Category: Uncategorized

EB-1, E-2 Visa for NIEs during Covid

Automatic Extension of Green Cards for Certain Naturalization Applicants

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By Zeenat Phophalia, Immigration Attorney, D&A

Effective December 12, 2022, US Citizenship and Immigration Services (USCIS) will grant an automatic extension of the validity of Permanent Resident Cards (green cards) for lawful permanent residents (LPRs) who have applied for naturalization by properly filing Form N-400, Application for Naturalization, on or after this date.

Green card holders who file the N-400 may receive a 24-month extension regardless of filing the Form I-90 – application for green card renewal.  The Form N-400 receipt notice can be presented with the expired green card as evidence of continued status as well as identity and employment authorization under List A of Employment Eligibility Verification (Form I-9) (within the 24-month extension period).

Under USCIS’ prior policy, applicants who did not apply for naturalization at least six months before their green card expiry had to file Form I-90 to maintain their status; applicants who had applied for naturalization at least six months prior were eligible to receive an Alien Documentation, Identification, and Telecommunications (ADIT) stamp in their passport, which served as temporary evidence of their LPR status. 

LPRs who filed for naturalization prior to December 12, 2022 will not receive a Form N-400 receipt notice with the extension.

USCIS is providing this extension in an effort to cut down on the lengthy I-90 processing times that can sometimes impact a green card holder’s I-9 employment verification process.

This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.

EB-6 Visa

What is the International Entrepreneur Parole (IEP) Program and Why Can’t it be Called “EB-6 Visa”?

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Some agents and immigration lawyers are incorrectly selling an “EB-6 Visa”. This does not exist: they mean the International Entrepreneur Parole Program, which does not confer the same status.

The “EB-6 Visa” Doesn’t Exist

The designation “EB” refers to authorized “Employment-Based” and is used to refer to ways authorized in the Immigration and Nationality Act (“INA”) to obtain “Employment Based” Permanent Residency (also known as a “Green Card”) in the United States.

EB-1, EB-2, EB-3, EB-4 and EB-is 5 are the currently authorized ways to obtain “Employment Based” Permanent Residency in the United States.  There is no formally authorized “EB-6” route to a Green Card in the INA.

So What is the “EB-6 Visa”?

On January 17, 2017, the United States Department of Homeland Security (“DHS”) promulgated a new rule international entrepreneurs to legally remain and work in the United States in a Parole status (“IEP”). The rule became effective on July 16, 2017.

Unfortunately some visa agents and even some lawyers dishonestly refer to the IEP program as a “visa” or “EB-6”.

Parole is not a visa and is not a grant of “lawful status” in the United States.

Do IEP Applicants NOT have to Obtain a Consular Issued Visa?

Because IEP is NOT a visa the process does not require that a US consulate issue a visa.

Why is IEP NOT a Visa?

IEP is authorized by a rule and does not form part of theImmigration and Nationality Act.  IEP is essentially special permission granted to enter the US for a limited purposes without a visa.  This special permission is called Parole.

Because IEP is NOT a visa and is merely “Parole” it does not require a visa application to be filed in a US consulate.
As Parole does NOT grant “lawful status” in the United States it is not possible to “adjust status” to that of Green Card holder form within the United States.



Why Calling IEP “EB-6” is Highly Dishonest and Misleading ?

The terms EB-6 is misleading becawuse those on the IEP program are not eligible for an adjustment of status to US Permanent Residency a Green Card.  To obtain a Green Card an IEP holder would have to leave the United States and return using a visa category recognized by US law, this does not include Parole as used in the IEP program.

Unlike the EB categories authorized in the INA, IEP is NOT a route to permanent residency.



Can I be a Passive Investor or Appoint a Manager of my IEP Qualified Business?

The law requires that an IEP applicant “has a central and active role in the operations of that entity, such that the alien is well-positioned, due to his or her knowledge, skills, or experience, to substantially assist the entity with the growth and success of its business.”  

Therefore passive investments or holding a role that is not a “central and active role in operations” does not qualify.



How Safe is IEP Parole?

