Working as an individual contractor: step by step guide to getting started and essential care
Posted: Sun Feb 02, 2025 6:35 am
There are still several doubts about how to work as an individual contractor .
Among them, we can mention: whether it is advantageous, whether it is more profitable, what are the benefits, challenges, advantages and disadvantages.
We have created content that will, in fact, be a great ally for you to resolve all these doubts.
Keep reading and clear up any doubts you may have on the subject!
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Attract, assess and select the best candidates with Sesame RH's recruitment tool
Streamline and improve the entire recruitment process. Simplify the hiring process and build an exceptional team that drives growth for your organization.
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What is it like to work as an individual contractor?
First, let's see what this acronym means: PJ is the acronym that defines Legal Entity. Therefore, we can say that the term is used to identify a company, regardless of its size.
A professional can be considered a legal entity when providing services only bahamas whatsapp list if he/she has a CNPJ, which stands for National Registry of Legal Entities. Otherwise, he/she will still be a PF, that is, an Individual.
In principle, despite being granted by law, the hiring of PJs does not have specific regulations. Therefore, it is not specific regarding working hours, work format, absences, among other aspects. Therefore, a service provision contract becomes essential so that the PJ professional can rely on it, if necessary.
In short, working as an individual contractor is nothing more than making an agreement with another company, that is, your company will hire another company to be a service provider.
Now that we know what it is and how to work as a PJ , let's look at a step-by-step guide to opening your CNPJ and becoming legally compliant.
Steps to open your CNPJ and regularize your status
There are some basic steps that must be taken to open a CNPJ, we have listed the essential ones below.
Determine what your accounting will be
In addition to helping you with bureaucratic procedures such as opening a CNPJ, it will guide you on strategic choices for your business.
Accounting will certainly guide you on the types of companies and which one is most suitable for your business.
Registration with the Commercial Board
Registration with the Commercial Registry legalizes business activity before the government and society, granting the company a legal identity. Here are the essential steps to effectively register with the Commercial Registry:
Preparation of documentation
Feasibility consultation
Registration of the Articles of Association
State or Municipal Registration
Afterwards, depending on the nature of the business, it may be necessary to register with the State and Municipal Government. This step is essential for companies that sell products or provide certain services.
Obtaining permits and licenses
Accounting provides guidance on obtaining permits and licenses, which the company requests from the competent bodies, depending on the type of activity.
BR - Blog CTA - 10 signs need an HR Software
Advantages of being in good standing with your CNPJ
There are numerous irregular activities in the country, and the problem with informality is the lack of guarantees. If a citizen does not fulfill their obligations to the State, they will also not have access to certain rights and benefits. See the advantages that regularizing your CNPJ offers:
Tax identification . The CNPJ is essential for the government to identify and track the financial and tax activities of companies. People use the CNPJ to file taxes, make commercial transactions, open bank accounts, obtain credit and carry out various financial transactions.
Legitimacy . Having a CNPJ demonstrates the legality of a company. This establishes a bond of trust with customers, suppliers, business partners and investors.
Compliance with tax obligations . All companies are required to declare income and pay taxes in accordance with current tax laws, and the CNPJ is used to record this information and ensure tax obligations are met.
Access to benefits and resources . With a regular CNPJ, it is possible to have access not only to tax benefits and special credits, but also to business credit lines and government incentive programs.
Facilitation of commercial transactions . The CNPJ is used to identify the parties involved and issue reliable invoices. It helps to ensure security in commercial transactions, preventing fraud.
Formalization of companies . Having a CNPJ is an important step in formalizing a company, since it can even participate in public tenders and competitions.
Among them, we can mention: whether it is advantageous, whether it is more profitable, what are the benefits, challenges, advantages and disadvantages.
We have created content that will, in fact, be a great ally for you to resolve all these doubts.
Keep reading and clear up any doubts you may have on the subject!
sesame hr logo
Attract, assess and select the best candidates with Sesame RH's recruitment tool
Streamline and improve the entire recruitment process. Simplify the hiring process and build an exceptional team that drives growth for your organization.
Free trial
What is it like to work as an individual contractor?
First, let's see what this acronym means: PJ is the acronym that defines Legal Entity. Therefore, we can say that the term is used to identify a company, regardless of its size.
A professional can be considered a legal entity when providing services only bahamas whatsapp list if he/she has a CNPJ, which stands for National Registry of Legal Entities. Otherwise, he/she will still be a PF, that is, an Individual.
In principle, despite being granted by law, the hiring of PJs does not have specific regulations. Therefore, it is not specific regarding working hours, work format, absences, among other aspects. Therefore, a service provision contract becomes essential so that the PJ professional can rely on it, if necessary.
In short, working as an individual contractor is nothing more than making an agreement with another company, that is, your company will hire another company to be a service provider.
Now that we know what it is and how to work as a PJ , let's look at a step-by-step guide to opening your CNPJ and becoming legally compliant.
Steps to open your CNPJ and regularize your status
There are some basic steps that must be taken to open a CNPJ, we have listed the essential ones below.
Determine what your accounting will be
In addition to helping you with bureaucratic procedures such as opening a CNPJ, it will guide you on strategic choices for your business.
Accounting will certainly guide you on the types of companies and which one is most suitable for your business.
Registration with the Commercial Board
Registration with the Commercial Registry legalizes business activity before the government and society, granting the company a legal identity. Here are the essential steps to effectively register with the Commercial Registry:
Preparation of documentation
Feasibility consultation
Registration of the Articles of Association
State or Municipal Registration
Afterwards, depending on the nature of the business, it may be necessary to register with the State and Municipal Government. This step is essential for companies that sell products or provide certain services.
Obtaining permits and licenses
Accounting provides guidance on obtaining permits and licenses, which the company requests from the competent bodies, depending on the type of activity.
BR - Blog CTA - 10 signs need an HR Software
Advantages of being in good standing with your CNPJ
There are numerous irregular activities in the country, and the problem with informality is the lack of guarantees. If a citizen does not fulfill their obligations to the State, they will also not have access to certain rights and benefits. See the advantages that regularizing your CNPJ offers:
Tax identification . The CNPJ is essential for the government to identify and track the financial and tax activities of companies. People use the CNPJ to file taxes, make commercial transactions, open bank accounts, obtain credit and carry out various financial transactions.
Legitimacy . Having a CNPJ demonstrates the legality of a company. This establishes a bond of trust with customers, suppliers, business partners and investors.
Compliance with tax obligations . All companies are required to declare income and pay taxes in accordance with current tax laws, and the CNPJ is used to record this information and ensure tax obligations are met.
Access to benefits and resources . With a regular CNPJ, it is possible to have access not only to tax benefits and special credits, but also to business credit lines and government incentive programs.
Facilitation of commercial transactions . The CNPJ is used to identify the parties involved and issue reliable invoices. It helps to ensure security in commercial transactions, preventing fraud.
Formalization of companies . Having a CNPJ is an important step in formalizing a company, since it can even participate in public tenders and competitions.