E visas aim to enhance U.S. trade and investment with various countries in different ways, with each visa possessing its own particulars. Understanding E1 and E2 visas help you determine which fits your situation.
The differences are significant. For example, fewer countries are on the E1 visa list, and E1 visas focus on trade between the United States and the visa holder’s treaty country. E1 visas are for a treaty trader seeking to enter the United States.
Rather than emphasize trade, E-2 visas are treaty investor visas. They highlight the starting or purchasing of a business in the United States.
Investors/entrepreneurs who qualify for E2 visas must be nationals of a treaty country, actively involve themselves in commercial ventures, typically have at least 50 percent ownership or management control, and make substantial capital investments in the business.
E1 vs E2 Visa: The Differences Between Them
E1 and E2 visas share significant differences in their purpose and eligibility criteria, although some areas overlap. Neither visa offers a direct route to a green card, and holders must show intent to return to their home countries after the visa term expires. They are not immigration visas per se.
1. Visa Purpose
The purpose of the E1 visa is to promote substantial trade in goods, services, and banking between the United States and treaty nations. International companies can use it to establish a presence in the United States and expand their markets.
On the other hand, the purpose of the E2 is for international treaty investors or entrepreneurs to enter the United States solely to invest their time and money running a pre-existing business they purchased or to start a brand-new one.
E1 Visa | E2 Visa |
| The trade must be substantial, but “substantial” is not precisely defined. | The venture cannot be marginal, meaning income from it should support the investors and their family members, and it should contribute to American job creation. |
| U.S. citizenship and immigration officials emphasize the number of transactions more than their total value. | Business plans are critical parts of E2 applications as they help prove eligibility on fronts such as substantial investment, the legality of the money, and the size of the investment (more on these in the eligibility section). |
| At least half, 50%, of the trade volume must be between the United States and the trader’s treaty country. | The endeavor must be an active commercial enterprise that investors can work on from day one in the United States. It must be nothing passive such as stock investments. |
| Technology, call centers, journalism, transportation, goods, insurance, design, engineering, and tourism are examples of E2 visa sectors. |
2. E1 vs E2 Visa Eligibility
E1 Visa
To qualify for an E1-visa, a treaty trader must be a national of a treaty country and engage in substantial trade with the United States or be a specialist, manager, or executive of an E1-visa company.
The trade, whether in goods or services, must pre-exist the visa application. In other words, you are not eligible for E1 visas if you hope to start the venture in the United States.
Applicants must show a willingness to return home when the visa expires.
No capital investment is required.
Immediate family members, meaning spouses and unmarried children under 21 years old, are eligible to move to the United States too, and become visa holders. Spouses can work in the United States, but children cannot.
You can extend the visa indefinitely as long as you and the enterprise meet qualification standards. In this sense, it could be an immigration visa.
If you are an employee of an E1 visa company (rather than the trader), then you must share your nationality with the employer and be in a supervisory position or possess special qualifications.
E2 visa
To qualify for an E2 visa, you must be a national of a treaty country and meet additional criteria.
You must be at least a 50% owner of the investment enterprise in the United States and retain operational control over daily activities. That is in most cases. If your investment is an especially substantial amount of capital, say, $700,000, then less than 50% ownership may be fine. To maximize your chances of E2 visa approval, plan on 100% ownership if your investment total cost is about $100,000 or not much higher.
The investment must be a substantial amount of capital (at least $100,000 for your best shot at visa approval) and not be from criminal activity. You can use documentation and paper trails to show where the money came from.
You must show that your investment is at risk if the enterprise does not succeed. Otherwise, the venture does not qualify because any investor must show some uncertainty involved.
You must actively be investing the money already, especially if starting a new business or consultancy. If you are purchasing existing business operations, then money set aside in an escrow account for the purchase price usually is sufficient. This shows that the venture is a bona fide enterprise, meaning an actual, existing undertaking.
The investment amount must make sense in the context of getting the enterprise successful and profitable in a few years.
