People who are very active in business, commerce and trade often worry about their country’s qualification for E2 visa and ask how much investment is required for E2 visa. Basically an E1 and E2 visa is granted to countries who sign treaties with the United States. Usually, treaties are signed by the countries for the betterment of their country and in order to encourage trade and business. Also, these treaties ensures about friendship, navigation, and peace between the two countries.
When a country signs a treaty, the individuals and companies of the country become eligible to get the E-visas. Electronic visas give the official authority to the companies and individuals to form a business, invest in the existing business, or work for a business in the United States. If you want to know how much investment is required for E2 visa, read on.
Here is What an E2 Visa Is?
If you want to identify how much investment is required for E2 visa, you need to understand what an E2 visa is. The E2 visa is also referred to as ‘Treaty Investor Visa’. It is for individuals or companies who belong to either of the two signing countries. Also, they should wish to form a business in the United States. The business they want to operate in should be able to ‘develop and direct’ the business enterprise.
On the contrary, the E1 visas are for the employees, managers, and business owners who want to work for an enterprise in the United States as an employee. These are termed as ‘Treaty Trader Visas’. There are certain factors that help foreigners in qualifying for the treaty investor visa. One of the most important requirements is to invest subsequent amount of capital to form direct and develop a business. If a foreign individual or company fails to do so, they will be charged with heavy penalties.
Let’s Have a Look at the Traits of the E2 Visa
In order to understand about how much investment is required for E2 visa, you must also know about the detailed traits of the E2 visa. Most of the foreign investors want to settle their business in the United States. However, many of them do qualify but there are certain limitations to it also. The individuals or companies are only required to stay in the United States for about two to five years, and not more than that. They think that only investment is required for the eligibility of the E2 visa, but it is not the only factor that matters, there are many more to it. So let’s have a look at them.
· Trait # 1: It is a Primary Investor Visa
If you want to identify how much investment is required for E2 visa, you must first remember that the E2 visas are the primary investor visas. The E2 visas do not require any quota or capital on a yearly basis which is why they are infinite in the number available.
· Trait # 2: You Should Make Substantial Investments
The ones who want to know the core of the query, how much investment is required for the E2 visa, should not forget that the investors are required to submit subsequent amount of investment. However, there is no specific or standard limit for it but as per the experienced foreign business owners the investments should at least sum up from $100,000 to $200,000.
The specified limit is considered subsequent for businesses. But the substantiality depends upon the type of the business. There are certain investors who do not make enough payments and are not allowed to develop and direct their business in the United States.
So in order to avoid any discrepancies, the USCIS suggests investors to invest subsequent amount of capital. Also, they advise to have at least three to four persons for the smooth operations of the business. You will understand more about how much investment is required for E2 visa in the further sections.
· Trait # 3: Lasting or the Limit of the E2 Visa Depends Upon Investments
Those who worry how much investment is required for E2 visa may also want to know about the lasting of the E2visa. The E2 visa has a certain limit like others things in life has an expiry period. But the investors should not worry, they can get it renewed any time they want to. Also, the lasting or the limit of the E2 visa depends upon the investments. This actually means that the lasting and limit of the E2 visa is dependent upon the maintenance of the investments. The maintenance of the investments is in hold of the investors.
The investors should always make sure to place their funds to the agents or the banks. As soon as you give your funds to the banks or the agents they would ensure to release them once your visa gets approved while the bank also does the same.
· Trait # 4: E2 Visa Provides Coverage for Spouse and Children
The ones who ask how much investment is required for E2 visa should also know about the incentives of the E2 visa. It provides coverage for the spouse and children under 21. The E2 visa gives the opportunity to the investor’s spouse to get the E2 dependent visa. The dependent visa permits the spouse to work in the United States with the investor and live with them.
Additionally, it also grants the opportunity to the investor’s children to reside in the United States and study in the school of their choice. But the entire amount of fees and expenditures is upon the investor. The government does not pay for them. They just permit the children to live in the United States with their investor parents. As soon as the child reaches the age of 21, they must depart the United States and they are not allowed to continue their studies within the United States’ premises.
· Trait # 5: The Renewal of the E2 Visa
If you are also concerned how much investment is required for E2 visa, you must first know about the renewal of the E2 visa because the renewal and investments are interlinked. As mentioned previously, the limit of the E2 visa is not more than two to five years depending upon the treaty’s agreement. The USCIS keeps a very strict check on the investor’s business and sees if they are making investments and putting in subsequent money. They have certain parameters on the basis of which they judge the business. It should be able to support the entire family, generate revenue streams, investments maintenance, create employment opportunities and establish credibility in the economy.
As soon as your business’ E2 visa expires, the USCIS checks the specified elements and renew your visa by seeing the progress of your business. In case your business is not doing well and does not generate good profits, the USCIS do not consider it and disapprove your renewal visa application.
· Trait #6: You Do Not Have to Go Through Immigration Process
The foreign business owners are concerned about how much investment is required for E2 visa; they are actually concerned about it due to immigration process. The E2 visa gives the opportunity to the investors to avoid the immigration process. Let’s suppose an ordinary person living in a country who has not signed a treaty with the United States but the person wants to establish a business there, how will they enter?
They will enter with the help of immigration process. The immigration process is not very easy, it is very technical, involving multiple complex documentations, immigration lawyers’ fees, and has a lot of various difficulties to either start or get a job in the United States. On the contrary, an E2 visa does not involves such technicalities and lets the investor to enter the United States without going through the immigration process.
· Trait # 7: E2 Visa Requires No Taxation
If you are really concerned about how much investment is required for E2 visa, remember that you need not pay taxes for your business in the United States. If you have applied for the E2 visa, it is necessary to understand all the associated matters. The very essential question that comes in the mind of every investor is their taxation and residence. The investor is allowed to reside in the United States for the development and direction of their business but they will not be allowed to give taxes for their business in the United States.
Do You Know Who Uses E2 Visa? Check It Out Here
Prior to understanding how much investment is required for E2 visa, you should know who uses it. So check out who uses E2 visa below.
- E2 visas are ideally for the real estate investors
- E2 visas lend as a helping hand for the ones who want to retire from the United States.
- E2 visa is used by the ones who want to purchase a small business or a franchise in the United States.
- Various foreign investors require E2 visas for establishment of a business or getting a job in the United States.
How Much Investment is Required for E2 Visa?
In order to learn the core of the question, how much investment is required for E2 visa, you need to read to this section very carefully. The ones who are trying to identify how much investment is required for E2 visa should keep in mind that the investment of the E2 visa is basically the cost that a qualifying investor is required to pay or put in the business. If you want to know how much investment is required for E2 visa, you basically want to know what type of investments you can invest or put in the business entities.
The investments are the financial transactions of the business. The funds are actually for the setting up and operations of the company. But all investors should remember that the funds that they invest in the business must be from a legitimate source. Not only this, they should also be irrevocably committed. If the funds do not fulfill the two basic requirements i.e. legitimate source and irrevocable commitment, the USCIS will not permit the investor to form a business or reside in the United States even if they hold the E2 visa.
The ones, who worry how much investment is required for E2 visa, should also know that investing is the basic requirements to form a business in the United States. Despite of this fact, the investors can not invest in the business as per their choice. They should invest the subsequent amount depending upon the business. However, there is no specific limit but experts believe that investing fewer amounts of money can put your business visa at stake and you will face more scrutiny.
Investors who are just concerned about how much investment is required for E2 visa want to know the exact limit. The veteran foreign business owners suggest investing minimum $100,000 to $200,000 money in the business. But they also believe that the substantial amount depends upon the business type and nature. The investors have been granted E2 visa for $25,000 also but they face difficulties too.
So, if you are still confused how much investment is required for E2 visa, you can always discuss about it with your local immigration attorney. But ensure to give them all the details about your business type and other related information.
