INVESTMENT IN THE U.S. TO OBTAIN GREEN CARD

March, 2006

To promote job creation and encourage foreign investment in the U.S., 10,000 immigrant visas are available each year to qualified individuals seeking permanent resident status on the basis of their investment in a new commercial enterprise. This category of visa provides the most flexible path to a “Green Card”.

Of the 10,000 visas available, 5,000 are set aside for those who apply under a pilot program involving a government designated “Regional Center” - these are certain specifically identified geographic areas within the United States where the economy needs to be promoted through increased export sales, improved regional productivity, creation of new jobs, and increased domestic capital investment.

According to an April 2005 report issued by the U.S. Government Accountability Office (GAO), about 83 percent of investors and their dependants who were granted permanent resident status have been from Asia of which 39 percent are from Taiwan. The GAO estimated that 41 percent of the businesses were established in California. Other popular cities are New York and Maryland.

Also according to the report, the popular categories of investments have been in the areas of hotels/motels, manufacturing, restaurants, real estate, farms, domestic sales companies, import/export companies and technology companies.

Qualifying Investments

Job Creation: Investments in new commercial enterprises must benefit the U.S. economy and create full-time employment for at least ten qualified employees, excluding the investor and his/her immediate relatives, and persons in non-immigrant status. Saving ten jobs may also qualify if the qualifying investment is in a financially troubled business. No Labor Certification is necessary.

Amount and Nature of Assets: The capital investment must be $1,000,000 in high employment areas and $500,000 in targeted employment areas. The capital may consist of cash, equipment, inventory, other tangible property, and easily convertible cash equivalents.

Commercial Enterprise: Any “for profit” business can qualify, including sole proprietorships, limited or general partnerships, corporations, business trusts, joint ventures, holding companies and wholly owned for-profit commercial subsidiaries, mutual investment funds, etc. An existing commercial enterprise purchased by the investor can also qualify without the necessity for reorganization or reincorporating, if your infusion of capital increases the business' net worth or the number of qualifying U.S. workers employed by 40%. Pre-existing commercial enterprises also qualify if you save ten U.S. jobs by taking over a troubled business that has operated for at least two years and has incurred a net loss of at least 20% of net worth during one of the two years preceding your investment.

Location: The only location criteria apply to targeted employment areas requiring investment of $500,000.00, which include rural areas identified by the U.S. census or the Office of Management and Budget, and areas certified by a State government to be experiencing average unemployment of at least 150% of the national average. The investment of $1,000,000.00 may be anywhere in the United States.

Qualifying Investors

Capital Contribution: The investor must make a qualifying investment using personally owned and legally obtained assets or indebtedness secured by personal assets (i.e. not secured by the qualifying commercial enterprise).

Management: Investor must be engaged in management of the enterprise, either through daily managerial control or through policy formulation as a corporate officer, director, or partner.

Multiple Investors: Each multiple investor in the same enterprise will qualify if he or she meets the minimal capital and job creation requirements. In cases where not all multiple investors seek to emigrate to the United States based on the investment, the job creation requirement can be met by those investors who seek to immigrate (based on the joint investment) by apportioning the total number of jobs created among the emigrating investors rather than among all investors. (Note: This apportionment among joint investors does not apply to the capital requirement.)

Procedure After Visa Is Approvoved

After investor’s immigrant visa petition is approved, the applicant must wait for an immigrant visa number to become available according to the preference system, a method of distributing the limited number of immigrant visa numbers available each year.
Investor will first receive a “conditional” immigrant status. In order to remove this “conditional” status, an application must be made 90 days before the second anniversary of the date the status was received, or it will automatically be revoked. Upon receiving the application, the business and investment will be re-examined to determine compliance with regulatory requirements, including capital committed and employment created. Should the endeavor prove fruitful and successful, in that, all the conditions have been met with, the “condition” status will be removed and permanent residency (Green Card) is granted.

Five years after the date conditional resident status is granted, the investor may apply to become a Naturalized citizen of the United States.

Note: This Memorandum is designed to alert clients to general developments in law in the United States of America and to planning opportunities. Such developments and opportunities are necessarily discussed in general terms, and therefore, should not be acted upon without professional advise.

About Us

GURTU & McGOLDRICK LLP is a full service law firm dedicated to providing the highest quality legal counsel. Although quite diversified, the firm’s practice is primarily devoted to business and commercial matters, with emphasis in the representation of local, national and international investors and businesses; international trade and customs law, including tax haven activities; international licensing, technology transfer agreements and joint ventures; immigration and consular matters, including business and investor visas; international, federal and state taxation, including appearances before the U.S. Tax Court; general commercial and civil litigation, including appellate practice; real estate; and, bankruptcy. In addition to providing technical representation to our clients, we are available to assist them in locating attractive investment opportunities in the U.S. and abroad, and in evaluating the business and economic aspects of the various investments and transactions.


The Thought - “Experience is the worst teacher; It gives the test before presenting the lesson”

Chat Gurtu, Attorney & C.P.A. Solicitor - England & Wales