Difference between E-1 and E-2 Visa

November 15, 2019

What is The Difference Between E-1 and E-2 Visa?

When considering the prospect of living and working in the United States through business and investment, two prominent visa options often come into focus: the E-1 and E-2 visas. Both visas are designed to facilitate the entry of foreign nationals who seek to engage in business activities in the U.S., but they serve different purposes and have distinct eligibility requirements. Understanding the key differences between the E-1 visa, which is primarily focused on international trade, and the E-2 visa, which is geared towards investment, is crucial for selecting the right path to achieving your professional and personal goals in the United States. This article will explore what are the differences between the E1 and E2 visa categories, helping you determine which option best suits your needs.

E-1 Visa – Treaty Trader

The E-1 visa, also known as the Nonimmigrant Treaty Trader visa, is designed for individuals who wish to enter the United States to engage in substantial trade activities between the U.S. and their home country, which must be one of the designated treaty countries. This visa allows traders to remain in the U.S. for extended periods to manage and oversee their business operations directly from within the country.

To qualify for the E-1 visa, several key requirements must be met. Firstly, the applicant must be a national of a treaty country that has a commerce and navigation treaty with the United States. Additionally, the trade conducted must be substantial, meaning that the volume of trade must be significant and continuous, with the majority of the trade taking place between the United States and the treaty country. This trade can involve goods, services, banking, insurance, transportation, tourism, technology, or other activities contributing to international commerce.

The E-1 visa is not only limited to business owners but also extends to employees who are essential to the operation of the business. This includes managers, executives, and individuals with specialized skills that are crucial to the company’s success. These key employees must share the same nationality as the principal trader and demonstrate that their expertise is indispensable to the functioning of the business in the U.S.

One of the advantages of the E-1 visa is its relatively short processing time, which is designed to facilitate the swift entry of traders and their essential personnel from treaty countries into the U.S. This efficiency underscores the U.S. government’s commitment to fostering international trade, creating employment opportunities for American workers, and stimulating the U.S. economy by attracting foreign capital and business expertise.

What are the E-1 Visa Requirements?

The E-1 visa, also known as the Treaty Trader visa, is designed for individuals who wish to enter the United States to engage in substantial international trade between the U.S. and their home country. Here are the key requirements for obtaining an E-1 visa:

1. Nationality of a Treaty Country

– The applicant must be a citizen of a country that has a commerce and navigation treaty with the United States. Only nationals of these treaty countries are eligible to apply for the E-1 visa.

2. Substantial Trade

– The trade conducted must be substantial, meaning that it involves a significant and continuous flow of goods, services, or technology between the U.S. and the treaty country. While the U.S. government does not define a specific dollar amount, the trade must generate enough income to support the applicant and their family.
– “Substantial” trade is also characterized by the volume, frequency, and value of transactions rather than a single large transaction.

3. Principal Trade with the United States

– At least 50% of the total volume of international trade conducted by the business must be between the United States and the treaty country. This means that the majority of the trade should involve the U.S. as one of the key trading partners.

4. Real and Operating Business

– The business must be an active and operating enterprise engaged in trade. Speculative or idle investments do not qualify for the E-1 visa. The business must be involved in the regular exchange of goods, services, or technology.

5. Key Employees (if applicable)

– If the visa is being sought for an employee of the business rather than the owner, the employee must have the same nationality as the treaty country and be employed in a supervisory, executive, or essential skills capacity. The role must be critical to the successful operation of the business in the U.S.

6. Intent to Depart

– The applicant must intend to leave the United States once their E-1 status ends. The E-1 visa is a non-immigrant visa, so it does not provide a direct path to permanent residency.

7. Proof of Trade Activities

– The applicant must provide documentation proving the existence of substantial trade between the U.S. and the treaty country. This can include contracts, invoices, shipping documents, and other evidence demonstrating ongoing business activities.

8. Financial Viability

– The business should be financially viable, meaning it should be able to generate enough income to support the trader and their family. The U.S. government will consider the profitability and sustainability of the business as part of the application process.

Meeting these requirements is essential for a successful E-1 visa application. It’s advisable to consult with an experienced immigration attorney to ensure all criteria are met and to navigate the complexities of the application process effectively.

E-2 Visa – Treaty Investor

The E-2 visa is for people who want to start a business in the US. The investor does not need to have a business abroad. After all, the investor needs to convince the immigration officers through his or her acumen, resources, and a business plan that is qualified to run the business in the United States.

What are the E-2 Visa Requirements?

The E-2 visa, also known as the Treaty Investor visa, is designed for individuals who wish to enter the United States to invest in and manage a business. Below are the key requirements for obtaining an E-2 visa:

1. Nationality of a Treaty Country

– The applicant must be a citizen of a country that has an existing treaty of commerce and navigation with the United States. Only nationals of these treaty countries are eligible for the E-2 visa.

2. Substantial Investment

– The applicant must make a substantial investment in a bona fide U.S. business. While there is no specific dollar amount that qualifies as “substantial,” the investment must be sufficient to ensure the successful operation of the business. The investment should be proportional to the total cost of either purchasing an existing business or starting a new one.
– The investment must be at risk, meaning it should be committed and subject to loss if the business does not succeed.

