Types of Investment Visas
Foreign investors generally have two main options for applying for an investor visa:
- EB-5 Investor Visa
- E-2 Investor Visa (a popular choice)
Which visa is more suitable depends significantly on the individual’s circumstances and objectives. With EB-5, the investor must invest at least $1,800,000 (or $900,000 in a targeted employment area) in a company that employs ten or more U.S. workers to receive a lawful permanent residency (green card). The advantage of EB-5 is that the investor receives a permanent green card, and the overall processing time can be relatively short. Five years after obtaining the green card, they can apply for U.S. citizenship. During their stay, they can live and work anywhere in the United States, enjoying considerable benefits. However, the substantial investment requirement can be a barrier for many.
An alternative option is the E-2 visa. The main requirement for the E-2 visa is making a “substantial” investment. There is no fixed legal definition of how much “substantial” specifically is, but the required amount is typically much lower than that of EB-5, making it popular among investors seeking a smaller-scale investment option. However, it is crucial to recognize that the E-2 visa does not offer the same benefits as EB-5. Therefore, investors must carefully evaluate their situation to choose the visa best suited to their needs.
E-2 Investor Visa Eligibility and Requirements
All E-2 visa applicants must be nationals of a treaty country that has an investment treaty with the United States. Many countries—such as Canada, China, Japan, France, and Mexico—qualify, and South Korea is also recognized. Hence, any Korean national or Korean corporation can apply for an E-2 visa, regardless of whether they reside in Korea at the time of application.
As previously noted, applicants must invest a “substantial” amount. While the U.S. Embassy recommends $300,000, there is no absolute rule regarding the minimum investment. In practice, many applicants invest at least $100,000, and there are even past cases where an investment of under $100,000 (as low as $45,000) received E-2 visa approval. The exact amount required depends on the nature of the business being invested in and the proportion of the investor’s ownership relative to the total cost of the business.
Spouse and Children
An E-2 investor’s spouse or unmarried children under the age of 21 can apply for E-2 dependent visas, allowing them to live in the United States. The spouse may obtain an Employment Authorization Document (EAD) and work in nearly any job except positions requiring U.S. citizenship.
Children can attend public or private schools. However, once they turn 21, their E-2 visa status expires, so they must find another way to stay in the United States. Typically, they switch to an F-1 student visa to complete their remaining studies if that situation arises.
Important Considerations When Applying
- Risk Assumption
The investor must demonstrate that they have assumed real risk and committed themselves fully to the business. For example, this may involve paying a substantial amount of money upfront to acquire or start the business, clearly showing dedication and an acceptance of potential business failure. If USCIS perceives that the investor can easily abandon the investment without any personal risk, the visa application may be denied. Hence, it is more effective to show “I have fully prepared for and initiated this business,” rather than “I plan to start this business someday.” - Active Business Operations
The investment business must not be “marginal.” In other words, the investor should not simply be earning enough to cover basic living expenses. The business must have a positive impact on the U.S. economy—by hiring U.S. workers or generating taxable income. Consequently, it is critical to prove to the U.S. immigration authorities that the business is not marginal and that you intend to manage and operate it actively. - No Passive Investments
Since the purpose of an E-2 visa is to establish or acquire a for-profit enterprise and actively engage in its operation and management, passive investments such as stocks, real estate holdings, churches, or medical organizations (nonprofit entities) do not qualify.
Status or Visa Validity
The validity of an E-2 investor visa ranges from six months to five years. If you change status within the United States via USCIS, it typically grants a two-year stay; if you obtain the visa through a consulate, you may receive up to five years. Unlike EB-5, the E-2 visa does not provide for indefinite residency in the U.S. However, in principle, you can renew the E-2 visa indefinitely if you continue to meet the conditions. The critical point is that you must demonstrate your intention to return to your home country immediately when the visa expires. If there is any indication that you may attempt to remain in the U.S. after the visa’s expiration, the application could be denied.
Traveling Abroad After Changing Status
If you change your status to E-2 investor status while in the United States and then leave the country, you must reapply for the E-2 visa at a consulate before returning to the U.S. This is because you only changed status domestically; you did not actually obtain the visa itself. Therefore, if you anticipate frequent travel between the U.S. and Korea without restrictions, it is recommended that you obtain the E-2 visa from a U.S. consulate in the first place.
Permanent Residency (Green Card)
The E-2 visa does not directly lead to or convert into a green card. Fundamentally, when applying for an E-2 visa, the assumption is that you intend to return to your home country once your visa expires. However, if your E-2 business grows large enough to employ ten or more people, or if you serve as a manager for a multinational corporation while on an E-2, you may become eligible to apply for permanent residency. In most cases, E-2 visa holders will not obtain a green card through the E-2 alone, but it may be worth consulting with an attorney to explore alternative options.
Contact Information
The Law Office of K Choi P.C.
6131 Orangethorpe Ave. Suite 210
Buena Park, CA 90620
3435 Wilshire Blvd, Suite 1855
Los Angeles, CA 90010
(213) 285-0700 (Los Angeles Office)
(714) 295-0700 (Buena Park Office)
greencardandvisa@gmail.com
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