A concrete interpretation of EB-5 project of American underage investment immigrants

With the waiting time of EB-5 visa for China applicants getting longer and longer, many parents in China who want to get a green card through EB-5 project are faced with the dilemma that their children can only arrange EB-5 visas when they are over 2 1 year old. For this reason, many people are also considering investing money for their children to become investors and applicants of EB-5. Many customers and others are asking how to do this, and this article 86 gives a brief overview of this problem. First of all, please note that the US Immigration Service has not formulated a policy on whether minors can be approved as investors. Although there is no explicit prohibition at present, the Immigration Bureau can change its policy at some time in the future to restrict underage investors. Therefore, we suggest that we should be cautious and limit the number of underage investors under a project.

In a recent conference call, the US Immigration Service said that there is currently no policy not to allow minors to be EB-5 investors and applicants. However, investors must prove that their investment contracts are legal, effective and irrevocable by the evidence advantage standard. In the United States, generally speaking, contracts signed by minors will be invalid or become revocable when they reach adulthood. However, the Unified Transfer to Minors Law (UTMA) stipulates that parents or guardians can sign a contract on behalf of their children in their name, and this contract is irrevocable. In order to realize this securities sale, the subscription contract and operation contract of this project must contain the following words on the signature page:

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (name of parents or guardians) acts as the guardian of _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

______________________

Printed names of parents or legal guardians

______________________

Signature of parents or legal guardians

At the same time, there are two points to note:

First of all, parents must give the money invested to their children. Children must deposit funds into their own accounts or their parents' accounts.

Second, parents can't own the rights and interests of limited partnership or limited liability company under EB-5 investment company at any time. In other words, ownership should live directly under the children's names. Although parents are responsible for managing their children's property before their children are 18 years old (in some states, it is 2 1 year old), once the children reach the legal age, the control right automatically belongs to them.

Such an irrevocable investment contract generated by parents purchasing EB-5 company rights on behalf of their children according to UTMA regulations should meet the current interpretation of EB-5 requirements by the Immigration Bureau. Children under 14 may not be able to sign the immigration form, so we generally do not recommend accepting investors under 14. Although there is no age limit in laws, regulations and immigration policies, we still prefer to limit this transaction to children aged 16 and 17. Although investors aged 14 and 15 are not banned, they may encounter more resistance from immigration, negative public reports and political censorship now or in the future.

At the same time, it should be noted that many banks engaged in EB-5 supervision may either not accept underage deposits or have not formulated policies on accepting underage deposits. This means that underage investors may give up capital supervision for investment. As underage investors are a new trend in EB-5 industry, we expect new developments in the future.