Read on to know how much money is needed for an investor visa. An E-2 or Investor Visa is a visa that’s available for entrepreneurs, business owners and investors who wish to live in the U.S. to develop a business. The business can be a small or large one. The amount needed for an investor visa varies and depends on the nature of the business the investor creates or directs.
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Even though there is no minimum amount that can be invested for an E-2 visa, funds normally start from $100,000. These funds are at a significant risk.
According to the U.S. Citizenship and Immigration Services, to qualify a substantial amount, the funds must be:
- A big combination of assets or funds that can be placed at commercial risk to generate a profit, and which can be subject to partial or total loss in the case of the investment failing
- Able to satisfy the total costs of purchasing or establishing an enterprise, including building renovation, erection, daily operational costs and permits.
- Sufficient to ensure an investor’s financial commitment to the business’ success
- Higher than the lower initial enterprise costs
- Enough to suggest that the treaty investor can develop the enterprise into a successful one
- Documented, and it must be proved that the funds have been obtained legally.
To understand how much investment is needed for this visa, you should know the traits it has. Here are some traits of the E-2 visa:
- It’s a Primary Investor Visa
To know the investment required for an E-2 visa, you should know that an E-2 visa is the primary investor visa. They don’t require any capital or quota on yearly and that’s why they are infinitely available.
- You Must Make Heavy Investments
To know how much investment is needed for the E-2 visa, remember that investors need to submit the subsequent investment amount. There is no standard or specific limit but according to the foreign experienced business owners investments should total from 100 thousand dollars to 200 thousand dollars at least.
The limit specified is considered subsequent for businesses. However, how substantial it is depends upon the business type. Investors who don’t make enough payments aren’t allowed to direct and develop their business in the U.S.
The USCIS suggestion to investors is to invest the subsequent amount of capital to avoid any discrepancies. They also say you need 3 to 4 people at least to make the business’ operations smooth.
- The Limit of the E-2 Visa is Dependent upon the Investment
Those wondering about the investment amount required for the E-2 visa might benefit from knowing about how lasting the E-2 visa is. It has a specific limit. The investors don’t need to worry as they can renew it any time. Also, the limit of the E-2 visa is dependent on the investments and their maintenance. The investments’ maintenance is in the investors’ hands.
The investors must always ensure to put their funds with the banks or agents. Once the funds are with the agents or banks they would release them upon approval of the visa.
- E-2 Visa Has Coverage for Children and Spouses
The ones asking about the amount of investment required for E-2 visa should know about what incentives of the visa as well. It gives coverage for children below the age of 21 and spouses. This visa gives the chance to the investors’ spouse to get the E-2 dependent visa. That visa allows the spouse to live and work in the U.S. with the investor.
It also gives the investors’ children the opportunity to live in the U.S. and study in a school they like. However, the amount of expenditures and fees is upon the investor. The government doesn’t pay them. They simply allow the children to reside in the U.S. with their investor parents. Once the child is 21, they have to leave the U.S. and aren’t permitted to continue studying there.
- Renewal of the E-2 Visa
You should know about the E-2 visa renewal if you are concerned about the investment needed for it because investments and renewal are interlinked. The E-2 visa limit is 2 to 5 years depending on the treaty’s agreement. The USCIS checks the investor’s business to see if investments are being made and the subsequent money being put in. They have a certain framework for judgment of the business. It should be able to create employment opportunities, generate revenue, investments maintenance, support the entire family and establish some credibility within the economy.
After expiry of your business’ E-2 visa, the USCIS checks the elements specified and renew your visa by viewing your business’ progress. If your business isn’t doing well and doesn’t make enough profits, the USCIS doesn’t consider it and disapproves the renewal of your visa application.
- You Don’t Have to Go Through the Entire Immigration Process
The foreign business owners concerned about the investment needed for E-2 visa are actually worried due to the immigration process. The E-2 visa gives investors the opportunity to avoid the process of immigration. How would a person living in the U.S. without signing a treaty with it have a business in the country?
They would enter with help from the immigration process. It isn’t very easy, it’s very technical, involves immigration lawyers’ fees, numerous complex documentations, and has difficulties to either get or start a job in the U.S. An E-2 visa does not involve technicalities like these and lets the investor enter the U.S. without having to go through the entire immigration process.
