E-1 & E-2 VISAS

The E visa is very unique and useful for foreign business persons. It can be used by companies owned by one investor as well as by large multinational companies. It is based upon a special treaty between the United States and the country of nationality of the owners of the business. We shall call these persons Treaty Foreigners (TF).

Trader (E-1) and Investor (E-2) visas must be applied for at a U.S. consulate. Careful preparation of the application and supporting documents is critical.

E visas are generally for a five year period, except for Mexico which is six months, and can be reissued (formerly called revalidation) through either a U.S. consulate or the Department of State for a time equal to that originally issued. Admission for each entry to the United States during the life of the visa is initially granted for a period of one year. Extensions may be obtained for up to two years at a time from the Immigration and Naturalization Regional Service Center having jurisdiction over the place the business is located.

Most uniquely, there is no maximum time limit for E Visas -- traders and investors can remain in the United States indefinitely as long as they maintain their eligibility and treaty status.

A spouse and unmarried minor children of an alien who holds an E Visa are eligible for E visas, which permit them to travel in and out and reside and study while in the United States, but not accept employment, during the time period of the principal’s E Visa. Servants of the E visa holder can be issued B-1 visas with work authorization.

The U.S. has E Visa Treaties with the following countries:

For E-1 Visas

Argentina, Australia, Austria, Belgium, Bolivia, Brunei (Borneo), Canada, China (Taiwan only), Colombia, Costa Rica, Denmark, Estonia, Ethiopia, Finland, France, Federal Republic of Germany, Greece, Honduras, Iran, Ireland, Israel, Italy, Japan, Korea, Latvia, Liberia, Luxembourg, Mexico, Netherlands, Norway, Oman, Pakistan, Paraguay, Philippines, Spain, Suriname, Sweden, Switzerland, Thailand, Togo, Turkey, United Kingdom, and Yugoslavia.

For E-2 Visas

Argentina, Australia, Austria, Bangladesh, Belgium, Cameroon, Canada, China (Taiwan only), Colombia, Costa Rica, Ethiopia, France, Federal Republic of Germany, Grenada, Honduras, Iran, Italy, Japan, Korea, Liberia, Luxembourg, Mexico, Morocco, Netherlands, Norway, Oman, Pakistan, Panama, Paraguay, Philippines, Senegal, Spain, Suriname, Sweden, Switzerland, Thailand, Togo, Turkey, United Kingdom, Yugoslavia and Zaire.

The E-1 Visa:

To qualify for an E-1 trader visa, a foreign business person must be seeking entry into the United States to carry on "substantial trade in goods or services in a capacity that is supervisory or executive or involves essential skills."

E-1 "trade" means the exchange, purchase, or sale of goods and/or services. Goods are tangible commodities or merchandise having intrinsic value. Services are economic activities whose outputs are other than tangible goods. Such service activities include but are not limited to banking, insurance, transportation, communications and date processing, advertising, accounting, design and engineering, management consulting, tourism, and technology transfer.

A TF may be issued a treaty trader (E-1) nonimmigrant visa if all of the following requirements are met:

(a) At least 50% of the company stock is owned by TFs;

(b) He enters the United States to carry on substantial trade (more than 50%) between the U.S. business and a TF country;

(c) The trade is already in existence at the time of application for E-1 status;

(d) The applicant engages in executive or managerial duties or possess special skills that makes his services essential to the employer's operations; and

(e) The applicant will leave the United States upon termination of this status.

 

The E-2 Visa

To qualify for an E-2 investor visa, the applicant must "develop and direct operations of an enterprise in which he or she has invested or is actively in the process of investing a substantial amount of capital." A foreign citizen may be issued an E-2 nonimmigrant visa if all of the following requirements are met:

(a) At least 50% of the company stock is owned by TFs;

(b) The applicant or the firm will invest or have invested substantial capital (generally in excess of $100,000) which is at risk, meaning subject to potential loss if the business does not succeed, in a bona fide enterprise in the United States. The term "substantial" means:

(i) The investment must be significantly proportional to the total investment (usually more than half of the value of the business), or

(ii) An amount normally considered necessary to establish a new business.

(c) The applicant engages in executive or managerial duties or possesses special skills that make his services essential to the employer's operations.

(i) An executive must have great authority to determine the policy of and direction for the business or a major component of the business, and the executive functions must be the primary functions.

(ii) A supervisor must have ultimate control and responsibility for a large proportion of the enterprise's operations or a major component of the enterprise. It does not involve the supervision of low-level employees. The supervisory element of the employee's position must be a principal and primary function.

(iii) Whether an employee has "special skills" is determined by assessing the degree of proven expertise, the uniqueness of the specific skills, the length of experience and training with the firm, the period of training needed to perform the contemplated duties, and the salary the special expertise commands. The consular officer must be convinced that the nature of the prospective employment is such that the alien's eventual replacement by a U.S. worker is not feasible or that the employer is making reasonable and good-faith efforts to recruit and/or train U.S. workers to perform the job.

(d) The investment is not marginal (not the applicant’s sole means of support and/or the goal of the investment is to create jobs for U.S. citizens or permanent residents)

(e) The investment enterprise actually exists or the person is actively in the process of investing

(f) The person confirms (s)he will leave the United States upon termination of this status.