Foreign companies and investors, who are not U.S. Citizens, want to invest in America because of the country’s political stability and its growing economy. The United States is known historically for supporting foreign investors and entrepreneurs who wish to establish businesses in the country. Many high-tech companies and pharmaceutical firms were founded by non-U.S. residents, according to research. These companies have made a significant contribution to the American economy. This is why this chance to start a company is beneficial for everyone.
Foreign investors and business owners that have invested or wish to invest in U.S. companies must adhere to a set of requirements. This includes filing a BE-13 form. This is a complicated process, as there are different types of BE-13 forms that businesses must fill out based on their activity. There are also time limits for filing. Non-filing is a serious offense that can result in fines and penalties.
The process of filing BE-13 can be confusing, especially to those unfamiliar with U.S. laws. This BE-13 form guide will help you to better understand the filing process, and also answer some of your most common questions you have in 2025.
Parr & Ibarra CPA, a reputable business consulting, accounting and tax firm, has many years’ experience working with foreign investors and can help with the BE-13 process.
Understanding Form BE-13 Requirements
The BE-13 form, or the Survey of New Foreign Direct Investment, is an annual survey that’s conducted by the U.S. Bureau of Economic Analysis (BEA) through a form. This form is mandatory and must be filled out by U.S. companies when foreign investors invest directly or indirectly via an existing U.S. affiliate.
What is the purpose and scope?
The BEA uses the form BE-13 to collect information about foreign investments in the United States, and their potential impact on the American economy. The form also assists the U.S. Government in tracking new investments and their sources. This information can have a significant impact on foreign policies and national safety. This form is also applicable to expansion activities carried out by businesses that have substantial foreign investments.
Filing Thresholds
It’s important to note that not all U.S. entities have to file this form. You must file this form only in the following scenarios:
- A U.S.-based company is purchased by a foreign entity with more than 10% of the voting rights.
- A foreign entity establishes a company via a U.S. based affiliate.
- A U.S. based affiliate of a foreign firm establishes a new U.S. company.
- A U.S. affiliate company expands its U.S. operations or acquires a U.S. business through foreign funding.
Who Must Report?
The form BE-13 must be filed by U.S. businesses that have previously filed the BE-13B or BE-13D but the established or expanded entity is still under construction. When the BEA contacts the U.S. enterprise, but the entity does not meet any of the filing requirements for the other forms, a claim for exemption may be filed. A claim for exemption is also possible when the U.S. enterprise meets all requirements, except the $3million threshold required to file other forms, but has not been contacted by BEA.
If you fail to comply with the restrictions, you can face civic penalties up to $44,539. And imprisonment for a year with a penalty of up to $10,000 for Wilful non-filing. The business must also file the BE-13 form correctly with all the details of foreign investors. Incorrect data could lead to additional consequences, and waste time and resources.
Parr & Ibarra CPA can help you better understand the BE-13 form. You can contact us for more information about filing BE-13 forms as we are an experienced firm that has helped thousands of entities to file the correct BE-13 form.
Types of Transactions Reportable
BE-13 forms are available in different types based on the investment scenario. This rule applies to investments that are over $3 million.
The scenarios below and the BE-13 forms to be used accordingly are listed.
Direct Acquisitions
When a U.S. company is acquired directly or indirectly by a foreign investor or company, Form BE-13A must be filed. The new investor, however, must hold more than 10% of the voting rights in the U.S. business. This filing applies even when segments or operating units of a U.S. company were directly acquired by a foreign entity with the same voting rights. The investment must also be greater than $3 million
Establishment of new Entities
If a new U.S. company is formed and more than 10% voting rights are directly or indirectly held by a foreign entity, then the firm must file form BE-13B. This rule applies to any business enterprise, whether it is incorporated or has a physical location.
This rule does not apply when a company is formed solely for the purpose of acquiring another business within 30 days after its formation. The entity in this case will be treated as an acquisition and the entities must submit form BE-13A.
Expansion Activities
The business entity that is an existing U.S. subsidiary of a parent company from abroad must submit form BE-13D when it expands its operations. The expansion is defined as the construction and leasing of a new facility. This includes an expansion of a structure that already exists, provided new structures are added.
