E-2 Treaty Investor Visas

E-2 Treaty Investor visas are available to persons entering the U.S. "solely to develop and direct the operations of an enterprise in which he/she has invested, or is actively in the process of investing, a substantial amount of capital." E-2 non-immigrant visas are available to foreign-owned businesses if the home country of the business owners has a treaty with the U.S. that allows American businesses to operate in that home country. At least 50% of the ownership of the enterprise must be in the hands of nationals of a country with which the U.S. and the home country have a ratified bilateral investment treaty. Employees of the enterprise who are working in management, executive or "essential" positions are eligible for the visa if the ownership breakdown meets the above test, and the employee is a national of the treaty country. Some of the most important requirements for an E-2 visa include the following:

• The investment must be active, not passive. This means that the money invested must be used to produce a real commodity or service. For example, an investment in land would not be considered active, but if the investment was accompanied by submission of development plans to authorities and contracts for building, it would be active. Both the INS and State Department allow the use of an escrow account to protect the applicant in case the visa is denied, but other evidence showing the investment will be active must be presented. The investor must manage the business and exercise a controlling interest in the business.

• The investment must be substantial. While "substantial" is not defined by any particular dollar amount, both the INS and the Department of State use one of two tests to see if this requirement is met. They require either that the amount invested be proportional to the total value of the business, or that it be an amount typically considered necessary to establish a viable business in the field. The INS and State Department sometimes use a sliding scale that they are allowed to reference in determining whether an investment is "substantial."

• If the value of the business or the cost to start it is less than $500,000, a minimum 75% investment is required.

• If the value of the business or the cost to start it is between $500,000 and $ 3 million, a minimum 50% investment is required.

• If the value of the business or the cost to start it is over $3 million, a minimum 30% investment is required.

• The investment cannot be marginal. The State Department will look at whether the investment will generate more funds than just enough for the owner to make a living and whether the investment will create jobs.

• The E-2 visa applicant must have nonimmigrant intent - that is, they must intend to depart the U.S. after their authorized period of stay is over. However, unlike other most other nonimmigrant visa categories, this requirement can be met if the alien simply provides the consulate with a statement indicating non-immigrant intent.

Applications for E-2 visas are made directly to the consulate abroad and not through the INS unless the applicant is in the U.S. in another visa status and seeks to change to an E-2 visa. Each consulate has its own version of an E visa questionnaire form and most require extensive documentation to support application. The length of time for which the visa will be issued is determined by agreements between the U.S. and the treaty country. Visas may not be issued for more than five years, but they may be renewed continuously without a limit on stay in E-2 status. Spouses and children of E-2s are entitled to visas as well. E-2 family members are not subject to deportation proceedings because they accept employment, but they will be considered out of status and ineligible to change or adjust their visa status in the U.S. There are no restrictions on family members pursuing studies while in E-2 status.

The following countries have ratified investment treaties with the U.S. and their nationals can apply for E-2 status:

Bilateral investment treaties have been signed with the following countries, but have not been ratified by Congress: