E-2 Visa, Explained

What is the E-2 Treaty Investor Visa?

The E-2 visa is a special visa category designed for foreign investors who wish to establish or invest in a business in the United States. Citizens of countries like Turkey, which have a treaty of commerce and friendship with the U.S., can apply for this visa by making a significant investment in an active U.S. business. Here’s a detailed guide to the E-2 visa:

General Conditions of the E-2 Visa

1. Investment Requirement: To qualify for the E-2 visa, a specific amount of capital must be invested in a U.S.-based business that will operate actively. While there is no fixed investment amount, it should be considered “substantial.” This means the investment must be large enough to ensure the business’s sustainability and contribute to the U.S. economy. For smaller businesses, the typical investment amount is usually between $100,000 - $200,000, although it may vary based on the sector and business model.

2. Investment at Risk: The capital invested must be irrevocably committed and at risk. This means that the funds should be dedicated directly to the business, with the potential to generate profit if successful. Investments simply sitting in a bank account or that are fully secured do not qualify for the E-2 visa.

3. Active Business Operation: The investment must be made in an active business rather than a passive investment (e.g., real estate investment). An active business is one that requires daily management, employs staff, and has the potential to generate revenue. Examples of qualifying business types include restaurants, retail stores, manufacturing plants, and consulting services.

4. Potential to Create Employment: The E-2 visa aims to encourage investments that benefit not only the investor but also the U.S. economy by creating jobs. Therefore, the invested business should have the potential to provide employment to U.S. citizens or lawful residents.

5. Business Control: The applicant must own at least 50% of the business or possess control over the enterprise. This requirement ensures that the investor can actively manage and make decisions regarding the business.

Duration and Renewal of the E-2 Visa

The E-2 visa is usually granted for an initial period of 2 to 5 years. As long as the business remains active and sustainable, the visa can be renewed. While there is no limit on renewals, each renewal requires proof that the investment remains viable and the business continues to operate.
Renewal applications should be submitted before the visa expiration date, and renewal eligibility depends on factors like business sustainability and economic contribution.

Benefits for Family Members of E-2 Visa Holders

The E-2 visa provides certain privileges not only to the investor but also to their family:

Spouses: The spouse of the investor can obtain a work permit, allowing them to work in any field, offering a unique opportunity to gain work experience in the U.S.
Children: Children under the age of 21 can reside and study in the U.S. under the E-2 visa. However, once they turn 21, they need to obtain their independent visas.

The E-2 Visa Application Process

1. Preparing a Business Plan: E-2 visa applicants are required to submit a detailed business plan that outlines the investment, the anticipated economic contribution to the U.S., future growth projections, and employment plans.

2. Documenting the Investment: Applicants must provide proof of the investment’s source. U.S. officials seek to ensure that the investment is legally and legitimately sourced. Supporting documents like bank statements, tax records, and financial documents may be necessary.

3. Interview with the U.S. Consulate: Applications are processed at the U.S. Consulate in the investor’s home country (e.g., in Turkey), where an in-person interview is conducted. During this interview, the investor will present their business plan and demonstrate how the investment contributes to the U.S. economy.

4. Legal Consultation: Given the complexity of the E-2 visa application process, applicants are advised to consult with an experienced immigration and investment attorney. This can help ensure a smoother and more accurate application process.

Residency Status and Green Card Eligibility for E-2 Visa Holders

The E-2 visa allows investors to reside temporarily in the U.S. to manage their business, but it does not directly grant permanent residency (Green Card). To remain in the U.S., E-2 visa holders must regularly renew their visas or explore other visa or Green Card options if they wish to pursue permanent residency.

Suitable Business Types for the E-2 Visa

Businesses eligible for the E-2 visa are generally in sectors requiring active management and entrepreneurial involvement. Suitable sectors include:

Retail (stores, boutiques)
Service industry (cleaning, maintenance, consulting)
Technology sector (software development, IT services)
Restaurants and cafes
Hospitality and lodging services
Logistics and transportation

These sectors offer investors an entry into the U.S. market with an opportunity to establish and grow their businesses.

Advantages and Disadvantages of the E-2 Visa

Advantages:

Provides an opportunity to reside in the U.S. by starting or managing a business.
The visa is renewable without a fixed time limit, allowing long-term stay in the U.S.
Allows family members (spouse and children) to live and study in the U.S., with the spouse also eligible for work authorization.

Disadvantages:

Does not provide direct access to a Green Card; each renewal depends on business viability.
The visa status is contingent upon the sustainability of the investment, making renewals potentially risky in the event of economic downturns or business failure.

The E-2 visa offers a long-term opportunity for Turkish entrepreneurs seeking to start a business and grow within the U.S. market.