Welcome to the Treaty Visa Pages
of the Signet Law Firm
The Treaty Visas
Treaty Visas (called E-1 and E-2 ) are available to nationals of the 80+ countries who have signed treaties of friendship, commerce and navigation with the United States, and who stand in a position of ownership, management or key employment with the Treaty Trader or Treaty Investor.
What is a "Treaty Trader" (E-1 Visa)?
A treaty trader is either an individual or a corporation (juridical entity) that sells goods or services principally and directly between a country that has signed the relevant treaty, and the United States.
What is a "Treaty Investor" (E-2 Visa)?
A treaty investor is either an individual or a corporation (juridical entity) that has invested, or is actively in the process of investing, a substantial amount of capital in any active business in the United States.
You may want the E-1 or E-2 visa if your goal is to own and operate your business in the United States for an extended or indefinite period of time. Here are some general points of comparison between the Treaty Visas and the most common visa categories that permit work or other lucrative activities in the United States:
Control and ownership of the business
Most work-related visas allow only that: working as an employee of a regular commercial company, or some other organization who sponsors your entry.
In contrast, the Treaty Visas allow (indeed, they require) you to direct and control your own business enterprise.
No quotas
A “quota” is a numerical limitation placed on the number of visas the U.S. will issue in a given year. Rather severe quotas are placed on most work-related visas.
There are no quotas on the E-1 or E-2.
No preferences
A visa preference system is a method of distributing a limited number of visas in order of “preferences.” For example, almost all permanent visas are distributed under such a preference system; one system is based on family ties, the other based on employment. Perhaps the best-known employment-based preference is the fifth, or EB-5, “investor” visa, which usually involves the applicant having invested a minimum of roughly $1 million dollars in the U.S. More on this below.
The preference system does not apply to the E-1 or E-2 visas.
No sponsorship
Almost all work-related visas require a U.S. employer or other organization (for example, a university or a hospital) to sponsor you.
There is no sponsorship required for the E-1 or E-2 visa. You are on your own.
No labor certification
Some other work visas, like the H-1 and H-2, require the sponsoring employer to demonstrate that the foreigner’s employment will not harm U.S. workers.
There is no labor certification needed for the E-1 or E-2 visa.
Unlimited renewals
While the Treaty Visas do not confer permanent residency, they may be renewed for as long as the business remains in operation.
Spouses and minor children are included
And spouses have the right to work at any legitimate employment in the U.S.
Generally, a smoother, more convenient application process
Several things contribute to a smoother, faster and generally more convenient application process for the E-1 and E-2 visas.
First, the entire process takes place in your home country. There is no need to first come to the United States under another visa.
Second, the absence of any sponsorship or labor certification requirement means that you will not be required to coordinate your efforts with, or wait on the actions of another party. The application process is completely within your control (and that of the U.S. immigration service, of course).
Third, the absence of any quotas or preferences usually results in the complete application process being completed within one year (and in most cases, much less).
Fourth, treaty visas are not available to nationals of several large countries — including China, India, Brazil and Russia. This may contribute to the fact that certain other work-related visa categories, such as the H or EB-5, are dominated by nationals of these countries. Because visas like the H and EB-5 are limited by quotas or preferences, this may have the unfortunate effect of making it more difficult for nationals of other countries to obtain these visas.
We have prepared a more detailed comparison....
Press the button below to see our more detailed comparison between the E-1 and E-2 treaty visas and other visas that allow work or commercial activities.
YOUR NATIONALITY IS THE FIRST QUALIFICATION
The E-1 and E-2 visas are called “Treaty Visas” for good reason. The business, and its accompanying owners, managers, and key employees, must be nationals of the same country that has signed a treaty with the United States granting the citizens of each country mutual privileges either as traders or investors. (However, spouses and accompanying minor children may possess any nationality.) The treaties are generally known as “treaties of friendship, commerce and navigation.”
Which countries have these treaties?
