E-2 Visa for Investors — Your First Step to Legal Residency in the United States of America

You have surely thought many times about changing your place of residence. And especially if you have a certain amount of money that you want to invest wisely, for example, in a business. The USA is a reliable country for both living and successfully running a business. This is not only an opportunity to access a vast market of goods and services but also a chance to live comfortably for some time, or even for the rest of your life. To achieve this, it is initially enough to apply for a business visa, and later to file for a green card. The E-2 visa is available for investors.

The E-2 visa is a non-immigrant business visa that allows you to stay in the USA. To qualify, you need to:

• finance the company you have chosen;
• work on its development and capital growth.

This visa category is available only to those countries that have signed a special trade agreement with the United States.

What Are the Main Requirements for Obtaining an E-2 Visa?

To obtain the visa, a foreign investor must meet the following criteria:

• Have a TFN (Treaty Foreign National) status personally;

Treaty Foreign Nationals are countries that have signed and ratified investment agreements with the USA. You can view the list of such countries here:

https://travel.state.gov/content/travel/en/us-visas/visa-information-resources/fees/treaty.html

• At least 50% of the employees in the state of the company must have TFN status;
• The ability to invest a minimum of $100,000 in a business associated with risk (this is one of the key conditions for obtaining this visa). Risk means that you or the management of the company are willing to face potential financial losses if the business does not succeed for any reason;
• You occupy a managerial position, such as a company manager or department head, possessing a high level of qualification;
• Your invested capital is not your only source of income, and you can prove this;
• You intend to create and provide jobs in your company for the local population of the USA;
• You have either already made the investment or are preparing to do so in the near future. This point is key, and without fulfilling it, there is no point in submitting documents for the visa application.

So, to summarize, the E-2 visa is available for:

• investors;
• top managers;
• directors;
• leading employees of the company who have made a significant capital investment.

Investment can mean either investing in an already existing business (and the investment must be made in a corporation at a minimum) or acquiring or establishing a company in the USA.

Capital investment is possible in absolutely any industry, whether in manufacturing or in the service sector.

Moreover, if we compare the E-2 visa with the L-1 visa, the former has the advantage that for the E-2 visa, there is no requirement for a close connection between the American and foreign companies. Nor is there a requirement for work experience exclusively with an American company. Furthermore, the foreign company can be entirely unknown in the American market.

The process of obtaining the E-2 visa is somewhat simpler since there is no need to approach the immigration service; it is enough to get a decision from the American consulate.

Unfortunately, the E-2 visa is not an immigrant visa and requires leaving the USA after the visa expires.

But you certainly do not plan on this, having invested a substantial amount in the business, right? That is precisely why it is important to obtain qualified advice from immigration attorneys in a timely manner.

How Our Company’s Specialists Can Assist You

During the initial consultation, our specialists and the immigration attorneys we work with will do their best to help you:

• register your business;
• obtain a complete set of all necessary permits;
• collect and prepare the entire list of documents required for the E-2 visa application;
• support your business project after registration;
• advise you on the specifics of doing business in the USA;
• find the most suitable immigration option;
• prepare an appeal (if necessary);
• prepare an expert opinion on the documents you have collected for immigration;
• and much, much more.

Now let’s focus on the more “practical” aspects related to the E-2 investor visa.

The duration of your stay in the United States with this investor visa

The visa issuance period is 2 years. It can be extended for 5 additional years. A two-year visa extension is also possible if you confirm your investor status. There is no limit on the number of extensions for this visa category: you can extend it an indefinite number of times as long as you continue to make financial investments in the U.S. economy. Furthermore, there is no need to apply for permanent residency: the E-2 visa allows you to stay in the U.S. for as long as you wish. This is its somewhat “hidden,” yet convenient advantage in every respect.

Its positive aspects do not end there. For example, the process of switching from another visa category, such as a visitor visa, to an E-2 visa does not require you to return to your home country and apply at an embassy or consulate there: you can remain in the U.S. to process and obtain this visa category. If you are not in the U.S. yet, it is sufficient to apply at the consulate, and there is no need to contact the immigration service.

What determines the significance of the invested capital?

There are only two key criteria:

• The minimum amount of investment required for the successful development of a business or company in your chosen industry. Here, we are talking not only about investments in an existing business but also about starting your own business in the U.S.;
• The minimum market value of the American company you have chosen.

On choosing a field of activity for starting a business or investing capital

The field of activity and the size of the company, as we mentioned earlier, do not matter. You are guided solely by your preferences and capabilities. This has no impact on obtaining the visa.

In other words, a “small firm” providing printing services, which is actually the size of a newspaper kiosk, can very well be the object of your investments. Just like a large corporation producing equipment, a tech startup, a high-quality hair salon, or a 24-hour convenience store. American legislation does not limit your choices at all.

Moreover, your business activity can be completely new to you on the American continent, unrelated to your profession, education, or qualifications.

Main criteria applicable to investment in practice

Theory is one thing, but it’s better to see how it usually works in practice: after all, doing business in the U.S. differs from that in Europe or the former CIS countries.

