What’s in a CNPJ

Before doing business in Brazil, both domestic and foreign legal entities must obtain a CNPJ or Cadastro Nacional da Pessoa Jurídica. Similar to an EIN in the US, a CNPJ is the taxpayer ID number assigned by the Brazilian Revenue Service (Receita Federal).

A CNPJ number consists of 14 digits formatted as xx.xxx.xxx/xxxx-xx. The first eight digits represent the company’s registration number while the next four digits indicate the number of branches (filiais) the company has. Finally, the last two digits are random verifying numbers.

Looking up a company’s CNPJ reveals the entity’s formation date, current address, legal name, and any DBA. As to the company purpose, the CNPJ includes codes and brief descriptions of the primary and secondary business activities. You’ll also find the entity type, such as Limitada, for example.

Another crucial piece of information provided in the CNPJ is the current status of the legal entity. There are five possible categories, but you’ll most commonly see three: active (ativo), suspended (suspenso), or cancelled (baixado or cancelado).

An active status means that the company is operational and in compliance with its obligations to the federal tax authority. A suspended status indicates that there’s something pending - usually an unpaid tax - meaning the company is prohibited from conducting business. A cancelled status reflects that the entity has been dissolved either voluntarily by the shareholders or through an administrative decision, often following a suspension.

The CNPJ is not just a legal requirement in Brazil but a critical registration that must be maintained.