The E2 visa, also known as the Investor Visa, is a non-immigrant visa that allows foreign nationals to live in the United States with their spouse and children under the age of 21. To be eligible for this visa, the applicant must be from a country with a specific E2 treaty of commerce with the United States, must plan to create or buy a business and create jobs, and must be the one running the business. The E2 visa is typically granted for a period of up to 60 months, although this can vary depending on the applicant's home country. Spouses and children under 21 are also able to live in the United States on this visa. The E2 visa is applied for at the U.S. Embassy in the applicant's home country, and requires the submission of a complete application file including a business plan, often prepared by an immigration attorney.
To obtain this visa, the applicant must:
The funds that are invested in the business must be “at risk”, with the goal of making a profit, but with the understanding that they may be lost if the business fails. The applicant must also prove that the funds were obtained lawfully. Note: "Invested" funds means "spent" funds, not just deposited in a U.S. account.
A substantial investment means:
A "bona fide" business refers to a legitimate enterprise that operates regularly to provide goods or services with the intention of generating profit. It must be more than an "empty shell" and the business's activities must be legal. The company must also possess the appropriate licenses and permissions for its market. It is important to thoroughly verify the required licenses for the business's operations in the state in which it plans to establish itself.
Additionally, the business must not be considered marginal. According to the U.S. Citizenship and Immigration Services (USCIS), a marginal business is one that lacks or will lack the ability to provide more than the minimum standard of living for the applicant and their family. For start-ups, it may be challenging in the first few years, but this level should be achieved within five years of obtaining the visa. The number of employees in the business may also be a factor in determining if it is marginal. For businesses that have been in operation for a long time and have never had any employees, it will be more challenging to demonstrate that you will hire staff. In our opinion, it is advisable to avoid presenting a business buyout with fewer than two employees.
Finally, the applicant must have a significant role in the company, leading and ensuring its development. This does not necessarily require constant presence, but it does require evidence that the applicant is responsible for making important, strategic, and operational decisions.
A key question regarding the E2 visa is whether the applicant will be able to develop and run the business. There have been instances where the applicant's level of English has led to a negative response and the denial of the visa. In these cases, the consular officers determined that the applicant's English proficiency would not allow them to effectively manage a company in the United States. While the conditions for obtaining an E2 visa have not changed, the officer has complete discretion in interpreting them. It is important to note that the embassy has the final say in granting the visa.
There are 78 countries that have an E2 visa treaty with the United States. The complete list can be found on our website "E2 visa treaty countries full list" or on the website of the US Department of State's Bureau of Consular Affairs. Some countries, such as Portugal and Israel, have recently obtained this agreement, although the duration granted to visa applicants from Portugal is not yet known. It is worth noting that the duration of the visa can vary for different countries.
The duration of the E2 visa varies based on the principal applicant's citizenship. For example, a French or a Swiss citizen may receive a maximum duration of 4 years, while a Belgian citizen may receive 5 years, and a Canadian citizen may receive 5 years. It is important to note that individuals with multiple citizenship should apply for the visa of the citizenship that provides the longest duration. A list of durations by country can be found here: Reciprocity Visa E2.
It is important to note that there is no specific investment amount specified in the guidelines. The only requirement is that the investment must be substantial and in proportion to the project. Different projects may require varying amounts of investment. For example, starting an accounting business may only require computers and furniture, while a construction business may require expensive machinery.
However, it has been observed that investments with low amounts are less likely to be successful. An investment of $100,000 is commonly considered as the minimum investment level to increase the chances of visa approval.
Significant changes to the E2 visa for spouses and dependents were implemented in May 2023, as outlined in the Foreign Affairs Manual (9 FAM 402.9-9). These changes affect the regulations governing the visas of spouses and children of E visa holders. Specifically, the validity period of E2 visas for family members now depends on their nationality. If the spouse and children of an E visa principal applicant have the same nationality as the principal, they receive visas valid for the maximum period allowed by the reciprocity schedule of their country. However, if the spouse or children are nationals of a different treaty country, their E2 visa validity will be determined by the reciprocity schedule of their own nationality, not the principal applicant's.
This presents a unique situation where family members may have different visa validity periods. For example, if a principal applicant is a Mexican national and receives a 4-year E2 visa, but their spouse and child are French nationals, the spouse and child would only receive a 2-year visa, in line with France's E2 visa validity period. Conversely, family members from non-treaty countries will align with the principal applicant's E2 visa validity period.
The E1, or treaty trader visa, is crafted for foreign nationals engaged in substantial and continuous trade activities between their home country and the U.S., necessitating that a significant portion of their company’s trade happens with the U.S. In contrast, the E2 visa is designed for foreign investors planning to live and work in the U.S. by investing a substantial amount in a U.S. business. While the E1 focuses on international trade, the E2 emphasizes investment in a U.S. business. Both visas permit a stay of up to five years with the possibility of renewal. However, the E2 visa has a broader qualifying criterion, not mandating actual trading between countries, unlike the E1 visa. The treaty trader visa requires applicants to prove they are key personnel in a company with substantial international trade activities.
