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Does an eb5 investor have to actively participate in the company?

Does an EB-5 investor need to own a certain minimum share of a qualifying company and is s/he required to participate actively in the management/control of the company?

Answers

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    Roberto Ortiz

    Immigration Attorney
    Answered on

    If you are investing in a direct EB-5, the investor must engage in day to day business or policy formation. There is no set amount of shares that he or she needs to own.

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    Margo Chernysheva

    Immigration Attorney
    Answered on

    There is no minimum shares requirement. You can have a day-to-day involvement or be in a policy making position as an EB5 investor for an individual EB5 and you will be a limited partner in a Regional Center investment.

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    Lei Jiang

    Immigration Attorney
    Answered on

    There is no requirement on number of shares, just $500,000 or $1,000,000 fund. In reality, most EB5 investors do not participate in daily management of the company.

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    There is no minimum share ownership required. However, the investor must at least demonstrate that they have a policy making role in the company where the investment is a direct investment. In a regional center the investor will satisfy this role as a limited partner.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    If the investment is a direct EB5 investment, the answer is yes they do have to be actively engaged. If the investment is through an RC the answer is no, they can be passive investors.

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    Jor Law

    RC Creator
    Answered on

    There isn''t a technical minimum that the EB-5 investor has to own. One of the requirements of the EB-5 program is that the EB-5 investor have active participation in the company. However, there are multiple structures which can be used that may limit the participation of the EB-5 investor if that is the desired effect. A qualified corporate (as opposed to an immigration) attorney who is experienced in EB-5 can help you work through the intricacies of such alternative structures and draft them into your corporate documents.

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    Daqin Zhang

    Immigration Attorney
    Answered on

    An EB-5 investor does not need to own a certain minimum share of a qualifying company. S/he is required to participate actively in the management and control of the company in stand-alone EB5 projects.

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    Mahsa Aliaskari

    Immigration Attorney
    Answered on

    An investor may participate in the day-to-day management of the business or be involved in a policy making role only. The is no minimum ownership requirement.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    If your contemplated investment is in a project within an approved Regional Center, you are not required to actively participate in day-to-day management of the commercial enterprise and will most likely be a passive investor, such as a limited partner in a limited partnership or a LLC member who is not a manager. There is no minimum ownership requirement. Within a Regional Center setting, it will often be a unit of ownership in a limited partnership or LLC with the purchase price of $500,000.

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    Philip H Teplen

    Immigration Attorney
    Answered on

    In all reality the investor is generally not active at all in the investment, unless it is a self entrepreneurial situation.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    No minimum ownership percentage required. Usually, the investor is a limited partner or LLC member with policy-making, advisory, or other limited management authority. This satisfies the regulatory requirement.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    You may be a "silent" limited partner who has a say in the company policy, management, and voting rights, etc., but not necessarily have to be actively managing or involved in the daily operations of the company.

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    Boyd Campbell

    Immigration Attorney
    Answered on

    Yes, if the investment is in a company that is not within a regional center.

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    Ying Lu

    Immigration Attorney
    Answered on

    The law does not require the EB-5 investor to own a certain amount of shares of the new commercial enterprise. The investor can either participate in the day-to-day management of the business or play a role in the policy making.

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    Mark Ivener

    Immigration Attorney
    Answered on

    There is no minimum ownership required. An investor can be a limited partner.

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    Irena Juras

    Immigration Attorney
    Answered on

    No, you can invest through a regional center. No, you do not have to own a minimum share.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    An EB-5 investor must be involved in active management of the company or hold a policy making position. A policy making position was deemed to be a member of the board or a limited partner of a partnership. There is no set percentage of the company control required.

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    Hendrick Pretorius

    Immigration Attorney
    Answered on

    There is language in the EB-5 requirements that an investor must be engaged in day-to-day business or policy formation with the EB-5 project. This language can be satisfied in the regional center context by being a limited partner with the rights, powers and duties normally granted limited partners. There is no minimum ownership interest required. It is a good idea to discuss this in detail with a qualified EB-5 lawyer.

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    Marisa Casablanca

    Immigration Attorney
    Answered on

    An EB5 investor can be a passive investor and still qualify for the EB5 program through the investment.

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    Michael A Harris

    Immigration Attorney
    Answered on

    There isn''t a requirement for a minimum share of ownership. However depending on whether the ownership is in a corporation or the type of partnership, the rules are different. If there is a limited partnership agreement it must provide the investor with rights, powers and duties under the Unified Limited Partnership Act. LLCs can be formed similar to LPs and the USCIS has accepted these forms as business entities. For corporations, the investor will need to be a corporate officer or director in addition to describing what their duties will be.

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    Ed Beshara

    Immigration Attorney
    Answered on

    The answer to your question depends on whether the investor is investing in a direct project or an EB-5 Regional Center project. In a direct investment the investor has to have a managerial role. While under an RC project, the investor plays a minor managerial role in the new commercial enterprise.

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    Qingqing Miao

    Immigration Attorney
    Answered on

    The regulation requires an EB-5 investor to be engaged in the management of the new commercial enterprise. If you invest in a regional center project, your are most likely to be a limited partner or a non-manager LLC member. This means that your role in the actual day-to-day management is fairly limited but for EB-5 purposes, such a role could meet the legal requirement. On the other hand, if you are investing directly into a non-regional center affiliated project (aka direct investment), you will probably need to take an active management role to demonstrate that you are not just a passive investor.

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    William Rosenstadt

    Immigration Attorney
    Answered on

    An EB-5 investor is not expected to be involved in the management of a project. It is a passive investment. There is no requirement (as a matter of fact, many projects have a management team identified prior to receiving funds).

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    The regulations provide the individual can be limited to policy development.

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