Insights
Foreign capital in a Brazilian subsidiary: registration with the Central Bank
Capital sent from abroad to a Brazilian company is registered with the Central Bank through the SCE-IED system. What it is and why it matters.
When a foreign parent funds its Brazilian subsidiary, the money is foreign direct investment. In Brazil it has to be reported to the Central Bank (Banco Central do Brasil), and the registration is what lets the capital be tracked and, later, remitted back in a regular way.
The system
Information on foreign direct investment is provided through the SCE-IED system, which replaced the former RDE-IED under Central Bank Resolution 278 of 2022. Access is by Sisbacen login, so the company needs its digital certificate and its representative set up first.
Periodic declarations
Beyond the initial registration, the Central Bank requires periodic declarations from companies that receive foreign direct investment, depending on their size. According to the Central Bank, the annual declaration applies to receivers with total assets of R$100 million or more at the base date, and the quarterly one to receivers with R$300 million or more. A five-year census declaration also exists. A young subsidiary will often be below these thresholds, but the rules should be checked each year.
Why we treat it as a step of the opening
- Capital entering through the banking system with the correct nature simplifies the later accounting and remittances.
- Late or incorrect declarations can lead to penalties and, in some cases, a suspension that blocks new foreign exchange operations of this type.
In our package, the injection of the initial capital and its registration are handled together with the bank account. See what the package includes.
General information, not legal advice for your case. Thresholds and deadlines change, so check the current Central Bank rules.