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The E2 visa, also known as the Treaty Investor visa, is a popular option for foreign nationals who want to invest in and operate a business in the United States. Unlike some other visa categories, the E2 visa is specifically designed for investors and entrepreneurs who are citizens of countries with which the U.S. maintains a treaty of commerce and navigation. But what exactly does it take to qualify for this visa? Let's break down the key requirements to help you understand who qualifies for an E2 visa.
1. Citizenship of a Treaty Country
The first and most critical qualification for an E2 visa is that the applicant must be a national of a country that has a treaty of commerce and navigation with the United States. Only individuals from these treaty countries are eligible to apply for an E2 visa. Some of the most common countries include Canada, the United Kingdom, Germany, Italy, Mexico, and Japan, but there are many others on the list.
Before applying, it’s essential to verify that your country of citizenship qualifies for the E2 visa. A full list of treaty countries is available on the U.S. Department of State website.
2. Substantial Investment in a U.S. Business
To qualify for an E2 visa, you must be making a "substantial" investment in a U.S. business. However, "substantial" is a subjective term and doesn’t have a fixed dollar amount. Instead, the investment must be enough to ensure the success of the business and must demonstrate a serious financial commitment.
Generally, smaller businesses may require lower investment amounts, while larger ventures will need a more significant investment. However, it’s important to note that the investment must be more than just marginal—meaning it should have the potential to generate a profit and support more than just the investor’s basic living expenses.
3. Investment Funds Must Be at Risk
Another important qualification is that the funds you invest must be "at risk." This means that you must commit the money to the business and face the possibility of losing it if the business fails. Passive investments, such as simply holding stock or purchasing real estate without any active business involvement, do not qualify.
The investment must be in an active, operating enterprise, which could include starting a new business, purchasing an existing one, or investing in a franchise.
4. Ownership or Control of the Business
To qualify for an E2 visa, the investor must have at least 50% ownership of the business or control the enterprise through a managerial position or other arrangement. If multiple investors are involved, only those who hold a significant ownership stake or managerial control are eligible to apply for the E2 visa.
Additionally, E2 visa holders must be actively involved in the development and direction of the business. This visa is not for passive investors who simply put money into a business but have no role in running it.
5. The Business Must be a Real and Operating Enterprise
To be eligible for the E2 visa, the business you are investing in must be a real, active, and operating commercial enterprise. This means that it must offer tangible goods or services and not be a speculative or idle investment. You must be able to show that the business has a physical location, employees, and the necessary equipment or inventory to operate.
The business must also meet all applicable legal requirements and regulations in the state and city where it operates.
6. Intent to Depart the U.S. Once E2 Status Ends
Although the E2 visa can be renewed indefinitely as long as the business remains viable, you must still demonstrate your intent to depart the U.S. once your E2 status ends. However, unlike other visa categories, this doesn’t require you to maintain a foreign residence or provide specific documentation. It simply means you should be prepared to leave the U.S. if your E2 visa is not renewed.
7. Employees of Treaty Investors
In addition to investors, certain employees of E2 visa holders may also qualify for an E2 visa. To be eligible, the employee must either have the same nationality as the treaty investor or be in an executive, supervisory, or highly specialized role that is essential to the business.
The employee must also meet the same intent-to-depart requirement, meaning they must leave the U.S. once their employment with the E2 company ends unless the visa is renewed.
Final Thoughts: Is the E2 Visa Right for You?
The E2 visa is a great option for investors and entrepreneurs looking to start or expand their business in the U.S. However, qualifying for the E2 visa requires careful planning and meeting specific legal criteria. It’s not just about having the money to invest; you also need to demonstrate the legitimacy of your business, the substantial nature of your investment, and your active role in the company.
If you think you may qualify for an E2 visa, we recommend you speak to an immigration attorney to discuss your specific case. And when the time comes, we can help you craft a solid and credible business plan that aligns with E2 visa requirements to strengthen your application. Contact us today to get started on your E2 visa business plan.
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The information provided in this blog is intended solely for informational purposes. While we strive to offer accurate and up-to-date content, it should not be considered legal advice. Immigration laws and regulations are subject to change, and individual circumstances can vary widely. For personalized guidance and legal advice regarding your specific immigration situation, we strongly recommend consulting with a qualified immigration attorney who can provide you with tailored assistance and ensure compliance with current laws and regulations.
Visa Business Plans is led by Marco Scanu, a certified coach from the University of Miami with a globally-based practice coaching Fortune 1000 company executives, entrepreneurs, as well as professionals in four different continents. Mr. Scanu advises clients on turnaround strategies and crisis management.
Mr. Scanu received a bachelor’s degree in Business Administration (Cum Laude) from the University of Florida and an MBA in Management from Bocconi University in Milan, Italy. Mr. Scanu was also a Visiting Scholar at Michigan State University under the prestigious H. Humphrey Fellowship (Fulbright program) with a focus on Entrepreneurship, Venture Capital, and high-growth enterprises.
At present, Mr. Scanu is the managing partner and CEO at Visa Business Plans, a Miami-based boutique consulting firm providing attorneys and investors with business planning services in the areas of U.S. and Canadian immigration, SBA loans, and others.
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