E2 vs L1 VISA - Main Things to Know About
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Whether you’re an entrepreneur, executive or professional from a foreign country looking to do business in the United States, E2 and L1 visas can provide a great opportunity. While both visas are designed for foreign nationals who wish to work in the U.S., E2 is tailored specifically to investors and entrepreneurs and has more relaxed eligibility requirements than L1.
If you're considering relocating to the United States, E2 and L1 visas are two of the most popular options as employment authorization available for foreign country business owners. But what exactly are E2 and L1 visas? What do they offer and how do they differ? In this article, we'll cover all the basics of the two visa categories, E2 vs L1 visa, so you can make an informed decision.
What is an E2 VISA?
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One of the two types of e visas, the E2 visa is type of US non immigrant visa that enables foreign business owners to enter and stay in the country for an extended period, typically for business purposes. By obtaining an E2 visa, you can legally reside in the United States and conduct business activities through your own foreign corporation.
An E2 visa can be a great option for foreign investors who are looking to start or expand their business in the United States. With an E2 visa, you can enjoy many benefits related to living and working in the US such as being able to access employment opportunities, take advantage of educational resources, and apply for permanent residence.
Period of Stay for E2 Visa
This type of visa allows investors to develop and direct their business, while also providing E2 visa holders with the ability to bring their spouse and children under 21 years of age to the US. An E2 visa is valid for up to two years upon initial entry and can be renewed indefinitely as long as you remain in compliance with all E2 visa requirements.
Eligibility Requirements for E2 VISA
To be eligible for E2 Visa status, the applicant must first establish that they are a citizen of a treaty country. There is also a requirement that the investment be substantial in relationship to the total cost of either acquiring or establishing the new business. Additionally, it must be a real and active commercial or entrepreneurial undertaking that produces services or goods for profit.
The E2 Visa also requires the investor to have taken a controlling interest in the business. This means that they must own at least 50 percent of the enterprise or possess operational control and being actively involved through a managerial position, executive duties, or other corporate devices. Additionally, applicants for investor visas must be coming to the United States solely to develop and direct the day to day operations the new business.
The E2 Visa is a great way for investors to stay in the United States while managing their investments. If you meet all of the eligibility requirements, it can be an excellent option for those looking to move their existing business operations to the U.S. However, if you do not meet the requirements, then you may want to explore other visa options with immigration lawyers and immigration services.
How to apply for an E2 VISA
If you are looking to apply for an E-2 Visa, here is a step-by-step guide on how to do so.
First, you'll want to make sure that you meet the E-2 Visa requirements. In order to qualify for an E-2 visa, you must be from certain countries that have a treaty of commerce or with the United States. For a list of treaty countries, check out this link. Additionally, you must be an investor, entrepreneur or qualified employee of a company that has made a substantial investment in the U.S. market.
Once you have determined that you meet the E-2 Visa requirements, the next step is to complete and submit your visa application. You can find all of the necessary forms and documents from the United States Department of State website. These include the E-2 application form, your passport, two recent photographs, a copy of a valid E-2 Visa Treaty Investor Document and any other relevant supporting documents.
Once you have submitted your E-2 visa application, the next step is to schedule an interview with the U.S consulate or embassy in your home country. During the interview, a consular officer will review your application and ask you questions about your E-2 visa qualifications.
The final step is to wait for the E-2 visa decision. Once all of the necessary documents and information have been submitted, it usually takes between two weeks and two months for the E-2 visa to be approved.
If you follow these steps, you should have no problem applying for an E2 Visa. Keep in mind that there are hundreds of E-2 visa applications submitted each year, so make sure to do your research and provide all of the necessary information before submitting your application.
The E2 Visa Business Plan
As part of your application along with the goal to create a successful business in the US a comprehensive business plan should be submitted demonstrating that the investments are adequate for business operations and are in line with your business growth projections.
What is an L 1 VISA?
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The L 1 visa is one of the types of non immigrant visas which allows employers in the US to temporarily employ workers from abroad on a temporary basis. The L1 visa is ideal for those who have foreign-based operations, as it can allow for the transfer of an employee from abroad to work in their US-based parent company, affiliate, or subsidiary office . The L 1 visa classification is divided into two categories: L1A and L1B.
