The Committee for Economic Development, Industry and Commerce approved on Wednesday (5) Bill of Law 5696/09 which requires companies installed in Brazil but incorporated overseas to submit the Registration Form of Legal Entity (FCPJ) and the Board of Partners Administrators (QSA) when applying for registration, suspension or write-off in the National Register of Legal Entities (CNPJ).

The two proposals were presented to facilitate identification of members of companies based in tax havens, offshore calls, often used in crimes such as money laundering and tax evasion.

According to the approved text, the registration information of the company should cover the individuals authorized to represent it in the country. In the case of complex corporate structures, the requirement will be valid until a person is considered final beneficiary, i.e., if one partner is a company, the names of owners should also contain thereof.

The text states that any subsequent changes made in registration data or the QSA must be informed within 30 days to the Internal Revenue Service, the agency responsible for administering the National Register of Legal Entities(CNPJ). Foreign companies that are already registered will have a maturity of 180 days to update the data and provide the QSA.

The proposal will allow the administrative supervision and the company's legal and tax assessment in relation to the activities developed. National companies are already required to provide registration data to the QSA and the Internal Revenue Service. The approved project requires the same treatment to foreigner companies.

The project will be further reviewed by committees on Finance and Taxation, Constitution and Justice, and Citizenship.

Report - Janary Júnior

Edition – Murilo Souza

Translation - Grupo Solución-SP Language/Suzana Pinheiro Lara