E-2 Visa: Treaty Investor Visa

The E-2 visa is a non-immigrant visa that allows individuals from treaty countries to invest in a U.S. business and live in the U.S. to develop and direct the business operations. Below is an in-depth explanation designed to attract clients and highlight your expertise.

 

Key Features of the E-2 Visa

1. Investment-Based: Requires a substantial investment in a bona fide enterprise in the U.S.

2. Treaty Country Requirement: Only nationals of countries with which the U.S. has a commerce and navigation treaty are eligible.

3. Business Ownership: The applicant must own at least 50% of the enterprise or have significant operational control.

4. Employment Authorization: Spouses of E-2 visa holders can work in the U.S., and children under 21 can attend school but cannot work.

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Eligibility Criteria

1. Nationality:

   • The applicant must be a citizen of a country that has a qualifying treaty with the U.S.

   • A full list of treaty countries can be found on the U.S. Department of State website.

2. Substantial Investment:

   • The investment must be significant enough to ensure the successful operation of the enterprise.

   • There is no fixed dollar amount, but as a general rule:

     • Smaller businesses may require an investment of $100,000–$200,000.

     • Larger businesses require proportionally larger investments.

   • The funds must be at risk, meaning they are irrevocably committed to the business.

3. Bona Fide Enterprise:

   • The business must be real, active, and operational, offering goods or services for profit.

   • Speculative or idle investments, such as purchasing undeveloped land, do not qualify.

4. Development and Direction:

   • The applicant must have a controlling role in the business, such as an owner, executive, or manager.

   • Passive investors who do not participate in the day-to-day management of the business are not eligible.

5. Marginality:

   • The enterprise must not be marginal; it should generate enough income to support the investor and their family or have a significant economic impact (e.g., creating jobs).

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Examples of Qualifying Investments

• Starting a New Business:

  • Examples: Restaurants, retail stores, tech startups, consulting firms.

  • Investment covers leasing premises, purchasing equipment, and initial operating costs.

• Purchasing an Existing Business:

  • Buying an operational business with a proven track record.

  • Applicant must show plans for further development or expansion.

• Franchises:

  • Many franchise models qualify for E-2 visas, provided the investment meets substantiality requirements.

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E-2 Visa Process

1. Determine Eligibility

• Confirm nationality and treaty eligibility.

• Assess the amount of available investment funds.

2. Prepare the Investment

• Establish or purchase the U.S. business.

• Deposit funds into a U.S. escrow account or directly into the business (funds must be at risk).

• Obtain a lease for business premises (if applicable).

• Open business bank accounts and apply for necessary licenses.

3. Documentation:

• Ownership Proof:

  • Business formation documents (e.g., LLC or corporation papers).

  • Stock certificates or ownership agreements.

• Investment Evidence:

  • Bank statements, wire transfer receipts, and purchase agreements.

  • Itemized breakdown of startup or operational expenses.

• Business Plan:

  • A detailed five-year plan demonstrating financial projections, market analysis, and job creation.

• Proof of Treaty Nationality:

  • Valid passport and proof of nationality.

• Intent to Depart:

  • Evidence showing that the applicant intends to leave the U.S. upon visa expiration (e.g., ties to the home country).

4. File the Application

• If Applying Outside the U.S.:

  • Submit the application at a U.S. embassy or consulate using Form DS-160 and the required supporting documents.

  • Attend a visa interview.

• If Changing Status in the U.S.:

  • File Form I-129 with USCIS, including all supporting documentation.

5. Consular Interview:

• Be prepared to explain the nature of the business, investment source, and operational plans.

• Provide comprehensive documentation during the interview.

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E-2 Visa Validity and Duration

1. Initial Approval:

   • Typically granted for up to 2 years.

   • Can vary based on the applicant’s nationality and the treaty agreement.

2. Renewals:

   • Unlimited renewals are possible as long as the business remains operational and meets the E-2 requirements.

3. Duration of Stay:

   • Each entry to the U.S. under the E-2 visa allows a stay of up to 2 years.

4. Family Members:

   • Spouses and children (under 21) can accompany the investor.

   • Spouses may apply for employment authorization.

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Common Challenges

1. Proving Substantiality:

   • Demonstrating that the investment is significant relative to the type of business.

   • Solution: Provide detailed financial evidence and a professional business plan showing growth potential.

2. Source of Funds:

   • The applicant must prove the funds were obtained through legal means (e.g., savings, inheritance, business profits).

   • Solution: Prepare a clear paper trail showing how funds were acquired.

3. Marginality Test:

   • Businesses perceived as only providing a livelihood for the investor may face challenges.

   • Solution: Highlight job creation, economic benefits, and revenue growth in the business plan.

4. Rejection of Passive Investments:

   • Real estate investments without active management do not qualify.

   • Solution: Choose investments that demonstrate active participation in business operations.

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How We Can Help

1. Business Structuring:

   • Assist in setting up compliant U.S. entities (LLC, corporation).

   • Ensure proper documentation for ownership and control.

2. Investment Analysis:

   • Help determine if the investment meets substantiality requirements.

   • Advise on escrow arrangements and risk documentation.

3. Business Plan Preparation:

   • Craft professional, USCIS-compliant business plans with financial projections and market analysis.

4. Source of Funds Documentation:

   • Assist in compiling evidence to demonstrate the legal source of investment funds.

5. Application Preparation:

   • Prepare and review all forms, supporting documents, and evidence for submission.

   • Conduct mock interviews to prepare for consular questions.

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Industries We Support

We specialize in working with a wide range of industries, including:

• Hospitality (restaurants, hotels, cafes).

• Retail (clothing stores, specialty shops).

• Technology startups.

• Franchises (fast food, fitness centers, education franchises).

• Consulting and professional services.

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Why Choose Us?

• Customized Approach: Tailored strategies to meet your unique needs, from investment planning to visa submission.

• Proven Success: Track record of helping entrepreneurs successfully navigate E-2 applications.

• Business Expertise: In-depth knowledge of U.S. business requirements to ensure compliance.

• Family Support: Guidance for family visas and spouse work authorizations.

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Contact us today to schedule a consultation and start your journey toward living and working in the United States with an E-2 visa!