Registration inconsistency leads to suspension of CNPJ for companies based abroad

Failure to update the legal representative and lack of information on the final beneficiary led to CNPJ suspension

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Registration inconsistency leads to suspension of CNPJ for companies based abroad


Failure to update the legal representative and lack of information on the final beneficiary led to CNPJ suspension




A large number of companies based abroad had their National Register of Legal Entities (Cadastro Nacional da pessoa Jurídica - CNPJ) suspended due to registration inconsistency.

This may be the result of an operation carried out by the Brazilian Federal Revenue Office in October of this year, which identified, through their effective data cross-checking, inconsistencies in these registers, especially due to the lack of legal representative update and/or lack of information on the final beneficiaries of entities registered in CNPJ.


Why does this suspension affect foreign companies?


Foreign companies that participate in the share capital of national companies are required to be registered in CNPJ and to provide information about their final beneficiaries.

Final beneficiary is the natural person who, ultimately, directly or indirectly, owns, controls, or significantly influences a certain entity.

For an entity based abroad, the representative person at the CNPJ must be its attorney or legal representative domiciled in Brazil, with powers to manage the entity's assets and rights in the country and represent it before the Federal Revenue office.

Inconsistencies in the provision of registration information may suspend the CNPJ, which affects operations and transactions of the foreign company in Brazil and also operations of the Brazilian company, such as issuing federal certificates.

This reason is one among others mentioned in article 40 of Normative Instruction RFB No. 1.863/2018.


Read also: Requirements for foreign individual shareholder’s interest in Brazilian companies


Do you need to regularize CNPJ?


The Paralegal center at Domingues e Pinho Contadores assists domestic and foreign businesses in opening processes and maintaining compliance in all government spheres. Count on this support: dpc@dpc.com.br.

How may DPC help your company?

Domingues e Pinho Contadores has aspecialized team ready to assist your company.
Contact us by email at dpc@dpc.com.br

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