E-2 visas are non-immigrant visas designed for investors while E-1 visas are designed for businesses engaged in international trade. E-1/E-2 visas are only available to citizens of countries with which the United States maintains a Treaty of Commerce and Navigation that are coming to the U.S. to make a substantial investment in a commercial enterprise that is not marginal in nature or conduct substantial trade with their country of citizenship.
The E-1/E-2 visa has advantages over the EB-5 Entrepreneur because there is no set minimum amount that must be invested and the E-1/E-2 visa can often be obtained in just a matter of weeks, not years. However, the E-1/E-2 visa has limitations in that it is not a permanent resident or immigrant visa but rather a temporary visa that must be renewed as long as the investor owns the business. Commonly, the initial E-1/E-2 status will be valid for two years but can be extended forever provided the E-1/E-2 visa holder still owns and controls the business.
The E-1/E-2 visa is limited to citizens of countries in which the U.S. has a treaty. A list of these countries can be found at https://travel.state.gov/content/travel/en/us-visas/visa-information-resources/fees/treaty.html.
There is no minimum amount to apply for the E-2 Visa, but as a rule of thumb the USCIS and State Department normally require a minimum investment of about $100,000. The applicant must demonstrate that the investment will soon generate income sufficient for the investor to make a living in the U.S. and to employ U.S. workers.
The investor must also prove that the funds for the investment came from a lawful source so tracing the funds for the purchase is critical.
Any type of investment can qualify for an E-2 visa as long as it is not what is termed a passive investment. In other words, one that requires little day to day management. For this reason, most real estate and stock market investments do not qualify. However, the investment can be in a retail company, a trading company, a wholesale company, a manufacturing company, a tech company, a service company, and many franchises such as fast food or shops can qualify.
For activities to be considered "trade", they must involve an actual exchange, in a meaningful sense, of qualifying commodities such as goods, moneys, or services to create transactions. An applicant cannot qualify for E-1 classification to search for a trading relationship. Trade between the treaty country and the United States must already be in progress on behalf of the individual or firm. Existing trade includes successfully integrated contracts binding upon the parties that call for the immediate exchange of qualifying items of trade. The trade must be a continuous flow that should involve numerous transactions over time. The main focus is on the number of transactions, although the monetary value of the transactions will also be taken into account.
The spouse and minor children of an E-1/E-2 visa holder may enter and remain in the U.S. with the visa holder. The spouse can even obtain employment authorization in the U.S. and can work at any job. Minor children may attend school on the E-2 visa.
There is also a provision in the law for certain employees of E-1/E-2 treaty qualified businesses to enter the U.S. on an E-1 or E-2 visa to be lawfully employed in this country.
The E-1/E-2 visa employee applicant must share the same nationality as the owner of the E-1/E-2 business. Additionally, the E-1/E-2 employee must be coming to the U.S. either to work in an executive/supervisory capacity or as an essential employee (someone possessing skills essential to the successful operation of the company).
At the Law Offices Sturman & Associates we have filed numerous E visa applications and we have over 40 years of experience in this field. If you own a business in the U.S. or planning to start/purchase a business in the U.S., it is important to consider the appealing benefits of an E-1/E-2 visa.