E-2 Visas for Israelis Have Finally Arrived

Historical article: This article records the opening of E‑2 eligibility to Israeli nationals in May 2019. It is not a current application checklist; check current official requirements and consular instructions before applying.

E-2 Visas for Israelis have finally arrived. After many false starts, the E-2 investment visa to the United States is finally available to Israelis beginning May 1, 2019. The E-2 investment visa provides an excellent opportunity for Israelis to start a business and a new life in the United States. There are a few essential conditions to meet for someone to be eligible for this visa:

1. The investor must make a substantial investment in the business. There is no fixed minimum dollar amount for E‑2; substantiality is assessed in relation to the cost of the enterprise and the investment needed for its successful operation.
2. The business must be located in the United States. The investor must develop and direct it, demonstrating control through at least 50% ownership, an operational management position or another qualifying means.
3. The business must be commercial, producing goods or services in the United States.
4. The investor must play an active role in the operation of the business.
5. The enterprise must not be marginal: it must have the present or future capacity to generate more than a minimal living for the investor and family, or make a significant economic contribution. Projected future income-generating capacity should generally be achievable within five years after normal business activity begins; there is no universal requirement to hire US workers within the first two years.

Benefits of E-2 Visas for Israelis 

The benefits of the E-2 visa are many:

1. Visa validity and authorized stay are different. Initial E‑2 admission may be granted for up to two years; the I‑94 records the authorized stay. Extensions of stay may be granted in periods of up to two years if the applicable requirements continue to be met. Visa renewal is a separate application, and neither renewal nor extension is automatic merely because the business remains open.
2. An eligible spouse may apply for derivative E‑2 classification; it is not granted automatically. A spouse in qualifying E‑2 spouse status is generally authorized to work based on that status, with the required evidence of authorization. The principal investor’s work must remain consistent with the approved E‑2 enterprise and status.
3. Social Security numbers are not automatically available to every family member. SSA generally requires noncitizens to have DHS work authorization, subject to limited nonwork exceptions. Dependent children may attend school but E‑2 dependent-child status does not authorize employment. An SSN is not the equivalent of Israeli citizenship or a national identity card.

Things to consider

Potential investors should consider the following factors before applying:

1. How does the investor want to organize his business?
   In the US, normal business organizations are corporations or limited liability companies. It is probably best to avoid opening sole proprietorship operations.
2. Where do they want to live and work? Each state in the United States has different rules and regulations for businesses.
3.  What kind of business does the investor want to operate? Business opportunities in the US are limitless. However, the investor should have some knowledge or experience in the field he wants to work in. This issue will be raised at the embassy interview. Real-estate activity is assessed under the same enterprise requirements. Passive or speculative holdings, such as undeveloped land held for appreciation, do not meet the real and active enterprise requirement. A real-estate business must be assessed for its actual commercial operations, investment, control and non-marginality; the sector is not categorically excluded.
4. Does the investor want to purchase an existing business or start a new one?

Both have advantages and disadvantages. Purchasing an existing business with current employees is sometimes easier to gain embassy approval for the visa. On the other hand, purchasing an existing business will burden the investor with the history and culture of that business experience, whether good or bad.

Conclusion

The E-2 visa application process is complicated and involves a great deal of documentation, including opening a company in the US, opening a US bank account, leasing an office, organizing a business plan, transferring money to the new company bank account, and spending a significant amount of the investment before the filing of the case.

We have successfully handled numerous E-2 cases through the US embassy in Tel Aviv for Israelis with dual nationalities. Contact us today to set up an appointment and begin the process of relocating to the United States.

Official sources: 9 FAM 402.9 — E visa requirements; Department of State E‑1/E‑2 visa guidance.

Additional official guidance: 8 CFR 214.2(e) — E status and enterprise requirements; visa validity and authorized stay; SSA rules for noncitizen SSNs; SSA employment-authorization evidence.