The E-2 investor visa allows qualifying treaty-country nationals to develop and direct a U.S. enterprise in which they have made a substantial investment. The principal issues generally include treaty nationality, lawful source and path of funds, a real and operating enterprise, a substantial investment that is committed and at risk, the investor’s ability to develop and direct the business, and a business that is not marginal. The evidence and filing route depend on the applicant’s circumstances, so eligibility should be assessed before funds are committed.
Overview
The E-2 classification is available only to nationals of countries that qualify under an applicable treaty or other qualifying arrangement with the United States. Nationality, including dual nationality, must be checked against the current official treaty-country rules at the time of filing. Treaty-country eligibility does not itself establish eligibility for E-2 classification; the investment, enterprise, ownership or control, and other requirements must also be satisfied. Applicants connected to Israel can review the separate E-2 Visa for Israelis page.
| Country | Entered into Force | Country | Entered into Force |
|---|---|---|---|
| Albania | January 4, 1998 | Korea (South) | November 7, 1957 |
| Argentina | December 20, 1854 | Kosovo | November 15, 1882 |
| Armenia | March 29, 1996 | Kyrgyzstan | January 12, 1994 |
| Australia | December 27, 1991 | Latvia | December 26, 1996 |
| Austria | May 27, 1931 | Liberia | November 21, 1939 |
| Azerbaijan | August 2, 2001 | Lithuania | November 22, 2001 |
| Bahrain | May 30, 2001 | Luxembourg | March 28, 1963 |
| Bangladesh | July 25, 1989 | Macedonia | November 15, 1982 |
| Belgium | October 3, 1963 | Mexico | January 1, 1994 |
| Bolivia | June 6, 2001 | Moldova | November 25, 1994 |
| Bosnia and Herzegovina | November 15, 1982 | Mongolia | January 1, 1997 |
| Bulgaria | June 2, 1954 | Montenegro | November 15, 1882 |
| Cameroon | April 6, 1989 | Morocco | May 29, 1991 |
| Canada | January 1, 1994 | Netherlands | December 5, 1957 |
| Chile | January 1, 2004 | New Zealand | June 10, 2019 |
| China (Taiwan) | November 30, 1948 | Norway | January 18, 1928 |
| Colombia | June 10, 1948 | Oman | June 11, 1960 |
| Congo (Brazzaville) | August 13, 1994 | Pakistan | February 12, 1961 |
| Congo (Kinshasa) | July 28, 1989 | Panama | May 30, 1991 |
| Costa Rica | May 26, 1852 | Paraguay | March 07, 1860 |
| Croatia | November 15, 1982 | Philippines | September 6, 1955 |
| Czech Republic | January 1, 1993 | Poland | August 6, 1994 |
| Denmark | December 10, 2008 | Romania | January 15, 1994 |
| Ecuador | May 11, 1997 | Senegal | October 25, 1990 |
| Egypt | June 27, 1992 | Serbia | November 15,1882 |
| Estonia | February 16, 1997 | Singapore | January 1, 2004 |
| Ethiopia | October 8, 1953 | Slovak Republic | January 1, 1993 |
| Finland | December 1, 1992 | Slovenia | November 15, 1982 |
| France | December 21, 1960 | Spain | April 14, 1903 |
| Georgia | August 17, 1997 | Sri Lanka | May 1, 1993 |
| Germany | July 14, 1956 | Suriname | February 10, 1963 |
| Grenada | March 3, 1989 | Sweden | February 20, 1992 |
| Honduras | July 19, 1928 | Switzerland | November 08, 1855 |
| Ireland | November 18, 1992 | Thailand | June 8, 1968 |
| Israel | May 1, 2019 | Togo | February 5, 1967 |
| Italy | July 26, 1949 | Trinidad & Tobago | December 26, 1996 |
| Jamaica | March 7, 1997 | Tunisia | February 7, 1993 |
| Japan | October 30, 1953 | Turkey | May 18, 1990 |
| Jordan | December 17, 2001 | Ukraine | November 16, 1996 |
| Kazakhstan | January 12, 1994 | United Kingdom | July 03, 1815 |
Visa validity, number of entries and any reciprocity fee may differ according to the applicant’s nationality and the reciprocity schedule in force when the visa is issued. Visa validity is not the same as the period of authorized stay granted on admission to the United States. Because reciprocity schedules can change, applicants should verify the current schedule for their nationality before filing.
