Treaty Traders & Investors (E Visas)
Introduction
Treaty Trader visas (E-1) and Treaty Investor visas (E-2) are non-immigrant visas for nationals of a country with which the United States maintains a treaty of friendship, commerce and navigation who wish to go to the United States for one of two purposes: to carry on substantial
trade, principally between the United States and the treaty country (E-1); or to develop and direct the operations of an
enterprise in which the national has invested or is in the process of investing a substantial amount of capital (E-2).
Examples might help clarify the difference between the E-1 and E-2. A business located in the United Kingdom that designs
and manufactures shoes might sell many of its products in the United States. However, it has no retail stores of its own
nor any plant there. If the volume of its transatlantic trade is significant and continuous and if its UK-US trade makes
up more than 50% of its total international trade, then the business could qualify for Treaty Trader status and the owner
of the business or some of its employees might be eligible for E-1 visas. Alternatively, a British investor might purchase
75% of a restaurant located in Los Angeles. The restaurant operates at a profit and employs over 40 people, most of whom
are American citizens. If all the other conditions for the visa are met, the investor could obtain an E-2 visa to enter
the United States in order to operate his business and oversee his investment. He would also be able to send qualified
employees who are UK citizens to work in his business if they meet certain specific requirements.
The US Embassy in London has seen a dramatic increase in the number of applications for E-2 visas in the last decade.
One cause of this increase has been the strength of the pound against the dollar; another has been the growth in value of
UK real estate. Combined, these factors have resulted in large number of British investors with substantial capital who
seek to invest in the United States. The US government welcomes such investment. However, it is important for investors
to understand the purpose of the E-1 and E-2 visas so that they do not risk losing time and money in a lengthy visa process
which may not result in an approval.
The Treaty Trader and Treaty Investor visas were established to facilitate and enhance economic interaction between the
United States and other countries. They were not intended to serve as a means for foreigners to retire or merely reside
in the United States. U.S. law (see paragraph 101(a)(15)(E) of the Immigration and Nationality Act) explicitly states
that E-1 visa holders must enter "solely to carry on substantial trade" and E-2 holders "solely to develop and direct
the operations of an enterprise" in which he or she has invested. Moreover, these visas are non-immigrant visas and thus
temporary. Treaty trader/investor visas can be renewed or extended only if the investment or trade continues to meet all
applicable requirements of U.S. immigration laws and regulations. Persons wishing to remain indefinitely in the
United States should apply for the appropriate immigrant visa.
The Treaty. The United States and the United Kingdom have maintained a treaty of commerce and navigation since 1815.
In order to be covered by it, citizens of the United Kingdom must own at least 50% of the business and must actively
develop and direct that business. In addition, in order to be eligible for E visas, U.K. applicants must reside in the
British Isles. The relevant text, found at 9 FAM 41:51, Exhibit 1, says
10 United Kingdom. The Convention, which entered into force on July 3, 1815, applies only to British territory in Europe
(the British Isles (except the Republic of Ireland), the Channel Islands and Gibraltar) and to "inhabitants" of such
territory. This term, as used in the Convention, means "one who resides actually and permanently in a given place, and
has his domicile there." Also, in order to qualify for treaty trader or treaty investor status under this treaty, the
alien must be a national of the United Kingdom. Individuals having the nationality of members of the Commonwealth
other than the United Kingdom do not qualify for treaty trader or treaty investor status under this treaty.
Investors and Employees. Both owners and employees of treaty trader and treaty investor businesses receive the
same kind of visa (E-1 or E-2); the law makes no distinction between them. However, investors and employees go through
different processes to get their visas. Investors must submit a binder of supporting documents as described on the
following pages and wait until this binder has been reviewed by officers at the London Embassy. Once the review is
completed, the E-visas Unit will contact the investor to arrange an interview date. Employees of registered companies,
on the other hand, may make their appointments through the Operator Assisted Information Service.
They do not need to submit any documents in advance; however, at the interview they should present a copy of the business registration
letter given to the company by the US Embassy.
Length of Visa. The maximum length for which an E-1 or E-2 visa can be issued to a citizen of the United Kingdom
is 5 years. However, whether or not to issue for that length of time is solely the judgment of the consular officer
deciding the case. In London, we typically issue the first E-1 or E-2 for two years. We do so because most of the
businesses we see are relatively small and small businesses are volatile and often do not succeed. If we renew an E-1
or E-2 visa, we generally do so for the maximum five years although not always. In the case of large companies with high
turnover and employing many Americans, we sometimes issue the first visas for five years.
Change of Status. Investors who have changed status in the United States with USCIS must follow the steps for all
first-time investors. Such a change of status remains valid only while the applicant remains in the United States. Once
the applicant has left the United States, he or she requires an E-visa to return and resume the running of his or her
business. Change of status does not guarantee the issuance of a visa nor does it exempt the investor from the normal
process of filing documents in advance with the Embassy in London.
Dependents. The spouse and unmarried children (under 21 years of age) of treaty traders, treaty investors, or
employees of qualifying enterprises may also receive E visas in order to accompany or follow to join their spouse or parent.
They are not required to have the same nationality as the principal applicant. Spouses may work in the United States if
they have obtained an Employee Authorization Card from the Department of Homeland Security. They may apply for this card
after they enter the United States. Dependent children may not work in the United States although they may attend school.
Proper Use of B1/B2 Visas and Visa Waiver Travel for Investors. Potential investors may seek out investment opportunities,
sign contracts, and take other steps to purchase or establish a business while traveling on B1/B2 status or on the Visa
Waiver Program. However, applicants may not develop and direct a business while in such status. State Department
regulations state (9 FAM 41.31 N9.7), "an alien seeking investment in the United States, including an investment that
would qualify him or her for status as an E-2 investor, is precluded from performing productive labor or from actively
participating in the management of the business prior to being granted E-2 status." Such actions are impermissible whether
or not the investor receives any payment for his work.
For guidance on the procedures and requirements for obtaining an E visa, please click on the appropriate link below:
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E Visas