Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. You should consult with a qualified immigration attorney to discuss your specific situation.
What Is the E-2 Investor Visa
The E-2 Investor Visa is a practical pathway for entrepreneurs from treaty countries who want to launch, buy, or operate a business in the United States. It is a non-immigrant visa, meaning it’s temporary but can be renewed indefinitely as long as the business remains operational.
At its core, the E-2 is designed for investors making a substantial capital investment, founders building a venture from the ground up, and in some cases, key employees essential to the enterprise. This guide focuses on the path for investors and founders.
Key Benefits & Limits
The E-2 visa is attractive for its flexibility. Key benefits include having direct control as your own sponsor, avoiding the visa lottery, and including your family. Spouses of E-2 visa holders are eligible to apply for work authorization, allowing them to work for any employer in the U.S., not just the E-2 business.
The visa is typically granted for 2 to 5 years and can be renewed indefinitely. Depending on the treaty country, it may be issued for up to five years, though each U.S. entry is generally limited to a two-year stay, as shown on the I-94 record.
It is important to understand the limitations: the E-2 does not directly lead to a green card, and the principal visa holder’s work authorization is tied specifically to the business they have invested in.
Your E-2 Visa Requirements: A Guide to Eligibility
Qualifying for an E-2 visa depends on meeting three foundational requirements related to who you are and your relationship to the U.S. business.
1. Treaty Country Nationality: This is the first and most critical test. Applicants are expected to be citizens of a country that has a commerce and navigation treaty with the United States. If you hold dual citizenship, you would apply using the passport of the treaty country.
2. At Least 50% Ownership & Control: The E-2 is for active operators, not passive investors. The application should demonstrate that you will “develop and direct” the business, typically by showing you own at least 50% of the company.
3. The Marginality Test: Your business cannot be “marginal,” meaning it must have the capacity to generate more than a minimal living for your family. A strong application demonstrates this by projecting a positive economic impact, most commonly through job creation for U.S. workers.
“Substantial” Investment & Source of Funds
This is often the most closely reviewed part of an E-2 application, with clear standards for what “substantial” means and where the money can come from.
The proportionality test
There’s no fixed minimum E-2 visa investment amount. Your investment should make sense for your business and cover a meaningful share of the actual startup or purchase cost. Lean, low-cost ventures usually need a higher percentage committed upfront; capital-intensive businesses may be substantial with a lower percentage of a larger total. Applications are often stronger when they show funds already at risk (leases, equipment, inventory) and enough capital to open, operate, and hire. Underfunded cases tend to receive closer scrutiny.
What “at-risk” and “irrevocably committed” really means
So, what does it actually mean for your funds to be “at risk”? It means your capital has left your personal control and is now actively working for the business. Consular guidance indicates that officers assess whether applicants have moved beyond planning and committed funds to real, verifiable steps. This often includes invoices for spent money, signed contracts, or completed acquisition funds. Money sitting untouched in a business bank account, without being allocated to specific expenses, generally doesn’t qualify on its own.
Documenting the lawful source and path of funds
A core component of the application is demonstrating that the investment capital was obtained legally. Think of this as creating an audit-ready story of your money: providing clear documentation of where it came from (e.g., savings, sale of property, loan) and how it moved into the U.S. business, using statements, contracts, and wire receipts.
Type of Business for E-2: New, Acquisition, or Franchise
The E-2 visa allows you to start from scratch, buy an existing company, or invest in a franchise. Each path has strategic pros and cons, from the full control of a new business to the proven model of a franchise.
Regardless of the path, applications typically include concrete evidence that the business is real and active. Common examples include a signed commercial lease, client/vendor contracts, and relevant licenses/permits. For many cases, a simple but strong combo is a signed commercial lease + first hires or signed client/vendor contracts, which shows the business is active, not just planned.
E2 Visa Application Process & Processing Time
If your business is structured and your investment is committed, the next step is the application. The path depends on whether you are inside or outside the United States.
Change of Status (in the U.S.) vs. Consular Processing (outside the U.S.)
Change of status: Individuals already in the U.S. in valid nonimmigrant status may request a change to E-2 by submitting Form I-129 to USCIS. This status is generally valid only while the person remains in the U.S.; international travel typically requires obtaining an E-2 visa at a U.S. consulate before re-entry.