You must provide evidence that you plan to return home when the visa expires.
Immediate family members, meaning spouses and children under 21 years old, are eligible to move to the United States too, and become visa holders. Spouses can work in the United States, but children cannot.
You can extend the visa indefinitely as long as you and the enterprise meet qualification standards.
If you are an employee of an E2 visa company (rather than an investor or entrepreneur), then you must share your nationality with the employer and be in a supervisory position or possess special qualifications.
3. E1 vs E2 Visa Treaty Countries
There are fewer E1 treaty countries, while the list of E 2 participants is fairly extensive. Always refer to the U.S. State Department website for updated information on the treaty of commerce countries.
E1 Countries | E2 Countries |
Argentina, China, France, Italy, Netherlands, Sweden, Australia, Colombia, Germany, Japan, Norway, Switzerland, Austria, Costa Rica, Greece, Korea, Oman, Thailand, Belgium, Denmark, Honduras, Latvia, Pakistan, Togo, Bolivia, Estonia, Iran, Liberia, Philippines, Turkey, Brunei, Ethiopia, Ireland, Luxembourg, Spain, U.K., Canada, Finland, Israel, Mexico, Suriname, Yugoslavia | Argentina, Bahrain, China, Georgia, Kyrgyzstan, Pakistan, Switzerland, Armenia, Colombia, Germany, Latvia, Panama, Thailand, Australia, Congo, Grenada, Liberia, Philippines, Togo, Austria, Costa Rica, Honduras, Luxembourg, Poland, Trinidad and Tobago, Bangladesh, Czech Republic, Iran, Mexico, Romania, Tunisia, Belarus, Ecuador, Ireland, Morocco, Senegal, Turkey, Belgium, Egypt, Italy, Moldova, Slovakia, Ukraine, Bosnia-Herzegovina, Estonia, Jamaica, Mongolia, Spain, United Kingdom, Bulgaria, Ethiopia, Japan, Netherlands, Sri Lanka, Uzbekistan, Cameroon, Finland, Kazakhstan, Norway, Suriname, Yugoslavia, Canada, France, Korea, Oman, Sweden |
4. Visa Requirements
Neither the E1 nor E2 visa requirements are a walk in the park per se. With some preparation, though, you can make them work for you. If you are extremely focused on immigration or getting a U.S. green card, you won’t be able to do so through the E1 or E2 visa. However, they can be renewed indefinitely so that works for many purposes.
E1 Requirements
E1 requirements are stricter by some measures since the list of participating countries is smaller. Also, a potential treaty trader must have already opened a trade business and been trading.
To maintain the E1 visa and treaty trader status, you must keep making sure at least 50 percent of your transactions are with your treaty country.
You do not have to make capital investments, though. Another pro is that virtually any type of international trade items involving goods and services qualify under this type of E visa.
E2 Visa Requirements
E-2 visa requirements could be seen as stricter by some standards. For example, a treaty investor typically must make substantial investments in a not marginal business and have more than 50 percent ownership.
You must show evidence of these through your detailed visa business plan, visa application, and visa interview.
At the same time, an E-2 treaty investor has a huge array of businesses and business types to choose from. They can open or purchase franchises, restaurants, gyms, hair salons, and much more. These investors must show they are moving to the United States for the sole purpose of operating an enterprise they are starting or have purchased.
Final Words
The differences between an E1 and an E2 visa are clear. While both cover trade, commerce, and navigation to some extent, the E1 visa emphasizes trade items involving numerous transactions between a treaty country and the United States. It is a visa for treaty traders.
Meanwhile, the E2 visa is for a treaty investor who wants to open or purchase a U.S. business. You know best whether you could be an E1 or E2 visa holder.
The areas of E1 and E2 visa overlap are significant, too. Both let people come to the United States on a non-immigrant visa and bring certain family members.
The E1 or E2 application process is somewhat involved but not necessarily an obstacle as long as the potential visa holder does the proper research and provides evidence to support their case.