Legal nature: what it is and the types used in Brazil
Learn what legal nature (natureza jurídica) is, the most common types (Empresário Individual, LTDA, S.A., EIRELI), and how to look up any company's.
The legal nature (natureza jurídica) defines how a company is legally constituted — in other words, its form of organization under the law. It determines aspects such as the number of partners, asset liability, governance rules, and legal obligations.
What is legal nature?
Legal nature is a classification standardized by the Receita Federal (Brazil's federal tax authority) that identifies the type of entity. It should not be confused with company size (MEI, ME, EPP) — a Microempresa (micro-enterprise) can be an Empresário Individual (sole proprietor) or a Sociedade Limitada (limited liability company), for example.
The official table of legal natures is maintained by CONCLA (Brazil's national classification commission) and has more than 80 codes, organized into 5 major categories:
The 5 categories of legal nature
1xx — Public Administration
Bodies of direct and indirect public administration (federal, state, and municipal), autonomous agencies, public foundations, state-owned companies, and mixed-capital companies.
2xx — Business Entities
The most common category, covering all forms of private company:
3xx — Nonprofit Entities
Associations, private foundations, religious organizations, political parties, unions, cooperatives, NGOs, and civil society organizations (OSCIPs).
4xx — Individuals
A special category for individuals who need a CNPJ, such as rural producers, candidates for political office, and self-employed professionals in specific situations.
5xx — Extraterritorial Institutions and Funds
International organizations and diplomatic representations.
The most common legal natures
In Brazil, the vast majority of companies fall under just a few legal nature types:
An individual doing business in their own name. Includes MEIs (individual micro-entrepreneurs). Unlimited liability (personal assets answer for business debts).
Two or more partners with liability limited to the share capital. The safest and most popular form for small and medium businesses.
A single member with limited liability. It replaced the EIRELI in 2021. Ideal for solo entrepreneurs who want asset protection.
Capital divided into shares, with formal corporate governance. Used by larger companies that do not trade shares on the stock exchange.
How to look up a company's legal nature
The legal nature of any company is recorded in its CNPJ and can be looked up on Inddex. On the company's profile, the "Legal Nature" field shows the code and the full description.
Legal nature vs. size
Legal nature is often confused with company size (porte), but they are different classifications:
| Aspect | Legal nature | Size |
|---|---|---|
| Defines | Legal form of incorporation | Size by revenue |
| Examples | LTDA, S.A., EI, SLU | MEI, ME, EPP, Demais |
| Criterion | Ownership structure | Annual revenue |
| Combined example | An ME can be an EI or an LTDA; an EPP can be an LTDA or an S.A. | |
Learn more about size categories in the article Types of companies in Brazil.
Frequently asked questions
Can the legal nature be changed?
Yes, through a transformation process filed with the Junta Comercial (the state board of trade). For example, an Empresário Individual can become a Sociedade Limitada by admitting a partner. The change is reflected in the CNPJ record.
Which legal nature is best?
It depends on the context. For a solo entrepreneur who wants asset protection: SLU. For two or more partners: LTDA. For companies that need to raise investment or go public: S.A. For intellectual professions: Sociedade Simples (a non-business partnership).
Does the MEI have a legal nature?
Yes. The MEI is registered under legal nature 2135 (Empresário Individual), with the Microempreendedor Individual size category. What sets the MEI apart from other sole proprietors is the simplified tax regime and the revenue cap.