Brazil has surpassed the milestone of 64 million registered CNPJs, a number 7.72% higher than the same period in the previous year, according to the second edition of the study “CNPJs of Brazil” by BigDataCorp. Looking only at active companies, the growth was even greater: 16.11%, rising from 21.8 million establishments to 25.3 million.
This rapid advancement, however, has brought a new reality: the imminent exhaustion of the current CNPJ model, composed solely of numbers. In direct response to this expansion, the Federal Revenue announced that, starting in July 2026, the National Register of Legal Entities (CNPJ) will have a new format, which will include letters and numbers. The measure aims to expand the number of possible combinations and ensure the continuity of new business registrations in the country.
“The implementation of the alphanumeric CNPJ aims to ensure the continuity of public policies and guarantee the availability of identification numbers, without causing significant technical impacts for Brazilian society,” the agency stated in a release.
MEIs and ‘Pejotização’ Drive Growth
The expansion driving the change is especially visible in the micro and small business segment. Individual microentrepreneurs (MEIs) grew by 20.90% in the last 12 months and now account for 78.74% of active CNPJs in the country. Small family businesses, with two or more partners from the same family, are the second-largest category, representing 9.75% of the total. Altogether, 88.49% of Brazilian organizations are micro or small family businesses.
Thoran Rodrigues, CEO of BigDataCorp, highlights that the growth is the result of two major trends. “First, we have the strong phenomenon of ‘pejotização.’ Many people who were previously employed with a formal contract have started working as service providers, structuring their activities as businesses,” he explains.
This transformation is observed in the growth of companies declaring ‘sales promotion’ or ‘administrative support’ as their main activities. Together, they accounted for 6.76% of CNPJs opened throughout 2024.
“The formalization of small businesses, especially those linked to the so-called ‘gig economy,’ is the second major trend,” adds Rodrigues. Activities in the passenger and cargo transport sector, as well as services like hairdressers and manicurists, also had a significant share in business openings.
The Future of CNPJ: What Changes with the Alphanumeric Format?
The transition to the new model is scheduled for July 2026 and will be implemented progressively. Below, understand the key points of the change:
What is the CNPJ like today, and how will it change?
- Currently:The structure has 14 numbers (eight for company identification, four to indicate headquarters or branch, and two verification digits).
- New Format:It will retain the 14 characters but will be alphanumeric. The first eight digits (identification) and the next four (headquarters/branch) may combine letters and numbers. The two verification digits at the end will remain exclusively numeric.
Who will be affected by the change?
The change will apply only to new registrations and the inclusion of branchesstarting in July 2026. For those already registered with a CNPJ, nothing changes: the number will remain the same, and no registration updates will be required. The registration process will also remain unchanged.
How should companies adapt?
The main adaptation will be technological. Companies will need to update their software and internal routines (such as invoice issuance systems) to process the new CNPJ format. Systems must be able to validate both old numeric records and new alphanumeric ones. This adaptation may generate costs for entrepreneurs but will be essential to avoid failures in issuing tax documents and communicating with customers and suppliers.
Despite Growth, Business Mortality Increases
Despite the boom in openings, the BigDataCorp study also revealed an increase in business mortality. Proportionally, more businesses closed in 2024 than in any previous year, except for 2021, the peak of the pandemic.
Much of this mortality is related to a market adjustment. For example, there was a disproportionate closure of businesses in the food preparation for delivery sector, which had grown exponentially between 2020 and 2022. Throughout 2024, 1.66% of all closed businesses operated in this area.
“This acceleration in closures, when combined with the increase in openings, points to greater volatility in the Brazilian market, with businesses being less long-lived and more churn,” concludes the executive.
