E-2 Visa – Investor Visa For The USA

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E-2 visas are for citizens of countries with which the U.S. maintains treaties of commerce and navigation. On the basis of the Treaty of Friendship, Commerce and Navigation, which was concluded between the U.S. and the Federal Republic of Germany on October 29, 1954 and which entered into force on July 14, 1956, German citizens may apply for E-2 visas. The U.S. maintain similar contracts with most European countries (e.g. Austria, Switzerland, Poland, France and Italy) and many other countries, including New Zealand, Pakistan, South Korea, Cameroon, Senegal, Honduras and Bolivia.

The person applying for an E-2 visa must be of the same nationality as the U.S. company for which they will be working. The nationality of the U.S. company is determined by the nationality of the natural persons who ultimately own it, possibly through several intermediary companies. At least 50% of the company owners must have the same nationality as the applicant. It is important that the owners are also entitled to vote accordingly. It should also be noted that persons with a U.S. greencard are no longer considered nationals of their home country for the purpose of E-2 visas. We recommend checking in advance whether your country is one of the treaty countries: Treaty Countries.

As the previous paragraph makes clear, nationality plays a decisive role in the E-2 visa process. The applicant must have the appropriate nationality and either hold at least 50 percent of the shares (and voting rights) as an “investor” or hold a key position in the U.S. company. In addition to the owner/shareholder, only persons who, for example, have responsibility for employees as managing directors or department heads, or who have company-specific specialist knowledge that is not available on the U.S. labor market and cannot be acquired in a relatively short training period, are ultimately eligible for an E-2 visa.

As a managing director, the visa holder must be able to act freely and have a significant influence on the company's policy; a department head should be able to independently supervise and instruct his or her employees and, for example, recommend them for promotion. As an employee with special knowledge, previous work experience in a foreign group company is an advantage, although not absolutely necessary. It is also important that the applicant's special position or qualifications are reflected in their salary.

The applicant must leave no doubt that they will leave the U.S. if the conditions for their visa status no longer apply, for example if the company fails or the employment contract with the qualifying company is terminated. The consulate is required to accept the applicant's unequivocal declaration of intent. However, if it has reasonable doubts about the truthfulness of the declaration of intent, it may require sufficient ties to the home country to be proven in an appropriate manner.

USCIS distinguishes between executives/supervisors (managing directors, department heads) and employees with essential skills (company-specific specialist knowledge that is not readily available on the U.S. labor market).

Unlike tourist or business visas, for example, E-2 visa applicants do not have to maintain their residence outside the U.S. This means that young entrepreneurs, for example, can leave their home country to live and work in the USA. Theoretically, it is not even necessary to leave the U.S. to extend the necessary residence permit.

If the main applicant qualifies for an E-2 visa, their spouse and unmarried children under the age of 21 can also come to the U.S. without having to meet any special conditions. However, they must also fill out various forms.

Children are allowed to attend school or study. Since November 12, 2021, spouses of E-1/E-2/E-3 holders are automatically eligible to work (“incident to status”). An additional EAD is not required if the I-94 bears the addition E-2S. An I-765 (EAD) can be applied for optionally. For employers, the I-94 marked “S” is sufficient proof.

Since October 1, 2025, the following applies: All applicants must attend a personal interview – even those under 14 and over 79 years of age. Only narrowly defined exceptions are still covered by the interview waiver regulations.

The following naturally applies accordingly to cases from Austria, Switzerland, or other countries with which an “E-2 agreement” exists.

As already stated above, it is an essential requirement that the U.S. target company be at least 50 percent owned by German citizens if the E-2 visa is to be applied for by Germans. If, for example, U.S. citizens are also to be involved in the venture, particular attention must be paid to the German minimum shareholding of 50 percent when the company is founded. Caution is also advised if Germans who already have a permanent residence permit for the U.S. (green card) are involved or are to be involved. In this context, they are not considered German citizens.

In addition, investors should ensure that the purchase price (in the case of a participation) flows into the company via a type of capital increase and is spent on the company, i.e., it does not go to the seller of the shares. The investor should also be able to demonstrate that they not only want to continue the existing company, but also develop it further. This applies in particular to the purchase of the entire company, in which case the purchase price naturally goes to the previous owner.

Regularly document the ownership structure (cap table, register extract). If the proportion of citizens of the contracting state falls below 50 percent, companies and employees immediately lose their E status – even if the visa in their passport is still valid. In addition, visa validity/fees vary according to nationality: Reciprocity and Civil Documents by Country

It should also be noted, especially in the case of larger companies, that if the shareholder structure changes over time in such a way that the nationality-related requirements are no longer met, previously issued E visas become invalid, even if the printed validity date is still current. Employees who are in the U.S. during the change of ownership would be there illegally after the change is completed.

Not every business idea qualifies the investor or other persons for an E-2 visa. For example, an E visa will not be granted for the purchase of a piece of land in the hope of selling it at a profit in the future, nor for the purchase of a luxury apartment in New York that is to be rented out. On the one hand, goods should be produced or services offered, and on the other hand, it must be demonstrated that the daily presence of the E-2 visa holder is necessary for the success of the company.

The provisions governing the E visa state that the company must generate more profit than the investor and his family need to live on. If this is not the case, it must be demonstrated that the company offers added value to the U.S. economy, i.e., that it intends to hire U.S. employees or that other U.S. companies will benefit from it. Experience shows that the latter point is generally emphasized, meaning that it is not enough for the company to be profitable for the investor. Regardless of the company's profitability, additional conditions should therefore be met:

1. The company should employ U.S. citizens (or individuals with a U.S. green card) in a qualified position.
2. The company should, if possible, need the products and/or services of other U.S. companies to realize its own business idea.

