Introduction to E1 and E2 visas

Treaty Trader (E-1) and Treaty Investor (E-2) visas are authorized based on treaties of commerce between the United States and certain countries. Thus, individuals applying for E visas must have the nationality of one of these countries, set out  below. 

Treaty Investor countries include: Albania, Argentina, Armenia, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Belgium, Bolivia, Bosnia and Herzegovina, Bulgaria, Cameroon, Canada, China (Taiwan), Colombia, Congo, Dem. Republic and Congo, Republic of, Costa Rica, Czech Republic, Ecuador, Egypt, Eritrea, Estonia, Ethiopia, Finland, France, Georgia, Germany, Grenada, Honduras, Iran, Ireland, Italy, Jamaica, Japan, Kazakhstan, Kyrgyzstan, Latvia, Liberia, Lithuania, Luxembourg, Macedonia, Mexico, Moldova, Mongolia, Morocco, Netherlands, Norway, Oman, Pakistan, Panama, Paraguay, Philippines, Poland, Romania, Senegal, Slovak Republic, Slovenia, South Korea, Spain, Sri Lanka, Surinam, Sweden, Switzerland, Thailand, Togo, Trinidad and Tobago, Tunisia, Turkey, Ukraine, United Kingdom and Yugoslavia.

Treaty Trader countries include: Argentina, Australia, Austria, Belgium, Bolivia, Bosnia and Herzegovina, Brunei, Canada, China (Taiwan), Colombia, Costa Rica, Croatia, Denmark, Eritrea, Estonia, Ethiopia, Finland, France, Germany, Greece, Honduras, Iran, Ireland, Italy, Japan, Jordan, Latvia, Liberia, Luxembourg, Macedonia, Mexico, Netherlands, Norway, Oman, Pakistan, Paraguay, Philippines, South Korea, Slovenia, Spain, Surinam, Sweden, Switzerland, Thailand, Togo, Turkey, United Kingdom, and Yugoslavia.

General Overview

Individuals may obtain Treaty Trader of Investor status as may corporations or partnerships that have the required nationality. For business entities that requires at least a 50% ownership by a national of the relevant country.

Once the individual or company has been granted E status, managers, executives and/or employees carry out specialized or highly skilled duties, and with the same nationality as the E registered company or individual may also be granted E visas to work in the United States.

There are Particular benefits of E1 or E2 status

• For a relatively modest investment, often less than $100,000, the investor or trader can obtain and renew the E visa for as long as the underlying business exists, permitting an indefinite stay in the US
• The spouse of the principal E trader or investor can obtain work authorization for the period of the stay in the US
• The processing time is relatively quick-E status can be granted directly by  the U.S. Embassy or consulate in the applicant's home country

For Treaty Investor status, one must establish:

1. The overseas investor has already invested, or is actively engaged in the process of investing, in the U.S. operation. The investor must have placed funds or assets at risk, or committed to placing them at risk, in the hope of generating a return. In the event of a purchase of an existing business normally the purchase funds should be placed in a escrow account with a condition that they be released to the seller upon approval of the E2 visa application. For new businesses it will be necessary to extensively document that the mere preparatory stages have been passed and that the investment of the funds is imminent. A detailed business plan will normally be required.

2. Loans secured by the assets of the U.S. operation or company cannot count toward the amount of the actual investment. The investor must be personally 'at risk' for the funds invested.

3. The investor must be in the position to develop and direct the operation of the enterprise. The investor must own at least 50% of the enterprise. This can be achieved by a 50% share ownership in the enterprise or even thru a joint venture.

4. The U.S. operation or company is, or will be, a real, operating commercial enterprise producing some service or commodity. Note that passive investments do not qualify. For example purchasing real estate hoping that it will appreciate in value over time is unacceptable. On the other hand a real estate construction or management company could qualify.

5. The investment must be substantial. When there is an existing enterprise, "substantial" normally means the investment must be more than half the value of the enterprise. When the enterprise is being established, "substantial" normally means the amount considered necessary to establish a viable enterprise of the nature contemplated. There is no fixed figure for what is definitively considered substantial. The oft cited benchmark of $100,000 is normally considered sufficient, with an absolute bare minimum of around $50,000-although even less than this can be acceptable in certain circumstances.

6. The E-2 investment is more than a marginal one solely to earn a living for self and family. This requirement can be met by the employment of at least one US citizen or the prospect that US citizens will be employed within a reasonable period of time.

For Treaty Trader status, one must establish:

1. The U.S. company or operation is engaged in substantial trade. "Trade" means an actual exchange of goods or moneys. "Substantial" depends on the type of operation and the volume and amount of transactions. Trade in services such as banking, insurance, transportation, tourism, and communications can also qualify.

2. The trade conducted by the U.S. company or operation is principally (i.e. more than 50%) between the U.S. and the trader's home country

Who can be granted E1 or E2 visa status