Hi there,
Our search returned the following results:
What are the requirements for reporting foreign investment deposits?
We are concerned with what the proper paperwork is to be completed to
statisfy international and national (US) Requirements.
Answer:
Reporting Requirements
1. Initial Investment Report
"Any foreign person who establishes or acquires a new foreign direct
investment is required to file a Form BE-13 (with certain exceptions).
The form is filed most often when a foreign person establishes a US
affiliate or when such an affiliate acquired a subsidiary or
substantial assets of an existing US business and organized those
assets into a separate legal entity. Special instructions are provided
for acquisitions of real estate interests. Form B-13 must be
accompanied by Form BE-607, which identifies the industry under which
the foreign parent and the newly acquired direct investment operate.
Filing those forms is due within 45 days of the date on which the
direct investment occurs. US persons who assist or intervene in an
acquisition by foreign persons of direct investments in US businesses
or who enter into a joint venture with a foreign person to create such
an enterprise, must file Form BE-14, unless Form BE-13 has already
been filed."
2. Quarterly Reports of Transactions by a US Affiliate
"A US affiliate of a foreign person must file on a quarterly basis
Form BE-605 disclosing transactions with its foreign parent. The
report requires information on matters such as loan agreements,
leases, royalty agreements, licenses etc. General information such as
debt and equity positions of the parent and affiliate during the
quarter are also required. However, if each of the following is less
than $20 million, Form BE-605 is not required to be filed: assets;
actual or expected annual sales; and actual or expected net income
after provision for US income taxes."
3. Annual Reports
"US affiliates of foreign persons must file Form BE-15 annually, which
requires information on the financial and operating characteristics of
the US affiliate on a fiscal year basis. BE-15 long form exempts
affiliates with the same $20 million criteria as for the quarterly
reports. However, BE-15 short form is required from such affiliates
whose total assets, sales or gross revenues, or net income after US
income taxes are between $10 million and $20 million."
4. Benchmark Surveys
"Every five years US affiliates must file Form BE-12. The BE-12 long
form is required if total assets, sales or net after tax income exceed
$20 million. The BE-12 short form is provided for situations where one
of those factors exceeds $1 million but no single factor exceeds $20
million."
The above can be found at:
http://www.eskimo.com/~larrygj/peterpub.html#report
Certain types of businesses have had restrictions placed on them, but
your company does not fall into any of these categories:
Aviation
Telecommunications
Maritime
Power Generation
Banking
Insurance
Real Estate and Mineral Leases
The value of our company is small as we are just starting out and this
investment is our seed money to get things rolling, we also wanted to
reinvest some of the capital to generate earnings as our company
growth is expected to be small unitil we get our applications
developed.
Answer:
Reinvestment of some portion of this money would be treated the same
way as if yoiur company chose to invest a portion of your earnings. As
long as the investment is recorded by the company (through the above
reporting methods) the government considers the investment capital to
be the property of the corporation.
Is it better to utilize an off-shore bank or a one based in the
states? Will the IRS be questioning why a large sum is being
deposited?
Answer:
The main reason to utilize an off-shore bank would be to remain out of
reach of US agencies (such as the IRS) but since you have nothing to
hide there really isn't any point. As long as the account is in the
company's name and you file the appropriate reports (listed above)
they will have no need to come after you.
How do we make sure the foreign investor's fund is legitimate and that
we are not being used for money laundering (The money is coming from a
royal family in Nigeria)?
Answer:
Here is a link to a site that explains the process of money laundering
in detail and shows how to protect yourself from becoming involved:
http://www.countermoneylaundering.com/
The Google Directory also offers a section on this topic:
http://directory.google.com/Top/Society/Crime/Research/Money_Laundering/
Hope this helps! If you need any further clarification please don't
hesitate to post a clarification.
Cheers,
answerguru
PS: Please note that the resources given here are all public domain.
The best thing to do if there are further doubts here would be to
consult a qualified lawyer or financial expert. |
