Question

1. Explain three matters that a foreign company’s certificate of registration must comply with. (6 marks)

Answer 1

Three matters that a foreign company’s certificate of registration must comply with are as follows:

• Treaty trader visa: Treaty trader visa is of two types E-1 treaty trader visa and E-2 treaty trader visa. The E1 visa holder is allowed to conduct business activities that enable them to do business activities in the USA for a maximum of 2 years. On the other hand, the E2 visa holder is permitted to bring his belongings and partners to the USA. A foreign businessman must be eligible to hold any of the two visas to get the registration certificate.

• EB-5 Job creation Visa: The EB-5 job-creating visa is mandatory in availing certificate of registration. It allows to invest in business up to $1,800,000 in the first two years of the visa validity. It makes eligible to hold the green card for the businessman and his family belonging or fellow business partners.

• Necessary documents for due diligence: There are differences in documents for due diligence according to the company type. A business corporation requires a certificate of incorporation, organizational minutes like shareholders agreement, share certificates, and IRS form SS4. In contrast, a limited liability company needs articles of formation, operating agreement, member certificate for each member, and IRS form SS4 to hold a registration certificate.