| Country | Max Term | Renewals |
|---|---|---|
| Albania | 36 Months | Unlimited |
| Argentina | 60 Months | Unlimited |
| Armenia | 60 Months | Unlimited |
| Australia | 48 Months | Unlimited |
| Austria | 60 Months | Unlimited |
| Azerbaijan | 3 Months | ONE |
| Bahrain | 3 Months | ONE |
| Bangladesh | 3 Months | TWO |
| Belgium | 60 Months | Unlimited |
| Bolivia | 3 Months | ONE |
| Bosnia and Herzegovina | 12 Months | Unlimited |
| Bulgaria | 60 Months | Unlimited |
| Cameroon | 12 Months | Unlimited |
| Canada | 60 Months | Unlimited |
| Chile | 12 Months | Unlimited |
| Colombia | 60 Months | Unlimited |
| Congo – Brazzaville | 3 Months | ONE |
| Congo – Kinshasa | 3 Months | TWO |
| Costa Rica | 60 Months | Unlimited |
| Croatia | 60 Months | Unlimited |
| The Czech Republic | 60 Months | Unlimited |
| Denmark | 18 Months | Unlimited |
| Ecuador | 3 Months | TWO |
| Egypt | 3 Months | ONE |
| Estonia | 60 Months | Unlimited |
| Ethiopia | 6 Months | Unlimited |
| Finland | 24 Months | Unlimited |
| France | 25 Months | Unlimited |
| Georgia | 12 Months | Unlimited |
| Germany | 60 Months | Unlimited |
| Grenada | 60 Months | Unlimited |
| Honduras | 60 Months | Unlimited |
| Ireland | 60 Months | Unlimited |
| Israel | 24 months | Unlimited |
| Italy | 60 Months | Unlimited |
| Jamaica | 60 Months | Unlimited |
| Japan | 60 Months | Unlimited |
| Jordan | 3 Months | ONE |
| Kazakhstan | 12 Months | Unlimited |
| Korea South | 60 Months | Unlimited |
| Kosovo | 12 Months | Unlimited |
| Kyrgyzstan | 3 Months | TWO |
| Latvia | 34 Months | Unlimited |
| Liberia | 12 Months | Unlimited |
| Lithuania | 12 Months | Unlimited |
| Luxembourg | 60 Months | Unlimited |
| Macedonia | 60 Months | Unlimited |
| Mexico | 48 Months | Unlimited |
| Moldova | 3 Months | Two |
| Mongolia | 36 months | Unlimited |
| Montenegro | 12 Months | Unlimited |
| Morocco | 60 Months | Unlimited |
| Netherlands | 36 Months | Unlimited |
| New Zealand | 60 months | Unlimited |
| Norway | 36 Months | Unlimited |
| Oman | 6 Months | Unlimited |
| Pakistan | 60 Months | Unlimited |
| Panama | 60 Months | Unlimited |
| Paraguay | 60 Months | Unlimited |
| Philippines | 60 Months | Unlimited |
| Poland | 12 Months | Unlimited |
| Romania | 60 Months | Unlimited |
| Serbia | 12 Months | Unlimited |
| Senegal | 12 Months | Unlimited |
| Singapore | 24 Months | Unlimited |
| The Slovak Republic | 24 months | Unlimited |
| Slovenia | 60 Months | Unlimited |
| Spain | 60 Months | Unlimited |
| Sri Lanka | 36 Months | Unlimited |
| Suriname | 60 Months | Unlimited |
| Sweden | 24 Months | Unlimited |
| Switzerland | 48 Months | Unlimited |
| Taiwan | 60 Months | Unlimited |
| Thailand | 6 Months | Unlimited |
| Togo | 36 Months | Unlimited |
| Trinidad & Tobago | 60 Months | Unlimited |
| Tunisia | 60 Months | Unlimited |
| Turkey | 60 Months | Unlimited |
| Ukraine | 3 Months | TWO |
| The United Kingdom | 60 Months | Unlimited |
Some applicants may be required to pay a reciprocity fee in addition to the standard visa application fee. The applicable amount, if any, depends on nationality and should be checked against the current official reciprocity schedule.
