How to Overcome New US Immigration Restrictions To Launch Your Startup Enterprise


Successful November 21, 2019, new guidelines will make it tougher for foreign entrepreneurs to receive an EB5 Immigrant Investor Visa to launch a startup corporation in the US. The EB5 visa enables foreign entrepreneurs to get a US green card in exchange for their sizable investment in a industrial enterprise (e.g., a new startup corporation) in America. Even so, beneath the new guidelines the minimum investment essential for an EB5 visa will boost by 80%, as follows:

  • For industrial enterprises situated in places that are rural or have higher unemployment, the earlier essential minimum investment was $500,000 the new minimum investment will be $900,000.
  • For typical industrial enterprises (i.e., these not situated in rural or higher unemployment places), the EB5 visa’s essential minimum investment will boost from $1 million to $1.eight million.

Even though this higher investment threshold renders the EB5 visa unattainable for a lot of foreign entrepreneurs, two other visa categories with decrease investment specifications can be utilised to launch US startup businesses.

Image supply: Jordan Counsel


The E2 visa enables entrepreneurs from particular nations to move to America to direct and create a US corporation in which they have produced a substantial investment. The nationalities that are eligible for an E2 visa sometimes modify. For instance, Israelis and New Zealanders just became eligible for the E2 visa in May perhaps and June (respectively) of this year.

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Compared to the EB5 visa’s new specifications, the investment quantity required for an E2 visa is really low. For instance, some entrepreneurs receive an E2 visa when ‘only’ investing $100,000. E2 visa guidelines do not specify a particular quantity of dollars that will have to be invested the investment will have to basically be “substantial.” To evaluate regardless of whether an E2 investment is sufficiently substantial, consular officials use many metrics, such as proportionality and marginality. Basically place, the E2 visa applicant will have to demonstrate (normally in a detailed enterprise program) that the corporation is sufficiently capitalized and will quickly create adequate income to cover salaries of a handful of employees–including the visa holder–and nevertheless be lucrative.

The E2 visa does not pave the way to a green card. Even so, for the reason that it is doable to receive limitless renewals of an E2 visa (if the underlying enterprise is nevertheless operating profitably), lengthy-term indefinite stays in the US are doable. If the corporation is sold, even though, the E2 visa will not be renewed.


The L1 visa is utilised for intracompany transfers of foreign staff to America. Such a transfer can be utilised to launch a US subsidiary, branch workplace or other sort of corporation affiliated with a foreign entrepreneur’s overseas corporation.

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Usually the investment quantity required for an L1 visa is significantly less than what would be required for an E2 visa application. This tends to make sense, considering the fact that only a portion of the business’ worldwide price range would be allocated to the US corporation. Nonetheless, the enterprise program that accompanies the L1 visa application ought to demonstrate that the US corporation has sufficient facilities and will promptly develop into commercially prosperous.

Two major parties play a part in the L1 visa application course of action: the US corporation (the “Applicant”) and the individual who will acquire the visa to perform for the Applicant (the “Beneficiary”). The L1 visa envisions that the overseas corporation will have enough employees to continue operations when the Beneficiary is operating in the US. For this explanation ‘solopreneurs’ ordinarily are not eligible for the L1 visa. If the Beneficiary is the CEO of the overseas corporation, the visa application ought to consist of proof (e.g., a letter from human sources or a board member) of the Applicant’s intent to have the Beneficiary return to the overseas corporation immediately after launching the US corporation.

Regardless of the assumption that the L1 visa Beneficiary will ultimately return to perform for the overseas corporation, for some entrepreneurs an L1 visa can expedite the pathway to a green card if:

  • They have worked for the corporation (overseas or in the US) in an executive or managerial capacity for at least 1 year, and
  • The Applicant has been in enterprise for at least 1 year.
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If these specifications are fulfilled just before the L1 visa application is submitted, Beneficiaries could develop into eligible for the US green card as quickly as they arrive in the US. In this context, the L1 visa can (vis-à-vis the EB5 visa) at times provide foreign entrepreneurs a more quickly and significantly less expensive pathway to a green card.

In summary, if getting into the US market place is a strategic crucial for your enterprise, do not get discouraged by the new restrictions of the EB5 visa. Cautiously take into consideration the circumstances and rewards of other visa choices and begin organizing accordingly.