The law clearly states that DHS/USCIS can terminate parole stats granted through the IEP program “without prior notice or opportunity to respond” if it determines that the alien’s continued parole in the United States no longer provides a significant public benefit”.  

This implies that USCIS have a great amount of latitude to terminate parole status granted using IEP at any time and without notice to the IEP holder.



What Can I do with IEP?

USCIS 8 CFR 212.19 states that under IEP qualified individuals can obtain work authorization for themselves and their spouses for up to 30 months.  This initial 30 month period can can be extended for a maximum of 5 years through the “re-parole” process.  



Is IEP Limited to the Nationals of Certain Countries?

Unlike the popular E2 Treaty investor visa, IEP is not limited to nationals of certain treaty countries. 

Qualifying for IEP


Despite what agents are saying in Vietnam, China and India this is the official text of the IEP rule published by the United States Government.  All of the terms and provision of this text therefore apply to IEP.

Who is Eligible for the International Entrepreneur Parole Program?

As the name suggests the International Entrepreneur Parole Program is open to global entrepreneurs, but ultimately eligibility will be determined by the Department for Homeland Security (DHS) on a case-by-case basis.

Basic eligibility requirements include:

  • The business must be a startup, created within the past five year within the United States
  • The applicant must hold “Substantial Ownership” in the startup business
  • The applicant must play an active role in the business
  • The business must have secured credible funding or other demonstrable support from private US investors, or federal, state & local entities.

How long is the International Entrepreneur Parole Program Valid for?

The International Entrepreneur Parole Program is valid for up to 30 months initially. This can be extended by another 30 months provided the business is able to demonstrate that it has grown and created jobs. However, parole is not a visa and people wanting to stay in the United States for longer will need to carefully plan their options. Anyone from an E-2 Treaty Country could potentially transition to an E-2 Treaty Investor Visa. If the underlying business becomes large enough or the entrepreneur privately has enough funds, then the EB-5 Immigrant Investor Visa offers a relatively fast route to a Green Card for a $900,000 investment. A Green Card is the name for US permanent residency, which offers the freedom to live and work anywhere in the United States.

Can my spouse and children accompany me to the United States under the International Entrepreneur Parole Program?

Yes. Spouses (husbands and wives) and children can accompany the primary applicant to the United States under the International Entrepreneur Program. Spouses can apply for work authorization. The primary applicant can only work for the startup and is not eligible to work elsewhere in the United States.

How many entrepreneurs can be granted International Entrepreneur Parole under this Program?

The maximum number of entrepreneurs per startup business is three (3).

Is the International Entrepreneur Parole Program only for Hi-Tech Startups?

No. The International Entrepreneur Parole Program is for any startup business in any industry sector. Provided it meets the key criteria and can prove that it offers strong growth and job creation potential for the United States.

Do I need to make an investment as part of International Entrepreneur Parole Program?

The start-up must have received an investment of at last $250,000 from private US based investors of $100,000 grants or awards from public agencies (local, state or federal). If you do not satisfy this criteria, you may still be granted approval if there is sufficient evidence to suggest the start-up will grow rapidly. At the renewal stage, you should be able to show that the business has received $500,000 in private or public and that it has generated $500,000 in revenue.

Which countries are eligible for the International Entrepreneur Parole Program?

The International Entrepreneur Parole Program is open to people from all countries unless there are specific sanctions or restrictions that impacts all form of immigration between your country and the United States. This means that the International Entrepreneur Parole Program is more wide reaching that the E-2 Treaty Investor Visa, which has more advantages but is limited to people from Treaty Countries.

How does the International Entrepreneur Parole Program Compare with the E-2 Treaty Investor Visa?

The E-2 Treaty Investor Visa allows an applicant to invest in and run a business in the United States. One of its main advantages over the International Entrepreneur Parole Program is the length of time you can remain in the United States. While the International Entrepreneur Parole Program is limited to 30 months with an additional 30 months for entrepreneurs who can demonstrate growth, the E-2 Visa is renewable forever provided the E-2 business continues to operate successfully. Like the IEP program, the E-2 Visa needs to be renewed and reviewed, but entrepreneurs usually have a little longer. This actual validity of your initial E-2 Visa does depend on where you are from – each country has its own validity period detailed in the State Department’s reci

procity schedules.

