L-1 or E Visa: Setting up a New Business (Ⅱ)

Factors governing the choice of appropriate visa
Following are the basic issues that determine the choice of the most suitable visa category to set-up a new office in the United States:

1.         Country of nationality

E-1 or E-2 visas can be used only if a treaty of commerce and navigation or a bilateral investment treaty exists between the U.S. and the country of nationality of the foreign company or investor. If the foreign national does not belong to a treaty country, the choice is generally limited to L-1 visa.

2.         Nature of business

E-1 visa can be used by foreign entities not having a substantial investment in the U.S. but having a substantial trade with the U.S. The substantiality of trade is determined by the volume of trade, number of transactions and the recurrence of these transactions. E-2 visa can be used to set-up an entity in the U.S. if the investment involved is substantial. L-1 visa does not have the requirement of substantial investment in the U.S. It can be used for any venture by international companies to set-up a branch, subsidiary or affiliate company in the U.S.

Source:Visapro