The Tax Office (Receita Federal) of Brazil and the Brazilian “Comissão de Valores Mobiliarios” (CVM) had set up this May a new system that will speed up the process of registration in the “Cadastre of Individuals” (CPF) of non-resident foreign investors.
The new system has the aim of improving the service for these investors that, under the terms of the legislation, must register with the CPF and the CVM before investing in the Brazilian capital market. With the old system, the foreign investor had to fulfill many formalities for the registration of CPF in a Brazilian diplomatic representation, which, according to the Federal Revenue, forced many investors to invest in other countries. On the other hand, with the new system, the investor can get its CPF together with the Foreign Investors Register.
Moreover the new system reduces administrative costs and facilitates the registration process of the CPF for foreign investors, resulting in general improvements in the Brazilian business environment.