The E-2 Visa Process
There are three major ways to obtain an E-2 visa:
- Open a new company in the US and invest into it.
- Buy an existing company in the US.
- Be an employee of an existing E-2 approved US company.
1. Opening a New US Company
A foreign national may form and own a U.S. company, commonly a limited liability company (LLC) or a corporation. The entity is formed under state law and may need to register in another state if it conducts business there. Company formation, tax classification and E-2 eligibility are separate questions, so appropriate legal and tax advice may be required.
A prospective investor may be able to enter the United States in B-1 status for limited preliminary business activities, such as consultations, negotiations or investigating an investment. B-1 status does not authorize operating the U.S. business or performing productive employment. Forming a company, obtaining tax advice and seeking an Employer Identification Number are separate preparatory steps; the permitted activity and appropriate filing strategy depend on the person’s status and intended conduct.
Before filing, the applicant must document the lawful source and path of the investment funds and show that the funds are committed to the enterprise. Depending on the facts, funds may come from savings, business income, a gift, sale proceeds or a qualifying loan. The documentation must connect the original source, each transfer and the U.S. enterprise.
The E-2 rules do not set a universal minimum investment amount. The investment must be substantial in relation to the total cost or value of the enterprise, evaluated through the proportionality test, and sufficient to support a real and operating business. A figure that may be adequate for one business model may be inadequate for another. The amount should therefore be assessed together with the purchase price, start-up costs, committed expenditures, source of funds and projected operations.
A new enterprise must be real and operating or demonstrably close to operation. Evidence may include a lease, licenses, contracts, equipment, inventory, payroll, bank activity and other committed expenditures. The applicant must balance commercial risk against the requirement that the investment be irrevocably committed and at risk.
Where appropriate, a purchase or other expenditure may be made subject to visa approval through a properly drafted escrow arrangement. The agreement and transfer restrictions must show that the funds will be released to the seller upon satisfaction of the stated condition and are not merely idle or revocable funds.
An attorney trust account may sometimes be used as part of a lawful escrow structure, but the arrangement must comply with professional rules, the transaction documents and the E-2 evidentiary requirements. The existence of an escrow account does not by itself establish a qualifying investment.
A detailed business plan is often important for a new enterprise. It should describe the business model, market, competitors, personnel plan, projected operations and financial assumptions. The plan must be consistent with the documentary record and should not rely on unsupported projections.
2. Buying an Existing Company in the US
In some ways buying an existing company in the US makes the embassy application process simpler. Because it’s an existing company, there is historical record of operation, and normally employees are already on the payroll. There are different ways to buy companies. The E-2 applicant can buy the company outright by purchasing its shares or becoming a member of an LLC. As long as the applicant becomes a 50% owner, then he can use the business purchase as the basis of the E-2 application. In addition, unlike starting a new company where the value of the company can only be projected, the E-2 rules state that the purchase price determines the company value. Again, it must be a substantial investment, so purchasing a business for $10,000 and not investing anymore into the company will unlikely pass the substantial investment test.
Alternatively, the E-2 applicant can open a new company and purchase the assets of an existing business. Unlike an outright purchase where the existing business continues under new ownership, an asset purchase means the new company must still prove its sustainability through an extensive business plan. For instance, an E-2 applicant wants to open a restaurant and thus buys the assets and equipment of another restaurant. The business plan must show how the new restaurant will succeed and to detail its plans for the future.
