How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 115450
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
10285032
Type Your Legal Question Here...
Law Educator, Esq. is online now
A new question is answered every 9 seconds

We have a startup, plan to raise money from Chinese

Customer Question

We have a startup, plan to raise money from Chinese investors only by issuing fix income debt annually. What regulation do we need to follow?
JA: What state are you in? It matters because laws vary by location. Has anything been filed or reported?
Customer: Florida
JA: Anything else you want the lawyer to know before I connect you?
Customer: Can we use regulation D? Is any restriction?
Submitted: 8 months ago.
Category: Legal
Customer: replied 8 months ago.
Annual return can be 6% fixed, and backed by real estate
Customer: replied 8 months ago.
We plan to use money to finance our real estate construction
Expert:  Law Educator, Esq. replied 8 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Quite honestly, if you are seeking accredited investors, then really it would usually fall under Regulation D, which would exempt you from registration with the SEC as long as you file the form that states your money is coming only from accredited investors. See: https://www.sec.gov/answers/regd.htm
That is the simplest way of doing it.
Customer: replied 8 months ago.
The answer is too simple for me
Customer: replied 8 months ago.
I am looking foreign investors. I think the rules are different.
Also the investors are not accredited investors.
Expert:  Law Educator, Esq. replied 8 months ago.
Thank you for your reply.
You posted one sentence with limited information and the answer is too simple for you?
If you would provide more information with specific questions you have then we can address those concerns and will be happy to do so. You were also provided a link with the detailed information on Regulation D for you to review.
Foreign investors are not counted or regulated under Regulation D or the other SEC regulations, since this is not going to be a public offering and foreign investors can also be treated as angel investors.
Customer: replied 8 months ago.
Simple question: If my company offers fix-income return (6% annually), minimum investment is $5000 to foreign investors. Do I need to do anything specially, or we can go ahead to do this without any concern about regulation?
Expert:  Law Educator, Esq. replied 8 months ago.
Thank you for your reply.
Simple answer is no there is nothing else you need besides written contract with your investors.