Learn how to open a solar energy company

Are you going to start operating in the solar market? Do you already know what type of company to open? You need to read this article.

Photovoltaic solar sources are experiencing considerable growth in Brazil, with increasingly important economic, social and environmental benefits for our society.

According to ABSOLAR (Brazilian Association of Solar energy Photovoltaic), By January 2019, the country had more than 500 MW of DG (distributed generation) with photovoltaic systems.

This market growth will require the creation of new integrating companies spread across the country. But what does it take to open a company in this field?

Although some issues vary between Brazilian states, the business opening process is made up of a series of common steps, mandatory for everyone. It is always advisable to consult a competent professional, in this case an accountant.

The objective of this article is to provide general information so that discussions with this professional are more productive and targeted. Firstly, it is recommended that the business plan, describing the company's objectives and what steps must be taken to achieve these objectives, one of which is the formal opening of your company.

The business plan will help you define which parts of the value chain your company will operate in: commerce, installation, engineering or all of them. Having defined this, you will have to fit into one of the possible modalities:

• Limited Company (Ltd);
• Limited Liability Company (Eireli);
• Individual entrepreneur or;
• Individual Microentrepreneur (MEI).

Furthermore, we also recommend carrying out solar energy courses and training to acquire specific knowledge about the market and its particularities.

Limited Company (Ltd.)

To open a Ltd. the existence of at least two partners is required. A minimum share capital is not required, however it is taken into account that the partners declare at least the opening costs and initial operating costs until the company generates revenue.

Another important point is that in the case of debts, the partners will respond with their personal assets, within their share in the society. For example, if there are two partners and each of them responds to 50% of the company, in case of debts, they will divide the payment responsibility in half.

Limited Liability Company (Eireli)

If you intend to open a company without partners, you can opt for an Eireli. The minimum share capital required to open a company of this type is 100 minimum wages. With regard to debts, the main difference is that the entrepreneur's personal assets will not be used to fulfill obligations, personal assets are separated from the company's assets.

individual entrepreneur

This modality also does not require the presence of partners to open your company. With regard to share capital, the same rules apply to a Ltd. In the case of debts, the businessman's assets will be used to pay creditors. This also applies to personal debts, and the company's assets can be used to pay them off.

MEI (Individual Microentrepreneur)

If you work in commerce, installation or both activities, you can choose to be a MEI. This modality excludes the possibility of working in engineering. To be a MEI, revenue is limited to R$81 per year and you cannot participate in another company as a partner or owner. The MEI will pay around R$54 monthly as taxes (DAS – Simples Nacional Collection Document).

Opening costs and deadlines

Costs and deadlines will vary from state to state. Opening fees with the local commercial board must be between R$200 and R$350. If the company has engineering services in its activities, it also has the costs of registering the company with CREA (Regional Council of Engineering and Agronomy ), paying the registration fee of R$310 and annual fee of R$470.

The average deadlines for commercial boards are between 15 and 30 days. Once the opening with the commercial board has been completed and the CNPJ has been issued, you can apply for CREA, which has a registration period of 30 days.

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Tax regime: simple national, real profit or presumed profit?

Depending on the company's revenue, it must opt ​​for one of these regimes. Taxes for each activity will vary according to the tax regime in which the company is classified.

Simple national

For Simple national, the company should have a maximum turnover of up to R$4,8 million per year. The idea of ​​this tax regime is to make life easier and simpler for micro and small companies. Taxes are differentiated, varying according to revenue, which is separated into revenue bands, up to the established limit. Companies included in this category also have simplified labor and social security obligations.

Presumed profit versus Real profit

Companies with expected annual revenues exceeding R$4,8 million opt for these regimes. Opting for one or the other depends on a detailed analysis. This analysis must be done together with your accountant, considering factors such as revenue, expenses, number of employees, purchase of products for resale and others.

Which CNAE to use?

Finally, the CNAEs (National Classification of Economic Activities that the company will carry out) must be defined. The company may have more than one CNAE, these being the most common among companies operating in the photovoltaic market:

• CNAE 4292-8/02 – Industrial assembly works;
• CNAE 4321-5/00 – Electrical installation and maintenance;
• CNAE 4742-3/00 – Trade in electrical material and equipment;
• CNAE 7490-1/04 – Intermediation and agency activities for services and businesses in general, except real estate;
• CNAE 7112-0/00 – Engineering services. (Not allowed for MEI)

Finally, it is worth highlighting that to increase the visibility of your new company and attract qualified customers, advertise on Canal Solar can be a great differentiator. It is one of the main platforms specialized in the photovoltaic sector, with a highly segmented audience interested in solar energy solutions. This way, you increase your chances of closing deals, strengthening your brand and standing out in a constantly growing market.