E-2 US Visa: Investor visa for entrepreneurs with goals in the United States

What is the E-1 visa?

The E-2 visa is a so-called investor visa and belongs to the e-visa category. It is aimed at people who want to actively invest in a US company and work there – either as an owner or as a key employee, the latter of which does not have to be involved in the US company. Unlike many other visas, it allows for permanent residence in the USA if qualifications are maintained, as the visa can be extended as often as required . This makes it an attractive alternative to other work visas for many entrepreneurs who wish to work in the United States on a long-term basis.

A decisive advantage of the E-2 visa is its flexibility. It does not matter whether you are founding a new company, taking over an existing one or becoming a partner in a company. The size of the company is also initially irrelevant – the decisive factor is that it is economically viable and offers a recognizable benefit to the US economy.

Who can apply for an E-2 visa?

Legal basis: Bilateral agreements with the USA

The E-2 visa is based on bilateral treaties that the United States has concluded with numerous countries. For German nationals , this entitlement is regulated by the Treaty of Friendship, Commerce and Navigation, which was signed on October 29, 1954 by John Foster Dulles for the USA and Konrad Adenauer for the Federal Republic of Germany. was signed and entered into force on July 14, 1956.

Many other European countries have also concluded similar agreements that enable their citizens to apply for an e-visa. For example, the treaty with the Swiss Confederation was signed on November 25, 1850 and came into force on November 8, 1855. The treaty with the Republic of Austria dates back to June 19, 1928 and came into effect on May 27, 1931.

Prerequisite: Nationality of a contracting state

For an application to be possible at all, the applicant must be a citizen of a contracting state . An important special feature: Anyone who already has a US green card is no longer considered a national of the country of origin within the meaning of the E-2 regulation – even if they still formally hold German citizenship.

The nationality of the company in which you are investing or with which you are to work also plays a decisive role. This is determined by the beneficial owners. At least 50% of the US company must be owned by natural persons who have the same nationality as the applicant – and they must also be entitled to vote. The ownership structure must be disclosed across intermediate companies where applicable.

What role must the applicant play in the company?

There are basically two ways: The applicant is either an investor himself and holds at least 50% of the company shares or he is active in a key function in the US company.

Anyone taking on the role of managing director or senior manager must prove that they will play a key role in shaping the company. This includes, for example, responsibility for personnel, making strategic decisions or demonstrating special knowledge that is indispensable for the company and cannot be recruited from the local labor market at short notice.

Special expertise, for example from an affiliated company abroad, can also count as a qualification – especially if the knowledge is company-specific. In any case, the importance of the function must also be reflected in the remuneration. Blanket position titles or a subordinate role in the company are not sufficient for an E-2 visa.

Investment requirements

A central element of the E-2 visa is the actual investment. This must already have been made at the time of application – the visa is not intended to start investing on site. The investment must also be considered „at risk„, i.e. subject to entrepreneurial risk and irrevocably committed.

What exactly is recognized as an investment is not precisely regulated by law. Investments in machinery, equipment, office infrastructure or imported goods are generally unproblematic. Investments in companies are also recognized if the money actually flows into the company – for example through a capital increase. The purchase price may therefore not simply be paid to the previous shareholder without the money benefiting the business.

However, pure capital investments, real estate purchases without operational business activities or funds that are merely parked in a business account are not considered investments. If you want to protect yourself, you can also make investments subject to the visa being granted, for example by means of an escrow account or reversible contracts.

There are no fixed limits for the amount of the investment. However, it must be appropriate and sufficient to build up and operate the business. The lower the invested capital, the higher the requirements for the business plan and proof of viability.

Which business ideas qualify?

Not every entrepreneurial activity automatically entitles the holder to an E-2 visa. The US authorities check whether the planned company has a real business activity – i.e. actively participates in the market and offers goods or services. Speculative investments, such as the purchase of a property for later sale, or pure rental transactions that do not reach a certain volume are not sufficient. The business activity must be profit-oriented; an E-2 visa is not issued for the provision of non-profit activities; in this case, it should be checked whether an L-1 visa can be applied for.

Economic benefits for the USA – more than just business success

A key criterion for the approval of an E-2 visa is the economic added value that the company generates for the USA. It is not enough for the business to be profitable for the applicant alone – it must also clearly benefit the US economy. The official regulations state that the company must either:

• must yield more profit than the investor and his family need to live on, or

• must offer economic added value for the USA , for example through the creation of jobs or cooperation with US companies.

If the company cannot demonstrate a surplus beyond its own livelihood, it must prove its importance to the US economy in some other way.

