Opening a business requires the entrepreneur to comply with certain rules for formalization, one of which is the issuance of the Business Registration Identification Number (NIRE), whose main function is to prove the legality of an enterprise.
As of 2019, however, the NIRE is no longer mandatory with the passage of the Economic Freedom Act. Check out what NIRE is, its importance and much more, below:
What is NIRE?
The NIRE, or Business Registration Identification Number, is a registration code consisting of an 11-digit string unique to each business. Just as the CNPJ performs the function of the CPF of a company, the NIRE is similar to an RG for the legal entity.
Why is NIRE important?
Anyone wishing to start the process of opening a company must first register with the Board of Trade, as only with the NIRE in hand will it be possible to generate the CNPJ — making it essential for formalizing a business.
Despite being created to include all types of companies, the code is especially important for those related to commerce — mainly in the food sector, as it proves its regularity to operate.
It is worth mentioning that the NIRE ensures the company’s fiscal security, avoiding apprehensions, fines and suspension of activities in cases of inspection.
How to get the NIRE?
Just go to the responsible agency with the following documents:
- Authenticated copy of the identity of the administrators or the holder;
- Completion of the Application of the Board of Trade;
- Completion of the National Registration Form;
- Articles of Incorporation, Minutes of the General Meeting of Incorporation or Application of Individual Entrepreneur;
- Federal Revenue Collection Document (DARF);
- Payment of fees with the Collection Guide.
What changes with the Economic Freedom Act?
The NIRE is no longer mandatory with the Economic Freedom Law, as the measure aims to simplify the process of opening companies, promoting less bureaucracy. Many states, however, have not yet updated their systems and may require the registration code.
The identification number may no longer be mandatory, but it is still important to prove the legality of an enterprise. In addition to ensuring access to various advantages, such as: authorization to sell products; corporate name protection; issuance of invoice; and participation in public tenders.
