APPLICATION FOR L-1A VISA (MANAGERS TRANSFERRING TO THE USA) — A FAST AND PRODUCTIVE PATH TO LEGALIZATION IN THE STATES

One of the main (specifically, one of the legal) ways to stay in the USA is to obtain an L-1A work visa. Subsequently, it can be used as a basis for obtaining a green card, which is a form of residency in the United States of America.

One of the visas that allows for a stay in the states for up to 7 years is the L-1A category visa. For successful acquisition, it is important to develop a sound business development strategy, as each situation and each business is strictly individual. Specialists at US Business Services Corp. can assist you with this.

This category of visa implies the long-term presence in the USA of key specialists and management personnel from Kazakhstan, Ukraine, Belarus, Kazakhstan, and other countries. One of the main conditions for obtaining this visa is the existence of parent or subsidiary companies in America (according to American law, of course). 

The possibility of obtaining a visa is determined by 100% compliance with all requirements set by federal law. A scenario where you meet some requirements and fail to meet others does not work. Only full compliance with all requirements.

Key requirements for obtaining an L-1A visa

Proven relationship between the company in Ukraine, Kazakhstan, Belarus, Kazakhstan, and the company in the USA.

A motivated reason for opening a branch in the USA, which may include development, reorganization, or establishment of the parent company. Strict correspondence of positions in the parent company (these can be both specialists and company managers, as well as performers) and in the subsidiary.

Correspondence of the subsidiary or parent company in America, or in the above-mentioned countries, while the related firm must be

• a parent or subsidiary,
• a joint venture, or
• a representative office.

At least 1 year of employment in the position for the personnel preparing to move to the USA before their arrival.

Although this visa category allows for a stay in America for up to 7 years, the initial visa issuance allows for a stay of only one year in the states. Subsequently, it can be extended three times for 2 years each.

Furthermore, after a successful year in the market of the subsidiary, employees can apply for a green card. In this case, there is no need to apply to the Department of Labor for a Labor Certification. This is one of the key advantages of obtaining this category of visa.

What else confirms the seriousness of your intentions

According to American law, a company that is primarily owned by a third organization or one owner, or by a certain group of people, is referred to as an "Affiliate".

What other features might indicate the seriousness of your intentions and with almost 100% certainty allow you to obtain an L-1 visa?

First and foremost, it is having a leased office in the USA, as simply registering a company in any US state is not sufficient. The entire package of documents, including all documents confirming the opening of a business and the lease of the office, is sent together with the application to the immigration service. The type of office must necessarily comply with the company's business plan; for example, if the business plan provides for 5 hired employees, the office must be of such size and configuration that all 5 employees can conveniently fit and function without disturbing each other. The lease rights must be documented. In addition to the document package, photos of your office must also be submitted.

Opening a corporate bank account is also a confirmation that you have not registered a “shell company.” At the same time, the account must have at least $40,000-$50,000. This amount must be reflected in the statement you submit to the immigration service.

You can take a slightly different path and simply buy an already established business. This is often not a worse option than registering a new company. This option is more simplified and expedited in terms of time and effort required to build a business. Initial investments can be many times higher than building a business "from scratch." Moreover, you cannot buy just any business. You can only buy a business that exactly corresponds to your "parent business" in another country. This is not always feasible. In any case, the final decision rests with your immigration attorney. 

We will definitely help you determine what will be the best option specifically for your business. The opportunity to apply for a green card for the company manager, as well as the directors of your company, after a year will not only be a pleasant bonus but also a chance for legal immigration for permanent residency in the United States of America. When applying for a green card, holding an L-1A visa is a significant priority and greatly "advances" you and your employees in the immigration list for permanent residence in the states. And this priority is quite understandable: by purchasing or registering a company in the USA, you become an employer, expanding business or production systems, "injecting" significant tax amounts into the country's budget, etc. Statistics show that private companies provide jobs for 82% of the population, and 80% of US taxes come from private companies and entrepreneurs.

So, the key conditions for obtaining this visa are as follows:

• Presence of documented proof of the connection between the foreign company and its branch in the states;
• Existence of a workplace in a company located outside the USA;
• Presence of 4 – 5 working employees in the subsidiary or parent company in the states.
• Well-prepared business plan.

Main difficulties when obtaining a visa that you may encounter

Unfortunately, it's not that simple. There is a possibility of facing a number of difficulties. We do not claim that you specifically will encounter them; we just want to convey that the process of obtaining and successfully receiving this work visa is a serious undertaking and does not tolerate the slightest mistakes or carelessness. 

For this reason, it is very difficult to obtain this visa independently. It is better to seek help from experienced immigration attorneys who can guide you from the moment of preparing the document package to the moment of happily receiving the visa.