- E-2 Visa Needs No Taxation
If you are worried about the investment needed for an E-2 visa, you do not need to pay taxes for a business you establish in the U.S. If you wish to apply or already have applied for the E-2 visa, it’s important to understand all matters associated with it. The question of every investor is their residence and taxation. The investor is allowed to reside in the U.S. for the direction and development of their business but they are not permitted to give taxes for their business in the U.S.
How Much Investment is needed for the E-2 Visa?
How much investment is needed for E-2 visa is covered here. The ones wanting to know about the investment needed should remember that the amount of investment needed for the E-2 visa is essentially the cost a qualifying investor needs to place in the business. Those wanting to know how much investment is needed for the E-2 visa, essentially want to know the kind of investments they can put in or invest in the businesses.
Investments are basically the financial transactions of any business. The money is actually for the operations and setting up of the company. All investors need to ensure the funds invested in the business are acquired legitimately. They should also be committed irrevocably. If the funds don’t fulfill these basic requirements, the USCIS won’t permit the investor to form a business or live in the U.S. even if they have the E-2 visa.
Those worrying about the investment needed for E-2 visa should also be aware of the fact that investing is the basic requirement to have a business in the U.S. Despite this fact, investors cannot invest in a business of their choice. They have to invest the subsequent amount based upon the business. There is no real limit but most experts say that investing less amount of money can place your business visa at risk and lead to excessive scrutiny.
Investors who are simply worried about the investment needed for E-2 visa wish to know what the excact limit is. The foreign business owners who are veterans suggest a minimum of 100 thousand dollars to 200 thousand dollars should be invested in the business. They also think, however, that the substantial amount is dependent on the business’ nature and type. There are investors who have been given the E-2 visa for as little as $25,000 also but they have to face problems as well.
So, if there is still confusion regarding the amount of investment required for E-2 visa, you should discuss it with your local immigration attorney. Remember to give all the details about your business and other relevant information.
What is the Subsequent Investment?
It’s important to know that there is no fixed amount that is ‘subsequent’ for the E-2 visa if you’re wondering about the investment needed for the E-2 visa. A substantial amount is usually one that is enough to make sure the investor is financially committed to the business’ operation being successful according to the proportionality test.
Experts believe that investors should always make a minimum $100,000 of investment if they wish to invest in the business. However, a business does not necessarily need the whole amount. A business might need just half depending upon its type but it’s better to keep the amount of $100,000. If you’re still confused and want to know about the investment needed for the E-2 visa, remember the rule given below:
- Higher overheard cost + costs of operation = Investment being higher
- Lower overhead cost + costs of operation = Investment being lower
No matter the investment amount, you shouldn’t include marginal investments. There might be people who ask about the investment needed for the E-2 visa and what marginal investments are; they should be aware that these investments only provide for the living of the investor. This is irrelevant. The investment needs to do more than provide for the living of the investors. It must have enough investment to generate employment and establish credibility in the market.
How Much Investment is required for E-2 Visa if you invest in an Existing Business?
The business owners wanting to save time invest in a business which already exists. They must remember to invest an amount equivalent to the purchase price of business. Businesses don’t have standard requirements, but an estimated idea is given by experts.
According to the experts, when investing in an established business, the investments or financing needs be more than about 30% of the entire purchase price in the instance of $100, 000 to $500,000 investments. If you still wonder about the money needed for an E-2 visa, remember that the higher the purchase price, the more the financing percentage.
How Much Investment is needed for an E-2 Visa if you invest in a New Business Startup?
Just as a new business requires a good amount of capital when starting off locally, establishing a new business and making it operational in the U.S. also requires a large amount of capital. There is no minimum amont required but the experts give an idea for establishing a new business.
For example, if an investor wants to start a restaurant in the U.S. with the help of E-2 visa, the investor needs to lease the business’ premises and buy it before filling the visa application.
Those who are still worried about the investment, when investing in a business startup, they simply need to remember the rule that the investor must buy everything and make all the expenditure before submitting the visa application Depending upon the equipments’ requirements and costs, the cost will vary.
Now that you know about the investment needed for an investor visa, perhaps you can plan better and beforehand regarding where to acquire finances and decide whether you want to invest in an existing business or a new one.
Call us at 407-344-1012 or email us at [email protected] for any immigration needs you may have.