What is the CNPJ number used in Brazil?

Sarah Parker
Authored by Sarah Parker
Posted: Friday, March 15, 2024 - 09:24

Launching a business abroad requires knowledge of the regulations of the destination country. Tax regulations play a special place. Each country has different methods of identifying entities for tax purposes, and different rules for their implementation. An example of a popular country is Brazil. It is a frequent tourist destination for many people from all over the world. Therefore, by doing business in Brazil, one can hope to increase revenue from the sale of products offered.

CPF and CNPJ registries in Brazil

The most important issue related to Brazilian tax laws is to be familiar with the registry systems of individuals and companies. There are two main registries in the country, referred to by the acronyms CPF and CNPJ in Brazil. The first is the Cadastro de Pessoas Físicas, or registry of individuals. Entrepreneurs will be more interested in the CNPJ, or Cadastro Nacional da Pessoa Jurídica. This stands for the national registry of legal entities. Only after acquiring a CNPJ number can a company obtain its own identification number, which is necessary for doing business.

Characteristics of identification numbers

The identification numbers of the different registries differ, and the easiest way to identify them is to check the number of digits written. The CNPJ number is longer and consists of 14 digits, while the CPF has only 11 digits. It is worth remembering that both numbers are also stored in the form of digital certificates, which have a limited validity - the expiration period ranges from one to three years. They can be stored on a mobile device, as well as on a computer in the form of a token for data storage.

Fundamental information about the company

With the knowledge we already have of what is the CNPJ in Brazil, it is worth noting that it is not a random number. Knowing only this number, we have access to basic information about registered companies. The CNPJ number consists of 14 digits, which are divided into 3 crucial parts. The first 8 digits determine the registration number, which is unique for each entity. The next 4 digits are the designation of the company's registered office or branch. For the former case, the code 0001 is used, for the latter, 0002 or larger digits are used to designate the subsequent branches of a given company. The last 2 digits of the CNPJ number are check digits. They are used to verify the validity of the entire identification number.

Advantages of acquiring a CNPJ number

The condition for obtaining a CNPJ in Brazil is to register the company with the State Board of Commerce. This is tantamount to appointing a legal representative to handle the company registration process. After that, the CNPJ number can already be obtained from the Federal Revenue Bureau. This number is registered with the Brazilian Central Bank, making it possible to carry out the registration procedure in the local municipality and obtain the permits required to operate the business. This solution ensures that the company can freely use the services available in Brazil, and reduces the possibility of tax fraud.

Working with an accounting firm

Obtaining a CNPJ in Brazil may actually appear to be difficult. However, it can be simplified by choosing to use the services of an accounting firm. There are many companies on the market today that offer assistance in this regard, as well as comprehensive advice and consultation on tax issues. Such measures make it possible to be sure that business will always be conducted in accordance with current regulations. The trader will not be exposed to problems that could reduce revenues from the sale of products in Brazil.

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