How to choose the CNAE without describing the wrong activity

The CNAE should not be chosen based on the most similar name or the lowest-looking tax rate. It needs to represent the activities actually carried out by the company. After this correspondence, tax, municipal and regulatory analyzes come into play.

The official starting point is research by the National Classification Commission, IBGE, with descriptions and explanatory notes.

Start by describing the operation in verbs

Before searching for codes, answer:

what the company sells or delivers;
for whom;
how revenue is generated;
which activities are performed internally;
whether there will be manufacturing, trade, intermediation or service provision;
where each activity will take place.

“Technology”, “marketing” or “food” are broad sectors, not sufficient descriptions. “Developing custom software”, “arranging advertising spaces” and “preparing meals for delivery” bring research closer to reality.

See description, inclusions and exclusions

In the official search, search by keyword and code. Open the explanatory notes to understand what the subclass understands and what it directs to other code.

Don’t stop at the title. Two subclasses with similar names can separate production from commerce, own intermediation service or face-to-face activity from another form of activity.

Main CNAE and secondary CNAEs

The company must indicate a main activity and may declare secondary activities. The main one must reflect the predominant activity according to the criteria applicable to the registration; secondary activities cover other activities actually carried out.

Avoid two extremes:

declare only a generic code and leave actual revenue streams unmatched;
include many codes “to be used one day” and trigger licenses or obligations unnecessarily.

The registration must accompany the operation. When the company changes what it does, review its corporate purpose, CNAEs, viability, taxes and licenses.

The CNAE does not decide everything alone

The code participates in several analyzes but does not produce an automatic and universal result.

Taxation

In Simples Nacional, taxation depends on the activity, accumulated revenue and, in some services, the relationship between payroll and revenue. It is not correct to say that each CNAE has a single fixed rate.

Licensing

The risk classification combines activity, location and conditions of the operation. The same CNAE can receive different treatments depending on the municipality, area, stock, equipment or public service.

Tax invoice

CNAE, municipal service code, NCM, CFOP and tax codes fulfill different functions. One should not be automatically copied into the other’s field.

Five-step validation method

List all revenue sources and deliverables.
Search for alternatives on the IBGE/Concla website.
Read the inclusion and exclusion notes.
Cross-reference the codes with corporate purpose, viability, licensing and tax regime.
Save the justification and review it when the operation changes.

Questions to ask the accountant

Which code describes each current revenue stream?
Does the social object include these codes?
Does any activity prevent or alter the treatment at Simples?
What licenses does each code activate at this address?
Is there a specific municipal or state registry?
How will the codes be used in tax-invoice issuance?

Choosing the CNAE is a step in the itinerary of how to open a company and obtain the CNPJ. VMAHUB can cross-reference real activity, registration, taxation and licensing before the protocol.