E-2 Investor Visas: Options and Strategies
The U.S. economy turns on constant inflows of new investment – including, and especially, non-U.S. investment. Subject to a number of caveats, the U.S. offers visas to foreign investors (and their same-country designees) who invest a substantial, controlling investment in a commercially-viable U.S. company. The visa is called an E-2 Investor Visa and it is based on the existence of a commerce and navigation treaty between your home country and the U.S.
Let us assume that:
You are a citizen of Atlantis.
You seek to invest in a U.S. company called Newcorp. (Newcorp might be a traditional corportation (an "Inc.") or a limited liability company (an LLC).
Requirements for an E-2 Visa in this context:
There must exist the right sort of treaty between the U.S. and Atlantis. Click here to check if such a treaty exists.
Many important countries do not have the requisite treaty with the U.S.: Brazil, China, India, and Russia lack the treaty. Citizens of these countries are not eligible for E-2 visas.
This application would ultimately be submitted to the U.S. Embassy in Atlantis.
You would incorporate a new company in the U.S. – Newcorp or purchase an existing company.
The total investment in Newcorp must be substantial — typically $100,000, but it can be somewhat less, if an accountant agrees that the lower investment level is sufficient to launch the business.
Shareholders with Atlantis citizenship must own 50% or more of the investment in Newcorp. (E-2 regulations focus on voting power as the key metric of ownership.
A U.S. accountant must confirm that a substantial investment in Newcorp has been made.
The investment cannot simply sit in a bank account, but must be committed to Newcorp’s operations: office (and, perhaps, warehouse) rent, salaries, inventory, equipment.
You will come to the U.S. to manage the investment.
You must prove that Newcorp is commercially viable - a detailed business plan is necessary.
Newcorp must be an active operation.
Newcorp must project a plan for hiring people in the future.
E-2 Visas are issued for up to 5 years and can be renewed. (Typically, investors in startup companies receive a shorter initial period, like 3 years. Visa duration can even be less for citizen of countries subject to visa reciprocity rules.)
If you have an existing company in Atlantis and seek to establish a U.S. subsidiary or affiliate, you may also qualify for the L-1A visa (transferred Executive within an international corporate group).
Once the US Embassy has certified the investment in Newcorp as substantial and found Newcorp to be operationally viable, it is possible to obtain E-2 visas executives or essential skills employees who might have no ownership interest in Newcorp.
The E-2 Visa process is complicated. You need an experienced lawyer to establish and document a compelling narrative of your U.S. company’s past, its current operations and its future promise. We invite you to discuss your options with our team.
Photo by Christian Wiediger on Unsplash.
