The United States offers a variety of pathways for foreign entrepreneurs to engage in business activities. PGC explains some of the most common options, including E-2 Visa requirements.
This article delves into two popular possibilities – the EB-5 Program and a Treaty Investor Visa E-2. Each option offers unique benefits for aspiring entrepreneurs, depending on their individual circumstances and business goals.
E2 Visa
The E2 visa is a nonimmigrant investor route that allows people from treaty countries to make a substantial investment in a US business. The visa is designed for individuals that wish to invest in a business that will contribute to the economic growth and job creation of the country. This visa is different from the E-1 and EB-5 visa categories as it does not require a specific level of trade between the US and the applicant’s home country, nor does it have to generate a minimum amount of employment in the US.
The key requirement to obtain an E2 visa is that the investment must be considered ‘substantial’ in relation to the overall cost of the business. This is a subjective term that can be difficult to determine, but the visa is intended for investors that have enough skin in the game so that their money is at risk and not purely invested for passive gains.
In addition, the investor must have an active role in the business, meaning that they are involved with the day-to-day operations and management of the US company. This can include hiring professionals (accountants, engineers, architects, lawyers) and reviewing the finances of the company. However, it is not permissible to perform ‘compensable services’ or be on the payroll of the company. Once the application has been submitted, the investor must attend a visa interview at a US Consulate.
L-1 Visa
The L-1 Visa is an intracompany work visa that allows a foreign company to transfer its executives, managers, and employees with specialized knowledge to the United States. It is a highly favored nonimmigrant visa by multinational companies and entrepreneurs looking to expand their businesses into the US. The L-1 visa is one of the few visa options that does not require a college degree to qualify. This is a major advantage over other business visas such as the H-1B and E-2.
The primary beneficiaries of the L-1 visa are multinational company executives and managers who hold positions that involve significant decision-making or oversight and have a broad knowledge of the entire organization. These positions also require a unique understanding of the company’s processes and culture. The L-1 visa is also a great option for entrepreneurs who are setting up new offices in the United States because it allows them to bring their spouses and children to join them.
The L-1 visa offers a pathway to permanent residency, or Green Card, for its holders. This dual intent is a huge benefit, especially for companies that need to retain critical employees. The L-1 visa also supports the global mobility of corporate staff, enhancing international collaboration and leadership development. It enables multinational companies to achieve their strategic goals by positioning their employees where they are needed most, regardless of geographical boundaries.
EB-5 Visa
EB-5 Visa is an immigrant investor program that allows foreign nationals to become permanent residents of the United States by investing in commercial enterprises that create jobs. Investors are required to demonstrate that their investment has created or preserved at least 10 full-time jobs for US workers. This job creation requirement is typically met through the direct investment of a new commercial enterprise or by investing in a regional center project. EB-5 investors can remain in the United States while their immigration petition is adjudicated and have the opportunity to obtain citizenship after two years of having received a conditional green card.
The EB-5 program was established by Congress in 1990 as an economic development tool that stimulates the economy through job creation and capital investments by foreign investors. To qualify for an EB-5 visa, the investor must invest in a “new commercial enterprise,” which means a business that is not a troubled business or a business acquired through purchase or merger. The EB-5 program also has an option to invest in a regional center, which provides an indirect job creation pathway by allowing the investor to show that their investment has stimulated a “targeted employment area,” or TEA.
The EB-5 Program has been successful in creating many new jobs for U.S. workers and has made a significant contribution to the current economic recovery. In response to this success, USCIS has boosted staff levels and implemented a variety of strategies to improve processing times for EB-5 petitions.
E-1 Visa
The E-1 visa is designed for individuals who engage in substantial trade between the US and a treaty country. The individual must be coming to the US to conduct the company’s operations in a managerial, supervisory or essential capacity and must have a role that is critical for facilitating the significant exchange of qualifying goods, services or money. The trading enterprise must also have an established track record of substantial trade that is already in motion prior to the applicant’s entry into the US, including existing, binding contracts that call for the immediate and continuing exchange of qualifying items of trade.
This business immigration via V2 is designed for entrepreneurs who are ready to scale their companies and explore new markets and revenue streams in the USA. The visa can be renewed indefinitely as long as the enterprise continues to meet US immigration law requirements. However, unlike the EB-5 visa and L-1 visa, the E-1 visa does not offer an opportunity to transition to permanent residency.
Like the EB-5 visa and L-1 visa, spouses of a E-1 visa holder can apply for employment authorization with DHS. This allows them to work at the same company as their spouse and can be a great way for small businesses to retain key staff while expanding their presence in the USA.
