Navigating the E-2 Visa for Overseas Investors: Ownership and Control Requirements

The E-2 visa, also known as the investor visa, allows nationals of certain treaty countries to work in the United States and run a business. However, there are specific requirements regarding the source and control of the investment funds. Here’s a detailed guide exploring the nuances and ensuring eligibility for an E-2 investor visa.

Ownership and Control Requirements

To secure an E-2 investor visa, the primary investor must have a significant stake in the company and control the business operations. In certain cases, an individual can be designated as an employee rather than an investor, provided they meet specific conditions.

For example, if you own at least 50% of the company and the investment is made by another source, you can still apply. The key is to maintain a substantial ownership interest and active management of the business. If the investment is substantial, the employee holding an E-2 visa must have a controlling position and be actively involved in the business operations.

Investment Amount and Ownership

The amount of investment and ownership percentage required can vary depending on the size of the investment. Here are the details:

For investments above $500,000, at least 50% ownership is required. For investments between $150,000 and $500,000, a minimum of 75% ownership is needed. For investments less than $150,000, 100% ownership is generally required.

It’s crucial to maintain documentation and demonstrate the possession and control of the investment funds.

Proving Ownership and Control

Showing possession and control of the investment funds is a critical aspect of the E-2 visa application. This can be demonstrated in several ways, such as:

Legitimate acquisition of funds through savings, gifts, inheritance, or contest winnings. Receipt of funds intended for investment. Active management and control over the investment funds.

However, inheriting a business does not count as an investment for E-2 visa purposes. Moreover, the source of the funds does not necessarily need to be outside the United States.

Business Ownership Nuances

Usually, owning a majority of the company is a requirement for the E-2 visa. However, there are exceptions and nuances that may apply. Consulting with a legal expert is recommended to ensure compliance with all applicable laws and regulations.

Conclusion

The E-2 visa is a powerful tool for foreign investors looking to establish a business in the United States. While specific conditions apply to ownership and control, following the guidelines and working with experienced legal counsel can significantly improve your chances of obtaining this valuable visa.

Remember, eligibility depends on a combination of financial investments, business control, and adherence to the requirements outlined by the U.S. government. Consulting an attorney with expertise in E-2 visas can provide the necessary guidance and support to navigate these complexities successfully.