For many Indians, obtaining a Green Card, a sign of US citizenship, has always been a dream come true. One of the ways to get a Green Card is to use the EB5 Visa route. Using the EB5 Visa, Indians can not only get the Green Card but also set-up a business in US. Under the EB5 Visa program, that falls under the aegis of the United States Citizenship and Immigration Services (USCIS), individuals and their spouses and even unmarried children under 21 may apply for a green card i.e. permanent residentship of US.
One of the requirements for applying for an EB5 visa is to make an investment of $800,000 for rural, Targeted Employment Areas or Infrastructure projects, and $1,050,000 for other projects.
But, are Indians allowed to invest sum a sum in dollars abroad? Yes, individually all residents are permitted to send $250,000 abroad each fiscal year under the Liberalized Remittance Scheme (LRS) for a variety of purposes, including international travel, medical treatment, education, investing in global stocks and for acquisition of property. The LRS limit combined together for a family of at least four members can help meet the EB5 Visa requirement. It is equivalent to roughly Rs 2,43,00,000 or Rs 2.40 crore per individual at the current exchange rate of Rs 81.73 to $1.
The investment can either be made directly into a US business or it can be done through Regional Centers, which are privately owned organisations that have been set up as an economic unit and have received USCIS approval. The Regional Center might then partner with developers or undertake their own infrastructure project. It means, you can invest in a Hotel project or in the development of a Mall in US.
When the Regional Centre receives the investment, it is kept in an escrow account. Following the submission of the green card application and its issuance, the money is actually invested by the Regional Center in a developer’s project. Although it may not be a specific provision of the agreement, the developer may refund the capital after five years if the project is successful. There will be risk, just like with any other investment. It is imperative to take a detailed look at the history of the Regional Centre’s promoters, including the approval of their proposal.