Investment Law of Brazil

Investment Law

BRAZIL

Members

AA I Kalvika Ariviranti-BF (007200800004)

Bella Firna-IB (011200800013)Dewi Pelangi-BF

(007200800051)Fadilah Rahman-IB (011200800027)

Gracia Puspita Suciono-BF (007200800014)

Marlon Matindas ndashBF (0072008000)

INTRODUCTION

INTRODUCTION

Most attractive characteristics are- A large domestic market- The extensive agricultural land high reserves of rivers

and fresh water for an intensive use of hydroelectricity- Most needed mineral and raw materials in its soil- Large number of industries organize in an ever-

increasing industrial park- Worldrsquos largest capacity to produce ethanol from sugar

cane

INTRODUCTION

A GEOGRAPHY

- Located in eastern South America- Bordering the Atlantic Ocean- Sharing common boundaries with Argentina

Bolivia Colombia Paraguay Peru Suriname Uruguay Venezuela and the Guianas

INTRODUCTION

B POPULATION- The only Latin country colonized by the

Portuguese- 80 Urban and 20 rural- a result of ldquomelting potrdquo

INTRODUCTION

C POLITICAL SYSTEM

- Brazil is a Federal Republic- Headed by a president and two legislative

chambers (Senate and House of Representative)

- Democracy Executive Legislative and Judiciary

INTODUCTION- Brazil is a member of most multilateral worldwide organizations

1048766 UN (United Nations) 1048766 OAS (Organization of American States) 1048766 GATT (General Agreement on Tariffs and Trade) 1048766 World Bank 1048766 BID (Inter-American Development Bank) 1048766 IMF (International Monetary Fund) 1048766 ILO (International Labour Organisation)

INTRODUCTION

D ECONOMY

- Well balance economy self-sufficient in Energy

INTRODUCTION

E CURRENCY

- The currency unit is the ldquoRealrdquo (R$) introduced on July 1st 1994

INTRODUCTION

F OPPORTUNITIES FOR FOREIGN INVESTMENT

- No longer barrier

DEFINITION

DEFINITION

- The Law 413162 defines foreign capital as ldquoany goods machinery equipment cash and financial resources that enter Brazil for the production of goods or services or for investment in economic activities provided that in either case they belong to individuals or legal entities resident domiciled or headquartered abroadrdquo

DEFINITION

- Participant of foreign capital is prohibited - Domestic Flight routes- Nuclear Energy- Health Services- Post office and Telegraph Services- Businesses abutting on international borders- Aerospace industry

HISTORY OF FOREIGN INVESTMENT IN BRAZIL


1991 ndash foreign investors has been allowed to trade on Brazilian stock market

1994 ndash Fernando Enrique Cardoso instituted new currency reined in the hyperinflation

1995- amended its constitution to eliminate the distinction between foreign and national capital

LAW OF FOREIGN INVESTMENT IN BRAZIL

Law 413162

amended by Decree 5576265

and Law 838391

All of the transactions must be registered

at the Central Bank of Brazil if they are to

serve as basis for subsequent

remittances of foreign currency h Foreign capital entering the country in the form of

direct investments or indirect investments

h Reinvestment of profits as foreign capital

h Remittances made to other countries for the purpose

of repatriation

h Changes in the value of companiesrsquo capital stock

Law of Foreign Investment

Foreign Capital Investment must be REGISTERED at the Central Bank within 30 days from its INTRODUCTION

REINVESTMENT of profits should be

registered within 30 days from the date on which the Respective Bookkeeping Entry is

made by the Brazilian c o m p a n y

Foreign C a p i t a l Requirements and Restrictions

Foreign individuals and companies are not allowed to control

investments in certain sectors including the news media atomic

energy projects or airlines

For companies established and domiciled abroad there is the

possibility of opening a non-resident account in Real

No restrictions are imposed for non-resident foreigners on ownership of

buildings

h Foreign individuals and companies are not allowed to control investments in certain sectors including the news media atomic energy projects or airlines for example

h Non-resident foreigners and companies incorporated abroad are not allowed to acquire directly rural real estate located in border areas as some other restrictions might apply

h Brazilian resident individuals are not allowed to maintain Brazilian bank accounts denominated in a foreign currency in Brazilian banks They may maintain these accounts in banks abroad and the funds must be stated in the individuals personal income tax return

