US E-2 Investor Visa: Requirements for the US Company

1Investor control

The investor must control the US company by owning at least 50 percent of it. An equal share in a joint venture or a 50/50 partnership between two parties generally counts as a controlling interest, as long as the joint venture and the partner each keep full management rights and responsibilities.

This arrangement is often called "negative control". Because both parties carry the same responsibilities, either one can make decisions that bind the other. The US Department of State has found that an equal partnership with more than two partners gives none of them control through ownership, because the element of control would be too remote even under the negative control theory.

2A real operating business

The E-2 business must be a real, active commercial or entrepreneurial enterprise that produces a service or goods. It must hold every license and permit the government requires for that type of business.

The business cannot be a paper organization or an idle, speculative investment held for possible appreciation, such as undeveloped land or shares held by an investor with no intention of running the company. The investment must be a commercial enterprise. In other words, it has to be for profit, so nonprofit organizations do not qualify.

3Minimum size of the business

The law sets no minimum business size to qualify for the E-2 investor visa. What it does require is that the investor not put money into a marginal enterprise just to make a living. An applicant is not eligible for an E-2 visa if the investment, however substantial, only generates enough income to support the applicant and their family. There are several ways to determine whether an investment is marginal, meaning it only covers the investor's living costs.

To tell whether a business is marginal, start with the income from the investment. If the business earns more than the investor and their dependents need to live on, it is large enough.

If the business doesn't pass that test, you need to look at other factors, such as its economic impact. The business must have the present or future capacity to make a significant economic contribution, for example by employing US workers. That projected future capacity should generally be achievable within 5 years of the investor starting normal operations. Applicants must submit a credible business plan showing the ability to turn a profit within no more than 5 years.

Find out more about the visa on our E-2 investor visa overview page, especially about the investment amount and the application process.