A Guide to E-2 Investment Visa
Investment Visa
1. What is the E-2 Visa?
The E-2 Visa or the Investment Visa to the US permits the Visa Holder to stay in the US based on an investment in the US by investing monies into an existing business or starting a brand new business.
2. How much do I need to invest to be eligible for the visa?
Although there is not a legal minimum amount, the US Embassy in London normally will not approve the E-2 Investment Visa Application if the investment is for less than $150,000.
3. How much income must the business generate?
The annual income of the investment should be more than marginal.
Example of an insufficient income: A married couple with 3 children invest in a beachfront bed & breakfast in Florida. This beach is in the path of hurricanes that hit Florida every year. The cost of living in that area for a family of 5 is $50,000/yr. The net income generated is $55,000/yr. This will not be a sufficient income because a harsh hurricane season will have negative impact on the income because fewer tourists will be travelling to the region.
4. Can I purchase an existing business?
The E-2 Investment Visa applicant can purchase an existing business. The applicant must demonstrate how the business will be further developed and expanded.
5. Will I need a business plan?
A business plan is absolutely necessary. The business plan will be crucial to getting the E-2 Investment Visa approved. It should be for five years.
6. Will Irwin Mitchell assist with business plan?
The team at Irwin Mitchell will evaluate and assist the applicant to produce the most effective business plan which is practical and logical.
7. Can I obtain the visa and then invest in the business?
No. The business must be operating or very near to starting operations at the time the visa application is made. If the business has not started operating or is not close to starting operations, the visa will be denied.
To safeguard your risk, the E-2 visa applicant should place the monies into an escrow account with the condition that the monies will be transferred to the vendor providing the visa is issued.
8. What percentage of the investment must be invested into the business at the time of the application?
The minimum percentage depends on the amount of the proposed investment. In other words, the greater the total investment the less is required at the time of the application. For example, an investment of 1 million dollars may require fifty percent at the time of the application but an investment of $150,000 will require 100 percent of the investment.
9. Can I have a business partner?
Yes. Note it is advisable to not have more than two people investing in the business. The E-2 Investment visa applicant should have no less than fifty percent ownership of the business.
10. How long can I obtain the visa for?
Although, the visa can be granted for up to five years at a time, the normal practice is to issue a visa for one year for new businesses. The visa is renewable an indefinite number of times. However, the investor must leave the US once the relationship with the business stops.
11. Can I work outside the business?
No, the primary E-2 Investment visa holder cannot seek outside employment. The primary visa holder can only work as the investor in the business.
12. How long does it take to for the US Embassy to process the application?
Currently, the Embassy is taking sixteen to twenty weeks to process the E-2 Visa Application. (Note: this time can change periodically.) Once the application has been approved and the business has been registered, the investors have to go to the Embassy for an interview. This can take another four weeks.
13. Can I adjust my status to a Green Card?
No. The E-2 Visa holder cannot adjust his/her status to a Green Card. The applicant must leave the US once the ties to the business cease. Although you cannot adjust your status to a green card, you can adjust your status to an E-2 Essential Employee. An E-2 Essential Employee may subsequently apply to adjust the status to a Permanent Resident.
14. Can my family join me?
Yes. Spouse and minor children can apply for a derivative visa and join the primary E-2 Visa Holder. Once the primary visa holder’s visa terminates so does the right of the derivative visa holder to remain in the US. Also, the child will need to obtain a visa on his/her own merits once the child reaches adulthood.
15. Can my spouse work in the US?
The spouse can work in the US. However, the spouse must apply for work authorisation.
16. What pitfalls do E-2 Investment Visa applicants face?
Most applicants have their application denied for two reasons. They lack the supporting evidence for the E-2 Investment Visa application and are unprepared for their E-2 Investment Visa interview at the Embassy. The London Embassy is notorious for denying E-2 Investment Visa applications on these grounds.
It is crucial that the proper supporting evidence is submitted with the application. If the evidence is not submitted then the applicant will suffer a great loss of time. As the person is unable to travel to the US under the E-2 Investment Visa because of this delay, the applicant may suffer a great financial loss as the applicant is unable to fulfil certain business obligations and the potential loss of reputation.
Secondly, the E-2 Investment Visa is about the applicant's ability to benefit the US economy through this investment. Consequently, the Embassy scrutinizes the application very closely. An applicant who is unprepared for the interview will most likely not get the visa.
17. Why use an US attorney based in England rather than an attorney in the US?
Although there are numerous benefits to using a US attorney based in England, the main advantage is the ease of communication between you and the attorney. There is no time difference between you and the attorney. Also, you can meet with the attorney in person rather than communicating by emails and phone.
18. Why use a lawyer instead of doing it yourself?
Successful visa applications are not just about submitting applications provided by the USCIS. Applications get approved on the supporting documents and evidence that are provided for each petition or application. Submissions that lack the appropriate documents will cause undue delay and possibly even result in denials. Appeals will not only become more expensive but result in undue delay of months. Visa denials mean that the applicant will no longer be able to travel under the Visa Waiver Scheme.
19. Why use Irwin Mitchell?
Experienced lawyers at Irwin Mitchell will assist you in preparing the application and for the interview at the Embassy. As part of the service Irwin Mitchell will provide a Letter of Support that explains in detail why the application should be approved and the visa issued. The team at Irwin Mitchell will also prepare you for the interview by giving you mock interviews.
Please contact our offices at 0121 214 5453 to discuss your matter with a member of the US Immigration team.