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Article-What If I Want a U.S. Franchise But I Am Not A U.S. Citizen? E-2 Visa

What If I Want a U.S. Franchise But I Am Not a U.S. Citizen?

How to Get an E-2 Investor Visa

If you would like to purchase a business or franchise inside the United States, but do not have authorization to work in the United States, then an E-2 Visa may be just the thing for you. 

If you have a business and would like to attract foreign investment, you also need to understand the ins and outs of this type of Visa. 

An E-2 Visa is for people, specifically foreign nationals, who are coming to the U.S. to “develop and direct the operations of an enterprise” in which the person has invested. These investors fall under the “E” category of visas for nonimmigrants, E-1 Visas are for “Treaty Traders,” and E-2 Visas, discussed here, are for “Treaty Investors.” (Definition according to the US Department of State.)

The following is a general overview of how a person qualifies for an E-2 Treaty Investor Visa:

1. Only nationals of countries that have a qualifying treaty of commerce with the United States can qualify for an E-2 Visa.  An up-to-date list of these countries can be found on the U.S. Department of State website at:
http://travel.state.gov/visa/frvi/reciprocity/reciprocity_3726.html .

2. You must have already invested in or are actively in the process of investing in a United States business.  This means that you must show that you have placed your own funds or other capital assets at risk in the hope of generating a financial return.  Merely stating that you will provide your assets at some future date to purchase the franchise is not good enough.  To qualify for the visa, you have to already be at the point in the transaction where your funds are irrevocably committed.

3. Your investment must be substantial.  The definition of substantial varies on a case-by-case basis.  However, the general test covers these areas:

  • What is the amount invested weighed against the total cost of purchasing the business?
  • What is the amount normally considered sufficient to ensure the investor’s financial commitment to the successful operation of the business?
  • What would be the amount necessary to support the likelihood that the investor will successfully develop and direct the business?

This does not mean that the investor has to provide 100% of the needed funds to purchase the business. Instead each enterprise will be viewed on a case-by-case basis to determine what qualifies as “substantial.”  One thing to keep in mind is that the lower the cost of the business, the higher the percentage is of investment that will be required (for example, a high cost or expensive business would require a lower percentage of investment than a low cost business).

4. The investment must be more than a marginal one solely for earning a living.  You must show that the investment will generate either a present or future capacity to earn more than a minimal living standard for the investor and their family.  Key factors that the United States considers include:

  • Will the investment expand job opportunities?
  • Will the investment generate other sources of income?
  • Will the investment generate income substantially above what would be considered a living?
  • Will the investor be working simply as an unskilled worker at the business?
     

5. The investor must be in a position to develop and direct the enterprise.  This means that the investor must have a controlling interest in the business, usually at least 50% ownership of it.

6. The investor can bring other employees to work in the enterprise in the United States. So long as they will serve in an executive or supervisory capacity, or if not in a supervisory position, they must have special qualifications essential to the United States operation.

7. Finally, the Applicant must have the intention of departing the United States when their E-2 status terminates, like most non-immigrant visas to the United States.

These points are meant to provide a general overview of the major qualifications for an E-2 Investor Visa to the United States.  If you would like assistance with applying for this visa, or have additional questions relating to E-2 Visas, please contact an attorney who specializes in immigration law.

Click here to learn about employment visas.

Alan Reiter, principal of Alan Reiter, PLLC, is located in Detroit, Michigan and specializes in United States Immigration law. In addition to E-1 andE-2 Visas, Reiter’s services cover U.S. naturalization and citizenship, deportation, immigrant visas, fiance visas, immigration appeals, and waiver applications.  You can find him at www.reiterpllc.com, 313-963-2505, or areiter@reiterpllc.com.