In practice, the amount of invested capital typically starts at $200,000. However, this amount is not regulated by anyone and is not mandatory. It is considered substantial.

However, we do not recommend being overly “clever” and choosing a business with low startup costs. In this case, you may simply be denied the visa.

Large companies that have already “proven themselves” in the U.S. market require far less investment than small, lesser-known businesses. This sounds quite paradoxical, but it is true.

When we talk about investments, we mean not only cash equivalents: investments in the form of equipment and tools are also entirely acceptable, and you do not have to buy everything locally; you can bring it in from abroad. Investments can also include real estate, goods, and payments for services, such as consulting and others. Furthermore, loans and borrowed funds can be used as investments. However, the risk is somewhat higher here since, in the case of bankruptcy, you risk not your own funds but borrowed ones. Loans secured by your business, whether opened or purchased in America, do not count as investments.

All investments, whether in cash or in kind or in the form of services rendered, are non-refundable.

How to correctly calculate the volume of investments?

This question is perhaps one of the most important. Unfortunately, most investors learn it only through practice and at the cost of many mistakes, if not total loss of their invested capital.

To avoid risks, it is important not only to calculate and forecast them independently but also to consult an independent expert. Sometimes an external opinion can help, if not to avoid potential financial losses (unfortunately, we also cannot foresee everything), at least to significantly reduce their extent.

Many years of consulting experience and conducting business in the United States from the inside help us identify problematic areas in your business.

The primary important step before the investment process itself is to calculate the potential investment volume. Here, it is crucial not to make a mistake! The initial flow of investments must correspond to the minimum level of costs for either starting a new business or acquiring an existing one. When purchasing a business, this is the minimum market value, which depends on both your chosen industry and the size of the company itself. When applying for a visa, the consul will necessarily ensure that the funds you invest approximately match the market value of the company.

How does the process of obtaining an E-2 visa work in practice?

In practice (or at least in most cases), the process of obtaining a visa is preceded by the opening or purchase of a company and the investment of funds. How then can one stay in the U.S. without the appropriate status, considering that your presence in the country is essential for launching and establishing business processes? It’s quite simple. Initially, one can arrive holding a B1/B2 visitor visa. The latter allows you to settle all business processes. Moreover, investing is also possible during the process of obtaining an E-2 visa. However, you need to provide all possible evidence that you are indeed investing capital in the development of the U.S. economy.

What can serve as evidence of these investments?

• Company registration documents;
• Documents that confirm the lease of office space;
• Sales contracts for equipment;
• Employment contracts for employees;
• Bank statements showing expenses related to opening the company and conducting business.

These pieces of evidence are relevant both when purchasing an existing business and when starting a new company.

However, having large sums in your accounts without information about their investment in the business cannot serve as proof of your investment. In this case, an E-2 visa may be denied. After all, money can come in today and be withdrawn tomorrow.

Furthermore, the mere fact of investing is not enough: having invested money, be prepared to participate in the development of the enterprise. It’s better if this involves control and management. Evidence of this can be holding at least 50% of the company's shares. If it’s a joint venture, having a controlling stake exclusively held by one partner is categorically not allowed; each partner can only hold 50% (this is one of the optimal management options). Additionally, each partner must have veto rights on important business decisions made by their colleague.

If you own less than 50% of the company's shares, you can still manage it, but only as a manager, not as an owner, and the right to manage must be specified in writing. As for the office, at least 50% of its ownership in the United States must be held by a person from a country that has a Trade Agreement (Treaty Foreign National).

What else is closely scrutinized when issuing an E-2 visa?

First of all, your past experience is taken into account, depending on the position you are applying for in the States, such as: manager, leading specialist, or executive. For this reason, we recommend providing both your education and all work experience in this or similar positions.

Company employees who do not own its shares and thus are not owners can also submit a visa application package for the E-2 category. This can include executives, such as CEOs, as well as managers and partners of the company. In this case, document collection needs to be approached with even greater care: a detailed resume, copies of educational documents, which can include not just diplomas but also certificates and documents on employee training, etc. In short, any documents that prove the importance and significance of the employee to the American company. Unfortunately, if your employee is still quite young and lacks relevant work experience, they are likely to be denied a visa in this category. However, prior experience working exclusively with an American company is not required. This is a significant advantage of the E-2 visa compared to the L-1A visa. This fact will help expedite and facilitate the transaction for the purchase of that American company that has no ties with your country, as well as help hire executives to work in America after obtaining the E-2 visa.

During consultations, we will carefully review your entire document package, advise you on what else can be added, and what should not be included.

Now let’s address the issue of relocating your family members. It is undeniable that this fact plays a significant role in making the final decision to invest and reside in the United States.

Obtaining E-2 work visas for family members of the investor and employees of their enterprise

Another advantage of the E-2 visa is that it can be “inherited.” Thus, the company manager and owner can transfer the right to manage it, for example, to their son. The investor's spouse can also enter the country on a dependent visa, as can the child.

