Unlocking the E-2 Visa for Startups

If you have plans to launch a startup, or are in the early stages of running one, gaining entry into the world’s largest and most dynamic business environment could go a long way towards growing your enterprise. The E-2 Visa is a great way for companies of all sizes to expand or establish themselves in the United States. It is accessible to all types of business entities, is available throughout the year, and has no maximum limit on renewals. Even companies that are new can qualify so long as they present a strong and viable business plan and invest in the U.S.

However, like any U.S. visa, the E-2 Visa does have clear parameters and requirements that must be met for approval, as well as an application process that can be costly and time-consuming if you’re unfamiliar with America’s complex visa regime. With the help of qualified immigration attorneys like those at our law firm, you can navigate through the E-2 Visa process and steer your business towards success in the U.S. Here’s what you need to know and how we can help.

The Requirements of the E-2 Visa

Much of what makes the E-2 Visa an ideal choice for startups and young businesses is the relative ease to apply. It allows citizens from certain countries to come to the U.S. to start or run a business with their own capital. Unlike the EB-5 Visa, for which it is often confused, the E-2 Visa does not require that you invest a set minimum amount — your investment need only be sufficient to operate or expand the enterprise.

The following is a detailed breakdown of the key criteria that must be met to qualify:

You Must Be a Citizen of an E-2 Visa Treaty Country

The E-2 Visa is available only to those citizens whose country has signed a commercial or navigation treaty with the U.S. We have an up-to-date list on the dozens of “treaty nations” whose citizens qualify for the E-2 Visa. Given the nature of international relations, you might find some of the omissions unusual — major trading partners such as Brazil, China, and India are absent, while smaller countries such as Armenia, Bosnia and Cameroon are listed. It must also be stressed that you must have citizenship with a treaty country — being a legal permanent resident will not cut it.

The Business Must Meet Certain Requirements Too

The applicant is not the only one subject to scrutiny for approval. Your startup has to fulfill certain qualities as well: namely, that it is a for-profit entity and is at least 51 percent owned by you. You must also demonstrate that you will be “directing and controlling” the startup, either as a primary owner (no less than a 51 percent interest) or as an executive.

You no doubt want your business to grow significantly in the coming years, and this too is a requirement under the E-2 Visa: marginal enterprises are not allowed, so your company must eventually produce enough profit to support not only you or your family, but other people as well. The best way to fulfill this condition is to credibly demonstrate in your business plan that the startup will hire U.S. employees.

Your E-2 Visa Investment Must Be “Substantial” and “Irrevocable”

In addition to having ownership or a prominent leadership role in the startup, you must also have financial skin in the game: the funds being invested in the enterprise must be your own, not those of friends, family, another company you own, or an outside investor. Even a loan secured through the startup’s assets will not count.

Granted, the capital you invest can originally come from any legal source, including a gift, so long as you control it. Thus, it is a good idea to submit financial statements that prove the source of your funds is from an account you own.

As noted before, there is no minimum dollar amount that is required for the E-2 Visa — what constitutes “Substantial” is basically relative to the size and needs of the business, so it need not be as high as the term suggests.

In terms of the investment being irrevocable, this simply means that you are at credible risk of losing the capital you invest. This can be proven by showing proof of purchase for things such as equipment, a physical location, and other assets for the business.

Period of Stay

Those approved for the E-2 Visa will have an initial maximum stay of up to five years. If that does not seem like a lot of time to grow your startup, keep in mind that there is no limit to the number of two-year extensions you can apply for. Nevertheless, you must state your intention to eventually leave the U.S. once your visa expires.