Brazilian entities that have received direct foreign investment must periodically submit to the electronic system of the Brazilian Central Bank information about net equity and paid-in corporate capital, in accordance with the Resolution 3689, of December 16, 2013.
1. Form of provision of information. Entities that have both total assets and net equity in amounts inferior to two hundred and fifty million reais (BRL 250,000,000.00) shall submit the statement to the electronic system of the Central Bank annually, and until March 31, 2022, in relation to the base date December 31, 2021.
Entities that have either the total assets or net equity in amounts equal to or higher than two hundred and fifty million reais (BRL 250,000,000.00) shall submit statements to the electronic system of the Central Bank quarterly, under the following schedule:
- The statement must be submitted by March 31, 2022 in relation to the base date December 31, 2021;
- The statement must be submitted by June 30, 2022 in relation to the base date March 31, 2022;
- The statement must be submitted by September 30, 2022 in relation to the base date June 30, 2022; and
- The statement must be submitted by December 31, 2022 in relation to the base date September 30, 2022.
2. Information to be provided. The entities shall inform the Brazilian Central Bank the value of their net equity, the paid-in corporate capital, and the amount of corporate capital paid-in by each foreign investor.
In addition, aside from the periodical statements above mentioned, in case of any modification of the equity participation of foreign investors, the entities that have received direct foreign investment shall update the information in its records on the electronic system of the Central Bank in up to thirty (30) days as of such modification.
3. Effects. The failure to provide information (or the failure to provide it within the deadline established) as well as the provision of false, incomplete, or incorrect information may subject the Brazilian entity that has received foreign investment to the imposition of a fine by the Central Bank.
Araújo e Policastro team is at your disposal to provide clarification on this matter and to assist you with the required measures before the Brazilian Central Bank.