Regarding the entry of highly qualified personnel from your company into the U.S., this is also possible if you wish to retain your existing staff and not look for new hires in the U.S. This is simpler both psychologically and eliminates the possibility of receiving a “cat in a bag” in the form of an unqualified or dishonest new employee. It will be easier for your executive employees to obtain a visa. However, key specialists who are not executives may face a bit more difficulty: their document packages will be scrutinized with particular care. The reviewing bodies will only be interested in whether these specialists can be replaced by local residents. Your specialists may be granted visas, but later, when the necessary staff is found, American specialists will be hired, and your specialist will have to leave the U.S. That’s why it’s extremely important to convincingly demonstrate the high level of qualification and irreplaceability of your employees. By the way, if your specialists are replaced by American citizens, you will not be required to train them — this requirement is completely absent.

However, if your business is considered “atypical for the U.S.,” and there is a need for a specialist with very specific qualifications, for example, related to the development of special technologies or national cuisine, then relocating your employees on the E visa is more than possible. Your employee will travel as a “necessary specialist” for the company for as long as the company has an urgent need for their services.

Children under 21 can accompany you on the E visa without the right to work. However, they can study at any educational institution in the U.S. and can only start working after obtaining a work E-2 visa.

The E-2 status is granted not only to the investor but also to their company. To do this, the enterprise must be registered with the consulate. After that, it is possible to summon company employees and provide them with sponsorship support (if necessary). Moreover, documents on the company are not submitted to the consulate since it is already registered and has E-2 status. Only a document package for each employee is submitted. The main focus will be on the employees' qualifications. The only additional documents that consulate employees might request are documents confirming your company’s status in the U.S. Furthermore, consulate staff may request this information six months after registration and even several years later. Usually, the request comes five years later, as it coincides with the expiration of the temporary work E-2 visa.

As additional information for obtaining an E-2 visa and its extension, the following document package is required to be submitted to the consulate:

1. The purchase price of your company, as specified in the real estate purchase agreement and in the certificates confirming the amount invested in the company.
2. Tax documents, for example: financial statements, tax declarations. These may also be requested some time after the company is registered.
3. Documents regarding the revaluation of the company's value (if necessary).
4. Receipts confirming the acquisition of the company's fixed assets, such as receipts, investments in funds, documents confirming payment for initial work upon opening the company.
5. Documents confirming full compliance with the company's estimates and budgets.

What can serve as confirmation of investments made in the company?

• First of all, bank statements confirming the transfer of funds.
• Documents confirming the transfer of shares.
• A copy of the company's balance sheet.
• A copy of the purchase and sale agreement of the company.
• Certificate of “freezing” part of the financial funds with a third party until the applicant receives E category status.
• Documents evidencing property ownership.
• Certificates of loans or credits for financing real estate.
• Company debts that have transferred to the new owner (if any).
• Documentation for the transfer of inventory and produced goods.

Various bank accounts can also serve as documents confirming financial investments in your company. They can be registered in the name of a legal entity or individuals, as well as various cash funds, "long-standing stocks" of the company, bank loans received by you, mortgages on the company's property, transfers of company shares, etc.

What else should be paid close attention to?

It is important to ensure that the company you have opened or acquired in the United States is not only break-even but also fully provides for both you and your loved ones. Therefore, the company must generate profit, and not "virtual" profit — for the verifying authorities, but actual profit so that your family can fully cover current expenses while in the United States. This is confirmed by the company's income declaration and a forecast for the development of the enterprise's profitability. The latter can be done either independently or with the help of a competent analyst. Our company has employees who have experience in preparing such documents. A great solution that confirms the stability of your enterprise would also be documents proving job creation.

As for your further investments, U.S. legislation allows for investing funds in a company of the same profile engaged in the same activities. Moreover, the legislation does not exclude the possibility of investing in a completely different industry. However, for this, a new application package for the E-2 visa will need to be submitted. In case of bankruptcy of your current company or a significant decrease of more than 50% in the volume of sales between the United States and your country, unfortunately, the E-2 visa will be canceled.

Now, let’s talk about some “loopholes” that are possible thanks to the E-2 visa.

How can the E-2 visa be “used” for your purposes?

For the immigration service, a key fact in issuing the E-2 visa is your intention to leave the country after the visa expires. You must provide irrefutable evidence of this intention. The consulate offers the opportunity for higher and middle management employees (company owners and their managers) to stay in the U.S. with this non-immigrant visa for as long as your company is present in the American goods or services market. Moreover, you can even apply for permanent residency in America either through PERM Labor Certification, or someone from your family must act as a sponsor, providing you with what is known as a subsidy (acting as a sponsor).

Warning: this section contains information intended solely for informational purposes. It does not replace the need for consultation and collaboration with an immigration attorney. In each specific case, both the application package and the E-2 visa acquisition procedure may differ and sometimes significantly.

Immigration attorneys cooperating with our company are ready to provide you with a detailed consultation regarding your specific situation. To do this, please contact us in any way that is convenient for you.