Setting Up in America: Immigration - Is the E2 Visa Right For You?
For any business expanding to the U.S. immigration is one of the most important aspects to consider. Understanding which via option is best suited to your business and employees is a daunting task as it seems as if visa categories span every letter of the alphabet, from Diplomat Visa (A) to Amnesty Visa (Z).
The notoriously stringent administration in the U.S. means it is more vital than ever to carefully consider your immigration strategy in order to enter the U.S., which can be an expensive and time-consuming process at the best of times.
An ESTA or B visa may be an appropriate option as you explore U.S. business expansion and build momentum for your business, however, a longer-term strategy will be required once you decide that establishing a permanent business there is for you. For many UK companies wanting to establish in the U.S who don’t fancy the $1 million price tag of an EB-5 visa - a perfect solution may come in the form of an E-2 Treaty Investor Visa.
What are the E2 visa requirements, is it right for your company?
The E-2 Visa
The E-2 Treaty Investor Visa is a non-immigrant visa that allows a national of a treaty country to be admitted to the U.S. when investing a substantial amount of capital in a new or existing U.S. business. For UK citizens, the E-2 visa can be granted for up to 5 years, depending on the strength of the application, and allows recipients to re-enter the U.S. multiple times. Extension requests can be granted in increments of up to two years each, with no maximum limit. An E-2 visa holder can bring their spouse to the U.S. who will be permitted to work openly.
E-2 company registration will be granted with an initial individual E-2 employee visa application. It is then possible to add further employees onto the company E-2 visa down the line, making it an attractive visa category for companies looking to establish a U.S. presence and bring over multiple foreign employees.
However, it is important to note that the E-2 visa is a temporary visa, and immigrants on this visa will be expected to return to their country upon termination of the visa. Therefore, this option is not a natural stepping stone to obtaining a Green Card, so if this is your long-term goal, another visa may be a better option.
On the upside, an E-2 means that you won’t be beset with the tax demands of permanent residency and that only your U.S. income (rather than worldwide) will be taxed in the U.S.
E-2 Visa requirements
To be eligible for an E-2 visa, you must be a resident of a treaty company, the full list of which can be found here. The main requirement is then to demonstrate a substantial investment in the U.S. The definition of a ‘substantial’ investment is not a fixed figure, but relative to the business at hand, its operations, and the amount of capital necessary to get the business running.
For example, a boutique consultancy would need a significantly lower investment than a large manufacturing business. This investment must also be of benefit to the U.S., for example, if it creates U.S. jobs or generates a positive economic impact on the U.S.
It is important to note that this investment must be an ‘at-risk’ financial commitment which should be made at the time of application. This means that, if the visa application is unsuccessful, the investment will be lost. The money invested must also belong to the business and not a bank loan (unless secured by personal assets).
However, the cash is operational and could include the costs of a binding office lease agreement, employment, equipment, incorporation, and more. Passive investments, such as stocks or bonds, are not eligible as E-2 investments. Half of the business must also be owned by nationals of a treaty company, and the initial applicant must be in charge of the company and invested monies themselves.
The application for an E-2 visa can be a lengthy and extensive process, with documented evidence of the investment, the new or existing company, and also a thorough 5-year business plan being required. After the formal application has been submitted, an embassy interview will be conducted. The timeframe could therefore range from weeks to months, and an immigration lawyer will most likely be required.
Is the E2 Visa Right for You?
If the E2 visa doesn’t fit your business requirements, there are other visas can get you to work in the US. If you’re thinking about doing business in the US, that’s where our US expansion consultants can help! We can talk through your business expansion goals, visa options, and help you start hiring employees in the US.
Disclaimer: All information written here is for general informational purposes only and is not intended to be a substitute for professional and/or legal services.