Consular processing: Applicants outside the U.S. or who plan to travel, typically apply for an E-2 visa at a U.S. embassy or consulate. Each post sets its own document requirements.
Timelines
For current timing, it helps to check the official tools: the USCIS Processing Times (change of status) and the State Department’s Visa Appointment Wait Times (consulates). Premium Processing, where offered, counts in business days.
Family & Work: Spouses and Children
One of the benefits of the E-2 visa is how it accommodates your family. Your spouse and unmarried children under 21 can apply for E-2 dependent status to accompany you.
Spouse Work Authorization
Under current policy, E-2 spouses are considered work-authorized automatically upon entry to the U.S. (“incident to status”). The spouse’s Form I-94, if marked with the “E-2S” code, generally serves as valid proof of employment eligibility. This allows the spouse to work for any employer or be self-employed, offering tremendous flexibility.
A practical tip: It’s always a good idea to review the I-94 after arrival to confirm the admission code is correct.
Children (Dependents)
As for your children, unmarried dependents under 21 may attend school but are not authorized to work. It’s important to remember that their E-2 status ends when they turn 21, so they would need to secure their own visa (like an F-1 for students) to remain in the U.S.
2025 Trends & Scrutiny Hot-Spots
Based on what we’re seeing in 2025, consular officers are placing more focus on a few key areas during application reviews.
1. Ownership and Real Operations: Officers are looking for proof that you are truly in control and that the business is a genuine, active enterprise. This means providing evidence like a commercial lease and client contracts, not just company registration documents.
2. Franchise Genuineness: Officers are increasingly wary of “visa mill” franchises that seem designed only to secure a visa. They are looking for reputable brands and evidence that you have done your due diligence.
3. Renewal Standards: For E-2 renewals, the standards are higher. You will likely be expected to show evidence of growth, such as increasing revenues, profits, and the hiring of U.S. workers as projected in your original business plan.
E-2 Visa Alternatives: Is Another Option a Better Fit?
The E-2 can be a strong choice, but it doesn’t suit every case. The O-1 visa may be better for founders with a track record of “extraordinary ability,” while the EB-2 NIW Green Card could be a direct path to residency for those whose work has a significant impact. Because the E-2 is temporary, if a green card is part of your long-term plan, it’s common to explore these permanent-residence options in parallel.
Building Your E-2 Case: From Strategy to Submission
Understanding the E-2 requirements is the first step. The next is building a case that tells a clear, credible story about your business, your investment, and your role. Your E-2 application is more than a collection of documents; it’s the business plan for your future in the U.S.
A well-crafted strategy is often what separates a standard filing from a compelling, well-documented case. If you’re ready to see how your qualifications and business idea fit into this strategy, the next step is a simple eligibility check. Because every case is unique and this article is for education only, we invite you to connect with our team to get started—we’ll match you with a qualified visa lawyer.
FAQ
Can I use a loan or a gift for my E-2 investment funds?
Possibly. Loans secured by your personal assets (not the business’s assets) and well-documented gifts can be acceptable. In all cases, officers look for a lawful source and clear path of funds, and that the money is at risk/committed to real business expenses.Can I travel while an E-2 change of status is pending?
Traveling abroad while a change of status is pending can generally be treated as abandoning that request. Many applicants who need to travel choose consular processing instead. If a change of status is approved and you later travel, you’ll typically need an E-2 visa at a consulate to re-enter in E-2 status.Do remote or multi-location businesses qualify for E-2?
They can—if the enterprise is real, active, and non-marginal. Remote or online models often show operations with contracts, payroll, systems/equipment, and customer revenue; multi-location businesses may add leases, vendor agreements, and staffing evidence.What happens if my ownership drops below 50% after approval?
E-2 eligibility is tied to nationality and control. A post-approval drop below 50% ownership (or a sale/restructure that removes control) can be a material change and may affect status or future renewals. Many founders plan equity changes carefully and document who develops and directs the business.
Need help with your case? Schedule a call with our customer care representatives and they will be happy to discuss your needs and schedule a call with our attorney.
