Nano-entrepreneur: The New Legal Status Created by the Tax Reform, Explained
What the Nano-entrepreneur is — the new category under LC 214/2025. How it is taxed and how it differs from the MEI (individual micro-entrepreneur).
Executive summary: Brazil’s Tax Reform (LC 214/2025) introduces the figure of the Nano-entrepreneur. It is an even more simplified tier than the MEI (individual micro-entrepreneur), aimed at very low-revenue businesses. Learn who can qualify, how taxation is expected to work, and how this category differs from the MEI.
What the Nano-entrepreneur Is
The Nano-entrepreneur is a new figure in Brazilian law, created in the context of the Tax Reform. It is a category aimed at very low-revenue businesses, in a band below today’s MEI (individual micro-entrepreneur).
Under the guidelines of the proposal, the Nano-entrepreneur is expected to operate within a simplified system, with reduced payments and little bureaucracy. The official definition, however, still depends on complementary regulation.
Who Can Be a Nano-entrepreneur
Complementary Law 214/2025 frames the Nano-entrepreneur as an even simpler profile than the MEI, potentially covering:
- Service providers with very low revenue, in a band below the MEI’s, according to the final definition;
- Self-employed workers who provide occasional services
- artisans and small vendors who deal directly with the end consumer
The goal is to bring into the formal system those who today do not formalize because they consider the MEI process costly or overly bureaucratic. The Nano-entrepreneur proposal aims to lower the barrier to entry and simplify tax payment.
Practical example: Fernanda bakes homemade cakes and sells them to neighbors and friends once a week, earning roughly R$ 1,200 a month. Today, she does not formalize her business because she sees no advantage in it. As a Nano-entrepreneur, she could pay a tiny fixed amount and gain access to benefits such as retirement, all while staying within the law in a simple way.
Comparison: Nano-entrepreneur vs. MEI vs. Simples Nacional
How the Nano-entrepreneur Is Taxed
The core idea is that the Nano-entrepreneur should not have to calculate CBS and IBS separately. Instead, they would operate under a simplified payment, with amounts and bands set by regulation.
The main advantage proposed is simplicity: fewer ancillary obligations, less manual calculation, and a lower barrier to entry for formalizing.
Practical example: Pedro is a self-employed bricklayer who does small maintenance jobs, earning around R$ 2,500 a month. Today, he has no CNPJ (company tax ID) and is paid in cash. If the regulation confirms a simplified classification for his profile, formalizing could become cheaper and less bureaucratic than under the current model.
When the Nano-entrepreneur Makes More Sense Than the MEI
For very small businesses, below the MEI’s revenue ceiling or in a similar profile, the Nano-entrepreneur may be more attractive thanks to its simplicity and potentially lower cost. But there are points to consider:
- Activity limitations: the final list of permitted activities still depends on regulation.
- Tax credits: the Nano-entrepreneur will have even less access to credits than the MEI, which can matter if you buy a lot of inputs.
- Growth: if revenue grows, transitioning to the MEI or Simples will be necessary.
Want to understand how the Tax Reform creates the Nano-entrepreneur and whether this new category is right for you? On /en/napratica, VMAHUB publishes practical guides for businesses. For a personalized analysis of your case, talk to our team: [email protected]
Read also:
- The MEI Under the Tax Reform
- Simples Nacional Under the Tax Reform
- Individual vs. Incorporated Professional Under the Tax Reform
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