The advantage the IEP program has over the E-2 Treaty Investor Visa is that the E-2 visa is only available to people from E-2 Treaty Countries. The International Entrepreneur Parole Program could be an alternative if you are not from an E-2 Treaty County. However, there is also another solution: E-2 Visa eligibility is determined by citizenship, so it is possible to obtain citizenship of an E-2 Treaty Country and become eligible for the visa. The fastest and most cost-effective ways to become a citizen of an E-2 Treaty Country is the Grenada Citizenship by Investment Programme and the Turkey Citizenship by Investment Program.

How does the International Entrepreneur Parole Program Compare with the L-1 Visa?

Another alternative to the International Entrepreneur Parole Program is the L-1 Visa. The L-1 Visa permits the transfer of employees within the same company, the L-1A is for for International Managers & Executives and the L-1B is for highly skilled employees with specialized knowledge. Our firm specializes in New Office L-1 Visas, where you set up a new US office of your company and transfer an employee to the US to oversee the startup and growth of that company.

Unlike E-2, there are no nationality requirements for the L-1 Visa. The L-1A Visa can last up to seven years and the L-1B can be renewed up to a maximum of five years, both of which are longer than the IEP program. However, new office L-1 visas need to be reviewed and renewed after one year – which is earlier than the IEP program, but the progress requirements are usually less stringent. L-1 Visa holders who wish to remain in the United States permanently have a clear cut route to a Green Card through the EB-1c visa option.

This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.

Công ty của chúng tôi đã giúp hàng trăm chủ doanh nghiệp và gia đình chuyển đến Hoa Kỳ bằng thị thực EB-5, E-2 và L-1.

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Công ty của chúng tôi đã giúp hàng trăm chủ doanh nghiệp và gia đình chuyển đến Hoa Kỳ bằng thị thực EB-5, E-2 và L-1. Vậy loại thị thực nào là tốt nhất và hoàn toàn phụ thuộc vào tìnhh hình cá nhân của bạn. Chúng tôi thường dành lời khuyên cho khách hàng mới nên có một cuộc tư vấn miễn phí với nhóm luật sư của chúng tôi để thảo luận về các lựa chọn khác nhau dựa trên mục tiêu cá nhân, ngân sách và mong muốn của khách hàng.
 
THỜI HẠN THỊ THỰC
Thị thực L-1 và thị thực E-2 đều là thị thực không định cư. Những thị thực này không cung cấp quyền thường trú nhân, nhưng thị thực E-2 được xem là lợi thế hơn vì bạn có thể gia hạn vô số lần. Gia hạn không giới hạn có nghĩa là về mặt kỹ thuật, bạn có thể sống ở Hoa Kỳ mãi mãi, miễn là doanh nghiệp cơ bản vẫn hoạt động.

Thị thực L-1 có thể gia hạn tối đa là bảy năm đối với thị thực L-1A và năm năm đối với thị thực L-1B. Sau thời gian này, bạn cần phải rời khỏi Hoa Kỳ hoặc chuyển đổi sang một loại thị thực khác hoặc xin Thẻ xanh. Lời khuyên tốt nhất là thảo luận về các lựa chọn nhập cư của bạn với luật sư chuyên ngành.
Phù hợp với thị thực L-1 là thị thực EB-1 (C) hoặc thị thực EB-3. Tất nhiên, bạn cũng có thể tìm hiểu các lựa chọn để chuyển đổi sang Thẻ xanh từ thị thực E-2 nếu bạn muốn sinh sống và làm việc ở Hoa Kỳ lâu dài hơn và không bị ràng buộc với hoạt động kinh doanh E-2.