What should be taken into account?

Strict adherence to all requirements: even the slightest errors in documentation can lead to the denial of the visa.

Knowledge of immigration law. Your immigration attorney and the staff of US Business Services Corp can help you navigate all its nuances and requirements. With our assistance, many applicants have already received this category of visa. 

Correctly filling out the application. This document is one of the main ones, and mistakes or carelessness in its completion can cost you dearly.

Moreover, in addition to assisting with obtaining visas, we also successfully help register and support business companies. 

Ensuring connection between companies is a key condition for obtaining an L-1 visa

This point for obtaining a visa is not only primary but perhaps key. It is hard to imagine that, for example, a subsidiary company is engaged in the production of plastic utensils, while the parent company is involved in translation services. That is, a 100% connection between the main company and its representative office, which consists of a unified spectrum of services provided, is a mandatory condition. In practice, the connection can be traced through the movement of money, orders, and goods from one company to another. For example, a parent company in Kazakhstan fulfills IT-related orders provided by a subsidiary company located in the USA. Or a parent company in Ukraine is a manufacturer of goods that the subsidiary company sells in the USA. Thus, (according to American law), one or several channels of communication between the foreign company and the business located in the states must be clearly traced. This can be, for example, the presence of a controlling stake in the company owned by the parent company. If the parent company is located in the USA, its owners can be either a holding company or an individual. Therefore, being the owner of a business in Kazakhstan, by opening a company in the USA and being its owner there, you ensure this direct connection.

It is also possible to co-own a company in the states, and the business can be created by either two legal entities or two individuals. It is important that they have equal rights to control and veto rights regarding the management of the enterprise. The agreement between the shareholders, which these persons take to the immigration service, must necessarily confirm the equality of rights and opportunities for the founders.

Important aspects to pay special attention to

Here are the key aspects of American legislation, knowledge of which will help significantly simplify the establishment of connection between companies and, consequently, the successful receipt of the L-1 visa. So…

1. It is not necessary for the parent company to have only a controlling stake; it can own even less than 50%. However, control over the subsidiary company and the ability to demonstrate this fact when submitting the document package are extremely important. Therefore, it will be necessary to prove: a) control over the actions of the subsidiary company, b) your control over the shares of the subsidiary company.
2. It does not matter in which country the company's headquarters is located. It can be located not only in the USA but also in the previously mentioned countries, since it is possible to register a new enterprise or purchase shares of an already existing one (at least 50% of the shares of the company you are acquiring).
3. It will be easiest to prove the connection with a corporation, so when creating or buying a company, we advise you to consider the corporate form of business management, as then, when filling out immigration forms, you will only need to provide documents for managing the corporation. 
4. Transferring your employees to a branch of the company located in the states is one of the key and significantly less costly ways to confirm the connection between companies. Plus, key employees are unlikely to experience any particular issues from changing their place of residence, which is also important. 

A clear example of confirming the interconnection between two companies 

To show how the connection between companies is proven in practice, let’s consider one example. 

The parent company is located in Kazakhstan. There are 2 subsidiary companies — one in the USA and one in Germany. The owner of the parent company can be either a legal entity or an individual — a private entrepreneur. 

The owner of the parent company transfers one of their employees from the branch located in Germany to the branch in the USA. It is important that the owner of both subsidiary companies is either one person or a group of individuals with approximately equal shareholdings, or one co-owner may have a controlling stake. 

5. The L-1A visa is not available for a corporation's agent, a franchise owner, or a supplier. It can only be obtained by the owner of both companies (both the parent and the subsidiary). This is the essence of the connection between the two enterprises. 
6. Engaging in active foreign activity by the company is a key aspect for the further extension of the visa of this category. This implies having at least one foreign partner with whom an employee of your company, who already has a valid L-1A visa, is actively conducting business.
7. According to American law, the company's turnover, the amount of investments in it do not influence the receipt of a visa of this category or a refusal to receive it at all. That is, you can have both a large corporation and a small firm. The number of employees applying for a visa is also not strictly regulated.
8. However, the minimum turnover of the foreign company (Kazakh, Ukrainian, Belarusian, etc.) must be at least $100,000 CIF. This confirms the effectiveness of the company’s operations. 
9. A mandatory condition is the hiring of local staff in your company. This requirement serves as a kind of “preventative” measure against moving all employees of your Kazakh company to America. Since the visa of this category implies creating jobs for native residents of the USA, special attention should be paid to this point, as ignoring it will certainly prevent you from extending the visa for a new term, and consequently, you will not be able to count on obtaining a green card. 
10. The minimum number of employees in the foreign company cannot be less than 3-4. It is better if there are significantly more. However, since this rule is not official, strict adherence to it does not guarantee you 100% receipt of a visa of this category. 

