What level of engagement is required of investors who invest in an EB-5 regional center project?
A requirement of the EB-5 Visa Program is that EB-5 investors prove that they are somehow engaged in a new commercial enterprise (NCE). There are two types of EB-5 investment programs: direct investment and regional center investment. A major difference between the two is the level of involvement in the enterprise. Through the Direct Investment Program, EB-5 investors usually have to be actively involved in the day-to-day operations of the NCE; however, Regional Center EB-5 investors are allowed to take a more indirect role.
For example, many EB-5 Regional Center investors may be a limited partner, involved in policy making or voting on major business matters.
It is important for an EB-5 investor to work with an EB-5 lawyer to review all of the offering documents or agreements from the Regional Center to makes sure that the level of managerial engagement listed will fulfill the EB-5 Program requirements.
Being able to prove this involvement in the project is essential for the Form I-526 Immigrant Petition for Alien Investor stage. The I-526 Petition is the first form a prospective investor would file, through their EB-5 attorney, in order to start their journey to obtaining a U.S. green card for themselves and their immediate family members.
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