I own 80% of a company abroad. I would like to transfer those assets of the foreign company into the U.S. to use toward an EB-5 direct investment business. Can I use those assets, which will be at risk, as an investment into a new U.S.-based company? Does the ownership transfer of those assets need to be sent to my individual account first, or can I transfer them directly to the new business in the U.S.?
You will need to show evidence that the funds belong to you and are being put at risk, so a direct transfer from business abroad to the U.S. may not be the best way to show this. It may be best to transfer the funds to your individual account and then transfer to the EB-5 business in the U.S. as evidence that the funds are yours.
If you own these assets individually, then you can technically transfer them to the new commercial enterprise. One problem with investing assets is to prove how they were acquired and their actual value.
If your goal is to pursue an EB-5 direct investment petition, the transfer of assets from one company abroad to a new business in the U.S. cannot be used. Rather, you will need an individual transfer. EB-5 investment is strictly an individual-base visa program and not a corporate program. Also, prior to the transfer, make sure you are in compliance with the financial transfer laws of both the U.S. and your home country, particularly to avoid an appearance of money laundering. Advisably, consult an EB-5 attorney to plan on how to prepare an EB-5 direct investment petition because you need to put in place a host of things, particularly a Matter of HO-compliant business plan, though you need to layout your direct investment plan and how you meet all the EB-5 requirements.
The assets of the company need to be transferred from the foreign company to your personal bank account. The funds used for the EB-5 investment must be your personal funds.
Many forms of assets or capital, including indebtedness secured by an asset you own, are acceptable as investments under the EB5 rules. The specifics of how to make this investment will depend on the circumstances of your case. An attorney can guide you in this process.
You need to invest personal funds, so the idea of taking over those assets yourself is a good one. There will be even more to prepare for than that, so please consult with an immigration attorney to assist you.
If it is a qualifying asset and you own the actual 80%, then it may be sufficient. It''s best for them to hit your individual account first.
You can use your foreign assets as an investment in a U.S. company for EB-5 purposes. It would be wise to get an independent appraisal from a licensed appraiser to prove the value of the assets being contributed. It would be best for the assets to come from you personally, but there may be a way to structure the transaction differently. Remember, it is you who has to make the investment. Maybe if you own 100% of the foreign company, then perhaps that company could transfer the assets to the U.S. company.
Are we talking about a regional center or your own direct investment? The money trail needs to be established to show the lawful source of funds. Getting money out of a country is often tricky depending on the laws of each country.
