The E-2 Treaty Investor Visa is a valuable option for foreign entrepreneurs seeking to invest in and manage a business within the United States. One of the critical requirements for obtaining this visa is that the business must be a real and active commercial or entrepreneurial undertaking. In this blog, we will delve into what it means for a business to meet this requirement.
Real and Active Business
What Qualifies?
For a business to qualify for the E-2 Treaty Investor Visa, it must be more than just an idea on paper or a passive investment. The enterprise must be genuine, operational, and engaged in producing goods or services for profit. If the investment relates to a new enterprise, then applicants must show that the U.S. company will be a real and active commercial or entrepreneurial undertaking that will produce some service or commodity if the visa is issued.
A comprehensive business plan is essential for new U.S. companies. This plan should detail how the business will become operational, including timelines, projected income, staffing, and market analysis, etc. A well-crafted business plan demonstrates the viability and growth potential of the enterprise, which is crucial for E-2 visa approval.
What Doesn’t Qualify?
The E-2 visa regulations explicitly exclude businesses that are merely paper organizations or idle investments. Here are examples of what does not qualify:
- Paper Organizations: Shell companies or entities that exist only on paper without active operations or employees.
- Idle Speculative Investments: Investments made purely for potential appreciation in value, such as undeveloped land or stocks, without any intent to actively manage or grow the enterprise.
- Non-Profits: The business must be a commercial enterprise aimed at generating profit. Non-profit organizations do not qualify for the E-2 visa, as the purpose of the investment must be to create a profitable business that can sustain itself and potentially expand.
Conclusion
The requirement for a real and active business is a cornerstone of the E-2 Treaty Investor Visa. It ensures that the investment will contribute positively to the U.S. economy and create job opportunities. At Berardi Immigration Law, we help guide clients through the intricacies of the E-2 visa process, helping you turn your entrepreneurial dreams into reality. Contact us today to learn more about how we can assist you with your E-2 visa application.
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