How to register an Empresa Simples de Inovação (Inova Simples): a step-by-step guide for startups

Inova Simples is the fastest and most accessible way to formalize a startup in Brazil. With automatic registration, no upfront costs and no notary bureaucracy, the regime created by LC 167/2019 and consolidated by the Brazilian Startup Legal Framework (LC 182/2021) lets entrepreneurs get a CNPJ (the Brazilian company registration number) in minutes. In this practical guide, we walk through the complete step by step to register an Empresa Simples de Inovação (Simple Innovation Company), the necessary requirements, the documents involved and everything you need to do after opening.

Why Inova Simples is ideal for startups

Before Inova Simples, opening a company in Brazil involved multiple steps: a preliminary inquiry at city hall, registration at the board of trade, operating licenses, state and municipal registrations. The process could take weeks and cost hundreds of reais in fees alone.

Inova Simples removes much of that bureaucracy. Registration is done entirely online, the CNPJ is generated automatically and there are no notary or board of trade costs at the initial stage. For startups that need to validate a business model quickly, that agility is essential.

Requirements to register under Inova Simples

For a company to be registered as an Empresa Simples de Inovação, it must meet the following cumulative requirements:

• Innovation activity: the company must develop new or significantly improved products, services or processes. The innovation can be technological or related to the business model, production process or management
• Startup definition (LC 182/2021): gross annual revenue of up to R$ 16 million and up to 10 years of CNPJ registration. However, within the Inova Simples regime, experimental sales are limited to R$ 81,000/year (the MEI ceiling, under Art. 65-A, paragraph 10 of LC 123/2006)
• Up to 10 years of CNPJ registration: companies that have existed for more than 10 years do not qualify as startups for Inova Simples purposes
• Qualification as an innovation company: as defined in article 4 of LC 182/2021, the company's activity must be characterized by innovation applied to its business model or to the products and services it offers

Step-by-step registration

Inova Simples registration is done through REDESIM (the national network for simplifying business registration and legalization). Here is each step:

1. Access the REDESIM portal

The starting point is the redesim.gov.br portal, which centralizes unified company registration in Brazil. You will need a gov.br account with silver or gold authentication level to access the services.

2. Run the preliminary feasibility check

Before the registration itself, the system runs an automatic feasibility check that verifies whether the company name is available and whether the intended activity is compatible with the address provided. In many municipalities, this step is integrated and automatic.

3. Fill in the registration form

In the form, enter the company's details: company name, address, owner or partner details, share capital and contact information. The name should reflect the company's innovative activity.

4. Choose the right CNAE

Choosing the CNAE (National Classification of Economic Activities) is critical. For innovation startups, the most common codes include:

You can look up the CNAE of similar companies on Inddex to identify which code best fits your activity.

5. Flag the company as an Empresa Simples de Inovação

The REDESIM form has a specific field to indicate that the company will be registered under the Inova Simples regime. Checking it is essential for the company to receive the legal nature and the differentiated treatment provided by law.

6. Describe the innovative business model

REDESIM requires a description of the innovative business model in a field of up to 500 characters. This text works as a condensed pitch and should make clear which problem the startup solves and how the solution is innovative. Be objective and highlight what sets your product, service or process apart.

7. Wait for the automatic review

As a rule, Inova Simples registration is immediate. The system processes the information automatically and, if everything is correct, approves the registration with no human review. In exceptional cases, there may be pending issues that require adjustments.

8. Get the CNPJ automatically

Once the registration is approved, the CNPJ is generated automatically. The company legally exists and can start operating. The registration certificate is available on the REDESIM portal and can also be checked on the website of the Receita Federal (Brazil's federal tax authority).

Required documents

Inova Simples registration requires minimal documentation:

• CPF (individual taxpayer ID) and identity document of the owner(s) or partner(s)
• Proof of address for the company's headquarters
• A gov.br account with silver or gold level
• Description of the innovative business model (up to 500 characters)
• Definition of the initial share capital (it can be symbolic at the early stage)

Unlike the traditional process of opening a CNPJ, there is no need for articles of association registered at a notary office, nor for board of trade fees.

