How To: obtain the E-2 Treaty Investor Visa – first-hand report

This edition's How To section will provide you with some basic information about the E-2 Treaty Investor Visa, interesting for those of you are considering going into business in the US or establishing a subsidiary there. We want to give you a more practically-oriented insight into this usually very complex and time-consuming process by presenting you this report of one of our customers who was so kind as to share his personal experiences.

Basic information for the E-2 Treaty Investor Visa
The E-2 Treaty Investor Visa is based on bilateral agreements between the US and countries that have trade relations with them. Currently, there are about 60 nations with such relations to the US. Among them are Germany, Austria and Switzerland.

The investor visa is for people from those countries who want to enter the US in order to lead, establish or develop a company in which they have invested substantial capital or in which they are about to invest such capital. Both individuals and companies may apply for this, it is not merely an option for individuals.

A company has the required nationality in case at least 50% of the company is owned by persons from one of the treaty countries. A company has to apply for the visa for one specific employee (e.g. CEO, manager etc).

PLEASE NOTE: The E-2 visa is still often being confused with the investor green card, which requires a certain specific minimum sum of investment and the creation or preservation of jobs.

What is interesting is that anyone who establishes a business in the US irrespective of the previous business activities in the home country, may qualify for the E-2 status. This means that at the time of application, the applicant does not need to have a business in the home country. That way, even persons who wish to go into business for themselves may qualify for the E-2 category.

Who qualifies? Most importantly, it is always the Us subsidiary / enterprise that must qualify. So the company stated on your visa will not be the one in your home country, but rather the one in the US. All qualified employers of the parent company as well as employers of subsidiaries of said parent company may be sent to the US on the E-2 status.

US companies owned by legal permanent residents or green card holders in the US will not be regarded as nationals of the treaty country (the US) under the E-2 status in terms of the treaty agreement, when it comes to determining the company's nationality. That means that foreign specialists may not be hired by those companies under the E-2 status. If however, a green card holders sells 50% of his company to an applicant, this applicant may in turn qualify for the E-2 visa.

Sum of investment Investment capital comes in all shapes and forms. It may be cash, stocks, equipment and/or inventory. Also deposit certificates or long-term treasury bonds may qualify. The applicant, however, must have made a substantial investment in the US or must be about to make such an investment. In the latter case, the process must have reached a stage where it is no longer reversible. A signed contract is not sufficient to prove this "irrevocable point to qualify."

NOTE: Since the US government has introduced this category to revitalize the American economy, only those companies that will be able to generate profits will be able to qualify for the E-2 Visa. Charities such as associations or religious communities will therefore not qualify for the E-2.

Generating profits, in this context, does not only mean investing in a so-called phantom company in order to create a livelihood for the applicant. Unless the applicant can prove that his business activities will have a significant positive effect on the region in which the investment is made, the E-2 application will not be approved.

In addition, the investment has to be substantial. This is not clearly defined. What is important is that the sum of investment guarantees the company's success.

The application The applications for the E-2 investor visa are submitted to the local US consulate general in the respective treaty country. Other than with most work visas, a previous application to US Citizenship and Immigration Services is not necessary. Compared to other visa categories, processing times are usually shorter. That depends, however, on the consulate in the treaty country (staff, season-related work load).

Some consulates need the applicant to deliver the documents and forms in person. In other consulates such as Frankfurt on Main that have more traffic the applications have to submitted by mail, notification about the decision may take a while.

Length of stay The initial period for the E-2 status is not more than one or two years, even though the visa itself may be issued for a longer period. Extensions may be granted for up to two years at a time, without a limit. This means that, in theory, the E-2 status may be valid indefinitely, as long as the visa is valid.

First-hand experience with the E-2 Visa by a former customer
"After a 20-year successful hotel career in Europe, my business partner and I decided to open our own nice, little hotel in Florida. We had already acquired a nicely restored, listed building from 1924 in West Palm Beach in 2001 that we had rented out. In 2004 we added an extension with five suites, a pool, two garages and granny-flat and opened the Grandview Gardens, a deluxe bed & breakfast.

So far I had always conducted business from Germany and now needed a visa to be able to live and work in the US. After talking to several lawyers in Florida who wanted exorbitant fees ($6,000 - $8,000) for a visa process, I happened to find the website of The American Dream, and after a first talk with Mr. Mehnert, I felt that I was in good hands. The fees also seemed appropriate. After a number of phone calls we knew what would be necessary - the E-2 Treaty Investor Visa.

So now I was facing the most extensive part of the process - the compiling of the necessary documentation for the application. This took several weeks. It was, however, worth it to submit the extensive E-2 file to the US consulate in Frankfurt on Main. After a few weeks, I received the good news - I was invited for an interview at the consulate and everything was okay. I could take my E-2 visa with me that very same day.

I opened the Grandview Gardens Bed & Breakfast together with my partners Hurrican Frances and Jeanne and our first season was a very successful one.

Now, a bit of advice from me to US beginners:

Number 1: Always apply for your Social Security Number right away. You are practically nobody without SSN in the US and can't even get insurance and other things. Processing times usually take 4-6 weeks. Sometimes it is worth to call again - my card, for example, was lost in the mail.

Number 2: The American driver's license acts as ID. So it will be worth it to apply for the US driver's license as soon as possible. If you already have a German license, you will only need to take a written test. Please note: the old grey ones are no longer accepted, you will need a new EU driver's license.

Number 3: Health insurance. You can save yourself a lot of time and effort if you bring documentation of a recent medical check-up from Germany and translate it into English. Otherwise, you may rejected again and again by the American insurances and will have to start one admission procedure after the next."

We would like to thank our customer Mr. Emmerich who wrote this report for us. We have provided the link to his homepage in our links section.

In addition, we hope we could provide you with a little insight into the E-2 Investor Visa. If you have any further questions, don't hesitate to contact the American Dream team.