The L1A Visa
The L1A Visa is a visa category hat enables foreign companies to transfer employees from their native country to the United States. It is specifically for those with an executive capacity , managerial capacity. or an upper level manager who are being sent by the company abroad. L1A visas are generally granted for up to seven years, although they can be extended in certain cases.
This visa category also enables foreign company, given they do not yet have an affiliated office in the US, to send a manager or executive for the purpose of establishing one. The Form I-129, Petition for a Non Immigrant Worker must be filled up and settled on behalf of the employee.
To qualify for an L1A visa, the applicant must have been employed with a foreign company in an executive or managerial role for at least one continuous year within the past three years. They must also be coming to the United States to work for a branch of the same company, or a subsidiary of that company.
The L1B Visa
The L1b is one of the the types of non immigrant visas that enables a US based employer to transfer a foreign employee having specialized knowledge involving the organizations interests coming from an affiliated foreign office to one of its own in the US. Through the L1B classification a foreign company may also send an employee of a specialized knowledge position to establish a US based affiliate office if the said company has yet setup an existing office. The form I-129, Petition for a Non Immigrant Worker must also be filled out by the employer on behalf of the employee.
An employee with specialized knowledge means this individual possesses a special knowledge on a petitioning company which does not include just the mere presence of the agent or an office of the organization in the US and abroad.
The employer must have a qualifying relationship with a foreign company. The qualifying organizations refer collectively to parent, branch, subsidiary, or an affiliate company. An employer must also currently or will soon be doing regular business as an employer in the US and directly in one other country at least or through a qualifying organization during the L1B beneficiaries stay in the US.
A company is doing business when it provides regular, continuous, and systematic goods and services by a qualifying organization. This also means that simply the mere presence of an agent or an office of a qualifying organization in the US and abroad.
Family of L 1 Visa Holders
The spouse and unmarried children under 21 may accompany the transferring employee. The spouse and dependent children may seek admission through the L2 visa which is eligible for work authorization. The same period of stay will be granted to the family members as the transferring employee and is valid as long as the L 1 Visa holder's is valid.
Key Differences between E2 and L1 Visas
Both non immigrant visas E2 and L1 allow work and living in the US but there are key differences between the two visas that might help distinguish one from the other.
Focus Differences
One of the big differences between the two visas have to do on their focus. The L1 visa focuses mainly on employees position making sure that the L1 worker's duties are in line with the managerial, executive, or specialized nature.
The main focus for the E2 visa is with making an investment in a US business. The E2 visa specifically demands that you make a substantial investment in a US business. The bigger the amount invested, the higher the probability for you investment to be considered substantial.
Based on Nationality
One of key distinctions between E2 and L1 visa is based on the nationality of the applicant. An E2 visa is treaty based and is only made available to a national of a country with an E2 treaty with the US. The L1 visa however is not based on any treaty therefore making people from all nationalities eligibly to apply for an L1 visa.
Different Maximum Durations
All qualified employees and company executives will be allowed three years maximum for their initial stay except for ones entering the US to establish a new office as they will allowed only 1 year for their maximum initial stay. Requests for extensions may be fulfilled in increments of up to two years in addition to their initial stay. Each employee will have a maximum limit of five years and executives seven.
Green Card with E2 and L1 Visa
The two visas E2 and L1 are great options that allows people from a foreign company to live and work in the US. The two visas are non immigrant visas which means they do not lead directly to a green card. Luckily, these two visas can be converted into a greed card.
There are a few ways to go from an L1 visa holder to a green card holder. The most common way might be through the EB1C Immigrant Visa category. Another possibility is through an employer sponsored green card.
For the E2 visa holders, one option is the Eb5 visa. The EB5 visa allows for a green card based on making a substantial investment in a US Company. A benefit from holding an EB5 visa is that are able to credit the amount you've invested in your E2 business toward your required investment.
Which option is better? E2 or L1?
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The visas E2 and L1 are wonderful choices to use for coming to the US. Both visas have a number of benefits along with several key differences.
It's best to review your situation so that you may choose the best one that fits you and your goals. If you're seeking further help as to which visa's right for your needs, visit your most trusted law firm and have a chat with your immigration lawyer.
