Work Visa through investment / self-employment

The E-2 (Investor) Visa is based on bilateral treaties between some countries and the US. At present, there are about 60 countries that have such treaties with the US. Among them are, of course, Germany, Austria and Switzerland.

The Investor Visa, called "Treaty Investor Status" in the US, is for citizens of the treaty countries who want to enter the US in order to lead, start up or develop a business / company in which they have invested substantial capital or are about to make a substantial investment. Employees of an E-2-eligible investor may also qualify for an E-2 Visa.

Investment capital can be in several forms, it might be cash, equipment or stocks. Even cash-like forms such as certificates of deposit or long-term treasury bonds.

The applicant either has to have already invested in the US or be about to invest in the US. In the latter case, the process must already be at a stage where it can't be reversed anymore, meaning the funds or capital for investment have to have tied up. The signature of a contract is not enough to reach this point of no return. The money must be on a trust account already.

REMARK: Since it was the original motive of the US government to revive regional economic growth in the US with this visa, only those companies that can make a potential profit will qualify for the E-2 Visa. Profit in this context means more than just investing in a "letterbox-company," in order to create a basis of livelihood for the visa applicant. In case the applicant can't demonstrate that his business activities will have a decisively positive effect on the region in which the investment is being made - e.g. by creating new jobs - the E-2 application will not be approved.

The investment must be a substantial one. The term ‘substantial' is not clearly defined in this context. It is important that the investment ensures the company's future success.

In order to find out whether the investment is indeed ‘substantial,' the percentage of the entire company's value (or the launching costs in the US) compared to the applicant's investment will be calculated. The smaller the company is, the bigger the sum of investment will have to be. Usually, this visa can be granted starting with a minimum investment of $50,000 to $70,000.

As a general rule, you can say that a sum will be classified as ‘substantial' if the entire company value (or launching costs) in the US are as follows:

Less than $500,000 - the investor must invest at least 75% of the company value; more than $500,000 but less than $3,000,000 - the investor must invest at least 50% of the company value; more than $3,000,000 - the investor must invest at least 30% of the company value.

The investor must demonstrate the efficiency of control over his business plans. This is the only way to assume that he or she (or the company) can sufficiently influence the development of business activities. Generally, it must be proved that the investor controls de facto more than 50% of the entire investment in order to prove that he ahs sufficient control. However, even an applicant controlling less than 50% may prove such an influence, e.g. by stockholder's proxy or accountability in management.

Employees:
An individual can be sent to the US, or a company may sent certain employees to the US so they can work on the E-2 status with the business investment. However, these employees must have a management position or have special skills that are important for the company's success in order to qualify for the E-2 Visa.

Visa application:
In addition to the usual visa application that is submitted to the US consulate, a number of other documents are required as well. Documents to be provided include the report of an accountant, copies of bank statements showing the transactions for the business procedure, complete lists of the goods and equipment bought for the business, as well documentation about insurances taken out for that purpose. An employee on E-2 status should also have certificates / diplomas and / or references showing his / her qualification for the position in the US.

E-2 Visa applicants must have the intention of leaving the US after their status expires. You must convince the consul of that before your visa can be issued. Usually, this is rather easy since the consul knows that the applicant has the right to extend the visa indefinitely (see below). Because of this, it is not necessary for the applicant to maintain a residence outside the US as long as he or she has the E-2 status.

Some consulates expect the applicant to hand in the forms in person. Others that have lots of people coming in every day, e.g. Frankfurt in Germany, the E-2 application has to be submitted via mail. Processing may take some time in that case.

Length of stay:
The so-called initial period on the E-2 status is no longer than one year, even though the visa itself can be issued for more than that. Extensions can be granted for up to two years, without a limit. This means the length of stay on the E-2 Visa can be virtually indefinite, as long as the visa is valid.

In case you are interested in this visa and believe that you meet the requirements by starting up a company or investing in an existing company, we will be happy to help you. At present we also have a private offer for investing in a publishing company in Florida. If you are interested, we will be happy to provide you with more information, just write us an email.