In a transaction involving an acquisition, formation or investment in a U.S. business by a foreign entity, there are a variety of legal, business, financial and operational matters to carefully consider, and ultimately, on which to execute. One lesser-known legal matter is the requirement to file the Form BE-13, Survey of New Foreign Direct Investment in the United States. Somewhat unintuitively, even though the filing requirement is triggered by the foreign entity’s involvement, the obligation to make the filing falls on the U.S. entity. Failure to file can lead to civil and even criminal penalties.
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