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An E-2 (Treaty Investor) Visa permits a foreign national, and dependents, to legally live and work in the United States by investing in a U.S. business. The applicant's investment and the business itself have to meet certain important requirements. For example, the investment has to be "substantial", generate more than enough to support the investor and family, and/or make a positive impact on the local economy, usually by employing American workers.
The E-2 Visa can be issued for up to five years (though often only for two) and can be renewed indefinitely as long as the E-2 ( E2 )criteria continue to be met. The E-2 ( E2 ) Visa in itself does not lead to permanent residence, but some E-2 visa holders may qualify for permanent residence by other routes (e.g. sponsorship by a close relative, or as a "multinational manager", if they have a business overseas which continues to trade).
The following general requirements must be met. However one has to bear in mind that the adjudicating consular officer at the American Embassy in the applicant's home country exercises considerable discretion. This results in some apparent variation in adjudication standards. Also the investor's background and experience may have a bearing on the outcome of an E-2 ( E2 ) Visa application, or if the applicant has a criminal conviction.
In order for the business buyer (investor) to qualify for an E-2 visa, the main requirements are:-
1) The investor must be a citizen of a country which has an investment treaty with the U.S. (up to date list of treaty countries can be found at http://www.foia.state.gov/masterdocs/09fam/0941051x1.pdf
2) The investor must be making a substantial investment in a bona fide, active, commercial business enterprise. Passive investments (e.g. in land or the stock market) do not qualify.
3) The investor must place the investment funds "at risk" in the commercial sense. The funds should be "irrevocably committed" (e.g. placed in escrow or otherwise committed) and sufficient to ensure the success of the business.
4) The investor must be in a position to develop and direct the enterprise (usually this means he must own at least 50% of the business).
5) The investment must not be "marginal". This means that the business must have the capability to generate substantially more than enough income to provide a living for the applicant and family, or should make a positive economic impact on the U.S. economy, e.g. by providing local employment.
The visa regulations do NOT specify the exact amount of funds needed for the investment, the number of employees the business should have or the amount of income (owner benefit) that should be realized. Because the visa regulations are general in nature, attorneys and visa specialists can vary considerably in the guidance they offer regarding the specific criteria that should be met. Also some U.S. embassies around the world are more liberal than others in their adjudications.
The following are some general guidelines which may be used in evaluating the likelihood of a business qualifying for E-2 ( E2 ) status.
1) Although there is no minimum investment specified, most qualifying businesses will cost at least $100,000, and more recently, closer to $150,000. Service businesses usually involve a lower investment than other businesses.
2) The business should have, or will have, according to the visa regulations, the capacity to generate more than enough income to support the investor and family. The potential of the business and the credentials of the investor, however, may have a significant bearing on the outcome of a visa application. Net owner income from the business (including net profit, owner’s salary and depreciation) might be as high as $70,000 per annum, but some businesses with owner income as low as $30,000 may also qualify depending on the circumstances, e.g. if there are many employees, or if the investment is particularly large. Different American Embassies throughout the world also vary quite significantly in the standards they apply and so this needs to be discussed with the specialist handling the application.
3) There should be ideally at least two current full time employees OR equivalent part time employees OR it can be shown that the investment in some way has a significant impact on the local economy. If there are no current employees but the business profits can clearly support employees (and a good case can be made that the seller WILL employ new workers), this may also qualify.
4) Ideally the business should have two years' business tax returns which demonstrate the business is generating sufficient net income to qualify the buyer for an E-2 Visa and employ U.S workers. A relatively new business for which two years' returns may not be available may still qualify, if anticipated profits and employment can be convincingly demonstrated.
5) The business must have suitable premises from which to operate. Normally this will involve landlord's confirmation that an existing lease can be assigned to the new owner. If a business is operated from the seller's home, the buyer must be able to make suitable alternative arrangements.
Unfortunately there are no hard and fast rules as to which businesses will qualify for visas and which won't, as some factors may count more heavily than others. Therefore it is always advisable for all buyers to consult an immigration attorney or visa specialist before making an offer on any business.
Information written with assistance of:
Lesley Sillitto, in association with Investor Visa USA.
American Visa Consultant
Email: visaUSA@btinternet.com
Website: www.investorvisaUSA.com
Lesley Sillitto has over 16 years’ experience in the preparation of E-2 ( E2 ) visa applications in London.
FOOTNOTE FROM OWNERS OF E-2 BUSINESSESFORSALE.COM:
E-2businessesforsale.com, its owners and any and all participants on the site are NOT responsible for any visa denials. It is solely up to the applicant's local US Embassy whether an E-2 ( E2 ) (Treaty Investor) Visa is issued. All business buyers/visa applicants should seek the advice of their own U.S. immigration attorney or visa specialist (before making an offer on the business), regarding whether the investment is likely to qualify them for an E-2 (Treaty Investor) Visa.
More information on E-2 ( E2 ) (Treaty Investor) Visas can be found in the FAQ Section, Article Section, and Forum Section and by contacting advertisers on E2businessesforsale.com. |
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