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PARADISE · E-2 FIELD GUIDE

What part of a Paradise investor's remodelling-company purchase counts as the E-2 investment?

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THE DIRECT ANSWER

The price paid for the sixty-per-cent interest plus any capital he commits to the company for equipment, vehicles or working capital, all from funds at his personal risk. Fees, relocation and living reserves are not investment.

The investment is what goes into the business and stays at risk

For a partial purchase the investment figure is the amount paid to acquire the interest, together with any additional capital contributed to the company for its operations. If part of the price goes to the founder personally for his shares and part is injected into the company for new vehicles and a deposit on a larger shop, both are investment, but they should be separated in the agreement so the officer can see what the business received. The substantiality test then compares his at-risk capital with the total cost of acquiring and running the business at its current scale; a majority stake in an established company with employees is usually a comfortable fit.

Consular fees, professional fees, the move from Paradise and a living reserve are real costs that belong in the family budget, not the investment column. Do not include the founder's retained forty per cent in any total; it is not the investor's capital. Confirm fee amounts on the official schedules before applying.