KEY CONSIDERATIONS FOR APPLYING FOR AN E2 INVESTOR VISA

Applying for E2 Visa

Verifying Nationality and Treaty Eligibility

The initial step in the E2 visa application process is to ensure that both the potential investor and the enterprise share the same nationality. There must be a qualifying E2 treaty between the U.S. and the investor's country. The potential investor must own the business or have majority ownership shares in the business.

Deciding Between a Startup and an Established Business

The next decision is whether to invest in a new startup or an established business. Each investor's goals differ, so the types of investment they choose to engage in would also differ. Nonetheless, considering the financial risk, regulatory compliance and market trends are crucial in guiding this decision. For new businesses, a formal business plan is essential. A comprehensive plan should include a five-year financial projection, business model, market analysis, operational strategy, and growth projections. This plan can be created with the help of experienced vendors.

Buying an existing business can be an appealing alternative to starting a new business. The investor bypasses some of the initial hurdles and growing pains of starting a business from scratch straight to the operational phase. Ergo, a formal business plan is not necessary. Purchasing an established business in whole or in majority shares can qualify an applicant for the E2 visa.

Determining a Substantial Investment Amount

The investment amount is a common concern for investors. While there’s no specific dollar amount designated as “substantial,” the relative scale of your investment matters, and regulations such as 9 FAM 402.9-6(D)(b) and 9 FAM 402.9-6(E) provide guidelines. Generally, Investments of approximately $100,000 or more is recommended. Nonetheless, in practice, investments of less than $100,000 have also yielded favorable results. The exact investment amount should align with the specific needs of the business.

Funding the Business and Placing Investment Funds at Risk

To qualify for an E2 visa, the investor must demonstrate that the investment funds come from a legitimate source and are under their control. The sources of the investment funds could be from savings, sale of personal property, loans, gifts, inheritance, etc. Proof of the legitimate source of funds is paramount to establishing eligibility.

There is no guarantee that the E-2 visa will be approved after the funds are invested, and this uncertainty creates an uneasiness for some investors. Nonetheless, the E-2 visa necessitates that investment funds are at risk before the visa is granted. After establishing the funding source, it's crucial to demonstrate that the investment is 'irrevocably committed' and at risk, showcasing the investor's commitment to the business venture. This means the funds must be genuinely exposed to potential gains and losses.

Considering the Venue

The final consideration is whether to change status to E2 within the U.S. or apply abroad through consular processing. While changing status within the U.S. can be strategic, especially if no international travel is planned, most applicants opt for consular processing. This is because acquiring the E2 Visa at the consulate would not hinder international travel. Furthermore, investors avoid the possibility that a consular officer may challenge an E2 change of status approved by the U.S. Immigration Service in the event of international travel.

By carefully considering these steps, potential investors can better navigate the E2 visa application requirements and increase their chances of success. It’s important to consult with an immigration attorney to guide you through the process.