you are an investor and looking to expand your business to the United
States, then the EB-5 visa program allows you to set up a commercial
entity within the territory of the United States, subject to the
fulfillment of its various criteria. More than 90% of EB-5
investments are made through EB
5 Regional Centers,
and as a result, very few law firms have experience with the
alternative: the so-called “Direct” EB-5 applications.
Direct EB-5 application is one where an investor opens, expands or
acquires EB-5 qualifying businesses in multiple and varied industries
across the United States. Davies
has a successful history of representing clients from all around the
world start and invest in businesses in the United States. This
includes clients from India, Russia, Brazil, Azerbaijan, Egypt and
many more countries. In this blog today we will discuss the criteria
for getting a direct EB-5 Visa to the USA.
Foreign company run by a foreign individual is required to make a
minimum investment of 1 Million dollars for fulfilling the first
requirement of EB-5. This amount is brought down to $ 500.000 if the
investment is in a TEA region or a targeted employment region, which
refers to mostly underdeveloped areas with high levels of
unemployment. This requirement is statutory and this capital does
not include costs incurred in processing and legal fees. It’s
important to note that these criteria cannot be fulfilled with
financed money, for example if you have borrowed from a bank and
should come from the existing profits of a company.
entities are ineligible for the EB-5 visa subject to certain
exceptions. If you are looking to set up an NGO or any other
organization on a non-profit model, then you would have to look for
States Commercial Entity:
This one’s pretty basic, and requires the commercial entity to be
registered in the territory of the United States and subject to
federal and state laws. If your country has an investment treaty
with the United States you can also look at the E2 visa which is by
far the fastest way to get into the country. In case of an E2 visa,
you can hire yourself and be your own sponsor for your immigration
to the country.
criteria of the EB-5 visa is an undertaking to create at least 10
full time jobs for US citizens. It’s important to keep this in mind
if you are planning to get the workforce from another country.
have told you briefly, about the criteria for getting an investor
visa for the United States of America. We at Davies and Associates
LLC have helped hundreds of corporations, successfully set up their
businesses in the country, and we would love to hear from you in case
you have any further questions.
EB-5 visa is usually the quickest, most straightforward way to a
Green Card to the United States. Applicants are able to secure a
Green Card for themselves, their spouses and any children under the
age of 21 within an average of around 18 months. There are two
different routes to a Green Card. One is an investment of $1 million
or $500,000 in setting up a new commercial enterprise. This is called
the Direct EB-5 route and D&A is one of the few law firms with
significant experience of this. The other, and by far the most
popular option, is by investing with a Regional Center.
is the Regional Center route so popular?
It is important to remain compliant with EB-5 regulations so that
there are no threats to the Green Card. One important requirement is
that each EB-5 investment should create and sustain ten full-time
American jobs. This can be a challenge to investors setting up their
own business and non-compliance can put the investment and Green
Card at risk. The Regional Centers are allowed a more complex
calculation for job creation and, while there are never any
guarantees, a good Regional Center can be expected to comply with
the regulations on your behalf.
EB-5 Investors simply need to place the requisite funds with the
Regional Center and they do all the rest of the work for you.
Setting up your own business comes with addition work, but of
course, this can also be exciting and Davies
& Associates Corporate Team
is able to assist you every step of the way. Many of our clients
decided to go the Regional Center route and then establish their own
business when they have their Green Card. This means their business
is not tied to EB-5 regulations and there is more leeway to grow the
business in the most appropriate way.
Lower investment: Regional
centers usually locate their projects in so-called “Targeted
Employment Areas” (TEAs), these are areas of high unemployment and
rural areas. The EB-5 investment is actually set at $1 million, but
this is halved to $500,000 if the investment is made in a TEA.
People pursuing the Direct EB-5 route need to ensure that they
establish their business in a TEA if they wish to make the lower
investment. Davies & Associates is able to provide advice on
Regional Centers invest in some truly exciting projects, from Golf
Courses in Florida to hotels in Hollywood, California where all the
A-list celebrities hang out. There are so many different projects
with different business cases, it can be exciting selecting which
project to invest in.
Investing in an EB5
will give you utmost flexibility, in terms of not having to micro
manage your investment. You are not required to live near the area
where you have invested and you can travel and reside anywhere in
the territory of the United States.
over 800 Regional Centers of varying quality across the United
States, it is vital to conduct due diligence on your chosen projects.
Davies & Associates is uniquely positioned in that we have
attorneys experienced in financial real estate who can provide advice
on your chosen Regional Center and project.