ACQUIRING AN E-2 (E2) TREATY INVESTOR VISA
August 12, 2022 | John J. Pasquini
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Qualifying for an E-2 (E2) Treaty Investor Visa
The following are the qualifications for those seeking an E-2 Treaty Investor Visa:
- A person seeking to qualify for an E-2 Treaty Investor Visa must be a citizen or permanent resident of a nation that maintains a treaty of commerce and navigation with the United States: There are currently 78 E-2 countries.
- To be eligible for an E-2 visa, the person must have already invested or be in the process of investing a substantial amount of wealth or capital into an American business. A substantial amount of capital assumes the purchasing of an established enterprise or the establishment of a new one.
- Under an E-2 visa, the investor’s sole purpose is to direct a commercial enterprise under the legal requirements of the United States.
- A person qualifying for an E-2 Treaty Visa must maintain 50% ownership of the American-based commercial enterprise. If this cannot be maintained, a person’s E-2 status can be preserved by continuing the managerial and operational control of the business. This ensures that the investor’s commitment to success is genuine.
- The investment of capital by the investor (i.e., funds and/or other assets) must be directed towards services and goods that generate profit (or be subject to partial or total loss if the enterprise fails).
What Fails to Qualify
Marginal enterprises or businesses that apply for an E-2 (E2) visa are rejected if it is assessed that the commercial venture would be incapable of sustaining an investor and his or her family’s financial needs long-term (that is, by or within five years).
Qualifications for an Employee of an E-2 (E2) Treaty Investor Visa
An E-2 employee working for an E-2 investor must meet the following criteria:
- He or she must be of the same nationality as the alien employer and must meet the legal definition of “employee.”
- The employee must have executive or supervisory duties or special qualifications necessary for the success of the commercial enterprise (e.g., expertise or unique skills not readily available in the U.S.). The employee is expected to be responsible for the overall operation or a significant component of the business enterprise.
Terms and Conditions of E-2 (E2) Status
- A treaty investor or employee may only work according to the E-2 visa terms and conditions. However, an E-2 employee may also work for the parent company of the treaty’s organization—or one of its subsidiaries.
- Upon any substantial change to a treaty investor’s status or an employee’s status (i.e., a business merger, acquisition, sale, or change in duties), proof for continued eligibility for E-2 classification is required.
Family of E-2 (E2) Investors and Employees
- Treaty investors and employees may be accompanied by their spouses and unmarried children (under the age of 21). They are granted E-2 status as dependents and are granted the same period of stay as their spouse or parent.
- Spouses of E-2 recipients are authorized to work in the United States.
- Children under 21 are not allowed to work in the United States but may attend school on a part-time or full-time basis.
Best E-2 (E2) Businesses for Investors and Entrepreneurs
The following are popular choices for E-2 investors:
Franchises
They provide for a fixed initial investment cost, business support, tested plans, projectable profits, and a variety of living options—rural or city.
Consulting
Based on the visa holder’s professional experience, consulting businesses (from information technology and software development to architecture and design) come with low start-up and operating costs.
Existing Business
Existing businesses, like franchises, have a set investment, profit history, and track record regarding operating costs. They also come with the business’ existing clientele.
E-2 Treaty Investor Visa holders have enhanced freedom and opportunities. Freed from citizen or American business sponsorship obligations, E-2 (E2) visa holders enjoy the usual unhindered benefits associated with business ownership and its accompanying livelihood.
Sources: United States Citizenship and Immigration Services. https://www.uscis.gov/working-in-the-united-states/temporary-workers/e-2-treaty-investors/. May 4, 2022: Asbury, Aga. “The E-2 Visa and the 5 Best Businesses to Invest.” https://fordmurraylaw.com/. Ford | Murray. 2022.