background image Registration.

All foreign investment shall be subject to registration with the Central Bank.  Registration enables the foreign investor to (i) repatriate the initial investment, and (ii) remit from Brazil in USD the earnings or profits the investment may generate.  To carry out any of the foregoing actions, a foreign exchange bank in Brazil sells the USD to the Sub under an exchange contract. The subsidiary’s registered investment would include the USD sum of (i) the initial investment, (ii) any additional investment, and (iii) any profit reinvestment.  The aggregate amount would be the basis for repatriation of capital and assessment of any capital gains tax (which we will address in Part 4).

Registration is made electronically through the direct foreign investment-dedicated module ("RDE-IED Module") created by Central Bank within its online information system (SISBACEN).  

The foreign investor must first obtain from the Central Bank an access code to the RDE-IED Module.  After this, the Brazilian company applies for a permanent registration enrollment number in the RDE-IED Module that matches itself and the investment.  By so doing, the foreign investor will be enrolled with the Brazilian tax authorities. The Brazilian company would use the Matching Number for all registration processing related to foreign investments initial ownership interest in the Sub and any changes made to it at any time thereafter.