CNAE is the National Classification of Economic Activities valid for all economic agents in Brazil. This includes companies, public and private organizations, rural establishments and even self-employed professionals.
In its version 2.3, the CNAE defines all of Brazil's economic sectors into no less than 1,332 subclasses, divided into 21 sections, 87 divisions, 285 groups and 673 classes.
To give you an idea, today the country has more than 50 million active and inactive companies, distributed across 2,380 sectors of the economy, 27 states and 5,570 cities.
How did the National Classification of Economic Activities come about?
The CNAE was established in December 1994, following email lists australia its publication in the Official Gazette of the Union. Its project was the result of an extensive process of reviewing the classifications of economic activities in the country.
Currently, IBGE is the body responsible for CNAE documentation, in addition to developing support, dissemination and user assistance instruments regarding the application of the classification.
What is a company's CNAE for?
The CNAE serves to standardize the economic activities carried out by a given company in Brazil, in addition to being essential for those who wish to open a new business and obtain a CNPJ.
A company may have more than one CNAE, remembering that only one will be considered as the main economic activity of the CNPJ sought and the others reported as secondary, with a limit of up to 99 activities.
This classification can be very useful in a prospecting process, as the sales professional will be able to gather information to combine and cross-reference CNAE data with other segmentation criteria such as revenue, number of employees, companies growing or shrinking, tax regime and registration status, among others.
CNAE Simples Nacional: understand how it works
Simples Nacional is a simplified tax regime for micro and small businesses that have a turnover of up to R$4.8 million per year.
The CNAE is essential for joining Simples Nacional, as only economic activities permitted by CGSN Resolution No. 140/2018 can opt for this simplified tax regime.
For example, business intermediation, advertising and publicity activities, and private security services cannot opt for Simples Nacional.
What we learned about CNAE
The CNAE is an essential tool for the organization and standardization of economic activities in Brazil. Its use facilitates tax management, active market prospecting and classification in specific tax regimes, such as Simples Nacional.
To consult the complete and updated list of CNAE codes, it is recommended to use free tools such as the one offered by Econodata or directly on the IBGE website .
Questions and answers about CNAE
What is CNAE and what is it for?
CNAE is the acronym for National Classification of Economic Activities. It serves to standardize and categorize the economic activities of companies in Brazil, facilitating tax administration and market segmentation.
How do I find out my company's CNAE?
You can use online consultation tools, such as the one provided by Econodata , or access the IBGE website to identify the CNAE code corresponding to your company's economic activity.
Can I have more than one CNAE code?
Yes, a company can have a main CNAE code and up to 99 secondary CNAE codes, which represent additional economic activities carried out by the company.
What happens if I choose an inappropriate CNAE?
Choosing the wrong CNAE may result in non-compliance with the chosen tax regime, tax penalties and difficulties in carrying out specific economic activities.