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Treaty Traders & Investors (E1, E2 visas)

Treaty Trader and Investor visas offer nationals of countries with the requisite Treaties with the United States (*see below for a list of countries) the opportunity to come to the United States to work, direct and control a business that they have established.

FOR AN INITIAL FREE CONSULTATION CALL:
Tel: (800) 568 7601, (760) 231-9851
In the UK call 0207-101-9399   email: info@usvisasolutions.com

In Australia call (+61) (02) 8069 7228

Although technically a temporary or nonimmigrant visa, the Treaty Trader or investor can expect to have the visa renewed for as long a  period as the business continues in operations. Furthermore, due to a recent change on the law, the spouse of a Treaty Trader or investor may obtain work authorization as long as the principal remains in status.

An E-2 visa typically requires an investment of between $100-150,000. In contrast to this, for an Immigrant investor, under the EB-5 Green card investor category an investment of at least $500,000 in a new business which creates at least 10 new full time jobs is typically required. 

Anther option for investors may be the L-1 visa category. Deciding which option to take can only really be made after a thorough case analysis by an experienced immigration attorney.

FAQ

1.How do I qualify as a Treaty Trader E-1 visa?

2. How do I qualify as a Treaty Trader E-2 visa?

3. Must the trading company exist and/or the investment have been made before the visa can be issued? In essence,  are start-up businesses permitted?

4. What is a substantial amount of capital?

5. Are joint ventures/partnerships permitted?

6. How long may the Treaty Trader or Investor stay in the US?

7. Where do you apply for an E-2/E-1 visa?

8. Is a visa available to the applicant’s wife and children?

9. Can the spouse of a E visa holder work? Can E-2 dependent children go to school?

10. Which nationalities qualify for E visas?



To qualify as a Treaty Trader (E-1):

  • The firm in the US must have the nationality of a treaty country.
  • The applicant must be a national of the treaty country.
  • The international trade must be "substantial"; there must be a sizable and continuing volume of trade.
  • The trade must be principally between the US and the treaty country, which is defined to mean that more than 50% of the firm’s international trade involved must be between the US and the country of the applicant’s nationality.
  • Trade means the international exchange of goods, money, services, or technology. Title of items must pass from one party to another.
  • The applicant must be employed in a supervisory or executive capacity, or possess highly specialized skills essential to the operation of the firm.

The term "trade" is defined to include commercial intercourse in goods and trade in services and technology. This includes banking, insurance, transportation, tourism, communications, data processing, advertising, accounting, design and engineering, management consulting, technology transfer, and other measurable services which can be traded.

To qualify as a Treaty Investor (E-2):

  • The investor (either a real or corporate person) must be a national of a treaty country.
  • The investment must be substantial. It must be sufficient to ensure the successful operation of the enterprise. The percentage of investment for a low-cost enterprise must be higher than the percentage of investment in a high-cost enterprise.
  • The investment must be a real operating enterprise. Speculative or idle investment does not qualify.
  • The investment must not be marginal. It must generate significantly more income than needed to provide a living to the investor and family, or it must have a significant economic impact in the United States.
  • 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.

Must the trading company exist and/or the investment have been made before the visa can be issued? Are start-up businesses permitted?
Yes. You can absolutely create a new business. However, in order to obtain the E-2 or E-1 you must show that you are in the process of making the substantial investment or have already Trade must already be established at the time of visa application. Investments, however, may be prospective, provided that the funds are irrevocably committed to the investment, such as in an escrow account, contingent only upon the issuance of the visa. Investment funds may come from any country, including the United States, as long as they are controlled by the investor applicant.

Note, that just having deposited money in a bank account and presenting a business pan will normally not suffice.

What is a substantial amount of capital?
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.

Normally a minimum investment of $100,000 will be required, although this may be reduced in the event that a certain business simply does not require such an investment. An absolute bare minimum of $75,000 will likely be required, although the rules envisage that $50,000 may be suitable in certain circumstances.

Of note is that different US Embassies, who process E-2 applications, seem to have different idea of what a substantial investment should be. Some prefer to see a minimum investment of $150,000.

Furthermore, the investment may not be marginal. This means that the investment must do more than just provide a living for the investor. This requirement is normally met by the employment of at least one US citizen or a business plan which clearly shows that the type of investment will necessarily employ US citizens.

Are joint ventures/partnerships permitted?
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.

How long may the Treaty Trader or Investor stay in the US?
The applicant must have the intention of departing the US upon conclusion of the commercial activities. Nevertheless, holders of E-visas may reside in the US as long as they continue to meet E-visa qualifications. A potentially indefinite stay is thus available.

Where do you apply for an E-2/E-1 visa?

Typically the applicant will apply directly to the US Embassy in the country of their nationality or where they have a legal residence. Although it is possible to get E-2 or E-1 status from the USCIS in the United States, this is not normally advisable as once the applicant leaves the US they will be required to re-submit the application from scratch at their local US Embassy. The US Embassy will not honor the E-2 change of status approval. This is one oddity of the E2/E-1 process.

Is a visa available to the applicant’s wife and children?

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. 

Can the spouse of a E visa holder work? Can the children go to school?

Yes. Pursuant to recent changes in the law, dependent E-visa spouses are also allowed to work in the United States. They must however apply for work authorization once they arrive in the US. Minor children of E2 visa holders can also attend school without needing to obtain a student visa.

Some countries qualify for both E-2 and E-1 visa, and some only qualify for E-2 and/or only for E-1 visas.


Countries that qualify for both E-1 & E-2 visas
Argentina, Australia, Austria, Belgium, Bosnia-Herzegovina, Canada, Chile, China, Colombia, Costa Rica, Estonia, Ethiopia, Finland, France, Georgia, Germany, Honduras, Iran, Ireland, Italy, Jamaica, Japan, Jordon, Korea, Liberia, Latvia, Luxembourg, Macedonia, Mexico, Netherlands, Norway, Oman, Pakistan, Paraguay, Philippines, Slovenia, Spain, Sri Lanka, Suriname, Sweden, Switzerland, Thailand, Togo, Turkey, United Kingdom, Yugoslavia

Countries that qualify for E-1 visa only
Bolivia, Brunei, Denmark, Greece, Israel

Countries that qualify for E-2 visa only
Albania, Armenia, Bangladesh, Bulgaria, Cameroon, Democratic Republic of Congo, Republic of Congo, Czech Republic, Ecuador, Egypt, Grenada, Kazakhstan, Kyrgyz Stan, Lithuania, Moldova, Mongolia, Morocco, Panama, Poland, Romania, Senegal, Slovak Republic, Trinidad & Tobago, Tunisia, Ukraine

FOR AN INITIAL FREE CONSULTATION CALL:
Tel: (800) 568 7601, (760) 231-9851
In the UK call 0207-101-9399   email: info@usvisasolutions.com

 




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