What is Form BE-13 for Companies in the United States?

Investing in the United States is exciting, but it involves complying with certain legal obligations, such as Form BE-13, managed by the Bureau of Economic Analysis (BEA). This form collects data on foreign direct investments, ensuring transactions are properly recorded. For example, if a tech company from Mexico acquires a startup in Silicon Valley, they must file Form BE-13.

In this article, we’ll explain what Form BE-13 is, who must file it, the different types of forms, and how to complete them correctly.

What is Form BE-13?

Form BE-13 is a requirement of the U.S. Department of Commerce, managed by the BEA, to collect data on foreign direct investments. Depending on the transaction, there are several types of BE-13 forms:

• BE-13A: For the acquisition of an existing company.
• BE-13B: For the creation of a new company.
• BE-13D: For the expansion of an existing company.
• BE-13E: For the acquisition of land or real estate.
• BE-13 Claim for Exemption: To declare an investment that does not meet the thresholds.

What is the Purpose of Form BE-13?

• Monitor Foreign Investments: Help the BEA maintain a detailed record of foreign direct investments in the United States.
• Develop Economic Policies: Provide critical data for formulating economic and trade policies.
• Economic Analysis: Facilitate the analysis of trends in foreign investment and its impact on the U.S. economy.

Importance of Form BE-13 for Foreign Companies in the United States

‍This requirement is crucial for foreign companies, ensuring they comply with regulations and maintain a transparent relationship with authorities. Failure to file Form BE-13 on time can result in fines ranging from $2,500 to $25,000 and potential additional audits.

Who Must File Form BE-13?

Form BE-13 must be filed by any foreign company making a direct investment in the United States. This includes creating a new entity, acquiring an existing company, or expanding established operations. The investment must represent at least 10% ownership or control.

Examples:

• A Real Estate company from Colombia building a new residential complex in Miami must file Form BE-13B.
• A tech firm from Chile acquiring a majority stake in a Silicon Valley startup needs to file Form BE-13A.
• A professional services company from Argentina expanding its office in New York must file Form BE-13D.
• A foreign company acquiring land in the U.S. must file Form BE-13E.
• If the investment does not meet the transaction types, Form BE-13 Claim for Exemption must be filed.

Deadlines for Submission

‍The form must be submitted within 45 days following the transaction. For example, if a Peruvian tech company acquires a stake in a U.S. company on January 1, they must file the form by February 15. Meeting deadlines avoids penalties and ensures your investment is properly recorded.

How Can We Help?

At Prodezk, we offer specialized services to help you comply with all Form BE-13 requirements. Our accounting and compliance experts will guide you through every step of the process, from gathering information to submitting the form.

• Compliance Advice: We guide you on the requirements and how to meet them.
• Report Preparation: We help you gather and organize all the necessary information.
• Form Submission: We handle the accurate and timely submission of Form BE-13.
• Ongoing Support: We provide continuous support to ensure compliance with all obligations.

Form BE-13 is very important for reviewing and understanding foreign investments in the United States. It is also necessary for any company receiving foreign investment.

‍Do you have questions about Form BE-13? Contact us today and receive a free consultation from our expert team.