What Is The E-2 Treaty Investors Visa

The E-2 Treaty Investor Visa Category permits an individual to establish a business or purchase an already established business and to operate and manage it in United states. Although there is no legally defined minimum investment amount required to establish or purchase a business under this category, however it is a mandatory requirement for the investment to be “substantial”. This “substantial” investment criteria is a relative and subjective requirement and the qualifying amount can vary depending on the type of business, city/township/ place of business, magnitude of business, total value of the business, amount required to capitalize the business and the net profitability vs. the value of the business etc. For new businesses being started the investment amount must be adequate to make the business functional in its totality.

The amount of investment also varies depending on the nature and type of business. The investment will not be considered substantial if it is not enough to capitalize the business venture. It is also a mandatory requirement that the investor holds the controlling interest in the business to actively operate and manage the business on an ongoing basis holding minimum 50% shares/ownership rights in the business.

Availability, Access and Source of the Investment Amount is one of the most important factors in E2 Treaty Investor Category. Capital assets, savings, amounts gifted, funds inherited, equity in residential, commercial or ancestral property and other legal sources of funds can be considered as legal source of Investment Amount. It is mandatory requirement that the Investment Amount come from legal source and comes from outside of the United States of America. Proper supporting documentation is required to establish the source of Investment Amount as well as availability and accessibility of the Investment Amount and assets.  If someone inherits a business it will not qualify as an investment under the E2 Treaty Investor Category.
If the Investment Amount is arranged as part of a loan amount it must meet the following conditions. (a) Commercial loans and mortgages which have business assets held as collateral do not qualify as Investment Amount. (b) Loans and mortgage which have personal assets held as collateral or unsecure loans taken on personal credit qualify as Investment Amount.
Furthermore, the applicant must have invested or should be in the process of making the investment. What needs to be understood is that the business must either be operational or on the brink of being operational. In majority of cases in the best interest of our clients we recommend that they to go with the option of “on the brink of making the business operational”.

Ideally a company, usually an LLC should be register in the United States and a Bank Account should be opened on the name of the company registered in the United States. Thereafter a Business Plan must be prepared that is elaborate, thorough and realistic with ground realities as applicable on date in the town/city where the business is to be established/purchased as well as all necessary preparations are required to be made for the business to be brought to the brink of being operational. Likewise lease of premises, contract negotiations, and examining real estate, etc. is to be done simultaneously as well. Purchasing an existing running successful business can be a good alternative option to setting up a new business. Escrow account arrangements must be put in place for the Investment Amount to be moved for closing deals under the Escrow Account facilitated arrangements contingent upon issuance of E2 Treaty Investor visa. The Investment in E2 Treaty Investor Category must be made in a for profit business venture and cannot be a not for profit and non-profit establishment.

Investment options:

If an investor wants to acquire a convenience store, mall kiosk, bakery, or web design company, they only need to show their qualifications and ability to lead the franchise or business.
Some investors prefer buying a business, while others are more interested in starting their own. These ventures comprise of services like home renovation, landscaping, cleaning, painting, plumbing, electrical work, car detailing, and auto maintenance.
In cases of trucking enterprises, investment can be shown in terms of transferring your equipment to the US enterprise or by purchasing new equipment from the US itself.
Buying a Franchise is also an option for the E-2 investors. E-2 Visa processing for E-2 Investors who go with the option of purchasing a Franchise or an established business is generally easier and simpler as in case of Franchise the business model is proven and in case of an established business there is a track record of it’s being successful.
Employees of E-2 Investors who are managers, top executives, supervisors or hold special skills and/or knowledge required to successfully operate the US business are also eligible to work for the US business under the provisions of E-2 visa provided they are of the same nationality as the investor. Spouse and children till 21 years of age get derivative visas. Spouses can get open work permits and children can attend school without student visa.

Following is the list of countries which have an E2 treaty with the United States: