Invested Capital Obtained from Lawful Means

-- By Mugg & Tang, LLP

One of the key requirements regarding EB-5 petition is that the foreign investor must establish that the invested capital was obtained through lawful means. The underlying purpose of this requirement is to prevent possible illegal activities such as money laundry.

Lawful means include gifts, inheritances, loans, etc. The hardest part is about how to prove lawful means. We suggested our clients to use the following documents to evidence income and assets: bank statements, business records, tax returns, sales contracts, deeds related to the sale of businesses or houses, etc. However, the investor cannot count assets belonging to the enterprise among her or his personal assets. Moreover, merely owning shares in a business or occupying a high position in a company does not by itself imply significant earnings or wealth.

Mugg & Tang, LLP is experienced in demonstrating lawful means and dedicated to serving foreign entrepreneurs.