E-2 Treaty Investor Visa
The E-2 Treaty Investor Visa is for investors who are nationals of a treaty country with the United States.
The investor must be coming to the United States to develop and direct the operations of an enterprise in which the national has invested, or is actively in the process of investing.
To qualify as an E-2 Treaty Investor you must make an investment that is substantial, and not considered marginal. The investment must be made in a real operating enterprise. Also, an "investment" means the placing of funds or other capital assets "at risk" in the hope of generating a return on the funds. Therefore, uncommitted funds in an idle bank account do not constitute an investment. Speculative or passive investments made merely for potential appreciation, such as land and stocks do not qualify under the statute.
The E-2 Treaty Investor investment must not be marginal. It must generate significantly more income than needed to provide a living to the investor and his/her family, or it must have a significant economic impact in the United States and employ US workers. The investor must have control of the funds, and the investment must be at risk in the commercial sense. For the purpose of measuring the investment, loans secured with the assets of the investment enterprise are not counted.
The investor must be coming to the US to develop and direct the enterprise. If applicants are not the principal investors, they must be employed as a supervisor, executive, or as the possessor of highly specialized skills. The percentage of investment in cash for a low-cost enterprise must be higher than the percentage of investment in a high-cost enterprise.
FAQ's on the E-2 Treaty Investor Visa
Q: Must the investment have been made before the visa can be issued?
A: No. The investment may be prospective, provided that the funds are irrevocably committed to the investment, contingent only upon the issuance of the E-2 Visa. Investment funds may come from any country, including the United States, as long as they are controlled by the investor and/or applicant applying for the visa.
Q: What is a substantial amount of capital?
A: There is no fixed amount which is considered "substantial." A substantial amount of capital constitutes that amount which is ample to ensure the investor’s financial commitment to the successful operation of the enterprise as measured by the proportionality test. The proportionality test compares the total amount invested in the enterprise with the cost of establishing a viable enterprise of the nature contemplated or the amount of capital needed to purchase an existing enterprise. Most common E-2 Visa investments exceed $100,000.
Q: What percentage of the total investment should be made in cash or cash equivalents?
A: The percentage must compare favorably in the fashion of an inverted sliding scale starting with a high percentage of investment for a lower cost enterprise. The percentage of investment decreases at a gradual rate as the cost of the business increases. An amount of capital invested in an enterprise is merely presumed to be substantial when it meets or exceeds the percentage figures given in the following examples:
75% cash investment in an enterprise costing no more than $500,000. If the cost of the enterprise is substantially lower than $500,000, 85-90%, or even 100% investment may be required.
50% cash investment in an enterprise costing more than $500,000 but not more than $3,000,000.
30% cash investment in any enterprise costing more than $3,000,000.
A multi-million dollar investment by a large foreign corporation is normally considered substantial, regardless of the examples given above.
Q: What is considered a marginal enterprise?
A: The investment must do more than merely yield a return capable of supporting the investor and his/her family. A marginal enterprise is an enterprise which does not have the capacity to generate significantly more than enough income to provide a living for the investor, family and other alien employees.
Q: Is a business plan required as part of an application for an E-2 Treaty Investor Visa?
A: Yes. Applications must be well documented with detailed evidence. In order to overcome the issue of marginality, a business plan must be created to demonstrate how the investment will produce sufficient income to support more than just the owner/applicant and his or her family.
Q: Are joint ventures permitted?
A: Yes, provided that the business or individual investor applying for the visa is in a position to "develop and direct" the enterprise. The applicant is in such a position by controlling the enterprise through ownership of at least 50% of the business, possessing operational control through a marginal position or other corporate device, or by other means showing the applicant controls the enterprise.
Q: Does the E-2 Treaty Investor Visa lead to permanent residence or citizenship in the United States?
A: No. The E-2 is a nonimmigrant visa and does not confer permanent residence in the United States.
Q: How long may the E-2 Treaty Investor stay in the United States?
A: The visa holder must have the intention of departing the US upon conclusion of the commercial activities. Nevertheless, holders of E-2 visas may reside in the US as long as they continue to meet E-2 visa qualifications.
"Essential employees" may remain only as long as their skills are required to operate the business, and only as long as the owner can show either that US workers cannot be trained to duplicate the skills or that the owner is making reasonable efforts to train US workers as replacements.
Q: Is a visa available to the applicant’s spouse and children?
A: Yes. Spouses and children under age 21 qualify for derivative E-visas based on the principal applicant’s qualification. It is not necessary that they hold the nationality of the principal applicant.
Q: Are dependent E-2 visa holders allowed to work in the United States?
A: Yes, spouses of an E-2 visa holder are allowed to work in the United States by filing separate work authorization. Dependent children of an E-2 visa holder are not allowed to work.
Whilst we deal with many clients moving overseas that decide to Emigrate to Florida, New Horizons Group also assists people in emigrating to California, New York, Texas, Georgia, Nevada, basically all over the United States. We have an enviable track record of success assisting our customers Emigrate to America since 1994.