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Would an already existing company establishing a new company count for EB-5?

I currently have a company in China. I was thinking about sending one million dollars to the United States so that my company can establish a new company there. Would this count toward EB-5, or should I dissolve the current company and re-establish it in the United States to avoid the issues of having to expand an existing company by 40 percent?

Answers

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    If you are establishing a new commercial enterprise in the United States, you must create 10 new jobs and invest the required funds and meet all other EB-5 requirements. From an immigration point of view, it is not necessary to dissolve your company in China.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    There is no need to dissolve your company in China. The $1 million investment is sufficient to qualify for EB5.

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    Roberto Ortiz

    Immigration Attorney
    Answered on

    In order for an investment to count for an EB-5, you have to create a new commercial enterprise in the U.S. and create 10 full-time jobs. The other option that you mentioned is to purchase an existing business in the U.S. and then have to create an additional 10 full-time jobs. The new company that you open in the U.S. has to create 10 full-time jobs in 2 years. If you have any additional questions, please do not hesitate to contact me.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    If you are starting a new company in the US and personally investing $1M and you hire 10 employees, then you would appear to have potentially viable case. No need to dissolve the Chinese company.

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    Jeffrey E Campion

    Immigration Attorney
    Answered on

    If you are establishing a new company with employees it should be fine. But, I would recommend your consideration of the L-1A work visa and the I-140 immigrant petition based on your new company as a multinational executive/manager. This can give you a permanent green card with no conditions and may be quicker.

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    Philip H Teplen

    Immigration Attorney
    Answered on

    The US entity should be structured as an independent entity and therefore a new enterprise.

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    Minjie Xu

    Immigration Attorney
    Answered on

    First of all, the Chinese company or its existing employees have nothing to do with EB-5 whatsoever. There is no point to dissolve the Chinese company. Since the company is in China, the 40 percent expansion rule doesn't apply. Second, it is not clear in the question who is going to set up a company in the U.S. The Chinese company? Or the owner of the Chinese company? To apply for EB-5 investment visa, the petitioner has to be an individual, not a company. By setting up subsidiary company, *the Chinese company*, not the owner, can possibly transfer its executive, manager, or employees with specialized knowledge to the U.S. with an *L-1 visa*, which is a *non-immigrant visa*. Another route is to do *EB-5*, which is an *immigrant visa*. However, this requires *the owner*, not the Chinese company, to set up a new commercial enterprise with a minimum *$500,000 investment* that will create at least 10 jobs within two years. That said, investor needs to consider whether he/she wants an immigrant visa or non-immigrant visa and who is going to invest in the U.S., the individual or his/her company.

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    Ed Beshara

    Immigration Attorney
    Answered on

    The EB-5 rules will allow your personal investment into a new U.S. Corporation. The rule about investment in an existing company in the U.S. does not apply to an existing company in another country.

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    Ying Lu

    Immigration Attorney
    Answered on

    If the investment will be made by your company in China, you can consider the L-1 Visa option. If you want to pursue the direct EB-5 route, you do not need to dissolve the company in China and make sure that the funds for EB-5 will be from your personal wealth. Direct EB-5 requires high level of legal experience. I suggest you contact an experienced EB-5 attorney, like us, before you move the funds from China.

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    Jin Lee

    Immigration Attorney
    Answered on

    Establishing a new company in the United States can be qualified as an EB-5, but the investment should be made by the investor, not the company in China. Perhaps you should get the funds from a company as a form of dividend or a loan and invest it into the new company in the United States.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    That will work for either EB-5 or perhaps an L-1A and then multinational green card if you establish a new legal entity. It can be related to the entity overseas.

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    Daniel B Lundy

    Immigration Attorney
    Answered on

    The new commercial enterprise must be a new U.S. company. Your existing company is not operating in the U.S. and presumably not creating jobs here. If you open a U.S. affiliate or subsidiary, it would most likely be considered a new commercial enterprise, regardless of whether it is an expansion of the Chinese company. There should be no need to dissolve the Chinese company. Please note that this only applies if you are forming a new company. If you are only registering your Chinese company to do business in the U.S., this probably would not qualify as a "new" commercial enterprise. Opening a U.S. subsidiary or affiliate of a foreign company is actually a good way to pursue an EB-5 visa through direct (i.e. non-regional center) investment, as long as the business can create enough jobs.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    You don't have to expand a new commercial enterprise by 40 percent. The expansion provision in the U.S. EB-5 immigration law refers to investments into U.S. commercial enterprises that were established before 11/29/1990. It does not matter if your foreign company was established prior to that date. What matters is the establishment date of the U.S. commercial enterprise. Of course, you must meet all of the other EB-5 requirements. You should consult with an experienced EB-5 immigration attorney to advise you on all of your immigration options.

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    Olga Karasik

    Immigration Attorney
    Answered on

    Opening a subsidiary company in United States will count as a new commercial enterprise for the purpose of EB-5. The 40% expansion requirement will not apply. You will need to create 10 permanent full-time jobs. You might even consider doing L-1 visa at fist. If you would like to have more detailed consultation regarding your business and immigration options, please do not hesitate to contact me to schedule a consultation.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    The company in the United States would be a new U.S. company, even though it is based on an existing foreign company. In my opinion, you shouldn't be subject to the 40 percent requirement, but we definitely recommend retaining qualified EB-5 counsel to review your strategies and goals.

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