By means of Resolution 3.447,of March 2, 2007 and Circular 3.444, as of March 7, 2007, the Brazilian Central Bank (Bacen) has defined guidance relating to the registration of foreign capital in national currency, as determined by Law 11.371/06.
Law 11.371/06 is allowing the registration with Bacen, in national currency (without compensation in foreign currency, therefore), of the foreign capital invested in corporate entities in Brazil, that is still not registered and not subject
to any other sort of registration with the aforesaid entity.
The registration of such investment will be carried out electronically, by
declaratory means and in the RDE-IED Mode of Sisbacen, since it is dully registered in the Brazilian company that is recipient of the foreign capital, according to the legislation in effect. The holding of the foreign capital must be proved by documents, and the declarant, responsible for the information, is obligated to maintain the evidential documents of the declarations given to Bacen for a five-year term.
Along with the Resolution 3.447, the registration must be carried out observing the following stated periods: (a) by June 30, 2007, regarding the existing capital in December 31, 2005, and (b) by the last working day of the calendar year that is subsequent to the year of the annual balance in which the corporate entity is obligated to complete the registration, including the capital registered as from the year of 2006.
Bacen will release to the public the specific procedures for of the above-mendioned values in RDE-IED Mode of Sisbacen, that is being adapted to receive such information, which can be added as from March 19, 2007. 
Flávia Ferraz
Karina Yumi Takehara