Khoảng thời gian được cấp trên thị thực L-1 và E-2 ban đầu của bạn sẽ khác nhau tùy thuộc vào nơi bạn đến. Mỗi quốc gia có khái niệm gọi là lịch trình đi lại quy định thời hạn hiệu lực thị thực tối đa. Lưu ý rằng thị thực của bạn có thể không được cấp trong thời gian đầy đủ được liệt kê theo quốc gia cụ thể của bạn. Các nhà chức trách có thể mong muốn bạn quay lại sớm hơn để kiểm tra tình trạng kinh doanh của mình. Ví dụ: “Thị thực L-1 Văn phòng Mới” được cấp ban đầu chỉ một năm, vì vậy bạn có thể bị kiểm tra tiến độ thực hiện của mình.
ĐIỀU KIỆN ĐẦU TƯ
Mỗi thị thực thường đi kèm với một yêu cầu đầu tư liên quan khác nhau. Thị thực đầu tư định cư EB-5 – cung cấp Thẻ xanh khi đầu tư. Yêu cầu đầu tư là 900.000 USD đối với các khoản đầu tư vào Khu vực việc làm ưu tiên mục tiêu (TEA) và 1,8 triệu USD bên ngoài các khu vực này. Trên thực tế, các Trung tâm vùng quản lý phần lớn các khoản đầu tư EB-5 đều hoạt động trong TEA và do đó, chỉ 900.000 USD được áp dụng như mức đầu tư tối thiểu. Nếu bạn muốn thực hiện EB-5 Trực tiếp, chúng tôi cần đảm bảo khoản đầu tư được đặt trong TEA để đủ điều kiện về số tiền đầu tư thấp hơn.

Bằng cách tiến hành thẩm định đối với Trung tâm vùng và các dự án của họ, nhà đầu tư EB-5 có thể giảm thiểu rủi ro không chỉ đối với Thẻ xanh mà còn đối với việc hoàn vốn của nhà đầu tư. Hầu hết các Trung tâm vùng đều đưa ra mức lãi suất rất thấp (hiểu theo nhiều cách, Thẻ xanh được xem là lợi tức của khoản đầu tư). Bằng cách đầu tư với một Trung tâm vùng có uy tín vào một dự án đáng tin cậy, nhà đầu tư có thể thu hồi vốn đầu tư của họ sau vài năm.

Không có yêu cầu đầu tư cố định đối với Visa E-2. Một nguyên tắc nhỏ là nó phải vượt quá 100.000 USD và phải phù hợp với doanh nghiệp bạn đang đề xuất thành lập hoặc mua lại. Chúng tôi đã thực hiện một số hồ sơ E-2 thành công với số tiền ít hơn 100.000 USD, vì vậy hãy liên hệ với chúng tôi để được tư vấn miễn phí. Khoản đầu tư không chỉ cần bằng tiền mặt – nó còn có thể là hàng tồn kho, bằng sáng chế, thiết bị, v.v.

Thị thực L-1 không yêu cầu đầu tư nếu bạn chỉ đơn giản là chuyển từ chi nhánh ở nước ngoài sang chi nhánh hiện tại của một công ty đa quốc gia. Thị thực Văn phòng L-1 mới chắc chắn yêu cầu đầu tư cần thiết để thành lập và phát triển văn phòng mới của Hoa Kỳ. Điều này cần phải phù hợp với nhu cầu của doanh nghiệp.
VIỆC LÀM
Thị thực EB-5 cung cấp quyền tự do để làm việc (hoặc không làm việc) tại Hoa Kỳ. Một đơn đăng ký/đầu tư duy nhất có thể bao gồm không chỉ người nộp đơn mà cả vợ/chồng và con cái dưới 21 tuổi. Mỗi thành viên trong gia đình đều nhận được Thẻ xanh của riêng mình, nghĩa là họ được tự do làm việc tại Hoa Kỳ. Chúng tôi nhận thấy nhiều khách hàng EB-5 của chúng tôi được thôi thúc bởi việc con cái họ được học đại học tại Hoa Kỳ và triển vọng làm việc sau khi tốt nghiệp.

Người nộp đơn chính cho thị thực E-2 và L-1 được yêu cầu làm việc trong vai trò mà họ đã chuyển đến Hoa Kỳ để hoàn thành. Tuy nhiên, vợ hoặc chồng của những người có thị thực này có thể xin phép làm việc tại Hoa Kỳ. Điều này mang lại sự linh hoạt trong việc làm hơn rất nhiều so với thị thực H-1B phổ biến, như ví dụ, vì bạn không bị ràng buộc với một nhà tuyển dụng cụ thể. Là thường trú nhân, bạn chỉ bị đánh thuế đối với thu nhập tại Hoa Kỳ của bạn.

