There are important deadlines in the next weeks regarding reporting requirements for foreign-owned companies operating in the United States. See below to remain compliant and avoid any unnecessary penalties.
All foreign-owned companies must file a mandatory survey, Form BE-12, with the Bureau of Economic Analysis (“BEA”) of the U.S. Department of Commerce. Companies that are 10% or more owned by foreign persons/entities qualify as foreign-owned for purposes of the BE-12 Form.
The deadlines for filing are:
The survey collects comprehensive financial and operational information to create detailed statistics on foreign direct investment in the US. It is collected every five years by the BEA; the last survey was collected in 2017. The data collected by the BEA remains confidential and is only used for statistical and analytical purposes. The BEA is prohibited from granting another agency access to the data for tax, investigative, or regulatory purposes.
Failure to satisfy the BEA reporting requirements may lead to significant civil and criminal penalties, including monetary fines and, in some circumstances, imprisonment. Companies may request a reasonable extension of the filing deadline before the applicable due date.
Different forms are available depending on the revenues/assets and the ownership of the company – you can find the forms as well as guidance materials on the BEA website.
Note that certain private funds may be exempt from filing the BE-12 Form if they meet certain criteria established by the BEA.
Please contact your MGA representative should you require assistance with your filing obligations.
Griffitts