To qualify for an EB-5 visa, the investor will need to show that the invested capital came from a lawful source. In general, funds obtained by any lawful means are acceptable, including the sale of stock held in a privately owned company. To prove the source of the funds, substantial supporting documents will need to be included with the EB-5 application submitted to the U.S. Citizenship and Immigration Service (USCIS). The following documents, if available, should be included with the application to prove that the sale of stock held in a privately owned company is the lawful source of the investment funds.
• Income tax returns for the past five years. The investor should submit his or her individual tax returns for the past five years. In situations where a company pays taxes on behalf of the employee, records from the company showing that such filings have been made should be included with the EB-5 application. An inability to provide tax returns may be offset by providing the other mentioned documents in this section. USCIS will look at the submitted documents as a whole when determining the lawful source of the investment capital.
• Investor’s capital source statement. The investor should include a statement detailing the manner in which the stock was acquired, the length of time he or she held the shares and the capital gain from the sale of the stock.
• Share transfer agreement from the original stock holder to the investor. The EB-5 application should include the transfer agreement of the stock from the original stock holder to the investor to show how the investor obtained the shares. The agreement should include whether or not the investor provided payment for the stock.
• If investor purchased the stock, documents demonstrating that the capital used to purchase the stock was derived from a lawful source. The investor should include documents with the application to show that the funds used to purchase the stock came from a lawful source. The documents needed to demonstrate the lawfulness of the funds will depend on how the investor obtained the capital. Please refer to the appropriate source of funds section of our website for a list of documents that may be used to show that the capital used to purchase the stock was lawfully obtained. For example if the stock was purchased through the accumulation of salary, then please refer to the ‘Salary’ section of our website and provide the listed documents therein described.
• Share purchase agreement from the investor to the purchaser. To demonstrate that the investment funds came from the sale of stock, the application should include the purchase agreement between the investor and the purchaser.
• Stock transfer tax certificate. The application should also include the tax certificate demonstrating the payment of the stock transfer tax on the sale.
• Corporate business license. If available, the business license of the corporation in which the stock was held should be included in the application to demonstrate the legitimacy of the business.
• Company’s financial statements. If the company’s financial statements are available to the investor, he or she should include them with the application. Financial statements that may be submitted include the balance sheet, the profit and loss statement, and the statement of cash flows.
• Bank statements evidencing receipt of payment for the shares of stock. The investor’s bank statements should be included with the EB-5 application to show that the investor received payment for the sale of the stock. The statement should demonstrate that the funds came from the purchaser of the stock.
Please note that these are general suggestions and by themselves do not guarantee approval of an EB-5 submission. At the Law Offices of Vaughan de Kirby, we can help you through the entire EB-5 process – and help you make the best decision for you and your family. Call us today to schedule a free meeting at 415-221-2345.