Where the E-2 applicant buys a company, the embassy will require extensive documentation on the current company’s operations. These include US tax returns, W-2 and 1099 forms for employees and contractors, extensive financial statements, leases, brochures, existing contracts with suppliers, bank records and more.
Once the E-2 applicant has either opened a new company or purchased an existing one, he/she must file a case with a US embassy. Different embassies have different rules regarding format and presentation. But in all cases the applicant must 1) be a national of a country that has an E-2 treaty with the US; 2) provide organizing documents of the US business; 3) provide a CPA letter describing the organization of the business and identify the owners and their percentage of ownership and nationality of the owners; 4) prove the investment of substantial income has been transferred from the E-2 applicant to the US company account; 5) provide invoices of spending; 6) provide contracts for work; 7) and prepare a comprehensive business plan and the basic application for the E-2 visa.
After a consular E-2 application is accepted for processing, the applicant may be scheduled for an interview under the procedures of the relevant U.S. post. The applicant should be prepared to explain the business, investment, source and path of funds, ownership or control, operational plans and financial projections. A visa permits travel to seek admission; it does not itself determine the period of authorized stay. Admission and the period of stay are determined by U.S. Customs and Border Protection and recorded on Form I-94. Extension or readmission strategy should be reviewed before travel because visa validity and status expiration are different.
3. Adding an E-2 applicant to an Existing E-2 Qualified Business
When the initial E-2 application is made by the investor, the embassy certifies the US company as an E-2 company. Then, the embassy will issue the visa to the investor. Whatever nationality the investor uses becomes the effective nationality of the E-2 company. This means that the E-2 company can petition for an individual from the same nationality to be an employee of the E-2 company. So, for example, if the investor was Israeli, then the E-2 company is essentially an Israeli E-2 company, and thus can petition for other Israelis to join the company. These visas are limited to executives, managers and employees with specialized skills. They are not necessarily required to have been an employee with the investor’s foreign business if he had one.
Again, using the Israeli company as an example, let’s assume the E-2 company is a restaurant specializing in Middle Eastern food. The US company could petition for another Israeli with executive or management experience, particularly if that person served in one of those capacities in a restaurant. Alternatively, the company could petition for a chef with Middle Eastern food experience.
As long as the company remains a certified company with the US embassy (the time lengths differ among different countries), the procedure for filing for an E-2 visa for an E-2 employee is much simpler and quicker than filing an original E-2 case for a business. Normally, the embassy requires a letter from the US company explaining why they want this particular employee. The employer must provide up to date financial documents and a letter from a CPA, detailing the structure of the company, the ownership of the company and the nationalities of the owners. The employee must provide his bio. He/she then requests an embassy appointment, and if they qualify, they will be given an E-2 visa.
Embassy Filing vs. USCIS
Up to now the focus of the E-2 process has been filing cases at US embassies abroad. These are the natural venues for an E-2 visa. However, E-2 cases can be filed in the United States with USCIS (United States Citizenship and Immigration Services) from someone located in the US who is in legal status in the US. While most of the documentation required for a USCIS case is similar to an embassy case, the process and outcomes are very different.
A change-of-status request is generally filed with USCIS on Form I-129 with evidence addressing the E-2 requirements and the applicant’s eligibility to change status. If the person later leaves the United States, a USCIS change-of-status approval does not replace the need for a visa to seek readmission, unless a separate exception applies. Consular and USCIS strategies have different consequences, timing and risks; the appropriate route must be assessed from the person’s current status, travel plans and case facts.
