence | Possible with CPF | Possible with CPF |
| Partner living abroad | Director and shareholder can live anywhere | Not allowed (no partners) | Blocks Simples Nacional | Blocks Simples Nacional |
| Resident attorney needed | Hong Kong company secretary and registered office address needed | Not applicable | If partner lives abroad | If partner lives abroad |
| Foreigner as administrator | Director can live anywhere | Owner runs it | Resident with permanent visa | Resident with permanent visa |
| If you pass the cap | Not needed for the Hong Kong company; local rules apply if you trade there | Becomes ME next year | Becomes EPP above R$360,000 | Simples ends above R$4.8 million |
| Registration fee | At least 10% below any qualifying quote (Lowest Price Guarantee), government fees and first-year company secretary included | Check current fee | Check current fee | Check current fee |
If you have staff, premises or local sales in this country, its own registration and tax rules still apply. OCTIS can help you arrange them.
Data sources & disclaimer: Comparison data was compiled from publicly available sources — including the competitors' own published pricing and feature pages — captured on 9 November 2026. Figures reflect the typical or advertised pricing at that time and may have changed since; plans, inclusions and prices vary by provider, region and promotion. OCTIS is independent and not affiliated with the named companies; all trademarks belong to their respective owners. This comparison is provided in good faith for general information only and is not professional, legal or financial advice — please verify current details with each provider before deciding.
Which one fits you
OCTIS · Hong Kong company + OCTIS global plan
Choose OCTIS if you are a foreign founder who wants a Hong Kong company run from anywhere, with accounts, banking and CRM in one place.
MEI (Microempreendedor Individual)
Choose MEI if you are a Brazilian-resident individual or a foreigner with legal residence, working alone, with revenue under R$81,000 per year.
ME (Microempresa)
Choose ME status if your company is small but past MEI, and you want Simples Nacional with the company form your partners need.
LTDA or SLU
Choose an LTDA or SLU if you have partners, plan to grow, or are a foreign founder who needs a company vehicle in Brazil.
What the table does not show
ME is a size, not a company type
Brazilian law defines a Microempresa as a company with gross revenue up to R$360,000 per year, and an Empresa de Pequeno Porte (EPP) as one between R$360,000 and R$4,800,000. An LTDA or SLU can be an ME one year and an EPP the next. So the real choice is MEI, or a company (LTDA or SLU), and then which tax regime that company uses.
What MEI gives and takes
MEI is a fixed monthly payment (the DAS) instead of a percentage of sales. The cap is R$81,000 per year, or R$6,750 per month of activity in your first year, per the Ministry page updated 16 September 2026. Going up to 20% over (R$97,200) means a supplementary DAS and ME status next year. More than 20% over is retroactive to January. A proposal in Congress (PLP 186/2026) would raise the cap, but it is not law.
If you are a foreign founder
Every foreigner needs a CPF. A foreigner with legal residence can be MEI, per Jornal Contábil. For an LTDA or SLU, a partner who lives abroad needs a resident attorney with power to receive legal service, cannot be the administrator, and by law (LC 123, article 17) stops the company from using Simples Nacional. A resident partner with a permanent visa can be administrator once the visa is shown to the Junta Comercial.
Where OCTIS fits
OCTIS does not register companies in Brazil. If your Malaysian or Hong Kong company sells into Brazil or opens a Brazilian subsidiary, your home books still need to reflect it. OCTIS keeps the Malaysian or Hong Kong side: company secretary, bookkeeping and tax, and helps consolidate the statements your Brazilian accountant produces. Ask about 10–30% off your current bill if you pay someone else for that work today.
Frequently asked questions
What is the MEI revenue limit in 2026?
R$81,000 per year, or R$6,750 per month of activity if you start mid-year. The Ministry of Entrepreneurship page, updated 16 September 2026, says the limit stays until the law changes. Congress is reviewing a rise to R$110,000 in 2027, but it is a proposal only.
Is ME the same as LTDA?
No. ME is a size class for any company with revenue up to R$360,000 per year. LTDA is a legal form, a limited company with one or more partners. A single-partner version is called SLU. Many small LTDAs are also ME.
Can a foreigner open a company in Brazil?
Yes. Foreigners can found or hold shares in Brazilian companies, even a company with only foreign partners. A non-resident partner needs a CPF and a resident attorney. Confirm your case with a Brazilian accountant or lawyer before you file.
Can a foreigner who lives abroad be MEI?
Sources say MEI needs legal residence in Brazil, and you cannot be a partner or administrator of another company. A founder who lives abroad would normally use an LTDA or SLU with a resident attorney instead.
Can an LTDA with a foreign partner use Simples Nacional?
No, not if the partner is domiciled abroad. Article 17 of Complementary Law 123 bars a company with a partner domiciled outside Brazil. The company is then taxed under another regime, usually Lucro Presumido.
Sources
Checked on the date above. Links open the provider's or regulator's own page.