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, of the Brazilian Central Bank.
The periodicity and form of provision of information varies depending on the value of the assets or net equity of the entities that have received foreign investment, as follows:
1. Form of provision of information. Entities that have either assets or net equity in amounts equal to or higher than two hundred and fifty million reais (R$ 250,000,000.00) shall submit economic-financial statements quarterly, in accordance with the following calendar:
Entities that have both assets and net equity in amounts inferior to two hundred and fifty million reais (R$ 250,000,000.00) shall submit information by means of the Management of Ownership Structure Registration of the Central Bank. The information shall be provided annually, and the deadline to provide information in relation to the base date of December 31, 2018 expires on March 31, 2019.
2. Information to be provided. The entities shall inform to the Central Bank the amount 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 provision of information mentioned above, in case of any modification of the equity participation of foreign investors, the entities that received direct foreign investment shall update their records on the electronic system of the Central Bank in up to 30 days as of the date of such modification, in order to provide the information mentioned above (net equity, total paid-in corporate capital and corporate capital paid-in by each foreign investor) in accordance with Resolution 3689, of December 16, 2013.
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.
The Araújo e Policastro team is at your disposal to provide any clarification required and to assist you with the required measures before the Central Bank.