Introduction to Treaty visas

Over the years the United States has signed treaties with most of the other countries in the world, in particular treaties of 'Friendship, Commerce and Navigation'. These treaties are designed to promote trade and investment between the USA and the other contracting state, thereby encouraging good relations and peace. More recently the USA has entered into a number of Bilateral Investment Treaties with mainly former communist states, designed to promote investment but not generally conferring any trade-related immigration privileges.

 

Nationals (individuals or companies) of countries with such Treaties with the United States can obtain visas to work in the USA in order to develop and direct their investment in and/or trade with the USA. Such visas are called E-visas, and come in two types:-

.

The E2 Treaty Investor:

Nationals of qualifying Treaty countries who have made a significant investment in the United States may qualify for E2 Treaty Investor status. Like the E1 visa, there is no set minimum level of investment which may qualify for E2 status, but the lower the investment the less likely one is to qualify. Again, the level of investment must be sufficient to justify the treaty national (or his/her employees) presence in the United States. The investment must be in an operating business – i.e. simply buying property or stocks and bonds does not qualify. Also, a substantial part of the investment must have been made before applying for E2 status.

E2 Visa Countries

E2 visas may only be applied for by people or companies from the following countries:

Ungratified but signed treaties exist with: Albania, Azerbaijan, Haiti, Jordan, Nicaragua, and Russia.

Investors from qualifying countries may apply for an E2 visa in order to 'Direct and Develop' their investment. They may also apply for E2 visas for key managerial and specialist employees. In contrast to the L1 visa, there is no requirement that such employees have worked for the Investor for at least one year in the last three, nor is it necessary for the Investor to continue operations outside the USA while the Investor or his/her employees are in the USA.

E2 visa registration applications should demonstrate that:

1.     There has been and will be a substantial capital investment in the US. There is no specific cash threshold defined, but $150,000 are required.

2.     Risk Capital has been Committed; the investment must entail some risk to the investor (it may not be all in the form of unguaranteed credit). At a minimum, there must be a long-term lease of an office in the US

3.     The investor will control his/her investment. In this respect control is considered to entail owning over 50% of the US enterprise.

4.     The cash invested is not marginal when compared to the total investment. In general, unless it is common to the industry to have higher amounts of 'leveraging' (such as in the property industry), 51% of the investment should be in the form of cash equity. Where debt is secured against other assets of the investor, it is considered to be 'at risk', and may be considered as part of the equity invested.

5.     The enterprise is (or will be) active. In order to be 'Directing and Developing' their investment, the investor will require an enterprise that involves active management.

6.     US workers are (or will be) employed. The treaties envisage more than just creating a job for the principal investor, but there is no requirement to employ a particular number of US citizens. Obviously, employment of large numbers of US citizens would be viewed very favorably.

7.     The enterprise, or its principal investor, has a past history of successful trading.

8.     That the 'investor' has sufficient acumen to direct and develop the investment enterprise.

9.     That the principal investor, and any other E2 staff, are able and willing to leave the US upon termination of their E2 status.