MEI Disqualification (Desenquadramento): Causes, Deadlines, and What to Do

MEI (Microempreendedor Individual, Individual Microentrepreneur) disqualification (desenquadramento) happens when the business stops meeting the requirements of the regime, such as exceeding the R$ 81,000.00 per year revenue limit, carrying out a non-permitted activity, having more than one establishment, or taking part in another company. The MEI must report the situation within the Receita Federal's deadline and regularize as a microenterprise (microempresa).

Most common causes

The grounds are in Lei Complementar 123/2006 (Complementary Law 123/2006) and Resolução CGSN 140/2018.

• Exceeding the annual gross revenue limit (or the prorated limit of the year of opening).
• Carrying out an activity not listed in Annex XI of Resolução CGSN 140/2018.
• Having more than one establishment.
• Taking part in another company as owner, partner, or administrator.
• Assigning or leasing out labor.
• Maintaining a relationship of personal service, subordination, and habitual work with the client (typical of an employment relationship).
• Hiring more than one employee or paying the employee more than allowed (minimum wage or the category's wage floor).

Disqualification for excess revenue

The consequence depends on how far the MEI exceeded the limit.

• Up to 20% above the cap (up to R$ 97,200.00, for the R$ 81,000.00 limit): the report is due by the last business day of the month following the excess. The effects begin on January 1 of the following year, and the amount on the excess is paid on a separate slip (DAS of excess, or DAS de excesso), due in January.
• More than 20% above the cap: the effects are retroactive to January 1 of the year of the excess (or to the start of the activity, if the limit was prorated).

Example: an MEI had revenue of R$ 100,000.00 in the year. The limit was R$ 81,000.00, and the excess was R$ 19,000.00, or 23.5% above the cap. Since it exceeded 20%, the disqualification is retroactive to January 1 of that year.

Disqualification for other situations

When the reason is a prohibition (for example, opening another company), the report must be made by the last business day of the month following the event, and the effects apply from the following month. The MEI can also request disqualification by choice, at any time, with effects on January 1 of the following year; if requested in January, the effects apply in the same year.

Step by step: what to do

1. Check the year's accumulated revenue and the situation that caused the problem.
2. File the disqualification report on the Portal do Simples Nacional, within the deadline.
3. Regularize the CNPJ (business taxpayer ID) as a microenterprise (ME); see the guide on from MEI to microenterprise.
4. Consult an accountant to calculate the taxes of the new classification under the Simples Nacional.
5. Keep invoices, DAS payment receipts, and the annual declaration, which will be useful for regularization.

What changes afterward

As a microenterprise under the Simples Nacional, the business stops paying the fixed DAS-MEI amount and starts calculating taxes on revenue, with broader obligations. The cost depends on the activity and revenue, and an accountant can simulate both scenarios. See the guide on accountants for MEIs and MEs.

Frequently asked questions

Is being disqualified the same as closing the MEI?

No. Disqualification means leaving the MEI regime. The business can keep operating as a microenterprise. Closing means deregistering the CNPJ.

Who must report the disqualification?

The MEI itself, through the Portal do Simples Nacional, within the deadline set by the Receita Federal (Brazilian Federal Revenue Service).

What happens if I do not report it?

Taxes may be charged retroactively, along with fines, depending on the case. Seek guidance as soon as possible and report within the deadline.

Read also

• MEI revenue limit in 2026 and what happens if you exceed it
• From MEI to microenterprise: when and how to move
• Simples Nacional in 2026: how it works, limits, and annexes