Not sure if it’s an E2 immigrant visa or a nonimmigrant visa? Well, this post should help you get pointed in the right direction.
The E2 visa provides a unique opportunity to work and live in the United States. With this type of visa, you can start a business in a foreign country in the United States as an investor, manager, or entrepreneur. You don’t need to be a citizen of the country you are investing in, and you can stay for up to five years.
Furthermore, if your spouse is also eligible for an E2 visa, they can work in the U.S., too!
If you’re thinking about applying for an E2 Visa, franchising could be a perfect choice. To get a clearer understanding of this visa and its requirements, we will discuss the following:
• Is the E2 visa an immigrant or nonimmigrant visa?
• What are the requirements for getting an E2 visa?
• What is the best way to obtain an E2 treaty visa?
Let’s dive in to uncover the answer!
What is the difference between an immigrant and a nonimmigrant visa?
The main difference between immigrant and nonimmigrant visas is their purpose and intended length of stay in the United States.
The E-2 Visa Purpose and Length of Stay
Immigrant visas are intended for individuals who wish to live and work in the United States permanently. Immigrant visas allow individuals to become lawful permanent residents (green card holders) and eventually apply for U.S. citizenship. Examples of immigrant visas include:
- family-based visas,
- employment-based visas,
- and diversity visas.
Nonimmigrant visas, on the other hand, are temporary visas that are issued for a specific purpose and length of stay in the United States. They are intended for individuals who want to come to the United States temporarily for a specific reason, such as tourism, study, temporary work, or business activities. Examples of nonimmigrant visas include:
- B-1/B-2 visitor visas,
- F-1 student visas,
- H-1B work visas,
- L-1 intra-company transfer visas
- and E2 Visas.
Application Process
Immigrant visa
The visa application process used for immigrant visas is more involved than that of nonimmigrant visas. Immigrant visa applicants must demonstrate that they have a legitimate and lawful purpose for wanting to live and work in the United States.
They must also prove that they have family, employment, or other ties to their home country that will ensure their return to a foreign country after their stay in the United States.
Nonimmigrant Visa
The visa application process used for nonimmigrant visas is typically more straightforward than that for immigrant visas. Nonimmigrant visa applicants must demonstrate that they have a specific purpose for wanting to come to the United States and that they will only be in the country for a limited amount of time before returning home.
So, to answer the question, the E2 visa is considered a nonimmigrant visa and allows individuals to come to the United States solely for investment or trade purposes for a limited amount of time. It does not allow individuals to live permanently in the United States.
However, an individual may apply for an immigrant visa if they wish to become a permanent resident after their stay. Ultimately is generally more complex and time-consuming, requiring more documentation and scrutiny.
Immigrant visas also typically involve a longer wait time for processing than nonimmigrant visas.
It’s important to note that the U.S. immigration law and system for visa applications is complex and constantly changing, and there are many different types of visas within each category.
Therefore, you will need to consult with an experienced immigration attorney or official government resources for specific guidance on which type of visa is appropriate for your situation.
Is E2 an Immigrant Visa?
The E-2 visa is a non-immigrant visa. It is a temporary visa that allows individuals from certain countries to enter the United States for the purpose of investing a substantial amount of capital in a U.S. business.
Thus the minimum investment amount is considered substantial and sufficient enough to guarantee the treaty investor’s financial commitment to the future success of the enterprise
The E-2 visa not only grants the applicant access to stay in the US but also extends this privilege to their loved ones. This includes spouses and unmarried children under 21 years of age who may then apply for an Employment Authorization Document (AED) that allows them to work here as well!
Plus, family members don’t have to share their home country’s nationality – everyone is welcomed no matter where they’re from!
The treaty investor visa allows them to stay, typically up to two years initially, and it can be extended in two-year increments as long as the treaty investor continues to meet the requirements of the visa.
Unlike immigrant visas, which are intended for permanent residence in the United States, non-immigrant visas like the E-2 visa are temporary and do not lead directly to permanent residence or citizenship.
What are the types of E2 nonimmigrant visas?
The E-2 nonimmigrant visa is a type of lawful nonimmigrant status visa that allows individuals to enter the United States for the purpose of investing in and managing a business. There are several types of E-2 visas, including:
Treaty Investor Visa
The E-2 visa is available only to individuals who are citizens of countries that have a treaty of commerce and navigation with the United States. The purpose of this requirement is to encourage international trade and investment between the United States and other countries.