Family Members of E-2 Visa Holders
A qualifying spouse and unmarried children under 21 may seek derivative E status. A spouse admitted in the appropriate E-spouse classification may be employment-authorized incident to status, but the I-94 classification and current documentation rules should be checked before employment. The principal E-2 worker is authorized to work only in the activity for which E-2 status was granted. Children may attend school but are not employment-authorized merely because they hold derivative E status.
| 2018 | 2019 | 2020 | 2021 | 2022 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Sales- | $ 1,071,130 | 0.90 | 1,600,000 | 2,000,000 | 2,200,000 | 2,400,000 |
| Sales – | $ 119,812 | 0.10 | 250 | 350 | 400 | 500 |
| Total Revenues | 1,190,942 | 1.00 | 1,850,000 | 2,350,000 | 2,600,000 | 2,900,000 |
| Cost of Sales | ||||||
| Cost of Sales – Products | 309,206 | 0.26 | 450000 | 600 | 700 | 900 |
| Purchase Discounts | – | 0.00 | ||||
| Total Cost of Sales | 309,206 | 0.26 | 450000 | 600 | 700000 | 900 |
| Gross Profit | 881,736 | 0.74 | 1,400,000 | 1,750,000 | 1,900,000 | 2,000,000 |
| Expenses | ||||||
| Utilities | 25,15 | 0.02 | 30000 | 30000 | 35000 | 40000 |
| China, Glassware etc. | 7,583 | 0.01 | 8000 | 10000 | 10000 | 12000 |
| Depreciation Exp | 2,559 | 0.00 | 3000 | 4000 | 5000 | 6000 |
| Accounting | 3,84 | 0.00 | 4000 | 4000 | 5000 | 6000 |
| Legal Expense | 16,15 | 0.01 | 20000 | 15000 | 20000 | 20000 |
| Telephone Expense | – | 0.00 | ||||
| Merchant Fees | 25,806 | 0.02 | 30000 | 40000 | 50000 | 60000 |
| Advertising | 62,2 | 0.05 | 75000 | 85000 | 100000 | 100000 |
| Insurance | 10,34 | 0.01 | 12000 | 15000 | 18000 | 20000 |
| Rent | 188,689 | 0.16 | 200000 | 220000 | 235000 | 240000 |
| Charitable Donation | 9,6 | 0.01 | 10000 | 12000 | 15000 | 20000 |
| Repairs & Maintenance Expense | 16,82 | 0.01 | 20000 | 22000 | 25000 | 30000 |
| Meals and Entertainment Exp | 16,7 | 0.01 | 20000 | 20000 | 22000 | 22000 |
| Office Expense | 8,759 | 0.01 | 9000 | 10000 | 12000 | 13000 |
| Sales Tax | 83,366 | 0.07 | 90000 | 100000 | 120000 | 130000 |
| Wage Expense | 79,814 | 0.07 | 120000 | 150000 | 175000 | 200000 |
| Travel Expense | 8,72 | 0.01 | 9000 | 10000 | 12000 | 12000 |
| 1099 | 184,407 | 0.15 | 200000 | 250000 | 260000 | 260000 |
| Gain/Loss on Sale of Assets | – | 0.00 | ||||
| Total Expenses | 750,503 | 0.63 | 860000 | 997000 | 1,109,000 | 1,191,000 |
| Net Income | $ 131,233 | 0.11 | 540000 | 753000 | 791000 | 809000 |
E-2 to Green Card
E-2 is a nonimmigrant classification and does not automatically convert to permanent residence. Some E-2 holders may later qualify for a separate employment-based, investment-based or family-based immigrant category, but each route has independent requirements and may raise timing, travel and intent issues. See the separate guide to moving from E-2 status toward a Green Card.
EB-5 Investment Visa
An E-2 investor may separately evaluate EB-5 classification, but E-2 approval or investment does not automatically satisfy EB-5. EB-5 has its own current investment, job-creation, source-of-funds, enterprise and filing requirements. Statutory thresholds and program rules can change, so the applicable requirements must be verified when the immigrant petition is prepared.
EB-5 may involve a qualifying direct investment or, where available under current law, an investment associated with a designated regional center. Project structure, job-creation methodology, securities risks, sustainment and return-of-capital terms require separate immigration, corporate and financial review. No investment return or immigration outcome can be guaranteed.
