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Update of Foreign Capital Registration with the Central Bank of Brazil

The Central Bank of Brazil (BACEN) determines that Brazilian companies, who, on December 31, 2020, were recipients of foreign direct investment must, by March 31, 2021, update in the registration of foreign capital system (RDE-IED) their accounting information or file the Economic-Financial Statement, as the case may be, depending on the value of their assets or net equity.

Companies, who had assets or net equity on the base date in an amount smaller than R$ 250,000,000.00, must update the amounts of their paid-in capital and net equity.

In turn, companies with assets or net equity equal to or greater than R $ 250,000,000.00 on the base date must file the Economic-Financial Statement.

In this case, the Economic-Financial Statement must also be quarterly filed, as follows:

· Base date March 31, 2021: filing by June 30, 2021;
· Base date June 30, 2021: filing by September 30, 2021;
· Base date September 30, 2021: filing by December 31, 2021.

The lack of updating of the RDE-IED in the terms above, as well as the provision of incorrect or false information and the delay in the update may give rise to fines imposed by BACEN.

Franco Advogados is available to provide any information on the subject.

By Renata Pisaneschi and Gabriela Camargo

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