If There is No Risk, There is No Business!
A business is all about risks. There are many foreign investors who do not want to risk their money and ask how much investment is required for E2 visa. They actually worry about their hard earned money and investments. But they forget that there is no gain unless you put your money at risk in the business. In order to generate good and lucrative revenue streams, you are required to put in some money. So if you are worried about the investments and costs make sure that you invest subsequent amount in the United States to obtain an E2 status.
What is the Subsequent Investment?
If you are still wondering how much investment is required for E2 visa, you should know that there is no fixed amount that is considered ‘subsequent’ for the E2 visa. Generally, a substantial amount is the amount that is enough to ensure about the investor’s financial commitment for the successful operation of the business entity as per the proportionality test.
Experts say that investors must always keep a minimum investment of $100,000 if they want to invest in the business entity. However, it is not necessary that a particular business would require the entire amount, but it is just for safe side. A business may require just $50,000 depending upon the type but it is better to keep a lump sum amount of $100,000. If you are still confused and asking how much investment is required for E2 visa, remember the simple rule given below.
- More overheard cost + operational costs = Investment amount should be higher
- Low overhead cost + operational costs = Investment amount should be less
Furthermore, no matter what your investment amount is, you must not include marginal investments. There may be people who would ask how much investment is required for E2 visa as well as what are marginal investments, they should know that these investments are the ones that only provide living for the investor. This is not relevant. The investment should do more than the living of the investors. It should have enough investments to generate employments and establish good credibility in the market. The most important part that all investors should remember is that the business investments should meet the criteria of the ‘substantiality test’.
What is the Substantiality Test?
The substantiality test is the answer to the query how much investment is required for E2 visa. Since there is no subsequent amount of capital required for a business, as a result, the USCIS has made a test for different business types. The test is known as substantiality test and it measures the proportionality and required investments for a specific business type.
According to the substantiality test, the investment of the business is proportional to the total value of the particular business you want to invest in or want to start a business with. Also, the investment should be the amount that is generally accepted for the particular business to make your business viable.
Let’s assume that a business requires $100,000 for its development and direction, in this case, an investor will be required to invest minimum 75% of the operational costs or at least 75% of the substantiality test. In case your business has an operational cost of about $500,000, you will be required to invest minimum 50% or $250,000.
How Much Investment is Required for E2 Visa When Investing in an Existing Business?
The business owners who want to save their time and invest in an existing business, they must remember that they should invest equivalent amount to the business purchase price. As explained previously that businesses do not have standard requirements, but a rough idea has been given by the experts.
As per the experts, when you invest in an existing business, the financing or investments should be more than 25% to 30% of the total purchase price in case of $100,0000 to $500,000 investments. If you are still confused and are asking how much investments is required for e2 visa, keep in mind the greater the purchase price, the more should be the percentage of the financing. Let’s assume that you need to invest in an existing motel of $1 million, in this case you will be required to pay at least 50% of the investments.
How Much Investment is Required for E2 Visa When Investing in a New Business Start Up?
Like a new business requires a lot of capital at the beginning locally, similarly, establishing a new business in the United States also requires great amount of capital. In order to make your business operational, you need to invest in good amount of capital. Since there is no minimum requirement but the experts has given us an idea for establishing a new business.
For instance, an investor wants to make a restaurant in the United States with the help of E2 visa, the investor is required to lease the business premises and buy it prior to filling out the visa application. Let’s assume another example, an investor wants to start a pool service, they will need to lease the premises, buy equipment, vehicle and other related funds that are necessary for the business operations.
Those who are still concerned about how much investment is required for the E2 visa when investing in a business start up, they just need to remember a simple rule, the investor needs to buy all the things and make all the expenditures prior to submitting the visa application form. Depending upon the equipments costs and requirements, the cost would vary.
We hope now you must have understood how much investment is required for E2 visa. You must not forget to consult your local lawyer for E2 visa process. Good Luck!