The E-2 Visa Category: A Viable Pathway for Pursuing the American Dream or a Dead End?

Nationals of countries that have treaties designed to promote trade and investment between the United States and the other countries can obtain visas to work in the United States. These visas are called E-visas.   There are two types of E visas:  E-1 Treaty Trader and the E-2 Treaty Investor.  The E-2 visa category is useful for entrepreneurs, managers and employees who need to live in the United States to oversee a major investment made by the foreign national. The treaty investor must have invested or be in the process of investing a substantial amount of capital in an enterprise that he or she will develop and direct and that will not be a marginal enterprise entered into solely to earn a living.           

Nationals of qualifying treaty countries who have made a significant investment in the United States may qualify for Treaty Investor status.  There is no set minimum level of investment that may qualify for E-2 visa status, but the lower the investment the less likely one is to qualify.  Not only must the investment be in an operating business, but a substantial part of the investment must have been made before applying for E-2 status.  Moreover, employees of qualified treaty persons or business organizations may be classified as investors if they have the treaty nationality.  However, eligibility for E-2 status on the basis of employment with a qualified person or organization requires an appropriate position. The duties must be executive or supervisory. 

On the surface, the E-2 visa category appears to be a viable pathway into the United States for entrepreneurs willing to make a substantial investment in an enterprise in the United States.  In 2006, there were 164,795 E-2 visa admissions in the United States, up from 143,786 in 2005.    There is one significant problem with the E-2 Visa category, however.   Although the holder of the E-2 visa can renew their visa every two years, this individual will never be permitted under the current USCIS guidelines to apply for lawful permanent residence here in the United States.  These visa holders cannot work outside their enterprise to supplement their income.  They cannot obtain a homestead exemption nor can they obtain permanent driver’s licenses.    If these E-2 visa holders retire or sell their businesses, they must return to their native country.    These E-2 visa holders can only apply for lawful permanent residence if they switch to a different visa category to the extent that they can do so.   

In short, although the E-2 visa category is a viable way for a foreign national to gain entry into the United States under the guise of making a significant investment in an enterprise in the United States, this visa category really does not afford the foreign national the opportunity to become a lawful permanent resident and ultimately a U.S. citizen if that is his or her goal.  Unless there is some type of immigration reform that would eventually allow the E-2 visa holder the opportunity to apply for lawful permanent residence, the E-2 visa really does not help the foreign national who holds it in the long run. 

Rob C. Tonogbanua, Esq.
Dickie McCamey & Chilcote, P.C.
www.dmclaw.com

Comments

[Mariacool]

This is so well-written and understandable. I wish it could be published. I think we all would have a much better idea of what's really going on. I'm looking forward to more.

[immigrant investor visa]

Are you perhaps confusing the EB2 with the EB5 visa? To my understanding, the EB2 does not require any investment at all, only that the potential immigrant meet certain job based criteria..am I mistaken?

[hgvlgvtraining]

What is the minmujm investement required please?

[immigrant investor visa]

This is a great post. I feel if it somehow was able to gain more exposure to the foreign market it would greatly help out many people looking to expand and eventually live in the US. Nice sound information.

[Quoc Ha]

Is an E2 Visa holder considered a US resident?

[Rob C. Tonogbanua, Esq.]

Fiona, thank you for your post. If you would like to discuss this further, please send me an email at [email protected] and I can provide you with my firm contact information.

Thanks again.
Rob

[Fiona Hilario]

Hi there! I am a business owner and would like to bring my business to the United States. May somebody tell me how long does this process takes and how much do legal fees normally cost?

Thanks,

Fiona

[joe]

i to invested in a business and had 4 employees now after 18 months that i have been operating my business i have 9 employees,i have an E-2 visa please let us know any information on how we can become US LPR...i am planing to open 2 more stores and buy a home.My wife and kids love living in the US and would love to become citizens one day.

[Karen Greenway]

So how does a E-2 holder switch to a different visa catagory. I have been here since 1991, have 20 employees and want to become a US LPR...please tell me how?

[Rob C. Tonogbanua, Esq.]

My apologies Nina. I meant to use the word "premise". In any event, I'm on your side. I feel that it's an injustice for those foreign nationals who invest a great deal of money in the U.S. and are not allowed to ultimately stay on a permanent basis. That was the main point I was trying to make.

[Nina Mold]

"In short, although the E-2 visa category is a viable way for a foreign national to gain entry into the United States under the guise of making a significant investment"

Excuse me? E2 is real investment. How dare you use the word guise, as if we were trying to trick or lie our way in? Anyway, after the fist renewal, it's every 5 years if the business is solid, like mine. It's a travesty that those who invest in the USA cannot stay. We are treated worse than illegals.