Brazilian companies that have foreign direct investment must submit to the Central Bank of Brazil (BACEN) the updates of their periodic social and economic-financial information, through the Foreign Direct Investment (IED) and Electronic Declaratory Registration (RDE) module.
Failure to provide information regarding foreign capital in the country, as well as the provision of false, incomplete, incorrect or late information, is subject to the application of a fine that may reach up to BRL 250,000.00.
The deadlines to provide information, as well as the type of information to be transmitted, may vary depending on the value of the assets or net worth of the company.
See below if your company is subject to the obligations set forth in the legislation1:
A. Companies with foreign direct investment with assets or net worth lower than R$ 250,000,000.00 as of the base date of 12.31.2018. They shall provide the following information up to 03.31.2019,:
- Update its corporate chart for the base date of 12.31.2018;
- Inform (i) company’s net worth, (ii) total paid-in social capital and (iii) paid-in social capital by each foreign investor.
B. Companies with foreign direct investment with assets or net worth higher than R$ 250,000,000.00 as of the base date of 12.31.2018. They shall provide the economic/financial information quarterly, as follows:
- Up to 03.31.2019, referring to the base date of 12.31.2018;
- Up to 06.30.2019, referring to the base date of 03.31.2019;
- Up to 09.30.2019, referring to the base date of 06.30.2019;
- Up to 12.31.2019, referring to the base date of 09.30.2019.
The teams of the Fraga, Bekierman & Cristiano Advogados office are prepared to attend to the queries arising from the legislation in question and provide the necessary assistance.
1 Laws 4,131, of 1962, and 11,371, of November 28, 2006 and Ordinances BACEN 3,857/17 and 3,822/17.