Main Points of Attention for the Immigration Service

The key condition that will definitely be noted is the profitability level of the company. This factor determines whether a visa will be granted for the transfer of key employees or not. Why is profitability assessed? The answer is quite predictable: for American businesses, the influx of capital is important, so from the very beginning, it is crucial for all controlling bodies to determine whether there will be a stable flow of money into their country or not, and whether it is not just a “one-day company,” etc.

It is extremely rare, but it is possible that the immigration service will “turn a blind eye” to non-compliance with some rules if, considering the rest, it finds the development of your business in the USA profitable. Sometimes it is even possible to obtain a visa immediately after opening a branch of the corporation in the States, even if only one person—the owner of the company—submitted the visa application. However, it remains a mandatory condition to hire at least 4-5 employees (definitely from the local workforce). This must be done within a year.

In principle, the approach of the immigration service is very simple. If you work in the company along with 4-5 other employees, then the company must be making stable profits to pay salaries to you and your employees, pay office rent, and have the necessary working capital to conduct business.

Regarding the purchase of an existing business, the situation is somewhat different. You can only be eligible for a visa of this category if you purchase a company that has been on the market in the United States for at least a year. After this, you can confidently apply for a green card.

So, in conclusion: to obtain, successfully extend, and potentially gain permanent residency, your business abroad (in Kazakhstan, Ukraine, Belarus) must be recognized as effective, and have at least one foreign partner in the USA.

The presence of one-day companies both in your homeland and in the States threatens either a visa denial altogether or a refusal to extend it. Of course, any chance of obtaining permanent residency can be completely forgotten.

How does it usually happen in practice? Let's look at a step-by-step guide to obtaining a work visa for employee transfers to the United States.

Main Step-by-Step Algorithm of Your Actions

An immigration lawyer, on behalf of the employee applying for this visa category, prepares an application for L-1A status. The visa is obtained in person at the U.S. consulate.

Any foreign company that has opened a representative office in the States or purchased a ready-made business there can apply for a visa of this category as a sponsor of the enterprise. According to U.S. law, you can hold any position in the company you have purchased.

All rights that apply to American companies also apply to enterprises opened by non-residents. This includes:

• renting an office;
• unimpeded opening of bank accounts in various banks;
• the ability to lease real estate;
• obtaining permission to conduct business;
• hiring employees.

To resolve these issues, it is sufficient to obtain a guest visa of category B1. The only important condition for obtaining it is that the applicant must not have any work in the U.S. and must not be able to receive fees or other remuneration for their activities from any businesses located in the U.S.

All interactions between the consulate and your lawyer take place remotely—via mail. If necessary, a list of other documents can also be provided to the immigration service, of which you will be duly notified.

The review period usually does not exceed 1-3 months.

What key documents might you be asked to provide:

• documents confirming your premises in the U.S.;
• bank statements confirming the availability of necessary funds to open the company's new office;
• a detailed business plan for the company's development in the near future;
• the necessary staff, which must be well-justified;
• confirmation of the need to transfer an executive director or manager to the U.S.;
• a description of the type of business activity of your company;
• a clear and reasoned scope of work for the new company;
• a list of all funding sources through which the newly opening office will begin operations. It should be noted that smaller companies will have much more difficulty opening an office than larger companies and especially corporations. This is because a small firm needs to provide much more comprehensive information about its activities in other countries and the ways of financing the office being opened in the U.S.

State legislation does not establish a minimum initial capital size for an opening office. However, it strictly requires that the invested funds be sufficient for the stable operation of the office, considering the type of business the company will engage in. For example, if you intend to open an industrial enterprise, the initial capital must be many times greater than that required for opening a retail company.

Initially, the L-1A visa is valid for one year. During this time, you must hire a staff, establish a stable cash flow, meaning you should fully spend this year on business development. This is a sort of trial period for you and your firm, a chance to fully prove your viability.

Your lawyer will also apply for an extension of the L-1A visa for the next 2 years with a corresponding application shortly before its expiration. For this, you will need to provide information about:

• conducting full-scale business activities of your company;
• features of production or service provision;
• the productive work of your office;
• the presence of a permanent staff.

These facts can serve as evidence of the necessity of having a position of executive director or manager in the company in the United States. This is relevant for a company whose staff consists of a few employees with a small monetary turnover 

In practice, the immigration service is most often “satisfied” with the presentation of a developed business plan for the further development of the company when extending the L-1A status.