Có nhiều ưu và nhược điểm khác nhau đối với từng loại visa. Điều quan trọng là nên thảo luận về tình hình cá nhân của bạn với đội ngũ luật sư của chúng tôi để chúng tôi có thể phân tích tình huống và từ đó xác định loại thị thực tốt nhất và phù hợp nhất cho bạn và gia đình của bạn.

Webinar: Grenada: Gateway to the United States E2 Visa

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Sign up for our the next in our series of free expert immigration webinars

Grenada & The E-2 Visa Webinar | Thursday 17 December

8 am Eastern |6:30 pm India

Grenada is an island paradise with a stable government and a well-established investment environment. A Grenada passport can be obtained in just a few months without ever needing to visit the island. Grenada has a strong passport, offering visa-free access to more than 120 countries, including the UK, China, Singapore, and the whole European Union. There is no tax on worldwide income and processing times are extremely fast. 

Find out more

Grenada
Fast & Cost-Effective Citizenship
– Gateway to the US E2 Visa –

Host:
Mark Davies, Global Chairman, Davies & Associates
Speakers:
Maryam Mansouri, Business Development Director, Range Developments
Verdie Attienza, Senior Immigration Attorney, Davies & Associates

Click Here to Register for the Webinar

Why Grenada Citizenship?

Grenada: Access to the United States E-2 VisaGrenada has an E-2 Treaty with the United States. This means its citizens are eligible for the E-2 Treaty Investor Visa. The E-2 Treaty allows a person to move to the United States with their family to own and operate a business. Processing times for both Grenada and the E-2 visa are very quick. It is possible to complete the entire process in a matter of months.

If the country of which you hold citizenship does not have an E-2 Treaty with the United States, it is necessary to first become a citizen of an E-2 treaty country like Grenada. India, China, Vietnam do not hold E-2 Treaties. Click the link below to see the full list.

Find out if your country has an E-2 Treaty with the United States 

Benefits of the E-2 Visa

The E-2 Treaty Investor Visa allows a person to move to the United States with their spouse and dependent children for the purposes of owning and operating a business. The E-2 Visa offers many advantages including:

Grenada: Access to China

Grenada is one of the few passports in the world that has visa-free access to China. Our clients with business interests in China are pursuing a Grenada passport to ensure their access to the Chinese markets is not disrupted. They anticipate that geopolitical events, such as the trade war and border disputes, may cause challenges.

Register for the Webinar Here

Read more




 

Dubai Introduces New Visa Targeting Retirees

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Dubai has long been a place for ambitious, younger people seeking exciting job opportunities. Now, it is also set to become the place for older people seeking the good life as well. The government of the emirate has introduced a new type of visa, allowing expats to retire in there for the first time.

To qualify for the retiree visa, you must be over the age of 55, and also meet the financial requirements. This includes having a monthly income in excess of 20,000 dirhams ($5,400) and have 1 million dirhams in cash savings ($275,000). You are also required to purchase a property in Dubai worth more than 2 million dirhams ($545,000).

Dubai is a popular location because of its warm climate, excellent internal and international transport links, good food options, and recreational activities.

The program will reward expats who have lived and worked in Dubai, but faced having to return to their home countries as they reach retirement age.

It will also attract people seeking to retire from colder climates like the United Kingdom, where Brexit has made the dream of moving to Mediterranean countries like Spain, Portugal, France and Italy, a little more complicated.

Retirees are required to take out health insurance as a precondition for moving. Dubai’s tourist board argues that the emirate has one of the best health systems in the world.

This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.

Acquire a Franchise Business and Move to the United States

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Did you know it was possible to move to the United States to run a franchise business. The E-2 Treaty Investor Visa allows people to emigrate to the US for the purposes of investing in and managing a business. This can include a franchise.

In this video, our Global Chairman Mark Davies, addresses some of the frequently asked questions about franchise business. And advises on some of the pitfalls to be aware of and to avoid.

