Lya Doria Maed
Lawyer at Marcos Martins Law Firm
Resolution No. 4533, issued by the National Monetary Council (“CMN”), published in the Official Gazette on November 24, 2016, and Circulars No. 3814 and No. 3822, issued by the Central Bank of Brazil (“BACEN”), provide for the mandatory registration of foreign capital in Brazil. .822, issued by the Central Bank of Brazil (“BACEN”), govern the registration of foreign capital in the country, establishing the obligation of Brazilian companies receiving foreign investments to keep updated in the Direct Investment Register (RDE-IED) the value of their net equity and paid-in capital, including details of each foreign investor listed in the register.
This update applies to companies in the following ways
– Companies receiving foreign direct investment with assets or net worth of less than R$ 250,000,000.00 (two hundred and fifty million reais) must provide an annual economic and financial statement, by March 31st, referring to the base date of December 31st of the previous year; o
– Companies receiving foreign direct investment with assets or net worth equal to or greater than R$ 250,000,000.00 (two hundred and fifty million reais) must provide 4 (four) economic-financial statements per year, observing the following schedule
- for the base date of March 31, it must be submitted by May 31
- for the base date of June 30, it must be provided by August 31
- for the base date of September 30, it must be provided by November 30
- for the base date of December 31, it must be February 28 of the following year
If the deadline falls on a day when BACEN is not open for business, the deadline will be extended to the first working day thereafter.
Updating after the stipulated deadline, as well as submitting the information in error, with false or incomplete information, or failing to update, is subject to a fine of up to R$ 250,000.00 (two hundred and fifty thousand reais) by BACEN.
It is worth noting that the new periodic obligations set out in recent normative acts do not remove the obligation to update the RDE-IED within 30 days of the occurrence of any event that changes the foreigner’s shareholding in the company.
The law firm Marcos Martins Advogados is at your disposal for any clarifications and measures regarding the aforementioned obligations.