One of the key factors for visa extension is the actual operation of the company. Even if it did not generate any profit during the specified reporting period, it is necessary to prove and provide data that there are sufficient funds for the continued successful operation of this company.

The L-1 visa is extended for 2 years. For executive directors and managers, the maximum extension period is three times for 2 years. After the first extension of the L-1A visa for the next 2 years, the company has the right to “apply” for you to obtain permanent residency in the USA. In this case, your family members (wife and children under 21) also receive an L-2 visa, which grants the right to reside and study in the USA. Obtaining the right to work for holders of an L-2 visa is not a complicated procedure.

What information should be provided by a Kazakhstani, Ukrainian, Kazakh, or Belarusian company when contacting the immigration service?

Complete list of documents to be submitted to the immigration service

This list is divided into 2 main components: the document package from the Kazakhstani, Ukrainian, Kazakh, etc. company and the document package related to the American firm. We will provide a complete list of necessary documents. 

What is needed from the Kazakhstani company and a firm established in the post-Soviet space

1. Company registration certificate.
2. Charter and articles of association of the company.
3. Documents confirming the appointment of the candidate to the position of manager (meeting minutes will suffice).
4. Contracts with foreign partners concluded by your company’s employees (contracts must be signed by the candidate).
5. Documentation that allows your company to act as a distributor or agent of another enterprise.
6. Newspaper publications (if available), as well as various promotional materials containing information about the company.
7. Customs declarations confirming contracts with foreign companies  (there should be at least 3).
8. Statements confirming monetary transfers under the aforementioned contracts.
9. Employment record of the candidate for the L-1 visa category.
10. Annual balance sheet of the company.
11. Bank statements regarding the movement of funds in the company.
12. Account statement confirming the income received by the candidate.
13. Documents evidencing the candidate's level of education (these may even include certificates of course completion, diplomas, etc.).
14. Certificates regarding the absence/presence and turnover of the company’s loans and credits.
15. Candidate's passport.
16. Company letterheads (at least 3 copies).
17. Office supplies or any other products printed with the name and logo of the company (pens, calendars, mugs, souvenirs).
18. Business cards of several employees.
19. Receipts and bills that confirm the active operation of the company (bills for airfare, paid hotel reservations, office rental payments, etc.).
20. Real purchase and sale contracts, distribution agreements, DHL and Federal Express receipts, business correspondence, partner contact lists, and other evidence of cooperation with American companies.
21. Business correspondence (documents sent by fax, letters, contracts) that mention the name of your candidate and the name of the company.
22. Photo and video materials showing the office and products of your firm.
23. A table listing all employees' full names organized hierarchically, including their positions and departmental assignments.

What needs to be provided by the American company

Here it is necessary to distinguish between companies recently established in the USA and those that have been operating for a year or more. 

For newly established firms

All incorporation documents. If you have not yet opened a company in the United States, our specialists will assist you in this. It is highly desirable, for tracing connections in the future, for the parent company and branch to have the same name, but with the addition of USA. This option will clearly link the subsidiary to the parent company.

A real (emphasizing this, as it is a key point for obtaining a visa) office rental agreement.

Company shares in the USA that contain information about its owner. 

Supporting documents from the bank regarding the availability of the necessary capital for normal operations.

For an already existing company in the United States, the list is much broader.

1. Company by-laws.
2. Certificate of incorporation (joining one company to another).
3. Meeting minutes.
4. Share certificates.
5. Documentation that allows your company to act as a distributor or agent of another enterprise.
6. Creditworthiness certificate.
7. Major contracts (the number is not strictly regulated; it is better to follow the principle of "the more, the better").
8. Invoices (documents containing complete information about the goods, their quantity, price, and delivery terms).
9. Various transportation documents.
10. Documents confirming money transfers.
11. Newspaper publications and various promotional materials containing information about the company.
12. A real office rental agreement.
13. Contracts for providing business services (consultations from lawyers, economists, accountants, and other specialists).
14. Creditworthiness certificate.
15. Bank documents confirming the active operation of the company.
16. Recommendation letter from the banking organization.
17. Certificates regarding the absence or presence and turnover of loans and credits.
18. Company shares, documents for real estate, equipment, and vehicles.
19. Sample payroll calculations for company employees.
20. Copies of tax returns of the company.
21. Bank statements for the last six months.

To summarize once again. This article is purely informational. The final decision on document preparation and visa applications is made by an immigration attorney, whose participation in the process of preparing documents and applying for a visa is mandatory. The staff of US Business Service Corp. only deals with business development issues and prepares some documents requested by the immigration attorney for your visa application package, which the attorney prepares for submission to obtain an L-1A visa.