The good news is that more than 80 nations have entered into these treaty programs with the United States. We have compiled a list of countries whose nationals received the highest number of visas in 2019 (prior to covid):
- Japan (15,440)
- Australia (12,837)
- Canada (5,190)
- UK (3,579)
- Germany (3,555)
- France (3,096)
- Mexico (3,053)
- South Korea (2,743)
- Italy (2,113)
- Spain (1,589)
- Taiwan (1,135).
Note that certain large countries have not signed this type of treaty. They include: Brazil, Russia, India and China.
For a complete list of treaty countries, please see this page.
Some quick rules on nationality
The nationality of the individuals who come to the U.S. as the owners, managers and key employees of the Treaty Trader or Treaty Investor is usually very easy to determine. Since they are people, nationality is equal to citizenship which is the country of their passports. Dual citizenship may present a problem.
Similarly, if the business that qualifies as the “treaty trader” or “treaty investor” is something similar to a sole proprietorship (a business owned by an individual), its nationality is also easy to determine. It borrows the nationality of the individual who owns it.
However, the business that qualifies as the “treaty trader” or “treaty investor” may be owned by a corporation or similar entity. It can have a “juridical personality” like a corporation (limited liability company in the UK, societe anonime in France, sociedad anonima in Spanish-speaking countries, etc.). In this case, the nationality rules may be a bit more complicated. Here are a few:
- The country of incorporation is irrelevant.
- In the case of a smaller, simpler corporation (no multiple corporate tiers), whose stock is owned by a relatively small number of human beings, the nationality of the majority of its shareholders usually determines the nationality of the corporation.
- In a more complex organization, for example, with several layers of corporate ownership, or whose stock is more widely distributed or publicly held, please speak with us before proceeding.
But remember: the owners, managers and key employees who are coming to the United States must have the same nationality as the treaty trader or investor.
Their accompanying spouses and minor children may have any nationality.
NOTE: In early 2023, legislation was added to deter individuals who have recently changed their nationalities to that of a treaty country. If have you have acquired the nationality of a treaty country for the first time within the last several years, you might wish to speak with knowledgeable attorneys before proceeding.
More information on nationality is available here.
QUALIFYING YOUR BUSINESS IS THE NEXT STEP
E-1, Treaty Trader Visa
While the phrase “international trade” produces images of large multinational corporations moving shipping containers around the world, the E-1 Treaty Traders Visa is available to traders of all sizes, and of any kind of legitimate good or service (information technology, finance, insurance, etc.)
The U.S. will look at the flow of your commerce in goods and services, more than its size. Is the flow consistent? Does it appear durable? In other words, does it represent the activities of a real business?
Mathematically, the part of your international trade that takes place directly between your treaty country and the United States should represent at least 50% of the total international trade.
E-2, Treaty Investors Visa
You can invest in ANY legitimate business in the United States, provided your investment is substantial and is placed in an active business (not passive where you are basically doing nothing).
The business you invest in does not have to be the same business you carried on in any previous period of your life. However, your background should reflect some experience in business.
The word “substantial” is not defined. Informally, it means $100,000.
The capital you invest is not limited to money. It can be equipment, machinery, inventory, etc. It cannot come from illicit sources. You can borrow it, or receive it as a gift, but its investment must represent a personal risk to you.
The investment can be in an existing business, or be your creation of an entirely new one.
At the moment you apply for the visa, your investment in a specific business must have already been made, or you must show you have legally committed yourself to making it.
We have written these posts on particular relevant topics. Check them out.
The use of corporations and corporate entities when doing business in the United States.
When you buy a company, do you buy its stock or its assets?
If you are investing in the U.S, do you buy an existing company, or build your own?
Purchasing U.S. real estate to reduce investment risk
Closing into escrow, to reduce visa risk
The SIGNET Law Firm
We are dedicated to helping foreign business invest and operate in the United States successfully. As part of our services, we specialize in helping our clients procure the E-1 and E-2 visas, which enable them to live in the U.S. while they manage and operate their businesses.