FAQ:  What are E-1 and E-2 visas?

What are E-1 and E-2 visas?

The E-1 visa is for “treaty traders”, i.e., nationals from countries with treaties or trade agreements with the United States.  Both individual traders and employees of companies can qualify.  To qualify an employee for an E-1 visa, the foreign company must be at least 50% owned by individuals whose country of nationality entered into a trade agreement with the United States, and the employee and the owners must all share the same nationality.  Moreover, the E-1 visa applicant must demonstrate that the foreign company engages in “substantial” trade between the United States and the treaty country, meaning that more than 50% of the total volume of its international trade is between the United States and the treaty country, an element that is often difficult to prove.  E-1 visa applications are submitted directly to the E Visa Unit of the U.S. Embassy or Consulate in the treaty country.

The E-2 visa is for “treaty investors” and is more common than the E-1 visa.  The foreign company applying for E-2 visa status must also be at least 50% owned by individuals from a country having a treaty or investment agreement with the United States, with the employee and the owners sharing the same nationality.  To qualify an employee for an E-2 visa, the foreign company must demonstrate that the investment in the United States through a U.S. entity is “substantial”, meaning that the investment is sufficient for the foreign company to direct and develop the enterprise in the United States.  The U.S. entity created must be real and active, which can be evidenced by a commercial lease, business expenses such as computer equipment and furniture, U.S. corporate bank accounts, invoices, and employing U.S employees.  In addition, the investment must not be “marginal”, meaning that it should be significant enough to contribute to the U.S. economy beyond what is needed for the principal investor to earn a living.  It typically takes several months for a U.S. consular post to review an E-2 visa application.  Once the E-2 visa application is approved, the U.S. entity is registered with the U.S. consular post in the treaty country.  While E-2 visa are usually issued for a period of five years, U.S. consular posts have sometimes issued initial E-2 visas to smaller companies for only two years.  E-2 visas are renewable indefinitely in five year increments provided the U.S. entity can demonstrate in its renewal application that it continues to meet the eligibility requirements of E-2 visa status.  Following the approval of E-2 visa registration for the U.S. entity, nationals of the treaty country hired by the U.S. entity may apply for individual E-2 visas either as executives and supervisors, or as an employee with essential or specialized skills.