For example, franchise brokers can help with the whole process. However, it is important to know if they are earning commission and to seek external advise.

Not all franchises are eligible for the E-2 visa, so it is important to check first. It is especially useful to have a corporate lawyer review the franchise agreement before you sign.

If you are not from an E-2 Treaty Country. Contact us to discuss ways to become eligible for the E-2 visa. This usually involves obtaining citizenship of a country that has an E-2 Treaty with the United States. Grenada and Turkey offer the most cost-effective pathways to citizenship.

This article and video is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients.

E-2 Visa approved for a Singaporean national during COVID-19

Should Vietnam and India be granted E-2 Visa Status?

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D&A Global Chairman Mark Davies argues the time is ripe to grant E2 and E1 Visa status for Vietnam and Indian citizens.

Before coming to Vietnam I did not realize that the US is Vietnam’s largest export market. Having spent years in India I did know of the massive potential to grow cross-border business between the US and India.

We are seeing a lot of interest in the L1 Visa and E2 Visa from companies in our offices in Ho Chi Minh City, Hanoi, Delhi, Bangalore and Mumbai much of it being Vietnamese and Indian businesses looking to access the US market. Many Vietnamese and Indian firms are looking to increase their trade with the US through E2 and L1.

Vietnam and India both represent a huge opportunity for US businesses to expand and invest. Vietnam is Asia’s fastest growing market and companies want to grow by investing through a business there.

At the moment, obtaining an E2 Visa means a Vietnamese or Indian national has to obtain a second nationality, popularly Grenada and Turkey.

It’s time to put an end to the need for Citizenship by Investment in Vietnam and India and for the US to enter into a treaty with both Vietnam and India allowing for both the E2 and E1 Visa. Such a treaty would allow Vietnamese businesses access to the US and streamline the process by which US businesses can access the lucrative Vietnamese market.

Bankruptcy in India during Covid-19

India’s Bankruptcy Code: FAQs

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Amid a global economic crisis, Neha Mehta answers some frequently asked questions about filing bankruptcy in India.

Q1. When is a Corporate Debtor in default?

A. “Default” is the non-payment of a whole, or a part, of a Corporate Debt when due and payable. Erosion of net worth is not a default under the Code.

Q2. Can a financial institution proceed against a Corporate Debtor under the Code although it may have already taken action under the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI)?

A. Section 238 of the Code provides that its provisions shall have effect notwithstanding anything inconsistent in any other law or an instrument under any other law. Further the NCLT, Ahmedabad Bench, in Sarthak Creations Pvt. Ltd. vs Bank of Baroda & Others, held that pendency of proceedings before a Debt Recovery Tribunal (DRT) or invocation of SARFAESI Act, will not bar the commencement of CIRP, in view of the non-obstante provisions of section 238 of the Code.

Q3. What is a COC?

A. The COC (Committee of Creditors) is constituted of a Corporate Debtor’s financial creditors. It is a decision maker in CIRP.

Q4. Can a claim, or proof of claim, be filed, or submitted after the elapse of 14 days from the date of a demand notice?

A. Regulation 12 (2) of the CIRP Regulations provides that a Creditor, who fails to submit a claim with proof within the time stipulated in a public announcement inviting claims, may submit by the 19th day of the Insolvency Commencement Date. This amendment to the CIRP Regulations was made effective from July 2018.

Q5. Are home buyers deemed to ‘Creditors’ under the Code?

A. Section 5(8)(f) of the Code was brought into effect from 6th June, 2018 to provide that an amount raised from a real estate allottee is deemed to be a ‘borrowing’. The logic behind such amendment is that home buyers/allottees advance monies to buyers/allottees advance monies to developers, thereby financing a real estate project, and thus they will fall within the definition of a ‘Financial Creditor’ under the Code.

Q6. Would a moratorium ordered against a Corporate Debtor under the Code affect pending proceedings under section 138 of the Negotiable Instrument Act 1881 (NI Act)?