PERM Green Card
As was mentioned previously, the spouses of E-2 visa holders also receive an E-2 visa, but unlike the primary visa holder, the spouse can work anywhere. The spouse’s employer may want to offer a permanent position to the spouse, and thus can petition for the spouse’s immigration based on the PERM (Program Electronic Review Management) system. The same can be true for the primary E-2 visa holder, but rarely can the E-2 company be the petitioner. Rather, another employer would need to file this process for the primary E-2 visa holder.
The PERM system requires the employer to file a labor certification with the US Department of Labor ensuring that no qualified US workers applied for the position. This is quite involved. First, the employer must determine the prevailing wage for the offered position. This wage is obtainable only through a Prevailing Wage Determination by the Department of Labor. Just this process alone takes several months to receive an answer.
Once the prevailing wage is determined, the employer must advertise for the position through multiple venues, including the state employment agency, local newspapers, ethnic newspapers and a variety of other sources. The employer must review all resumes sent by employment candidates and determine which ones appear qualified for the position. Those candidates then must be interviewed by the employer. If the employer concludes that no candidates were qualified, he must explain in written form why that is the case for each candidate. Following the advertisement and interview phases, the employer files the labor certification, essentially arguing that there were no qualified US workers who applied for the position. The types of advertisements required and the timing of the advertising is very specific. Anything missing from the advertisements or the advertisements were not placed in the correct venues or for the specified periods of time will cause the Department to deny the petition.
After labor certification approval, the employer may proceed with the appropriate immigrant petition. Adjustment of status is available only if the applicant is eligible and an immigrant visa is available; otherwise consular processing may be required. Work authorization, travel, maintenance of nonimmigrant status and immigrant intent require case-specific planning. Processing times and interview requirements vary and should be checked when the case is filed.
National Interest Waiver
An E-2 holder may separately consider an EB-2 national interest waiver (NIW). First, the applicant must qualify for EB-2 through an advanced degree or exceptional ability. For the waiver, USCIS assesses whether the proposed endeavor has substantial merit and national importance, whether the person is well positioned to advance it, and whether, on balance, waiving the job-offer and labor-certification requirements would benefit the United States. An eligible applicant may self-petition on Form I-140 without an employer sponsor or PERM labor certification. See USCIS EB-2 and NIW guidance.
Owning a successful E-2 business does not by itself establish EB-2 or NIW eligibility. Approval of an I-140 petition does not itself grant a Green Card or permission to remain in the United States. A separate immigrant visa or adjustment-of-status step is required, subject to visa availability and individual eligibility; E-2 status, travel and immigrant intent should be assessed before filing.
Family-Sponsored Green Card
Family-based permanent residence is a separate pathway from E-2 status. A U.S. citizen may petition for a spouse, a parent (if the citizen is at least 21), or a sibling (if the citizen is at least 21); a U.S. citizen son or daughter who is at least 21 may petition for an E-2 holder who is their parent. A lawful permanent resident may petition for a spouse or an unmarried son or daughter, but cannot petition for a parent or sibling. The eligible category, visa availability, admissibility, and whether adjustment of status or consular processing is possible depend on the individual case. See USCIS guidance for permanent residents and USCIS guidance for U.S. citizens.
Conclusion
The process of obtaining an E-2 visa requires thorough preparation, compliance with all legal nuances, and the submission of compelling evidence of investment. However, successfully securing this visa opens the door to new opportunities—running a business, advancing your career, and enjoying a comfortable life in the United States.
Cohen Brosh Law Offices assists with E-2 eligibility analysis, investment and source-of-funds documentation, business evidence, consular filings and USCIS strategy. Legal representation cannot guarantee visa issuance, admission, business performance or permanent residence. This page provides general information and is not a substitute for advice based on the specific case.
To discuss your E-2 eligibility and filing route, request an initial consultation.