Source of Funds - Company Shares

Hello, I’m Vaughan de Kirby. And again today we’re gonna talk about source of funds. Many of our clients come to us, and they’re the owners or the shareholders of a privately owned corporation or company. And they want to sell shares in that company and use the proceeds of those shares as their EB-5 investment, so we’ll talk about some of the specific documents that we may need in order to establish the lawful source of these funds, but again, not unlike other assets, like real property, or other types of property, we must also show the source of the funds used to acquire the shares originally. This can mean that if it’s a privately held company that you started some years back, we’re going to have to show where the funds came from that you used to establish the company, so that’s something you’re gonna want to discuss with your immigration attorney, but let’s take a look at a list now of the documents that we anticipate you will need.

You’ll need: the company’s business license. The company’s tax registration certificate. The company’s Articles of Association, or if it’s a corporation, an articles of incorporation. The company’s financial reports for the last five years. And the company’s registration change records, if that applies to your case. And a document evidencing that you legally acquired the shares originally. Documents evidencing the lawful source of funds you used to acquire the shares as I explained earlier. Share transfer agreement signed between the investor and the transferee, the person purchasing the shares. A resolution of Shareholders’ meeting agreeing to the transfer. The shareholders must agree to this transfer. A bank transaction receipt showing the proceeds from transfer were wired to the investor’s bank account from the transferee’s bank account. Investor’s bank statement evidencing receipt of the payment of the share transfer.

Now this is a lot of documents, and I know this can be difficult. Again, this is something you’re going to want to discuss in detail with your immigration attorney, but this gives you some of the information you’ll need if you’re planning to sell shares in a privately held company as the source of your investment funds. I hope this is helpful.

If you have any questions, please feel free to contact us or call 415-221-3500.

Vaughan de Kirby
California Immigration Attorney

EB-5 Regional Center Program Ends 12/22/17

Congress has extended the current Regional Center program to December 22nd, 2017, at which time it will sunset unless extended. We anticipate future legislation that will call for an increased investment amount and more stringent requirements. For this reason, we recommend to our clients that they take action under the current law if at all possible.

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