Obligations for Companies with assets or net equity LESS than BRL 250 million

OBLIGATION AND DEADLINE: By March 31, 2021, ALL Brazilian companies having foreign direct investments and with assets or net equity inferior to BRL 250 million, must update with the Foreign Investment Electronic Registration System (RDE-IED) of the Central Bank of Brazil:

1. their economic and financial information, and
2. the information related to the equity investment of each foreign investor on the company’s corporate capital.

BASE DATE: December 31, 2020.

WHAT TO DECLARE: Information related to the assets, liabilities, net equity, paid-in corporate capital and the equity investment of each foreign investor.

Obligations for Companies with assets or net equity EQUAL OR HIGHER than BRL 250 million
OBLIGATION: All Brazilian companies having foreign direct investments and with assets or net equity equal or higher than BRL 250 million must submit the Economic-Financial Report up to the following dates:

• March 31, 2021: Information related to the period between October 1, 2020 and December 31, 2020;
• June 30, 2021: Information related to the period between January 1, 2021 and March 31, 2021;
• September 30, 2021: Information related to the period between April 1, 2021 and June 30 2021; and
• December 31, 2021: Information related to the period between July 1, 2021 and September 30, 2021.

WHAT TO DECLARE: Information related to assets, liabilities, net equity, paid-in capital, profit / loss, revaluation of assets, exchange variation, estimated value of the Brazilian invested company and the equity interest of each foreign investor in its corporate capital, including information regarding the origin country.

Failure to comply with the obligations
The delay, failure or submission of incorrect or incomplete information may give rise to the imposition of sanctions by the Central Bank of Brazil, such as fines, suspension of exchange operations and more.

For more information please contact:
Suzana C. Cencin Castelnau – suzana.castelnau@dsalaw.com.br
Tomas Arruda – tomas.arruda@dsalaw.com.br

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