The E-1 Treaty Trader and E-2 Investor Visa


The "E" category was established to give effect to treaties between the United States and foreign countries that provide for reciprocal benefits to nationals of each country who invest in the other country, or who conduct trade between the two countries. The U.S. entity must be at least 50% owned and controlled by nationals of the treaty country. There is no limit to the duration of stay in E-1 or E-2 status. Persons who are citizens of a country with such a treaty (treaty country) who engage in substantial trade between the United States and their country are classified as E-1 treaty traders. In addition to holding citizenship within a treaty country, applicants for a treaty trader E-1 visa must satisfy the following requirements:

1) Trade - Trade may include goods and services and must be principally between the U.S. and the treaty country.

2) Principally - More than fifty percent (50%) of the total volume of trade must be between the U.S. and the treaty country. The balance of the U.S. trading company's transactions may be with other countries and/or domestic.

3) Substantial Trade - The trade must be substantial. No set dollar amount is used in determining if trade is "substantial." A single transaction, regardless of the dollar value, does not constitute substantial trade. "Substantial" is determined by the volume of trade, the number of transactions and the continued course of trade.

4) Employees - The U.S. trading company may employ nationals of the treaty country if the employee will fill a position which is Executive or Supervisory, or if the employee has essential skills necessary for the successful operation of the enterprise.
The E-1 applicant's spouse and unmarried children under 21 are also entitled to E-1 status. However, they are not authorized to work. Persons who are citizens of a country with such a treaty (treaty country) who make a substantial investment in the United States are classified as E-2 treaty investors. In addition to holding citizenship within a treaty country, applicants for a treaty investor E-2 visa must satisfy the following requirements:

a) Active Investment - The investor must make a commitment of funds that represents an actual, active investment. Moreover, the investors money must be "at risk," and not merely available.

b) Substantial Investment - The investment must be substantial, taking into account only those financial transactions in which the investor's own resources are at risk. Although there is no minimum amount to qualify for E-2 status, "substantial" generally means at least US $150,000. The amount must be what is normally required to establish the enterprise in question.

c) Marginality - The investment cannot be marginal in nature, i.e, one that will only support the investor and his or her family. The investment must either create job opportunities for U.S. workers, or the investor must have funds beyond those needed for his or her investment.

d) Essential Role in Enterprise - The treaty investor must fill a key role in the company, either as a person who has developed and will direct the investment, as a qualified manager, or as a specially trained and highly qualified employee necessary for the development of the investment. Also, the treaty investor must "control" the company, i.e., he or she must own at least 50% of the company.

The E-2 applicants spouse and unmarried children under 21 are also entitled to E-2 status. However, they are not authorized to work.

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