Understanding the E-2 Visa Investment Requirement: Key Points and Guidance
The E-2 treaty investor visa allows foreign investors and their immediate family to reside in the United States, with the goal of developing and directing a commercial enterprise. To meet the investment requirement for an E-2 visa, you must invest a 'substantial' amount in a U.S. business that is willing to file your visa application on your behalf. This guide is designed to help you better understand how to meet this requirement and gauge the amount of investment needed for your business venture.
Investment Requirement Overview
To meet the E-2 visa investment requirement, you must demonstrate that you have invested, or are actively in the process of investing, a substantial amount of capital in a bona fide U.S. business. This investment needs to be sufficient to ensure the business's success and the funds must be at risk, meaning they are subject to potential loss if the business fails. Furthermore, the investment must be made with the intention of generating income to support you and your family, or making a significant economic contribution to the U.S. economy.
Qualifying for the E-2 Visa
The E-2 visa applicant must be the individual who is intending to 'develop and direct' the enterprise. Qualifications for the E-2 visa also include the following: Being a citizen of a treaty country with a treaty of commerce and navigation that includes investment provisions with the U.S. Investing a 'substantial' amount of capital in a U.S. business. Show that the funds are at risk and irrevocably committed to the development of the business. It is important to note that there is no specific amount of money required to apply for an E-2 visa. The regulations are focused on demonstrating that you have put your personal funds at risk and that your money will be committed to the business's success.
Substantial Investment Guidelines
Whether an investment qualifies as 'substantial' is determined by the ratio of the funds invested to the total cost of developing the business until it becomes operational and actively involved in commercial activity. For example, the investment can be as low as 100,000, but it can vary depending on the type of business. Investing less than 100,000 is generally more difficult, as the funds must be at-risk and irrevocably committed to the business's success.
Investment in an Existing Business
If you plan to purchase an existing U.S. business for an E-2 visa, the investment amount is typically the business purchase price, with some financing allowed. The E-2 visa regulations suggest that financing should not exceed 25-30% of the total purchase price for investments between 100,000 and 500,000. For a business costing 1 million, up to 50% of financing would be accepted under E-2 visa regulations.
Investment in a New Business
For starting a new U.S. business, the required investment amount will be the capital needed to establish the new business and commence operations. The specific cost varies widely depending on the business type and industry. For instance, a new restaurant requires leasing premises and purchasing furnishings and equipment, while a pool service business might need only a lease, equipment, and a vehicle, along with a business account for working capital.
Starting a new business under the E-2 visa is more challenging and time-consuming compared to purchasing an existing business. You must make all necessary expenditures before submitting your E-2 visa application. It is important to continue your application process if you are committed to establishing a new business in the United States.
Conclusion
Meeting the E-2 visa investment requirement involves demonstrating a substantial and irrevocable commitment to the success of your U.S. business. Whether you purchase an existing business or start a new one, the amount needed varies depending on the business's specific requirements. By following the guidelines outlined above, you can better understand how to meet your investment requirement and successfully apply for an E-2 visa.