EB-5 Investor Visa

WHAT IS EB-5 AND WHO BENEFITS?

  • Employment Based Category 5: hence the name EB-5
  • Was first enacted by U.S. Congress in 1990 to stimulate US economy
  • A successful EB-5 Investor obtains Green Card for himself, his spouse, and children under 21
  • 10,000 Visas are issued every year
  • In 2014 was the first year that all the visas were used, mostly by Chinese Nationals, and now for Chinese Nationals there is a wait list but not for any other nationality

Who uses it

  • Families who want a better quality of life for themselves and better education for their children
  • Retired couples
  • People who want a Green Card and US Passport as a Status Symbol: to do business in USA

EB-5 can be done in two ways

Direct EB-5: Investor has full control over his / her money

  • Amount in TEA Zones: $500,000.00
  • Amount in Non-TEA Zones: $1,000,000.00
  • Must Create 10 Direct Jobs
  • These amounts are due to increase substantially on December 8, 2017

Regional Center (RC) Investment

  • Amount of Investment: $500,000
  • RC has Administrative Fee of an average of $50,000
  • Project (not investor) must create 10 direct or Indirect jobs
  • Currently there are 1,239 Regional Centers in the USA
  • Choosing the right RC is critical in both financial return and also to ensure client obtains the Green Card

BENEFITS OF REGIONAL CENTER EB-5 V. DIRECT

  • Investor can live anywhere in the United States
  • Investor does not need to worry about job creation
  • From the time they file, they can have Green Card in 2.5 years (except for Chinese Nationals: takes allot longer for Chinese Investors)
  • If they pick a good project, typically receive back their money in 5-7 years
  • As with any Investment, their funds are at Risk, and there is a risk of loss…there is also the chance of gain
  • Currently the amount is still at $500,000 for all Regional Centers
  • Investor has no responsibility as far as working at the Regional Center, and can carry on with whatever other work they wish
  • This is why about 90% applicants choose Regional Center EB-5

ARE THERE ALTERNATIVES TO EB-5 VISA? YES

  • A Good alternative for people who don’t have the liquidity of $500,000 available may be E-2 Visa
  • E-2 is a Non-Immigrant Investment Visa

Pros of E-2 Visa

  • Amount of Investment can be as little as $50,000, depending on the type of business
  • Gives long term Visa to Investor, Spouse and children under 21
  • Can be processed Quickly: 4-6 months
  • Investor invests in his / her own business
  • Does Not require minimum job creation
  • Investor must work in the business he/she is investing in, while the spouse can pursue any other work activity
  • Investor, Spouse and children are entitled to US Social Security, can work, and benefit from living in the USA

eb5-visa

Cons of E-2 Visa

  • Does Not by itself result in a Green Card, but is a long-term Visa: renewable every 2-years
  • If Single Entry is granted (Not Multiple Visa), must obtain new stamp each time re-enter USA
  • Not recommended for people who wish to travel allot
    **TO QUALIFY FOR E-2 VISA, YOU MUST BE FROM A TREATY COUNTRY: NOT ALL NATIONALS QUALIFY**

STEPS TO OBTAIN AN E-2 VISA

  • Decide which US State you want to begin your business and live in
  • Decide whether you want to purchase an existing business, or whether you want to have a Start-Up new business
  • We form an LLC in that State for you
  • We will have a professionally done Business Plan which is about 50-60 pages of your 5-year Business Plan done, and ensure it complies with U.S. Immigration
  • Do a complete Sourcing of your funds (critical)
  • Draft all the required documents for a Visa Petition
  • Submit to US Embassy for Visa Issuance
  • Prepare you fully for the Interview
  • Will know the same day if you got the visa

OTHER ALTERNATIVES TO EB-5? YES, L-1 VISA

  • The L-1 Visa was initially designed for large multinational companies to transfer workers to U.S., however, it allows small or start-up companies abroad to expand their business and services to the U.S.
  • It allows existing companies anywhere in the world (other than Iran and North Korea) which have a history of existence, pay taxes, have employees, to have a Subsidiary or “Sister” Company in the U.S.

Pros of L-1 Visa

  • Allows for many L Visa holders to eventually apply for Green Card
  • Although Full-Time work with Company is required, L-1 Visa holder does not need to spend all their time in the U.S. and have flexibility to work in both U.S. and foreign branch
  • Works very well for Executives, Owners and High Level Managers of existing companies and allows for eventual Green Card for worker, spouse and children under 21
  • A larger company can readily obtain L-1 visas for their employees to freely travel, once the first L-1 Visa is established
  • No minimum investment amount is required, the Business Plan has to make sense, and the investment amount is very much dependent on the type of business
  • Can use the assets of the mother company towards the investment in the U.S.
  • If set up properly, it can potentially provide Visas and possibly Green cards for multiple executive and managerial people, their spouses and children under 21.
  • No Country Restrictions (except Iran and North Korea)

Cons of L-1 Visa

  • Must have an already established and running business for at least a couple of years
  • Foreign business must be audited, have all the tax returns (if applicable) or tax audits done properly, and must be able to demonstrate legitimate employees on payroll
  • Cannot abandon the business in foreign country…this is meant to run simultaneously with the “sister” company, so must have the resources to run both businesses simultaneously
  • In general, the Company in USA must have very similar ownership structure as with the foreign company: sometimes challenging with UAE business structures