The E2 Visa, commonly known as the Treaty Investor Visa, is a popular option for individuals and businesses seeking to invest in the U.S. by investing in a U.S.-based business. Whether you’re an aspiring entrepreneur, a strategic investor, or simply exploring your options for moving to the U.S., the E2 visa could be your gateway to anew venture in 2024/2025. This guide will break down all the key aspects, requirements and benefits of the E2 visa.
Why the E2 Visa is Booming
According to recent data, 2023 saw a record number of 54,000 E2 visas issued. This is a significant 20% increase from the previous year. [1]The visa’s popularity continues to grow, especially among applicants from countries like Japan, Germany, and Canada. The reason for this surge is its flexibility. Applicants can invest in a wide variety of industries, from tourism to IT to real estate.
How the E2 Visa Works: Investment Requirements and Eligibility
At its core, the E2 visa allows individuals to invest in a U.S.-based business, either by starting a new company or purchasing an existing one. To qualify, applicants must meet the following key criteria:
- Substantial Investment: The investment must be significant both in number and relative to the total cost of the business. For example, for a business with a $100,000 in start up costs, the investor should cover a large percentage of that amount.[2]
- Active Involvement: The applicant must have at least a 50% ownership stake and be actively involved in managing the business. [3]
- Non-Marginal Enterprise: The business must not be marginal. Generated income should be above what is the minimum needs are to support the investor and their family. Alternatively, the business should have the potential to do so within five years.
- Real and Operating Business: The business must be active and be engaged in commercial activities.
What to Expect During the E2 Application Process
The E2 visa application process can be divided into two key stages: investment and submission.
- Investment Stage: The first step is ensuring the funds for the investment are in place. Applicants must provide financial records to prove that the funds were transferred and used in furtherance of the business. [4]
- Submission Stage: Once the investment is finalized, the visa application must be submitted to a U.S. embassy or consulate for review. The review process typically takes between 2 to 6 months, depending on the workload of the specific consulate. Applicants are required to attend an interview where they will need to present their business plan. Applicants will need to provide financial documents and demonstrate how their business will benefit to U.S. economy. [5]
Common Challenges & How to Overcome Them
While the E2 visa process is straightforward in theory, several challenges often arise during the application process. One of the most common hurdles is proving the substantiality of the investment. Applicants must provide detailed financial statements and business plans that demonstrate the investment will make a meaningful economic impact. Additionally, providing the bona fide nature of the business – that is not merely a “front” from immigration purposes – is critical.
Applicants should also be prepared to trace the source of their funds meticulously. This includes showing clear, legal paths of the funds from their origin in the U.S. bank accounts being used for the investment. [6]
Why Now is the Perfect Time to Apply for an E2 Visa
With an approval rate of 89% in 2024, the E2 visa remains one of the most accessible U.S. visa options. Unlike other non-immigrant visas, which has seen denial rates rise, the E2 visa’s approval rates remain steady. Furthermore, the U.S. consulates across the globe resuming full operations after pandemic-related slowdowns, processing times have improved significantly.[7]
Which Industries are Thriving for E2 Investors?
When choosing an industry for your E2 investment, consider sectors that are currently thriving. According VisaPlace, industries such as fast food, real estate, health and business services are some of the most popular choices. [8] However, the E2 visa is flexible and as long as the business is active and profitable, the industry doesn’t have to fall within any specific category.
Final Thoughts: Is the E2 Visa Right for You?
If you’re ready to launch or expand a business in the U.S., the E2 visa offers a unique opportunity to live and work in the U.S. while contributing to its economy. With the visa’s high approval rates and a flexible range of industries to invest in, now is an excellent time to apply.
By understanding the application process, gathering the correct documentation, and strategically planning your investment, you can set yourself up for success. Consulting with an experienced immigration attorney can significantly improve your chances of a smooth process and ultimate approval. BHLG is focused on finding the right program for individuals wishing to secure their future and become global citizens. With offices across the globe, our multi-lingual team guides individuals from start to finish, providing expert support considering freedom, mobility, and security. Reach out to us today to get your E2 journey started.