A. Section 138 of the NI Act is a penal provision empowering the competent court to order imprisonment or a fine. A fine is not a money claim or recovery against a Corporate Debtor, and an order of imprisonment against Directors of a Corporate Debtor does not affect CIRP. Therefore, proceedings under 138 of NI Act therefore will not be affected by a moratorium. Further, no criminal proceeding lie under Section 14 of the Code.

Q7. Does the Code provide for punishment against a Corporate Debtor that commits fraud?

A. Under Section 68 of the Code, if any officer of a Corporate Debtor wilfully conceals its property, he or she would be punishable with imprisonment for 3 to 5 years and a fine extending from INR 100,000 upto 10,000,000.

Q8. Can a Creditor and Corporate Debtor arrive at an ‘out of Court’ settlement and withdraw CIRP?

A. Yes, but with a 90% of COC members voting in favour of the settlement.

Q9. Can an RP reduce a claim amount if a Financial Creditor has claimed usurious or extortionate interest?

A. An RP can revise a claim admitted under Regulation 14 of the CIRP Regulations, subject to the RP collating information warranting the revision. While empowered to do so, the RP should, ideally, intimate the NCLT of the revision.

Q10. Can interest, overdue charges and related charges in respect of a credit facility be treated a part of a claim?

A. Yes.

Q11. In a liquidation of a Corporate Debtor, how will proceeds from the sale of assets charged to a secured creditor be treated?

A. If a secured creditor has participated in the liquidation process, it would relinquish its security interest to the liquidation estate, and receive proceeds from the sale of assets per the waterfall mechanism in Section 53 of the Code.

Q12. Can aggrieved employees, operational creditors appeal against not settlement of any outstanding claims?

A. Any person who is a party to, and aggrieved by, a resolution plan may appeal to the National Company Law Appellate Tribunal (NCLAT) under Section 61(3)(iii) of the Code. The appeal be within the grounds permitted.

Q13. Within what period from the approval of a resolution plan will a resolution applicant have to pay the resolution amount?

A. A payment schedule has to form part of a resolution plan, and on its approval, it binds all stakeholders. Therefore, the resolution plan will stipulate the period within which payment is to be made, and it will bound by it, upon the plan being approved by the COC and the NCLT.

Q14. What is the status of personal guarantors in a CIRP?

A. Notwithstanding the pendency of CIRP, Financial Creditors may invoke personal guarantees for causing payment of the debts of the Corporate Debtor.

Q15. Where would the CIRP process be initiated, if a Corporate Debtor has, for example, a corporate office in Delhi and its registered office in Mumbai?

A. The CIRP will have to be initiated in the jurisdiction of the Corporate Debtor’s registered office.

Q16. What is the application fee payable for initiating CIRP under the Code?

A. It is INR 2000 if the applicant is an Operational Creditor, and INR 25,000 if it is a Financial Creditor.

Disclaimer: This article is provided for informational purposes only and is not legal advice. For more advice on the topic, please contact the author.

Why now is a good time to prepare L1/E2 Application

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David Cantor is a licensed attorney in the State of New York based in our Florence, Italy office. David oversees Client Relations for Davies & Associates Global Investor and Business Visa Practice.

As of March 18, US Citizenship and Immigration Services suspended in-person services until April 1st in order to combat the spread of the Coronavirus (COVID-19). It is highly likely that interviews and other critical Consular services will also be suspended beyond this date – in other words, it will not be possible to obtain an interview and visa for the United States until further notice. This includes all immigrant and non-immigrant visa categories, even visitor visas for the United States.

Despite these major uncertainties, for individuals or businesses that are seriously considering a non-immigrant visa, it may still be a good time to move ahead. Certain non-immigrant visas, such as the L-1 (multinational manager/executive transfer) or E-2 (Treaty Investor), will permit an applicant to start/acquire a business in the United States. These favorable visa categories (L1 and E2) will provide work-authorization and social security numbers for qualified dependents (i.e. spouse and children under-21).

At Davies & Associates we represent a diverse size of businesses and entrepreneurs – from boutique retailers to multinational entities. We represent individual investors as well as businesses seeking to expand their current operations into the United States. You can qualify for these favorable non-immigrant visa categories in virtually any industry, and one may successfully petition for an investor visa with a minimum of $80,000 – $100,000 USD investment, depending on the type of business and your five-year business plan.