No specific restr ict ion regarding temporary

investments

The most common way to get back money invested in

Brazi l is through capital repatriation

Temporary Investments

Foreign Exchange Control

There are 2 slightly different rates

Commercial Turismo

ARBITRATION

Brazil was one of the last Latin American countries to accept

international commercial arbitration

The Brazilian Arbitration Law in article 34 sole paragraph provides that a foreign arbitration award is any award that has been rendered

outside Brazilian territory

Article 35 states that in order to be recognized or enforced in Brazil a foreign

arbitration award is subject solely to homologation by the Supreme Federal

Court

ARBITRATION

bull Brazil was one of the last Latin American countries to accept international commercial arbitration

bull The Brazilian Arbitration Law in article 34 sole paragraph provides that a foreign arbitration award is any award that has been rendered outside Brazilian territory

bull Article 35 states that in order to be recognized or enforced in Brazil a foreign arbitration award is subject solely to homologation by the Supreme Federal Court 1

ARBITRATIONThere are many reasons why Brazilian shall be optimist with respect to the arbitration prospects in the country bull First of all since the enactment of Law n 930796 many books and

articles have been dedicated to the subject Two Legal Reviews are published on a quarterly basis and one on a year basis which includes aspects involving mediation

bull Some Law School has introduced arbitration in the regular legal discipline and have successfully launched it as a post graduation course

bull It is uncountable the number of national and international conferences held every year in Brazil since 1996 The legal community has enhanced quite fast an arbitration background and has also take advantages from international development through the exchange of knowledge

ARBITRATION

ARBITRATION

bull What should potential foreign investors looking at investment opportunities in Brazil do to protect their interests

COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)


HISTORY OF FOREIGN INVESTMENT IN BRAZIL (2)


Law 413162

Slide 19

Foreign Capital Requirements and Restrictions

Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON

Members

AA I Kalvika Ariviranti-BF (007200800004)

Bella Firna-IB (011200800013)Dewi Pelangi-BF

(007200800051)Fadilah Rahman-IB (011200800027)

Gracia Puspita Suciono-BF (007200800014)

Marlon Matindas ndashBF (0072008000)

