Do we need to file any form in US for the newly setup company? This question haunts all the investors who are setitng up a business for the 1st time in United States.
While the laws in US are complicated and one needs to look into the respective state laws to understand what all is applicable to their newly setup entity, however there is one compliance that every newly setup company which has investors from outside US has to undertake.
As per the requirements in US, every company is required to file Form BE-13 within 45 days of receiving the capital from the foreign investors with Bureau of Economic Analysis (“BEA”).
BEA is an organisation which is entrusted upon to conduct the surveys on investment in United States. As per the requirements, all foreign investments are required to be reported to the BEA.
Further, the laws require every company receiving foreign investments in US are required to file Form BE-12 with the BEA every year on or before 31st May if filed offline or 30th June if filed online. The Form requires to provide the details of performance of the US Company (called as US Affiliate) for the financial year ending in the preceding financial year and also the details of investments it has received from the foreign investors.
Failure to comply in filing reports with the BEA can attract penalties ranging between $5,580 to $55,808. However, whoever willfully fails to file a BE-12 Report could be fined up to an additional $10,000 and, if an individual, may be imprisoned for not more than one year, or both.
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