This article provides general information only and does not constitute legal advice.
The E‑2 visa program allows nationals of treaty countries, including Canada, to invest in and manage a business in the United States. For many entrepreneurs, it offers a flexible pathway to expand their business activities south of the border.
Overview of the E2 Visa
The purpose of the E‑2 visa is to facilitate foreign investment that contributes to the U.S. economy. Eligible applicants may start a new business or acquire an existing one, provided that the investment meets specific legal criteria established under U.S. immigration law.
What Counts as a Substantial Investment?
There is no fixed minimum investment amount. Instead, the investment must be proportional to the total cost of the business and demonstrate the investor’s commitment. In practice, investment ranges vary depending on the industry and business model.
A substantial investment generally means:
- The funds are irrevocably committed.
- The capital is at risk of partial or total loss.
- The amount is sufficient to ensure the successful operation of the business.
Key Requirements for Applicants
To qualify, applicants must generally demonstrate:
- Nationality: Citizenship in a treaty country such as Canada.
- Ownership or Control: At least 50% ownership of the business or a controlling managerial role.
- Active Enterprise: The business must be real and operating, or close to launching.
- Marginality: The business must have the capacity to generate more than marginal income, which typically includes job creation for U.S. workers.
Benefits for Family Members
Spouses and unmarried children under 21 may accompany the investor. Spouses are eligible to apply for work authorization, and children may study in the United States.
Application Routes: Change of Status vs. Consular Processing
Applicants inside the U.S. may apply through Change of Status, which does not result in a physical visa for travel. Those outside the U.S. typically apply through Consular Processing, which includes an interview and results in a visa that permits entry.
Processing times and requirements vary by consulate and may change periodically.
Documentation and Business Planning
A strong application is supported by detailed documentation, which may include:
- Evidence of investment funds and lawful source of funds
- Business formation documents and contracts
- A comprehensive business plan with five‑year financial projections
- Proof of active or imminent business operations
A well‑prepared business plan helps demonstrate the viability of the enterprise and its potential contribution to the U.S. economy.
Costs and Fees
Applicants should expect filing fees for government forms, possible consular fees, travel costs, and professional fees when obtaining legal or business guidance. Fees differ depending on location and processing type.
Considerations for Canadian Investors
Canadian applicants often benefit from efficient processing due to established trade relationships. Business opportunities may vary widely, including franchises, service‑based operations, and technology ventures.
Regardless of the business model chosen, applicants must demonstrate that their investment meets E‑2 requirements and that the enterprise has a reasonable capacity for growth.
Staying Compliant
U.S. immigration rules and consular processes are subject to change. Investors should remain informed about updates affecting E‑2 eligibility, renewals, or documentation standards.
Conclusion
The E‑2 visa can be a valuable pathway for Canadian investors seeking to operate a business in the United States. Success depends on meeting statutory requirements, preparing strong evidence, and presenting a clear, well‑supported business plan.
For guidance tailored to your circumstances, you may seek legal assistance from a qualified lawyer licensed to practise in British Columbia who is experienced in matters involving U.S. immigration law.
Firm Disclaimer
Sohi Law Group is a law firm licensed to practise law in British Columbia. Services relating to United States immigration matters involve providing advice on foreign law. This article is for general informational purposes only and should not be relied upon as legal advice. Immigration outcomes depend on the facts of each case and decisions made by U.S. government authorities. For advice specific to your situation, please consult a qualified lawyer.
Frequently Asked Questions (FAQs)
1. Is there a minimum investment amount for the E-2 visa?
No. There is no fixed minimum amount. The investment must be substantial relative to the business and sufficient to ensure operational viability.
2. Can Canadian citizens apply for the E-2 visa?
Yes. Canada is a recognized treaty country, and Canadian nationals are eligible to apply.
3. Do I need a physical office for my E-2 business?
Not always. Whether an office is required depends on the nature of the business. Some service-based or online businesses may not require a physical location.
4. Can my spouse work in the United States under the E-2 visa?
Yes. Spouses may apply for work authorization once in the U.S.
5. Does the E-2 visa lead to permanent residency?
The E-2 visa is a non-immigrant visa and does not directly lead to a green card. Some applicants may later transition to other categories.
6. How long is an E-2 visa valid for Canadian citizens?
Validity periods differ by consulate and can change. Renewals are possible as long as E-2 requirements continue to be met.
7. Can I purchase an existing business for E-2 purposes?
Yes. The business must be operational or close to operational, and the investment must meet E-2 criteria.
8. What documents are typically required?
Documents often include proof of funds, business formation documents, a detailed business plan, operational evidence, and identity documents.
9. Do I need to hire employees immediately?
Not necessarily. However, you must show the business has the capacity to create jobs and is not marginal.
10. Should I consult a lawyer before applying?
E-2 applications involve complex rules and documentation. Many applicants choose to consult a lawyer to understand requirements and prepare supporting materials.
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