Currently, there are over 80 countries that have such treaties with the United States, including countries such as Canada, the United Kingdom, Japan, and many others.
However, it’s important to note that each treaty country has its own specific requirements and eligibility criteria for the E-2 visa program, and it’s important to consult with an immigration attorney or the U.S. embassy or consulate in your home treaty country, to determine if you are eligible for the E-2 visa.
Employee of Treaty Investor Visa
This type of E-2 visa is available to individuals who are employed by a company that has been granted a Treaty Investor Visa. The employee must be of the same nationality as the other treaty investor visa and must be coming to the United States to work in an executive, supervisory, or specialized skills capacity for the E-2 business.
The employee must also demonstrate that they have the necessary qualifications, experience, and skills to perform the intended role. And that their presence in the United States is essential to certain employees, for the efficient operation of the business.
Essential Employee Visa
The Essential Employee Visa is a type of non-immigrant visa category that allows individuals from certain countries to enter the United States for the purpose of investing in and managing a business. To be eligible for this nonimmigrant visa category, the applicant must be a citizen of a country that has a treaty of commerce and navigation with the United States.
To qualify for the Essential Employee Visa,
the applicant must be coming to the United States to work in an
Executive,
or managerial position,
or specialized skills capacity
for a business in which they have invested a substantial amount of capital.
The applicant must also demonstrate that they intend to depart the United States when their visa expires.
Additionally, the applicant must meet certain eligibility requirements,
such as having a qualifying relationship with the business they are investing in,
and being able to show that they will be able to support themselves financially while in the United States.
Overall, the E-2 nonimmigrant visa is a useful option for individuals who wish to invest in and manage a business in the United States, and who are citizens of a qualifying treaty country.
Franchising the Best Route for Obtaining an E2 Visa
Franchising is a business model in which an established company (the franchisor) grants the right to distribute its products or services to another business (the franchisee). Franchising allows a franchisee to not only use the brand name, logo, and marketing strategies of the franchisor but also benefit from the expertise and training they provide.
An investment in a franchise is an excellent way to get involved in the U.S. economy while avoiding starting up something from scratch, and it works particularly well for those seeking out an E2 visa or treaty investor visa too!
The advantages of franchising when attempting to secure an E-2 visa are numerous:
Established business model
With established brands, it would be easy for a treaty investor to make a very substantial amount of investment in the business since they know what they are getting into. On the other hand, if you start a business from scratch, you will have a high risk of failure due to inexperience and lack of resources.
Marketing your business would not be a problem with a brand that is already established existing business like in franchises. The franchisee wouldn’t have to worry about marketing their business as they would already have the brand recognition and customer base that comes with the franchise.
Ready-made support network and training
Franchisees are typically provided with various forms of support and assistance from their franchisor, including:
training,
marketing materials,
operational guidance,
and ongoing support.
In some cases, franchisors may also provide access to accounting and legal advisers who can help the franchisee navigate the U.S. market and comply with all applicable legal requirements and regulatory requirements.
The level of support provided by the franchisor can vary depending on the franchise system and the terms of the franchise agreement. However, in general, franchisors have a vested interest in helping their franchisees succeed, as the success of the franchisee is closely tied to the success of the franchise system as a whole.
This is why many franchisors invest significant resources in training and supporting their franchisees.
Access to financing
Many franchise companies recognize that securing financing can be a significant challenge for treaty investors who are interested in investing in a U.S. franchise. To help overcome this challenge, some franchise companies offer financing options that are specifically tailored to foreign investors.
These financing options may include:
In-house financing
Some franchisors may offer financing directly to their franchisees, allowing them to purchase and operate the franchise with little or no upfront capital.
Third-party financing
Other franchise companies may partner with third-party lenders or financing companies to provide financing options to their franchisees.
Government-backed loans
Treaty investors may also be eligible for government-backed loans or financing programs, such as the Small Business Administration’s (SBA) 7(a) loan program, which provides loans to small businesses, including franchises.
As with any financing option, it’s important for foreign investors to carefully review and understand the terms and conditions of the financing before accepting it.
