Maranhão Streamlines Business Formalization, Boosting Access to Credit and Suppliers

The state of Maranhão in Brazil has accelerated the process of business formalization, making it easier for entrepreneurs to access credit and establish relationships with suppliers. Small businesses constitute a significant portion of Maranhão's economy, representing 94.3% of approximately 370,000 active companies and employing over 1 million people, according to Sebrae. Formalizing a business by obtaining a National Registry of Legal Entities (CNPJ) allows informal workers to issue invoices, apply for business loans, negotiate with suppliers, and sell products or services to other companies. Many of these procedures can now be completed online, simplifying the process and reducing the need for physical documentation and travel. Sebrae Maranhão technical analyst Marise Abdala highlighted that regularization expands entrepreneurial opportunities, including access to specific credit lines for micro and small businesses, potentially with Sebrae's guarantee through FAMPE. It also leads to better purchasing conditions from suppliers, participation in public bids, and enhanced trust with clients and financial institutions. The Fundo de Aval às Micro e Pequenas Empresas (Fampe) acts as a supplementary guarantee for small businesses seeking credit without sufficient collateral. For new entrepreneurs, registering as an Individual Microentrepreneur (MEI) is free and can be done online in minutes. For other business sizes, digital registration processes have also been implemented, making company openings more agile. In Maranhão, the Junta Comercial do Maranhão (Jucema) offers services through the Empresa Fácil system, which integrates business viability checks and CNPJ applications. The payment of taxes varies by company classification, with MEIs paying a fixed monthly contribution and micro and small businesses potentially opting for the Simples Nacional regime, consolidating various taxes into a single payment. Formalization also enables businesses to register with distributors and wholesalers that exclusively serve legal entities, often leading to discounts, better payment terms, and easier acquisition of raw materials. The law also provides specific regulations for small businesses under Complementary Law No. 123 of 2006, offering differentiated treatment in taxation, credit access, and public procurement. Sebrae Maranhão provides guidance, training, and solutions to support entrepreneurs throughout these processes.