What counts as „added value“?

If a company does not meet the profit target, it can fulfill the requirements in another way – typically by:

1. Employment of US-Americans or green card holders

The company should employ US personnel in qualified positions or have demonstrable plans to do so. This demonstrates sustainable integration into the local labor market.

2. Cooperation with US service providers or suppliers

Even if it is not possible to hire your own employees, proof of economic ties with US companies can improve the application’s chances of success. The decisive factor is that this is done to a significant extent.

Experience shows that this point is particularly important: It is not just about an economically functioning company, but also about ensuring that other players in the location benefit.

Recommendation: Hire employees if possible

Although the employment of US personnel is not mandatory, it significantly increases the chances of success of an E-2 application. This is particularly true if the hiring of qualified employees is planned or has already taken place. If it is not possible to create jobs in a specific individual case (e.g. in the start-up phase), the application is nevertheless not doomed to failure. In particular, it is not necessary for jobs to have already been created when the application is submitted, just as the investment must already have been made.

In such cases, however, the extent to which other US companies will benefit from the planned business model must be explained in particular detail – and to an economically relevant extent.

Documentation in the business plan

Whether profit surplus or economic added value – both must be convincingly presented as part of the initial application. This is usually done by means of a stringent and fact-rich business plan that not only describes the business idea, but also demonstrates what the contribution to the US economy actually looks like. The business plan should not contain more than four pages of text, plus a one-page profit and loss forecast for the next five years.

When extending the visa, appropriate evidence of the actual effects achieved must be provided – for example in the form of tax returns, pay slips or contracts with US partners.

We recommend – also in view of possible future tightening of the requirements – to generally strive to employ US personnel in the foreseeable future. This not only underlines the seriousness of the commitment, but also consolidates the legal basis for a long-term right of residence under E-2 status.

Intention to return – despite long-term prospects

Even though the E-2 visa can provide a permanent perspective in the USA, it is formally a temporary visa. The applicant must therefore provide credible assurance that they will leave the country if the requirements of the visa are no longer met – for example, if the company fails or the employment contract ends.

Proof of permanent residence outside the USA is not required. The applicant can therefore give up their previous existence in Germany. Nevertheless, they should be able to demonstrate on request that they will leave the USA if their E-2 authorization expires. The consulate may request further documentation if there are doubts about the applicant’s intention to return.

Family members and E-2 visa

Spouses and unmarried children under the age of 21 can enter the country together with the main applicant. While children have the right to attend school or university, the spouse can take up gainful employment – however, a work permit must be applied for from the USCIS after entry. The relevant form is the I-765, and it is important to note that this application cannot be made when the visa is issued, but only once in the USA. For some time now, the work permit can also be obtained from the so-called I-94 form, which can (and should) be downloaded from the Internet after entering the country. If the I-94 of the accompanying spouse contains an „S“ in the visa category (i.e. „E-1S“), a separate Employment Authorization is no longer necessary. However, not all border posts have this option.

Registration of the US company and extension of the visa

When the visa is issued for the first time, the US company is registered with the relevant US consulate – in Germany this is done in Frankfurt am Main. This registration is valid for two to five years. Within this period, further E-2 applications for employees can be submitted via a simplified procedure.

After expiry, the registration must be renewed. For companies with fewer than 25 employees , the procedure largely corresponds to a first-time registration. Larger companies, on the other hand, benefit from a simplified procedure. It is important that the ownership structure of the company does not change in such a way that the nationality requirements are no longer met. Otherwise, E-2 visas that have already been issued will lose their validity – even if they have not yet expired.

Alternative: International Entrepreneur Parole Program (IEPP)

The International Entrepreneur Parole Program (IEPP) is occasionally brought into play as an alternative to the E-2 visa. This is also aimed at founders with innovative business ideas, but has significantly higher requirements, particularly with regard to financing and the degree of innovation. The E-2 visa therefore remains the more practical option for many classic SME projects.

Our legal support for your E-2 application

The path to an E-2 visa involves many detailed questions – particularly with regard to the correct structuring of the investment and the design of the business plan. The assessment of ownership, proof of qualifications and communication with the consulate also require sound experience.

We work with you to check whether your project meets the requirements for an E-2 visa and, if you wish, we can guide you through the entire application process – from strategic planning to submitting the documents. We also provide you with professional support in the preparation of the business plan.

Feel free to contact us for a consultation – by phone or e-mail.

If you are already sure that the E-2 visa is right for you, you can also instruct us directly with the application.