Reduced risk
Franchising can potentially reduce the risk of failure for a treaty investor who wants to start a business, compared to starting a business from scratch.
This is because franchise systems typically provide their franchisees with…
a proven business model,
an established brand,
and ongoing support and training.
By leveraging the experience and resources of the established enterprise or franchisor, franchisees may be able to avoid some of the common pitfalls and challenges that new businesses face.
Additionally, franchise systems for existing businesses often have a higher success rate than independent businesses. According to a study by the International Franchise Association, more than 90% of franchise businesses are still operating after five years, compared to only 15% of independent businesses.
However, it’s important to note that franchising is not a guarantee of success, and there are still risks involved. For example, franchisees must still invest significant time, effort, and capital into their business, and they must also comply with the franchisor’s system and standards.
Furthermore, the success of the franchisee’s successful operation is ultimately dependent on a variety of factors, including market conditions, competition, and the franchisee’s own skills and abilities.
Job creation
To qualify for an E-2 visa, the treaty investor must demonstrate that their investment in a U.S. business or enterprise will create job opportunities for U.S. workers. This is one of the key requirements of the E-2 visa program.
The specific number of jobs that must be created will depend on…
the nature of the investment
and the size and scope of the business or enterprise.
However, the U.S. government typically requires that the investment result in the creation of a significant number of jobs for U.S. workers. The exact number of jobs required may vary depending on the specific circumstances of the investment, but generally, the more jobs that are created, the better the chances of a successful E-2 visa application.
It is important for treaty investors to carefully plan their investments and consider how they will create job opportunities for U.S. workers. They may need to provide a detailed business plan that outlines their hiring plans and projections for job creation. They may also need to demonstrate that they have the necessary resources and experience to effectively manage the business and create job opportunities.
Overall, the E-2 visa program is designed to encourage investment in the United States and stimulate economic growth. By requiring that the investment create job opportunities for U.S. workers, the program helps to ensure that the benefits of the investment are shared with the U.S. economy and its workforce.
Requirements of E2 Visa through Franchise
To obtain an E-2 visa through a franchise investment, the treaty investor principal applicant must meet several requirements, including:
To become an E-2 Treaty Investor, you must be a national of a treaty country listed on the U.S. Department of State website – it’s easy to verify your eligibility for this program!
Demonstrate that the investment is not marginal. This means that the investment must have present or future capacity to generate more than enough income to provide a living for the investor and their family and to support additional U.S. workers.
Show that the money is being invested into a business or entrepreneurial venture. However, it cannot be passive investing such as buying real estate and leasing it out to tenants.
Prove the treaty investor is in charge of, and directing, their enterprise they must have complete operational control. Additionally, they should be involved in the active management and operations of their business.
Show that the investment will result in new employment opportunities for American workers. The exact number of jobs generated depends on the type of company and other variables, yet typically, a business must create jobs within a reasonable timeframe to be eligible.
Ensure the success of any project, it is important to create a comprehensive business plan that covers all aspects of the venture. This document should include information on its nature and purpose, details about investments and their returns, as well as an outline for developing and managing this enterprise over time.
As every investor’s situation is unique, the criteria for an E-2 visa may vary. Therefore, it is essential to consult a knowledgeable immigration lawyer who can help you understand the exact requirements of your individual case.
Key Points:
Franchising can potentially reduce the risk of failure for a treaty investor who wants to start a business.
Franchisees must still invest time, effort, and capital into their business, and comply with the franchisor’s system and standards.
E2 visa requires the investor to demonstrate that their investment will create jobs for U.S. workers.
To obtain an E-2 visa through a franchise investment, the investor must meet several requirements.
Financing options must be carefully reviewed and understood.
It is essential to consult a knowledgeable immigration lawyer who can help you understand the exact requirements of your individual case.
Final Thoughts
Franchising can be a great option for individuals looking to become entrepreneurs and invest in the United States. The E-2 visa provides an opportunity for foreign nationals to invest in a U.S. business and obtain a temporary work permit to live and work in the United States.
If you meet the requirements of the E-2 or treaty investor visa, franchising can be a great option to help you realize your entrepreneurial dreams. It’s important to consult with an experienced immigration attorney and carefully consider all of your options in order to determine the best path for your particular situation.