The chances of being granted an E-2 visa increase if both conditions are met at the same time, but this is not mandatory. If, for example, the investor is unable to hire employees, this does not automatically rule out an E visa for them. Instead, special emphasis would have to be placed on demonstrating that other U.S. companies can benefit from the company to a significant extent. However, it cannot be ruled out that more emphasis will be placed on job creation in the future, so our recommendation is to employ employees (U.S. citizens or green card holders) wherever possible. The company must not be “marginal”: it should create jobs and/or generate significant economic benefits. These points should therefore be clearly included in the business plan (including planned hires, supply chains, U.S. partners, and sales).

The fact that these conditions are met and how they are met should be presented in a business plan when applying for an E-2 visa for the first time or proven with appropriate documentation when applying for an extension.

What often surprises many applicants is that the U.S. generally requires that the investment has already been made before the visa is granted; this must be proven with appropriate documentation when applying. An E-2 visa is therefore not issued so that the applicant can travel to the U.S. to make investments, but rather so that the applicant can further expand and/or manage the company in which they have already invested in accordance with the regulations. Tip: If you are reluctant to invest large sums of money before an E-2 visa is granted, you can make the relevant contracts conditional (solely) on the visa being granted, transfer the funds to an escrow account, and make their transfer conditional solely on the visa being granted.

Incidentally, the relevant legal provisions do not specify what is to be considered an investment. While the rental of office space and/or land is generally only considered an investment if and to the extent that it has been paid for in advance, the purchase (or import) of operating resources, machinery, and/or goods generally constitutes an investment without further ado. Funds in a business account are generally not accepted as investments. Investments must be “at risk” and “irrevocably committed.”

Acceptable investments include

• advance rent,
• equipment,
• machinery,
• IT,
• and construction costs.

A trust/escrow model is possible if the only condition is the issuance of a visa.

There are also no precise legal requirements regarding the amount of the investment. In the case of small investments, it must be ensured that the company is advanced to such an extent that it can commence business operations when the applicant receives the visa.

The U.S. Consulate in Frankfurt/Main is the only consulate in Germany that processes E visas. Anyone applying for an E-2 visa to register a U.S. company goes through several review and processing steps. Many applicants ask themselves: What actually happens behind the scenes? How many people see my application? How does the U.S. Consulate deal with errors or contradictions? We shed some light on the matter:

Unclear ownership structure

• The company structure is so complex that it is impossible to determine the ultimate beneficial owner(s) of the company.
• The investor does not have sufficient control over the company (e.g. too small a share of ownership or unable to manage the business operationally).
• The U.S. Consulate has doubts that the investor will “develop and manage” the U.S. company, i.e., it is not clear that he or she will actively participate and make decisions.

Insufficient investment

• The capital invested is too small or not bindingly committed (e.g. the money is still in a bank account and has not actually been invested in the business).
• The investment is not commensurate with the business (e.g. expensive business model, but only a small amount of capital invested).
• There are no rental/purchase agreements or invoices to prove the investment.

Business is “marginal”

• The business gives the impression that it is only intended to cover the investor's living expenses rather than generate genuine economic activity or local added value (e.g. no meaningful employment potential for U.S. workers, low sales/profit prospects).
• It is perceived as a passive investment (e.g. pure rental), i.e., not as an active business with growth prospects.

Lack of experience on the part of the investor

• The investor does not have enough experience in the business area, so the consulate may suspect that the business will not be run successfully.
• Based on the investor's career to date, it is not credible to show how the investor will run the business.

Other reasons for rejection

• Concerns on the part of the consular officer that the business will not be operated on a sustainable basis, but was set up solely for the purpose of obtaining a visa
• Doubts about the intention to return
• Deliberate misrepresentation
• Previous convictions or illegal activities in the past, even if they are no longer listed in the criminal record

Depending on the case, an E-2 visa is valid for two (usually for start-ups and first-time applications) to a maximum of five (usually for extensions or longer-established companies) years. When applying for an E-2 visa for the first time, the U.S. company is “registered” with the U.S. Consulate. The registration is also valid for two or five years.

While the company is registered, employees can be sent abroad in a simplified procedure. If the registration expires, it must be renewed. For companies with fewer than 25 employees, the procedure is similar to that for initial registration; for companies with more employees, there is a simplified procedure.

Extensions are possible indefinitely as long as the ownership structure, active business activity, and non-marginality continue to exist.

The IEPP is often seen as an alternative to the E-2 investor visa. However, entrepreneurs should be aware that the requirements for the IEPP are more stringent and complex than those for the E-2 visa. Read on to find out under what conditions the IEPP may still be a good option: International Entrepreneur Parole Program (IEPP) for the USA

We support you with consulate-compliant business plans, structured application preparation, and personal assistance until your visa is issued to avoid delays (RFE/221(g)). Please contact us at any time if you would like to schedule an appointment for a consultation with one of our U.S. experts – either by e-mail (info@visum-usa.com) or by telephone (+49 69 76 75 77 85 26).

Note: If you already know that an E-2 visa is the right visa for you and you therefore do not need a (fee-based) initial consultation, you can also directly commission us with the application for an E-2 visa!