E2 Visa Requirements for Investors
In this article, our US Immigration Lawyers explain the E2 Visa requirements for investors. Our top US Visa Lawyers in London can help if you need more information on the E2 Visa application process.
US E2 Visa Lawyer London
For US immigration advice contact OTS Solicitors. Appointments are available for phone, Zoom or Skype consultations or at our offices in London.
The flexible US E2 Visa for investors
The US E2 Visa enables a successful applicant to move to the US to live and work. There is a requirement to invest but there is no minimum investment amount. An applicant can either invest in a set-up or an existing US business.
The US Investor Visa offers flexibility that entrepreneurs and investors looking to move to the UK can't find in the available UK visa options. That’s why so many people are looking at US Business Visa, Work Visa and Investor Visa options, including significant numbers from the UK and Ireland.
The E2 Visa provides a long-term visa option. Holders can renew their visa provided they meet the visa eligibility criteria and provided they intend to leave the US when the visa expires. The Investor Visa is also family-friendly as family members can join the main visa applicant. This provision is limited to spouses and children under 21. Spouses can work in the US with work authorisation and children can attend school.
Whilst the E2 Visa is flexible and business orientated, a visa applicant must be a national of a country with an E2 treaty with the US. Many countries are treaty signatories. The main non-signatories are China, India and Russia.
Investment rules for the E2 Visa
Although there is no minimum investment to obtain an E2 Visa, the rules require the investment to meet these five criteria:
- Substantial and proportionate to the business
- At risk in the business
- Committed to the business
- Active - not passive
- Legal - from lawful funds
What sum counts as a substantial investment for the E2 Visa?
What amounts to ‘a substantial investment’? There is no hard and fast rule as the key issue is the investment context. In other words, the investment amount must be considered proportionally to the business venture.
If you are setting up a tech start-up that has vast potential but limited overheads the investment won't need to be as substantial as an entrepreneur setting up a new haulage business or investing in an existing bio-tech company that needs an injection of capital to help it expand.
You should not assume that those assessing your E2 Visa application will understand that your investment amounts to a substantial sum proportionate to the business. Our US Immigration Lawyers in London will ensure that your Investor Visa application carefully addresses this point.
What counts as an at-risk investment for the E2 Visa?
Any funds you commit to the US company must be at risk of being lost if the company fails. You can't commit funds and have a side agreement that says the funds will sit in the company bank account, ringfenced for guaranteed return to you.
Investments committed to the business for an E2 Visa
As E2 visa lawyers in the UK, we are asked questions about investment commitment. That question is high on most applicants’ list of visa questions because they don’t want to commit investments into a US business when there is a risk that they may not be successful in their visa application. There is a solution. We can explain how you don’t need to irrevocably commit the funds until you know that your visa application has been granted.
Passive or active investment
To secure an E2 Visa your investment must be active. It's best to speak to an Immigration Attorney if you are looking for an Investor Visa to see if your idea of an investment into a US company or new US venture will be classed as passive or not.
Examples of passive investments include:
- Property acquisition (either commercial or residential for rental or to just own within a company structure). That’s because your property investment is minimal risk
- Stocks and shares because although you may have purchased the investments through setting up a company in the US and the value of the stocks and shares may rise or fall with the market the company is not actively trading
- Shell company where your money will be sitting in a US bank account in a company that’s not actively trading and doesn’t plan to do so
It isn’t just your investment that can't be passive. You need to be actively involved in the company and that can't be in name only.
Lawful funds and investments for an E2 Visa
E2 Visa applicants who don’t take E2 Visa legal advice can have their application turned down because of their paperwork. That’s because you need to create a paper trail to prove that your investment funds are:
- From a lawful source
- Obtained by legitimate means
The rules apply whether you are investing $100,000 or $1m.
The documents you need to provide to prove lawful funds depend on the source of the funds. For example:
- Your investment may be sourced through a commercial loan. The United States Citizenship & Immigration Service (USCIS) will want to see a copy of the loan agreement and application. If you are putting up capital to secure the loan how was the capital or property acquired?
- If your investment is coming from a family gift or loan it won't be sufficient for you to say that the investment is coming from a third party. USCIS will want to see evidence and a paper trail to prove the legitimacy of the monies coming from a relative either giving or loaning you the money
- If you have sold a property or stocks and shares to fund the investment USCIS will require details and evidence of the transaction
- If you are raising the investment through a business operating or sold in your home country, or savings through excess income, USCIS will expect to see company accounts, bank statements and tax returns
Specialist US visa legal services have the experience to know what documents are necessary and how far back USCIS will expect you to go to prove the source and the legitimacy of the investment funds to secure your E2 Visa.
What you don’t need to do is to prove the full extent of the legitimacy of your wealth and holdings - the enquiry is limited to the source of the investment. However, even that limited enquiry can create what can feel like a mountain of paperwork to prove the legitimacy of what may be a very modest sum in comparison to your asset base.
When your experienced US immigration attorney is submitting your E2 Visa application and providing documents for USCIS they will do so in an easy-to-understand format for USCIS officials. USCIS is not staffed by forensic accountants and USCIS officials won't want to sift through a mountain of unnecessary evidence. Nor will they want to try and find the one paragraph in a 100-page document that proves the source of legitimate funds. Clear statements and cross-referencing to the supporting paperwork are the key to a successful E2 Visa application, especially if you are applying from a country where US officials may have question marks over corruption issues.
Types of investment for an E2 Visa
Applicants have two investment options:
- Individual investment
- Via a non-US company investment
If you chose the corporate investment option, to qualify the non-US company must:
- Be the principal investor
- Be at least 50% owned by nationals of the E2 Visa treaty country
Involvement as well as investment in the US business
Money alone won't qualify you for an E2 Visa. You also need to be involved to meet the E2 Visa requirements.
Involvement in the US business can be through:
- Ownership of at least 50% of the business or
- Operational control
Applying for an E2 Visa isn’t as easy as some other US visa options but its flexibility makes it a great choice if you have an entrepreneurial attitude or prior business experience. Our US immigration law firm can guide and support you through the visa application process to help you secure your visa as quickly as possible.
US E2 Visa Lawyer London
OTS Solicitors are London-based US Immigration Lawyers. Contact us for E2 Visa advice. Appointments are available for phone, Zoom or Skype consultations or at our offices in London.
Related Posts
US Immigration Lawyers Explain Reasons for Refusal of US E2 Visa Applications
OTS Solicitors Celebrates its Inclusion in the 2024 Chambers Guide to the Legal Profession
UK Visa Opportunities for US Citizens Wanting to Work or Set up a Business in the UK