Investing in the US: how much capital is required and what type of visa is needed to set up a company

Year after year, companies of different sizes seek to pursue the long-awaited “american dream” placing a headquarters for your business or franchise in the US. To do it, all must have an investment visa better known as EB5 visas, a program administered by USCIS (United States Citizenship and Immigration Services). Every year, The US issues 10,000 EB5 visas as part of its annual cap, and incredibly, Argentina is in the top 4 for orders.

EB-5 visas allow foreigners and their direct dependents under 21 years of age to live in the United States with the possibility of managing different investments.

The main industries in which investments are directed are luxury housing construction, hotels, mining projects, stadiums, sports centers and high-end restaurant chains. Those who have less capital usually choose franchises when settling in the US.

This week, American Venture Solutions, cA well-known company that provides EB5 investment opportunities to foreign investors, organized an exclusive event at the Four Seasons commenting on the current business landscape for those wishing to enter the North American market. The director of Commerce of the United States, Marcelo Andem, who was part of the meeting, He pointed out some key data about the US economy to take into account and reported on the support work that the Embassy provides to companies.

The characteristics of the American market

• The flow of investment from the US to the Western Hemisphere is strong: the US has invested 1.5 trillion by 2022 in accumulated stock in Latin America. Latin America, on the other hand, has invested US$800 billion in the US.
• Regarding the business climate, the US is ranked 1st in foreign direct investment confidence, 2nd in global competitiveness according to the World Economic Forum and 3rd in innovation.
• Regarding the economy, inflation decreased from 9% annually to 3% annually in recent years. It has a sustained employment rate, with growth of 150,000 new jobs. In the last twelve months, consumption increased at a rate of US$20,000 million per month.
• The US is one of the most important markets in the world and has free trade agreements in 20 countries, 11 of which are in Latin America.

What basic requirements must be met to set up a franchise in the US or a company headquarters?

According to the official, the US Embassy in Argentina provides advice to companies at zero cost. The condition is to have a solid business plan based on qualitative and quantitative analysis of the market. To establish a company in the US, you need to obtain an investment visa.

The Embassy works with Argentine investors within the framework of SelectUSA, the US Government program led by the Department of Commerce that focuses on facilitating business investment that creates jobs in the United States. Since its creation, SelectUSA has facilitated more than $200 billion in investments, creating and/or retaining more than 200,000 jobs in the United States.

What visas can be obtained as investors and how much is the minimum amount of capital?

Andres Echevarria, a United States lawyer specialized in investor visas, spoke about an EB-5 visa program.

This is a Program where investors are eligible to request a permanent residence following the following conditions:

• They make the necessary investment in a commercial enterprise in the United States; and
• They plan to create or preserve 10 permanent jobs for skilled American workers.

The United States Congress created the EB-5 Program in 1990 to stimulate the American economy through job creation and capital investment by foreign investors. In 1992, Congress created the Immigrant Investor Program, also known as the Regional Centers Program. This sets aside EB-5 visas for program participants who invest in eligible business enterprises with regional centers approved through proposals submitted to USCIS to promote economic growth.

There are two types of visas that can be acquired to make investments:

1. EB5 visa: requires an investment of between US$800,000 and US$1,050,000. Argentina ranks 4th in Latin America in this type of visa.

2. EB2 visa: It is a temporary visa and requires little capital: US$150,000 upwards. In this case, it is required that it be from one of the countries that has a free trade agreement with the US.

In conclusion, those who wish to set up a headquarters for their own company or franchise should seek advice and have a long-term business model. In addition, there must be a thorough analysis regarding the States in which it is convenient to settle in order to be one of the success stories.

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Andres Echevarria, heads the US Immigration area of ​​VIVANCO & VIVANCO.