Changes in Ownership
If an existing U.S. subsidiary of a foreign parent acquires or merges a U.S. company, it must submit form BE-13C. If the total cost is less than $3 million then an exemption can be filed.
As each of these categories has its own form, you must be certain that you are filing the correct form. If you have any doubts, consult our CPAs who are experts in U.S. taxation and accounting.
Filing Deadlines and Process
To avoid penalties, you must submit BE-13 forms accurately and within the deadlines. These forms are used for statistical analysis only and not taxation or investigations.
Documentation Required
Every BE-13 form is comprehensive and includes all the required information that an entity has to provide. No other documentation is needed. For each foreign entity or parent, separate pages must be submitted if there is more than one.
Select the appropriate BE-13 Form and complete the details.
Timeline requirements
The Form BE-13 is to be submitted within 45 days after a transaction. Entities claiming exemptions must also submit within this period. The BEA has in the past granted extensions and grace periods of 30 days, but that does not guarantee your submission will be accepted. To avoid penalties, it’s best to submit your work before the deadlines.
We will take care of your filing if you’re unsure or don’t have the time.
Common Filing Challenges
The process of filing form BE-13 can be complex. Entities may have difficulty understanding the purpose and providing the correct information.
To avoid this, you can do research on these forms and learn how to complete them. You can also ask trusted experts, such as Parr & Ibarra CPA, to assist you.
Here are some common problems with Form BE-13
Valuation Issues
It can be difficult to calculate the exact value of an investment in a foreign country, especially if you have to convert foreign currencies into U.S. Dollars. Knowing the conversion rates for currencies is essential, given the large fluctuations of currency. It is also difficult to know which transactions need to be filed. These confusions can result in missed deadlines.
Documentation Gaps
Another challenge is selecting the correct BE-13 form. It can be confusing, especially in certain scenarios. For example, when a new entity is created to acquire an existing entity. The wrong form selection can result in additional work, and even penalties if it was done with malicious intent.
Compliance Tips
Here are some compliance tips to help U.S. companies address these challenges.
- Learn about the BE-13 forms and their due dates.
- Keep detailed records for all transactions to speed up the filing process.
- Stay on top of the deadlines.
- Use industry standard methodologies to determine the value of foreign investments.
- You must classify each transaction so that you can choose the correct BE-13 form.
- BEA provides online resources and documentation. You can use them to understand the process better.
- Seek professional assistance for seamless filing.
These tips will help you reduce the risk of non-compliance and ensure that your filing process is smooth.
Penalties And Enforcement
The Form BE-13 is a vital document for U.S. firms that receive foreign investment. The failure to file this form could result in severe penalties for U.S. companies. Non-compliance may also affect investors, who own a large part of these companies.
Late Filing Penalties
Although the BEA does not explicitly set out a tariff for late filings, penalties could apply. The BEA has in some cases waived penalties when minor delays occur. However, delays that are more lengthy can result in fines.
To avoid the penalty, you can create an internal filing schedule for submissions. Work with a seasoned CPA to manage these filings.
Correction Procedures
When entering information into the BE-13, mistakes can occur. You can correct the incorrect information by following these steps.
- Review the form you submitted to identify any errors.
- If you find an error, contact the BEA as soon as possible by email or telephone.
- Download another BE-13 and fill in the correct information.
- Gather the documentation you need to prove your case if needed.
- Check the accuracy of the information in the new BE-13.
- Submit the form.
- Confirm receipt of new forms by contacting the BEA.
- All copies of the communication should be kept for future reference in case there are any disagreements.
You can correct the incorrect information in your BE-13 form by following these steps. You can contact us if you have any questions or need assistance, our experts in BE-13 forms can help resolve your issues quickly.
The conclusion
The BE-13 form must be filed by all U.S. firms receiving foreign investment. You must file this form, within the limits of the threshold. This guide contains all the information that you need to know about the BE-13 forms and their criteria in 2025. We have also explained the process for filing the appropriate form. You can also know the consequences of non-filing, the penalties involved, and ways to update incorrect filings.
This information should help you to comply with this requirement. Parr & Ibarra CPA firm in Keller, Texas can help you through all this process.
Our International Investment Team is ready to ensure that your Form BE-13 is filed correctly.