Registration costs

As a rule, the initial Inova Simples registration is exempt from fees. There are no charges from boards of trade, notaries or DARE (the state revenue collection document) to form the company. This zero cost is one of the regime's main attractions for early-stage startups, which usually operate on limited resources.

After registering: next steps

Registering under Inova Simples is just the beginning. Here is what to do after getting the CNPJ:

Municipal registration

Depending on the activity and the municipality, you may need a municipal registration to issue service invoices. Check with the local city government for the specific procedures. In many municipalities integrated with REDESIM, this step is automatic.

Opening a business bank account

With the CNPJ in hand, open a business bank account. Several digital banks offer business accounts with no maintenance fees, which is ideal for early-stage startups. Separating personal and business finances is essential from day one.

Digital certificate

Although not required for registration, the digital certificate (e-CNPJ) is recommended. It is needed to issue electronic invoices, access Receita Federal systems and sign documents digitally. Startups that operate exclusively online tend to need it quickly.

Opting for the Simples Nacional

If the startup bills up to R$ 4.8 million/year and carries out a permitted activity, it can opt for the Simples Nacional (Brazil's simplified tax regime) as its tax regime. The option must be exercised within 30 days of the approval of the municipal or state registration (for new companies) or in January of each year (for existing companies). This combination — Inova Simples for registration + Simples Nacional for taxes — is the most common among small and mid-sized startups.

Angel investment: how asset protection works

One of the great advantages of the ecosystem created by Inova Simples and the Startup Legal Framework is asset protection for angel investors. Under articles 61-A to 61-D of LC 123/2006:

• The angel investor is not considered a partner and has no management powers
• The contribution does not become part of the company's share capital
• The investor does not answer for the startup's debts, even in court-supervised reorganization
• The angel investment agreement has a maximum term of 7 years
• The investor can convert the contribution into equity after a minimum period of 2 years

This structure encourages investors to bet on early-stage startups, since their personal assets remain protected if the business does not take off.

Regulatory sandbox: what it is and how to take part

LC 182/2021 provides for the creation of experimental regulatory environments, known as regulatory sandboxes. In them, startups can test innovative products and services under more flexible temporary rules, defined by the relevant regulator.

Bodies such as the Central Bank of Brazil, the CVM (Brazil's securities commission) and SUSEP (the private insurance regulator) already run regulatory sandbox programs. To take part, the startup must apply to the calls for proposals published by these bodies, demonstrating the innovative nature of its solution.

The sandbox is especially relevant for fintechs, insurtechs and other startups operating in heavily regulated industries.

Tips for early-stage startups

Frequently asked questions

How long does Inova Simples registration take?

As a rule, registration is immediate. When you fill in the REDESIM form with all the correct details, the system generates the CNPJ automatically, with no manual review. The whole process — from accessing the portal to getting the CNPJ — can be completed in under an hour. Issues with the address or the feasibility of the company name can cause delays, but they are the exception.

Do I need an accountant to register under Inova Simples?

No. The registration itself does not require an accountant. However, it is highly advisable to hire an accounting professional to help choose the tax regime, meet ancillary obligations and issue invoices. From the moment the startup starts billing, accounting support becomes practically indispensable.

Can I migrate an existing company to Inova Simples?

Yes, as long as the company meets the requirements: innovation activity, up to 10 years of CNPJ registration and experimental sales of up to R$ 81,000/year. The migration is done via REDESIM by requesting the change of legal nature and the qualification as an Empresa Simples de Inovação. Look up the company's current status on Inddex to check its current legal nature before starting the process.

What happens if the revenue limit is exceeded?

Within Inova Simples, the experimental sales limit is R$ 81,000/year (the MEI ceiling). If it exceeds that amount, the company must migrate to a regular registration and operation regime. Separately, if revenue exceeds R$ 16 million/year, it also no longer fits the startup definition of LC 182/2021. In both cases, removal from the regime is automatic. This does not mean the company is closed — it continues to exist, but it loses the Inova Simples benefits and must regularize its status with the board of trade or registry office, according to its legal form.