- The EB-5 visa (USA investor visa) Program popularity is increasing amongst Indians
- To be eligible, the applicant must make a minimum investment of $500,000 or $1,000,000 in an American new commercial enterprise and create 10 jobs
- The applicant’s spouse and unmarried children under the age of 21 years are also eligible for the visa
How to apply for an EB-5 investor visa? Who can apply for it? And why are more and more Indians turning to this visa? Find out answers to all your questions below:
With the H1B visa becoming increasingly difficult to obtain, Indians seeking to migrate to the USA have turned to alternative visa programs. The EB-5 visa program is one such visa. This visa allows migrant investors and their families to obtain permanent resident status in the USA by investing a minimum amount of capital in the US economy, thereby benefiting the economy and creating jobs for Americans.
This includes the investor’s spouse and any unmarried children under 21 years of age. This is one of the fastest ways to obtain a Green Card. One of the common questions today is how to apply for an EB-5 visa.
How to apply for an EB-5 visa – Requirements
The EB-5 Visa Program was created in 1990 to stimulate the U.S. economy. Hence, investment and job creation are the basic prerequisites for this visa. The first requirement for an EB-5 visa is an investment of $500,000 or $1,000,000 ($1 million) in a new commercial enterprise based in the USA.
This enterprise must be a company that works for profit. It may take the form of a sole proprietorship, a limited or general partnership, a holding company, a joint venture, a business trust, or a corporation.
How to apply for an EB-5 visa – How much to invest
The amount to be invested depends on the enterprise’s location. For new companies based in targeted employment areas, the minimum investment required is $500,000.
If you choose to invest in a new company anywhere outside this area, you will need to invest at least $1,000,000. This investment can be made directly or through a regional center. It may take the form of cash, inventory, equipment, tangible property or secured indebtedness.
How to apply for an EB-5 visa – How many jobs should you create
In addition, the investor needs to ensure that the company creates full-time jobs for at least 10 American citizens. In the case of direct investments, all employees need to be employed directly by the commercial enterprise.
In the case of investments made through a regional center, this can include direct and indirect jobs. Indirect jobs are jobs where a person is not directly employed by the company but is employed in a job created by the company’s operations. These jobs must be maintained for at least 2 years.
When applying for an EB-5 visa, it is important to note that there are no minimum educational or English-language requirements.
Applying for EB-5 Investor Visa -Direct Investment vs Investment through Regional Centers
As the name suggests, in a direct investment, the investor chooses the company to invest in and is involved in running the enterprise. On the other hand, if the investment is made in a regional center, the center will decide which company to invest in. In such cases, the investor is akin to a limited partner in the company. He or she is not expected to be involved in running the company but may serve as a board member.
In the case of a direct investment, the company needs to make enough profit to support 10 direct jobs and the investor. Depending on the company’s structure, he or she may be subject to business liabilities. In the case of investments made through a regional center, the investor’s liability is capped at the initial investment.
When it comes to fulfilling the job-creation criteria, it is easier to do so if an investment is made through a regional center. This is because both direct and indirect jobs are included.
How to apply for an EB-5 visa – A Step-by-Step Guide
The applicant can apply for Green Card status for themselves, their spouse, and unmarried children under the age of 21 through the EB-5 visa program. The process is fairly simple, and there is no waitlist for Indians on this program. It is best to hire the services of an immigration lawyer to help you understand how to apply for an EB-5 visa.
Step 1: Determine where and how the investment is to be made
The first step to applying for an EB-5 visa is to find a for-profit company you want to invest in. Alternatively, you may choose to invest in a regional center. In some cases, the amount to be invested may need to be placed in an escrow account.
Step 2: File the I-526 petition
This is the initial petition for a Green Card. It is best to ask an immigration lawyer to help complete this form. The application will then need to be filed with USCIS, the U.S. Citizenship and Immigration Services. On doing so, a Receipt Number will be allocated to track the application. Processing the application can take as much as 18 months.
Step 3: Apply for Lawful Permanent Residence or Adjustment of Status
When the petition is accepted, the investor and his immediate family can apply for Lawful Permanent Residence if they reside outside the USA or an Adjustment of Status if they have non-immigrant status in the USA. This is valid for a period of two years.
For an application for Lawful Permanent Residence status, the I-526 form must be submitted to the National Visa Center. An interview and medical examination may also be needed. If the investor’s status is to be adjusted, the I-485 form must be submitted to USCIS.
Step 4: Apply for Unconditional Permanent Residency
Once the investor has conditional resident status, they have 2 years to make the required investment and meet the job-creation criteria. Once all the conditions for the BE-5 visa program are met, the investor may apply for an unconditional Permanent Residency. To apply for this, the I-829 form must be completed and submitted.
This should be done at least 90 days before the conditional resident status expires. Once approved, the investor, his or her spouse, and unmarried children under the age of 21 will be granted a Green Card. This approval process can take between 6 and 8 months.
Step 5: Citizenship
After living in the USA for at least 5 years as a permanent resident, the investor and their family can apply for US citizenship.
Investor Visas to the USA – An Expensive Affair
Immigrating to the United States of America through the investor visa route is set to become more expensive from April 1, 2020, onwards. This is the result of an increase in taxes payable over the initial investment amount.
Additional Taxation
The US government has increased the taxes on remittances for all visa categories. However, it will be felt most by people investing in the EB-5 visa program. Immigrants applying for this visa will not have to pay an additional $50,000 per applicant.
Impact of Additional Tax
The additional tax will make applying for US citizenship even more expensive. It is important to note that the additional tax is not the only influencing factor at play here.
In 2019, the minimum investment required for the EB-5 visa was increased for the first time since its inception. Whereas earlier immigrants needed to invest only $500,000 in targeted employment areas, they will now have to invest a minimum of $900,000.
Similarly, in a non-targeted employment area, immigrants will now have to invest $1.8 million instead of the $ 1 million they needed earlier. The additional tax introduced is payable when investors move their money to escrow accounts.
The result: Indians moving to the USA through this route will now have to carefully plan their tax position before applying for the EB-5 visa. Many people who want to emigrate do not want to pay this tax at source. Most applicants would rather move their investment money before the new rule comes into effect.
Alternative to the EB-5 visa
There are several alternative routes to obtaining US citizenship. For example, applicants may re-route their application through the Grenadian citizenship.
Investing $220,000 in a government-approved real estate project in Grenada makes applicants eligible for Grenadian citizenship, after which they can apply for US citizenship through the E2 visa.