Lawful source of fund for eb-5 investment

What is EB5 investment capital?
The EB5 investment program was issued by the US Government in 1990 with the aim of attracting foreign investment, promoting regional economic development and addressing employment needs for indigenous citizens. Through this program, investors and their spouses and children (under the age of 21 who are still single) will receive a permanent green card to live, work and study in the United State of America.

Investors participating in the EB5 program need to invest a minimum amount of USD 500,000 in the designated project. If the project is not in the TEA region, the amount will increase to $ 1,000,000. Thus, EB5 investment capital is the amount that the program participants have invested in the project. However, one of the prerequisites that applicants must meet is to prove that all of the capital in the investment is a clean source of money or, in other words, legally obtained money.

How to prove EB5 investment capital?
Proving the origin of EB5 investments depends on the investor’s profile and is a difficult task for investors, which is why investors need to choose a unit for themselves. reputable EB5 advisory, knowledgeable about financial issues as well as law to be able to assess and handle family records, prove that investment funds must be a clean source of money in accordance with the United State of Citizenship and Immigration Services (USCIS).

So what is the legal source of money  in EB5 investment capital?

USCIS stipulates: EB5 funds are called clean money when investors prove they can be obtained through legal domestic / foreign activities with full tax return documents, transaction documents or documents available. related … That could be:

  • Personal income from salary, bonus
  • Income from investment / sale of bonds, stocks, real estate …
  • Corporate dividends
  • Inheritance from parents, brothers, relatives …
  • Property is donated
  • Loans and mortgages from banks and businesses

Note in the proof of the legality of EB5 investment capital: Once the family has an American immigration plan with EB5 investment, it is essential to prepare capital and keep all relevant documents. In order to prove the legality of EB5 funds, investors should pay attention to the following issues throughout the process from preparing documents, completing procedures and receiving green cards from the US:

  • Funding may stem from activities within or outside the territory of Vietnam as long as such activities are legal.
  • For capital gained from income: labor contracts, payrolls, bank transaction papers are required …
  • For self-employed investors: the capital source is due to activities of 5 years or more and is fully taxed in accordance with the law.
  • Capital sources obtained from the company contributed capital: need to prepare financial statements, certificates of capital contribution, business registration certificates of the company, minutes of resolution of the general meeting of shareholders …
  • Capital source from securities investment / sale, real estate: investors need to have papers to prove the legal money to buy securities / real estate, personal income tax, and legal trading / buying / selling / transferring, ownership certificates …
  • Capital sources obtained from giving / giving / inheriting: need to prepare documents on personal income tax declaration, source of donations / gifts / inheritance and confirmation of donors / donors / inheritors.
  • Funding is obtained from loans: the lender must have documentation to prove that the loan is clean, and the investor needs to present the loan contract and explain the reason for borrowing in the EB5 file.
  • For investors with a business or shareholding: it is necessary to know all details related to the business, finance and accounting activities of the enterprise.
  • Another important note for investors is to store all documents related to financial transactions arising in the transfer of capital into the project.

In fact, one of the common reasons why EB5 records are not approved is because it is impossible to prove the legality of EB5 investment funds. Therefore, the head of the house should ask professional consultants and lawyers to get the best results in preparing documents.