E2 Visas
If you are an entrepreneur looking to move to the US and operate a business from the States then the E2 Visa may be the right visa for you.
In this guide, our US Immigration Solicitors explain what you need to do to secure an E2 Visa. If you want more information on the application process then our Immigration Lawyers can help.
For US immigration advice call OTS Solicitors on 0203 959 9123 or contact us online.
The E2 Visa for entrepreneurs and investors
The US E2 Visa allows you to move to the US to start a business or invest in an existing US business. You then need to direct and develop the business but this does not necessarily mean a daily involvement.
The E2 visa is only available to you if you are a national of a country with an E2 treaty with the US. Many countries are treaty signatories, the notable exceptions are China, India and Russia.
Living in the US on an E2 Visa
Once you have your E2 Visa you can continue to renew it on an indefinite basis provided you continue to meet the visa eligibility criteria and provided you intend to leave when your E2 Visa expires. To secure a visa renewal your business must continue in operation as the company can't just be used as a vehicle for US entry clearance.
The E2 Visa is family-friendly as a spouse and children under 21 can apply for E2 Visas. Spouses can work in the US with work authorisation and children can attend school.
Investing in a US business for an E2 Visa
There is no minimum investment figure required to secure your E2 Visa. The rules say that your investment must come from lawful funds, be committed to the business and be at risk.
Your investment figure must be a ‘substantial’ investment in an active US company. You must be coming to the US to direct and develop the business so you need to be ‘hands-on.’ Therefore, the E2 Visa is not suitable if you are looking for a pure Investor Visa but an Immigration Solicitor can help clarify if your business input will be sufficient to meet the requirement to direct and develop the business.
You have two investment options; to invest as an individual or through a non-US company. If your foreign business is investing in the US business, the business is the principal investor and to qualify the company must be at least 50% owned by nationals of the E2 Visa treaty country. Some E2 Visa applicants decide to restructure company ownership so they can proceed down the non-US company investment route rather than investing as an individual.
Proportionality of your E2 Visa investment
As there is no set minimum figure for your substantial investment a proportionality test is applied. This test looks at the amount of the investment in proportion to the size and value of the business.
The value of a business may be easy to determine if you are investing in an established US company. The process is harder if you are setting up a start-up company in the US. Each application and proportionality test is looked at on its merits. Generally, the more you invest the stronger your case. However, if you are an entrepreneur with a great business idea planning on setting up your company with a relatively low investment, you could obtain your E2 Visa if you can show that for your planned business model the investment is substantial in proportion to the amount of capital you need to operate the business.
Investing in an entrepreneurial company for an E2 Visa
Whether you are investing in a start-up or an existing US company the business must be active and for profit.
Active companies exclude passive investments, such as using a company vehicle to buy US stocks or land. There needs to be an entrepreneurial element of selling goods or a service but there are no sector restrictions. However, the rules prevent you from securing an E2 Visa if you have a ‘hobby company’ or marginal enterprise.
Your business venture could be classed as a marginal enterprise if it doesn’t have the current or future capacity to generate sufficient income to provide more than a minimal living for you as the visa applicant and your family or to make a significant economic contribution. A contribution could be significant if the business plan shows how the company intends to expand and employ additional staff.
Involvement in the business for an E2 Visa
Some entrepreneurs are keen to commit 100% of their time and energy to their US business venture. Others want to balance having a quality family life in the US with directing and developing the business but are unsure about whether the extent of their planned involvement will be sufficient to qualify for the E2 Visa.
Involvement in the US business can be through:
- Owning at least 50% of the E2 business or
- Having operational control of the business. For example, filling a management role within the company or through the non-US company corporate investor having control of the development of the US company
Speaking to our US Immigration Solicitors will give you a clearer idea of whether your planned activities and role or the powers of the non-US company investor will meet the E2 Visa criteria.
Your investment must also be committed and at risk. That essentially means that your money must be tied up and you must be at risk of losing your investment if the company fails. Money placed in a US company business account with no plans to develop the business and spend the money will not qualify. The rules do allow you to borrow money to invest and the borrowings can be your substantial investment provided the money is at risk and committed. Our US Immigration Lawyers can explain and offer guidance on the timing of your investment so you don’t risk making a committed investment but end up without an E2 Visa.
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US Immigration Solicitors
For US immigration advice call OTS Solicitors on 0203 959 9123 or contact us online.
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