What is CNAE? And what is its importance for regulating your company?
As it is a common question in the regulatory field, Stone Okamont provides in this content what CNAE is and its importance for regulating your company. Keep reading the blog, and if you have any questions, speak with one of our consultants.
What you'll find in this blog:
- What is CNAE?
- Who should obtain CNAE?
- How to classify your company's CNAE?
- What is the importance of CNAE for those who are regulating their company?
- When CNAE is required?
What is CNAE?
CNAE stands for "Classificação Nacional de Atividades Econômicas" in Portuguese, which translates to the National Classification of Economic Activities in English. It is a code used to classify and identify the primary activity of a company or establishment in Brazil. It is a standardized system of codes that categorizes economic activities according to their nature.
Each company or establishment is classified by a specific CNAE code that reflects its primary activity. This code consists of a sequence of numbers and letters following a hierarchical and organized system, where each digit represents a category or subcategory of economic activity.
Who should obtain CNAE?
All companies and establishments in Brazil should obtain CNAE. When opening a company, it is necessary to define the economic activity that will be conducted and, based on that definition, assign the corresponding CNAE code.
How to classify your company's CNAE?
The first step in classifying your company's CNAE is to consult with your accountant. The classification of a CNAE is of utmost importance and can potentially affect future business authorization and product registration.
The second step is to identify in the CNAE codes and denominations table which activity code best suits your company, considering what your company will operate, whether it will involve resale, service provision, marketing, and what goods will be involved. Therefore, it's crucial that your accountant has all the information and procedures that will be carried out by your company. After this process of activity identification, you will know whether you will have only one CNAE or multiple codes.
What is the importance of CNAE for those who are regulating their company?
CNAE is of great importance for those who are in the process of regulating their company for several reasons. It is a code that identifies the primary activity carried out by the company and holds significant relevance in registration, taxation, licensing, and legal compliance processes.
When is CNAE required?
CNAE (National Classification of Economic Activities) is required at various points during the life of a company or business venture in Brazil.
Difficulty in defining your CNAE?
We receive many clients who are in the initial stage of opening their company and are unsure about which CNAE is appropriate. Our company can provide assistance in choosing the right one, working alongside your accountant.
Count on Stone Okamont; we will present smart solutions for your company to succeed in obtaining Licenses, Authorizations, and Registrations, starting with the correct CNAE!
Contact us and discover our efficient solutions.