INTRODUCTION

INTRODUCTION




cane

INTRODUCTION

A GEOGRAPHY



INTRODUCTION



INTRODUCTION

C POLITICAL SYSTEM






INTRODUCTION

D ECONOMY


INTRODUCTION

E CURRENCY


INTRODUCTION


- No longer barrier

DEFINITION

DEFINITION


DEFINITION








Law 413162


and Law 838391








of repatriation














buildings





investments






Commercial Turismo

ARBITRATION







Court

ARBITRATION








ARBITRATION

ARBITRATION


COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON

INTRODUCTION

INTRODUCTION




cane

INTRODUCTION

A GEOGRAPHY



INTRODUCTION



INTRODUCTION

C POLITICAL SYSTEM






INTRODUCTION

D ECONOMY


INTRODUCTION

E CURRENCY


INTRODUCTION


- No longer barrier

DEFINITION

DEFINITION


DEFINITION








Law 413162


and Law 838391








of repatriation














buildings





investments






Commercial Turismo

ARBITRATION







Court

ARBITRATION








ARBITRATION

ARBITRATION


COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON

INTRODUCTION




cane

INTRODUCTION

A GEOGRAPHY



INTRODUCTION



INTRODUCTION

C POLITICAL SYSTEM






INTRODUCTION

D ECONOMY


INTRODUCTION

E CURRENCY


INTRODUCTION


- No longer barrier

DEFINITION

DEFINITION


DEFINITION








Law 413162


and Law 838391








of repatriation














buildings





investments






Commercial Turismo

ARBITRATION







Court

ARBITRATION








ARBITRATION

ARBITRATION


COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON

INTRODUCTION

A GEOGRAPHY



INTRODUCTION



INTRODUCTION

C POLITICAL SYSTEM






INTRODUCTION

D ECONOMY


INTRODUCTION

E CURRENCY


INTRODUCTION


- No longer barrier

DEFINITION

DEFINITION


DEFINITION








Law 413162


and Law 838391








of repatriation














buildings





investments






Commercial Turismo

ARBITRATION







Court

ARBITRATION








ARBITRATION

ARBITRATION


COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON

INTRODUCTION



INTRODUCTION

C POLITICAL SYSTEM






INTRODUCTION

D ECONOMY


INTRODUCTION

E CURRENCY


INTRODUCTION


- No longer barrier

DEFINITION

DEFINITION


DEFINITION








Law 413162


and Law 838391








of repatriation














buildings





investments






Commercial Turismo

ARBITRATION







Court

ARBITRATION








ARBITRATION

ARBITRATION


COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON

INTRODUCTION

C POLITICAL SYSTEM






INTRODUCTION

D ECONOMY


INTRODUCTION

E CURRENCY


INTRODUCTION


- No longer barrier

DEFINITION

DEFINITION


DEFINITION








Law 413162


and Law 838391








of repatriation














buildings





investments






Commercial Turismo

ARBITRATION







Court

ARBITRATION








ARBITRATION

ARBITRATION


COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON



INTRODUCTION

D ECONOMY


INTRODUCTION

E CURRENCY


INTRODUCTION


- No longer barrier

DEFINITION

DEFINITION


DEFINITION








Law 413162


and Law 838391








of repatriation














buildings





investments






Commercial Turismo

ARBITRATION







Court

ARBITRATION








ARBITRATION

ARBITRATION


COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON

INTRODUCTION

E CURRENCY


INTRODUCTION


- No longer barrier

DEFINITION

DEFINITION


DEFINITION








Law 413162


and Law 838391








of repatriation














buildings





investments






Commercial Turismo

ARBITRATION







Court

ARBITRATION








ARBITRATION

ARBITRATION


COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON

INTRODUCTION


- No longer barrier

DEFINITION

DEFINITION


DEFINITION








Law 413162


and Law 838391








of repatriation














buildings





investments






Commercial Turismo

ARBITRATION







Court

ARBITRATION








ARBITRATION

ARBITRATION


COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON

DEFINITION

DEFINITION


DEFINITION








Law 413162


and Law 838391








of repatriation














buildings





investments






Commercial Turismo

ARBITRATION







Court

ARBITRATION








ARBITRATION

ARBITRATION


COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON

DEFINITION


DEFINITION








Law 413162


and Law 838391








of repatriation














buildings





investments






Commercial Turismo

ARBITRATION







Court

ARBITRATION








ARBITRATION

ARBITRATION


COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON

DEFINITION








Law 413162


and Law 838391








of repatriation














buildings





investments






Commercial Turismo

ARBITRATION







Court

ARBITRATION








ARBITRATION

ARBITRATION


COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON







Law 413162


and Law 838391








of repatriation














buildings





investments






Commercial Turismo

ARBITRATION







Court

ARBITRATION








ARBITRATION

ARBITRATION


COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON








of repatriation














buildings





investments






Commercial Turismo

ARBITRATION







Court

ARBITRATION








ARBITRATION

ARBITRATION


COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON








buildings





investments






Commercial Turismo

ARBITRATION







Court

ARBITRATION








ARBITRATION

ARBITRATION


COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON


investments






Commercial Turismo

ARBITRATION







Court

ARBITRATION








ARBITRATION

ARBITRATION


COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON

ARBITRATION







Court

ARBITRATION








ARBITRATION

ARBITRATION


COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON







Court

ARBITRATION








ARBITRATION

ARBITRATION


COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON

ARBITRATION








ARBITRATION

ARBITRATION


COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON





ARBITRATION

ARBITRATION


COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON

ARBITRATION


COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON

COMPARISON

Investment Law

Members

INTRODUCTION

INTRODUCTION (2)

INTRODUCTION (3)

INTRODUCTION (4)

INTRODUCTION (5)

INTODUCTION

INTRODUCTION (6)

INTRODUCTION (7)

INTRODUCTION (8)

DEFINITION

DEFINITION (2)

DEFINITION (3)




Law 413162

Slide 19


Slide 21

ARBITRATION

Slide 23

ARBITRATION (2)

ARBITRATION (3)

ARBITRATION (4)

ARBITRATION (5)

COMPARISON

Investment Law of Brazil

Documents

Transcript of Investment Law of Brazil