3. Real and Operating Business

– The business in which the investment is made must be an active and operating enterprise that produces goods or services. Speculative or idle investments, such as uncommitted funds in a bank account or an inactive business, do not qualify.

4. Investor’s Role in the Business

– The investor must come to the United States to develop and direct the enterprise. This typically means the investor has at least 50% ownership of the business or holds a significant managerial or executive position that gives them operational control.

5. Job Creation

– While the E-2 visa does not have a specific job creation requirement like the EB-5 visa, the business should ideally create job opportunities for U.S. workers. Demonstrating that the business will generate employment can strengthen the application.

6. Intent to Depart

– The applicant must intend to leave the United States once their E-2 status ends. The E-2 visa is a non-immigrant visa, meaning it does not provide a direct path to permanent residency.

7. Marginal Enterprise

– The business must not be considered a marginal enterprise. A marginal business is one that does not have the capacity to generate more than enough income to provide a minimal living for the investor and their family. The business should have the potential to generate a significant economic impact beyond just supporting the investor and their family.

8. Key Employees (if applicable)

– If the visa is being sought for an employee of the business rather than the owner, the employee must share the same nationality as the treaty country and be employed in a supervisory, executive, or essential skills capacity. Their role must be critical to the successful operation of the business in the U.S.

9. Evidence of Investment and Business Viability

– The applicant must provide documentation to prove the investment and demonstrate that the business is or will be viable. This can include financial statements, business plans, contracts, lease agreements, and other relevant documentation.

10. Legal Source of Funds

– The funds used for the investment must come from a lawful source. The applicant will need to provide evidence showing the origin of the investment capital and that it has been legally acquired.

Meeting these requirements is essential for a successful E-2 visa application. Due to the complexities involved, it’s highly recommended to consult with an experienced immigration attorney to ensure all criteria are met and to effectively navigate the application process.

Liat of Key Differences Between the E1 and E2 Visa

The E1 and E2 visas are both non-immigrant visas that allow foreign nationals from treaty countries to enter the United States for business purposes. However, they serve different purposes and have distinct requirements. Here’s a breakdown of the key differences between the E1 and E2 visa requirements:

1. Purpose of the Visa

– E1 Visa (Treaty Trader):** The E1 visa is specifically for individuals or businesses that engage in substantial international trade between the U.S. and their home country. The primary focus is on trade in goods, services, or technology. The visa is intended for those who are actively involved in conducting significant trade activities.
– E2 Visa (Treaty Investor):** The E2 visa is designed for individuals who make a substantial investment in a U.S. business. The focus here is on investment and the development and direction of a business enterprise. The E2 visa is intended for those who wish to invest in and manage a business in the United States.

2. Type of Business Activity

– E1 Visa (Treaty Trader):** The E1 visa requires that the applicant’s business engages in international trade. This trade must be substantial and continuous, and at least 50% of the trade must be between the U.S. and the treaty country. The types of trade can include goods, services, banking, insurance, transportation, tourism, technology, and other international transactions.
– E2 Visa (Treaty Investor):** The E2 visa does not require international trade. Instead, it requires the applicant to make a substantial investment in a U.S. business. This business must be a real and operating commercial enterprise that produces goods or services. The investment can be in a new or existing business.

3. Investment Requirement

– E1 Visa (Treaty Trader):** The E1 visa does not have a specific investment requirement. Instead, it focuses on the volume of trade between the U.S. and the treaty country. There is no need to make a monetary investment in a U.S. business.
– E2 Visa (Treaty Investor):** The E2 visa requires a substantial monetary investment in a U.S. business. The investment amount must be sufficient to ensure the successful operation of the enterprise and must be “at risk,” meaning it cannot be secured or guaranteed.

4. Ownership Requirement

– E1 Visa (Treaty Trader): The applicant must be engaged in trade either as an individual or as a key employee of a trading company. The trading company must be at least 50% owned by nationals of the treaty country.
– E2 Visa (Treaty Investor): The applicant must either own at least 50% of the business or have operational control through a managerial or executive position. The E2 visa applicant is often the principal investor or a key employee with a critical role in the business.

5. Nature of Employment

– E1 Visa (Treaty Trader):** The visa can be used by the principal trader or by employees of the business who are essential to its operation. These employees must have the same nationality as the treaty country and hold executive, managerial, or specialized skills positions.
– E2 Visa (Treaty Investor):** The visa is also available to key employees who have the same nationality as the treaty country. These employees must serve in supervisory, executive, or essential skills roles that are crucial to the success of the business.

Understanding these differences is crucial for selecting the right visa based on your business goals and activities. Whether your focus is on international trade or investment, both the E1 and E2 visas provide valuable opportunities to live and work in the United States.

Do I Need an Immigration Lawyer?

An attorney is not required; however, getting a treaty trader visa approved is not easy. If you would like to come to the United States for business purposes, an immigration lawyer can discuss your options. If you have the business knowledge, drive, and monetary resources to run a business and create employment, you can probably make a strong case and get an investor’s visa.

We can help you make a strong application that can increase your chances of qualifying for the visa. Contact us today at (407)818-1244 or email service@immigration-uni.com.