The E2 visa and franchise combination offers a powerful opportunity for foreign investors to establish and manage successful businesses in the United States. The E2 visa is designed for foreign nationals investing in a US business, while the franchise model provides a proven business system, brand recognition, and ongoing support. Examples of successful E2 visa owners include those who have invested in Kilwins in Jupiter, FL, Huntington Learning Center in Melbourne, FL, and Pakmail in Fort Myers, FL. These investors have successfully managed their businesses by leveraging the established brand names and continuous support from their franchisors. In conclusion, the E2 visa and franchise connection presents a compelling option for foreign investors to maximize their chances of success in their entrepreneurial endeavors in the US.
It is important to note that the E2 visa is a nonimmigrant visa. This means that it allows you to live in the United States, run a business, and raise your children, but it does not allow you to permanently immigrate to the US. An E2 visa has a start and end date and can be renewed indefinitely, but it will never allow you to obtain a green card or citizenship. To do so, you will need to switch to a different status.
There are many incorrect claims made by websites that I would describe as "dream sellers," suggesting that obtaining American citizenship after arriving on an E2 visa is easy. While it is possible to switch to another status, it is, in my opinion, difficult. In my experience, based on what I have seen and read as it is impossible to find official figures, it is my belief that less than 25% of people who come to the US on an E2 visa ultimately succeed in obtaining permanent residency or citizenship.
The E2 visa application should be made at a U.S. embassy, preferably in the applicant's home country, although it may be possible to apply at an embassy in a different country if the applicant resides there.
The application for an E2 visa is made in writing, based on a complete file that includes justification for the investment, a summary letter, and a business plan. It can be completed by the applicant or a lawyer. It is highly recommended to use a lawyer for this process. Some individuals may refer to themselves as "immigration consultants," but according to the law, their role is limited to assisting with form completion and translation for a small fee. They are not permitted to provide legal advice, as they are not lawyers.
After submitting your application to the embassy (in electronic PDF form), it typically takes 2 to 10 weeks for the embassy to process your application and schedule an interview. The average processing time in every embassy can be seen check here: Visa Appointments Wait Times
The interview usually lasts 10 to 30 minutes and is generally a simple formality if your file has been properly prepared in advance. The consular officers will ask you questions about your project and personal questions to determine if your project is realistic and meets the requirements for obtaining a visa. At the end of the interview, you will receive your E2 visa and the adventure can begin.
It is important to note that the E2 visa is only the key to entry and does not guarantee the success of your project. Your preparation, dynamism, adaptation to the market, mental capacity, stress management skills, and ability to question and think critically are all important assets to ensure the success of your project.
The E2 visa consular process involves several steps and forms:
Instead of applying for an E2 visa at an embassy, some individuals who are already in the U.S. with another status (such as a B1/B2 visa or student visa) apply for an adjustment of nonimmigrant status directly with the U.S. Citizenship and Immigration Services (USCIS). This adjustment is granted for a maximum of two years. In our opinion, it has one major disadvantage: it does not allow the individual to leave the U.S. (as it is not a visa), so they are restricted to U.S. territory. In this case, we refer to "E2 status" rather than an "E2 visa." This is also referred to as E2 Visa Consular Processing versus Change of Status.
In some cases, it is also possible to apply for a visa for employees. There are two recognized cases:
This E2 "essential employee" visa is issued for the same duration as the E2 investor visa.
We have seen this visa granted in the restaurant, bakery, and hairdressing industries for "essential skills" and in the computer industry for "executive characters."
In recent months, we have noticed a tightening of requirements for essential skills visas, similar to those for investor visas. It is important to clearly demonstrate any special skills or qualifications you have that surpass those of personnel available in the US, and to not take the notion of essential employee lightly. The level of education also seems to be significant. For individuals who will be managers, higher degrees (such as a Bachelor's or Master's) and experience appear to be essential.
One benefit for the company (and a clear disadvantage for the employee) is that the holder of an E2 essential employee visa is tied to the company holding the E2 investor visa and cannot work for the competition. It is important to not abuse this advantage, but it remains a benefit for the employer in a context where employees frequently change jobs.
The renewal of the E2 visa is requested at the end of the initial period. In order to be granted, the company must meet the initial conditions for obtaining the visa:
As long as the business meets the requirements of profitability and impact on the local economy, and still meets the initial requirements, the E2 visa can be renewed an unlimited number of times. When these criteria are met, the lawyer will proceed with the renewal request based on existing accounting documentation (such as tax returns, profit and loss statements, balance sheets, and employee payroll). A new business plan is not usually required, but one can be helpful if the business is short to meeting certain criteria.
