Definition
In financial terms, a “Green Card” refers to a permanent resident card issued by the U.S. government to individuals who have been granted authorization to live and work in the United States on a permanent basis. It is synonymous with having permanent resident status. It doesn’t directly relate to finance, but gaining such a card can impact a person’s ability to work and their tax status.
Phonetic
The phonetics of the keyword “Green Card” is /ˈɡriːn kɑːrd/
Key Takeaways
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- A Green Card, officially known as a Permanent Resident Card, allows foreign nationals to live and work permanently in the United States.
- The Green Card holder (permanent resident) is expected to live in the United States and be loyal to the U.S., abide by all laws, and file income tax returns.
- To retain Green Card status, an individual should not stay outside the U.S. for long periods or move to another country permanently.
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Importance
In the business and finance world, the term “Green Card” primarily relates to immigration and employment eligibility. It is important because it designates an individual’s legal status as a permanent resident in the United States, thus granting the right to live and work anywhere in the nation. Green Card holders can start businesses, buy property, work, and engage in other financial activities in the U.S., just as U.S. citizens can. They are also eligible to apply for U.S. citizenship after a certain period. Thus, a Green Card plays an integral role in U.S. immigration policy and significantly influences foreign labour market dynamics.
Explanation
The term “Green Card,” in the scope of U.S. immigration, refers to a permit that grants foreign nationals permanent resident status in the United States. The purpose of this permit is to give non-citizens legal rights to live, work, and study in the U.S. on a permanent basis. It also gives individuals a pathway to seek U.S. Citizenship if they meet certain criteria. Green Card holders can freely travel in and out of the U.S., launch businesses, own property, and receive benefits such as Social Security and health insurance benefits. Green Cards are often sought after by international entrepreneurs and investors because they provide the rights and flexibility needed to establish and run a business in the U.S. Many businesses use Green Cards to legally hire foreign talent, broadening their range to hire globally, and contributing to the country’s economy. Furthermore, foreign investors can make a significant investment in a U.S. business to qualify for a specific type of Green Card, known as an EB-5 investor Green Card. As such, from a business perspective, the Green Card serves to attract foreign investment and skills to the U.S. economy.
Examples
1. An immigrant entrepreneur wants to start a new business in the US. In this case, getting a Green Card under the EB-5 immigrant investor program is a viable business/finance situation. The entrepreneur is required to invest at least $1.8 million (or $900,000 under special circumstances) in new commercial enterprise that will create at least 10 full-time jobs and sustain the economy.2. A foreign medical professional is offered a high-profile job at a hospital in the United States. To legally work and live in the US, the hospital provides sponsorship for an employment-based Green Card for the professional under the EB-3 category. 3. A foreign national working in a U.S company abroad is promoted to a managerial position at their U.S. headquarters. The company sponsors his Green Card under the EB-1 category, to legally employ him in the US. This Green Card category is designed for managers and executives transferred from a company’s affiliate, subsidiary or the same employer abroad.
Frequently Asked Questions(FAQ)
What is a ‘Green Card’ in a finance/business context?
A ‘Green Card’ within a business perspective is not related to immigration, instead, it is a document that proves that a motorist has insurance coverage which is recognized internationally, particularly within the European Union.
Is the Green Card only recognized within the European Union?
No, it is recognized in 48 countries that participate in the Green Card system including, but not limited to, European countries and some countries in the Middle East and others bordering the Mediterranean sea.
Is carrying a Green Card mandatory while traveling with a motor vehicle?
The regulations regarding Green Cards can vary from one country to another. In certain countries, it is mandatory to carry a physical copy of the Green Card when traveling.
How does a Green Card benefit a motorist?
The Green Card serves as an international proof of insurance, providing reassurance to law enforcement and other relevant authorities that the motorist possesses the required level of insurance coverage while driving abroad.
How can I get a Green Card?
You can generally obtain a Green Card by contacting your auto insurance provider. They will issue a Green Card if your existing policy covers you adequately for driving in foreign countries that participate in the Green Card system.
Does a Green Card provide automatic coverage in all participating countries?
No, it only provides proof of the minimum required insurance coverage. Depending on the country and your personal circumstances, you might need to purchase additional coverage.
What if I lose my Green Card or it gets stolen while traveling?
If you lose your Green Card or it gets stolen, you should immediately contact your insurer for guidance. They will likely be able to provide a duplicate or digital copy.
Does having a Green Card guarantee entry into any of the participating countries?
No, the Green Card only proves insurance coverage. Entry into any country is subject to that country’s immigration rules and regulations.
Related Finance Terms
- Immigrant Visa
- Permanent Resident
- Employment Authorization Document (EAD)
- U.S. Citizenship and Immigration Services (USCIS)
- Adjustment of Status
