When a company is formed in Brazil, the first thing most people think to get is a taxpayer ID number (that is, a CNPJ) for the new company. Sure, you’re going to need it, but there’s another number you’ll need first. Before anything, you must get your NIRE.

NIRE stands for Número de Identificação do Registro de Empresas. After completing the procedures to incorporate your entity, the state trade board (Junta Comercial) assigns a unique eleven-digit identification number to your company. This number identifies each commercial entity that is registered with the state.

The first two numbers of the NIRE relate to the state of formation while the third number indicates the type of legal entity. So, for example, the NIRE for a limitada in São Paulo would start with 35 (for São Paulo) followed by 2 (for a limitada). Then, from the fourth number to the tenth number is the company’s registration number. And finally, the last number is a verifying digit.

In most cases, companies can apply to the Brazilian Revenue Service (Receita Federal) for their CNPJ only after being assigned a NIRE by the state trade board. It makes sense though, right? How would you get a taxpayer ID number if the company isn’t even formed yet?

While the company's CNPJ is important, so too is its NIRE. The NIRE proves your company exists and is authorized to do business. So don’t forget to get your NIRE. You won’t be able to do much without it.