The E-2 treaty investor classification allows nationals of countries that maintain a qualifying treaty with the United States to enter and remain in the U.S. to develop and direct a business in which they have invested, or are actively investing, a substantial amount of capital.
Nationality comes first
The investor must hold the nationality of a treaty country, and the business must be at least 50 percent owned by nationals of that country. Checking treaty eligibility is the first step in any E-2 analysis.
What counts as substantial
There is no fixed minimum investment. The amount must be substantial in relation to the total cost of purchasing or establishing the business, sufficient to ensure the investor's commitment, and enough to make it likely the business will succeed. The funds must be committed and at risk, not simply held in an account.
A real, active business
The enterprise must be a real, operating commercial business. Passive investments such as undeveloped land do not qualify, and the business cannot be marginal, meaning it should have the capacity to generate more than a minimal living for the investor and family, or to make a significant economic contribution.
Develop and direct
The investor must be coming to the United States to develop and direct the business, generally shown through at least 50 percent ownership or operational control.
Family members
Spouses and unmarried children under 21 may accompany the investor in E-2 status. Spouses are authorized to work incident to their status, and children may attend school.
Duration and limits
E-2 status is granted in renewable increments, and visa validity depends on the investor's country. Importantly, the E-2 does not by itself lead to a green card, so investors with long-term residence goals should plan with that in mind.
This article is for general information only and is not legal advice. Laws and agency practices change, and every situation is different. Contact the firm to discuss your specific circumstances.