Yes, an E2 visa application can be denied. Common reasons for denial of an E2 visa include insufficient investment, investment not at risk, non-bona fide enterprise, marginal enterprise, and non-treaty country nationality. After denial, options include reapplying with stronger documentation, requesting an advisory opinion, or consulting an immigration attorney to address issues and improve the chances of success in future applications.
The E2 visa is a subject that we are very familiar with for several reasons.
First and foremost, it was through an E2 visa that we were able to settle in the United States with my family (in my specific case, I received an E1 visa, which is similar to the E2 but for import and export activities).
Additionally, we have been writing business plans for law firms since 2009 and have personally assisted numerous clients from France, Quebec, Switzerland, Belgium, and Mexico in obtaining E2 visas.
Furthermore, as a business broker affiliated with Business Brokers of Florida and certified as a "Certified Business Intermediary" by the IBBA, I help foreign clients purchase Florida businesses that meet strict criteria (such as profitability, lease characteristics, and the presence of proper accounting documentation) so that they can be eligible for E2 visas. The agency that we created, Integrity International Brokers, assists clients throughout the entire process of purchasing a company and obtaining a visa.
In our opinion, the E2 visa is a gateway to the United States. If a project is viable, the applicant is a professional, and they are investing their own funds, obtaining this visa is generally not an issue.
From 2014 to 2018, the U.S. State Department and USCIS processed an average of about 54,000 E-2 visa applications or petitions annually. The State Department, accounting for over 80% of these adjudications, issued approximately 90% of the E-2 visa applications it received. USCIS, on the other hand, approved about 83% of the E-2 petitions it handled.
During this period, the State Department adjudicated around 45,000 E-2 visas each year. The approval rate for these visas was about 90%. The applicants comprised 44% dependents and 53% principals (14% investors, 20% managers, and 19% essential employees).
The refusal rate for E-2 visas was generally lower than for other nonimmigrant visas. From 2014 to 2017, the average refusal rate for E-2 visas was about 8%, compared to a rise from 15% to 22% for all nonimmigrant visas. This lower rate may be due to the extensive paperwork required for E-2 visas, which could deter unqualified applicants.
Breaking down the refusal rates by applicant type, the highest average refusal rates were for investors (24%), followed by dependents (12%), managers (9%), and essential employees (6%). The higher refusal rate for investors is likely because they are usually the first from their company to apply for an E-2 visa. If the investor is denied, other applicants (like managers or essential employees) might have to wait for approval or find another investor.
About 10% of E-2 visa adjudications from 2014 to 2017 were refused. The majority of these refusals (75%) occurred because applicants did not meet the eligibility requirements. Another common reason for refusal (22%) was inadequate documentation under INA § 221(g). Less than 4% of E-2 visa refusals during this period were due to other reasons like security, criminal-related ineligibilities, fraud, or immigration violations.
USCIS adjudicated an average of about 9,400 E-2 petitions annually from 2014 through 2018, with an 83% approval rate. Around 5,900 of these were petitions to extend E-2 status, predominantly for dependents (60%), and about 3,500 were petitions to change to E-2 status from another nonimmigrant category, with 47% being E-2 principal beneficiaries. The average denial rate for E-2 petitions was about 17%, with higher denial rates for changing status to E-2 (27%) compared to extending E-2 status (11%).
For State-issued E-2 visas from 2014 to 2018, the top countries of nationality were predominantly from Europe, Asia, and North America. Specifically, the leading countries were:
Other notable countries included Italy, Spain, South Korea, and Mexico. These countries, along with the aforementioned, constituted the majority of E-2 visa applicants during this period.
In conclusion, the E-2 visa is a valuable option for individuals looking to move to the United States. It offers several benefits, including the ability to live and work in the country for an extended period of time, and the potential for the visa to be renewed indefinitely. However, the process of obtaining an E-2 visa can be complex, and it's important to understand the eligibility requirements and application process before applying. E2 Visa Consulting can provide expert guidance and support throughout the entire process to ensure a successful outcome.
Sylvain Perret is a business professional who has been living in the United States since 2010. Along with his wife Daphnee, he has established several businesses in the country, including Integrity International Brokers, an agency based in Orlando where he works as a business broker, real estate broker, business consultant, and business plan writer. Over the years, he has helped numerous clients from around the world achieve success in their projects to create or take over a company in the United States with an E2 visa. He is highly knowledgeable about U.S. immigration issues and is the author of the book "S'expatrier aux USA grâce aux visas d'entrepreneurs," which is soon to be translated into English. Sylvain is also a Certified Business Intermediary (CBI) by the International Business Brokers Association and is regularly consulted on issues related to this field. At the age of 50, Sylvain chose to enhance his expertise in finance and strategy by pursuing a Master of Business Administration from the University of Central Florida. He successfully graduated in May 2023, adding a valuable finishing touch to his knowledge. He is active on LinkedIn and Twitter, where he shares his insights and experiences with a wider audience.
Last Updated on November 24, 2023 by Sylvain Perret