While the current state of affairs presents significant challenges and uncertainties, for those seriously considering US business expansions or investments, it is necessary to keep in mind the overall processing times of a respective application. Filing a L1 or E2 visa application is a complex, and oftentimes laborious process. In the larger picture, you can breakdown the processing timeline into two main parts: (1) Preparation of your case; and (2) Official Government Processing.

  1. L1/E2 Casework Preparation. Average Timeline: 2-5+ months. This portion consists of everything required to build a strong L1/E2 application with your immigration attorneys. This may involve all the document collection, production of a five-year business plan, incorporation and formation of a US entity/bank accounts, securing a US commercial lease, hiring of US employees, mobilization of capital, and more.
  2. Official US Government Processing. Average Timeline: 1-3 months. The US government has several channels to lodge and application and processing timelines will vary depending on the visa category and geographic location. Waiting periods will also depend on factors such as government resources and staffing.

 

In sum, clients seriously considering business expansion efforts into the United States must take into consideration the practical efforts involved in preparing and submitting a L1 or E2 application. Although it varies on a case-by-case basis, the average timeline for preparing this non-immigrant application may be 2-5+ months (not including official government processing).  Although it is uncertain, it is realistic to project that US Consulates will open within the near future. It is also likely that appointment and interview waiting periods will increase significantly due to a backlog of casework. For these reasons it is beneficial for clients to have a “ready application” for submission, and beat potential waiting periods that are likely to accrue over this period of time.

Can I form a US company from outside the United States? What about getting an Employer Identification Number (EIN) and a bank account? 

Some of the most practical challenges to the existing travel restrictions due to the Coronavirus (COVID-19) are those that inhibit a foreign applicant to focus on the US business incorporation or expansion. While there is no requirement that L1 or E2 applicants physically visit the United States before filing a L1/E2 application, there are some practical concerns. Obviously, for those wishing to launch a US business, many will want to have secured a commercial location and a base for their operations. However, for those that have a general idea, or can narrow down the State(s) where they wish to operate, there is nothing restricting you from establishing your US entity. At Davies & Associates we support our clients corporate needs and can advise you with regards to not only registering your US entity – but also in drafting all the corporate documents that will be necessary for your US business and operations. Without visiting the United States, you are also able to obtain the necessary tax IDs (i.e. EIN), that will permit you to obtain necessary licenses, as well as establish US bank accounts. If you are interested in learning more about establishing a US entity please CONTACT US today.

Shift in EB-5 Priority Dates for India and Vietnam

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Sukanya is an Associate in our Mumbai India office. She works with our Indian clients on EB-5, L1 and E2 visas coupled with Grenada citizenship.

As per the recent update of US Visa Bulletin for the month of April 2020, we see a change in the final action dates for EB-5 preference cases for India and Vietnam. Priority Date means the date when the US Citizenship and Immigration Services – USCIS – receives the petition and form I-526. Each country has a different priority date depending on the petitions filed each year by each country. Please see the priority dates in the upcoming Visa Bulletin for April 2020, for India, Vietnam and China.

India:
1st January 2019 as compared to the date 22nd October 2018 as per the visa bulletin for March 2020.
Vietnam:
15th January 2017 as compared to the date 08th February 2017 as per the visa bulletin for March 2020.
China:
There is no solace for the petitioners in China as the priority date remains unchanged at 15th May 2015.

Overall, this might be good news for some petitioners from India and Vietnam, provided the United States Citizenship and Immigration Services (USCIS) has approved their I-526 petitions. It should also be kept in mind that this shift, even if substantial, may be due to low visa demand which is a result of low rate of I-526 processing by USCIS. Also, I-526 processing time might go down due to fewer applications after the change in the minimum investment amount of USD $500,000 to USD $900,000 post 21st November 2019. We may also see a rejuvenated interest for EB-5 in markets like India and Vietnam due to improvement in the priority dates. Although it is an interesting ‘wait and watch’ to conclude what the actual timelines for procuring the Green Card are, this definitely is a positive sign for prospective applicants.