Transferring from F1 to E2 Visa: Process, Benefits, and Drawbacks Explained

Key Takeaways:

• The F1 to E2 visa transfer process involves treaty eligibility, investment requirements, application submission, proof of control, and intention to return.
• Advantages of transferring from F1 to E2 visa include entrepreneurial opportunities, long-term residency potential, spouse employment authorization, and children’s education.
• Drawbacks to consider are significant investment required, no direct path to green card, country-specific restrictions, and renewal scrutiny.

Navigating the Transition from F1 to E2 Visa

For many international students in the United States, the F1 visa is a gateway to higher education and exposure to the diverse business landscape of the country. However, after completing their studies, some students plan to dive into the business world. This often leads them to consider transferring their status from an F1 visa to an E2 Treaty Investor Visa. This process and adjustment of status have their advantages and drawbacks, which we will explore in this blog.

Understanding the F1 to E2 Visa Transfer Process

The F1 to E2 visa transfer involves changing one’s non-immigrant status from an academic student to a treaty investor. It is crucial that the applicant understands the stipulations of this transition. Here’s a step-by-step overview:

1. Check Treaty Eligibility: The E2 visa is reserved for nationals of countries with which the United States maintains a treaty of commerce. Confirm if your country is on the list.
2. Investment Requirement: The applicant must have invested, or be actively in the process of investing, a substantial amount of capital in a bona fide enterprise in the U.S.
3. Application Submission: File Form I-129, Petition for a Nonimmigrant Worker, with USCIS for change of status, or apply directly at a U.S. Consulate or Embassy if outside the U.S.
4. Proof of Control: Demonstrate operational control of the enterprise through ownership or a managerial position.
5. Intention to Return: Evidence of the intent to depart the U.S. upon the expiration or termination of E2 status.

Prospective E2 visa applicants can access detailed application guidelines and applicable treaties via the official U.S. Citizenship and Immigration Services (USCIS) website or the Department of State’s Treaty Countries webpage.

Advantages of Transferring from F1 to E2 Visa

Here are the E2 visa benefits that draw F1 students to make the switch:

• Entrepreneurial Opportunity: The E2 visa offers the flexibility to start and manage a business in the U.S., a significant lure for entrepreneurial spirits.
• Long-Term Residency Potential: Unlike the F1 visa, the E2 visa can be renewed indefinitely as long as the business is operational and meets E2 criteria.
• Spouse Employment Authorization: The spouse of an E2 visa holder is eligible to apply for employment authorization, giving the family additional financial stability.
• Children’s Education: Children under 21 can attend U.S. schools without requiring a separate F1 student visa.

“The E2 visa opens up new horizons for former F1 visa holders to convert their innovative ideas into commercial avenues while allowing their families to integrate more comfortably into the American lifestyle,” explains a seasoned immigration attorney.

Drawbacks to Consider Before Proceeding with the Transfer

While the benefits are compelling, there are several drawbacks to consider:

• Significant Investment Required: The investment must be substantial, putting financial pressure on the applicant.
• No Direct Path to Green Card: The E2 visa does not provide a direct path to lawful permanent residency (green card).
• Country-Specific Restrictions: Not all countries have a treaty with the U.S., and citizens from non-treaty countries are ineligible.
• Renewal Scrutiny: Every renewal process undergoes scrutiny to ensure the business is still viable and meeting E2 criteria.

Conclusion

The F1 to E2 visa transfer could be an excellent pathway for international students aiming to pursue the American entrepreneurial dream. However, the leap from F1 to E2 status demands careful consideration, substantial financial commitment, and thorough compliance with immigration laws. It’s advisable that potential applicants weigh the E2 visa benefits and drawbacks, alongside consulting with immigration experts or legal advisors, for a successful transition.

For more detailed information on the application process and requirements, you can refer to the official USCIS website or specific guidance available on the U.S. Department of State – Bureau of Consular Affairs website. Remembering that every individual case is unique, it’s essential to remain informed and prepared throughout the visa transitioning process.

Still Got Questions? Read Below to Know More:

How much money do I need to invest to meet the ‘substantial amount’ requirement for the E2 visa

The E-2 Investor Visa is a non-immigrant visa for citizens of countries with which the United States maintains a treaty of commerce and navigation. To meet the ‘substantial amount’ requirement for the E2 visa, the U.S. government has not specified an exact dollar amount. Instead, it is determined based on the nature of the business you plan to start or invest in. The investment must be large enough to ensure the successful operation of the business. Generally, the amount is considered “substantial” if it fulfills the following criteria:

• It represents a significant proportion of the total investment needed to either purchase an established enterprise or to create the type of enterprise contemplated.
• It is sufficient to ensure the treaty investor’s financial commitment to the successful operation of the enterprise.
• It is of a magnitude to support the likelihood that the investor will successfully develop and direct the enterprise.

Here are some general guidelines relating to the investment amount:

• For smaller businesses, the investment must be high enough to start and operate the business. Amounts less than $100,000 might still be substantial, but they would require stronger evidence to support the case.
• For larger enterprises, while there’s no set minimum, an investment amount closer to $200,000 or more might typically be more in line with the substantiality requirement.

Each E-2 application is evaluated on a case-by-case basis, so it’s important to demonstrate not just that the capital is substantial but also that the investment is not marginal, meaning the business must have the capacity to generate more income than just to provide a living for the investor and their family.

For the most accurate and complete information, you should consult the U.S. Department of State’s E Visa page and U.S. Citizenship and Immigration Services (USCIS) website, or consult with an immigration attorney.

• U.S. Department of State – Bureau of Consular Affairs: E Visas
• U.S. Citizenship and Immigration Services (USCIS): E-2 Treaty Investors

Can my spouse work in any field with an E2 visa, or are there job restrictions

If you are the principal holder of an E2 Treaty Investor Visa, your spouse is eligible to apply for work authorization in the United States without any specific restrictions on the field or type of employment. Once your spouse receives an Employment Authorization Document (EAD), they can work for any employer, start their own business, or engage in any lawful employment.

The process involves filing Form I-765, Application for Employment Authorization, with U.S. Citizenship and Immigration Services (USCIS). According to the official USCIS website:

“If USCIS approves the application for employment authorization, your spouse will receive a Form I-766, Employment Authorization Document (EAD).”

You can find more information about this form and the application process on the USCIS website.

It’s important to remember that the employment authorization for your spouse is not automatically granted with the E2 visa and must be applied for separately. The work authorization will need to be renewed periodically, and it is essential to keep track of the expiration and renewal dates to maintain lawful employment status. You can find detailed information on how to apply for EAD renewal on the USCIS page about renewing EAD.

If my home country doesn’t have a treaty with the U.S., what other visa options do I have after F1 for starting a business

If your home country does not have a treaty with the U.S. that would allow for treaty trader (E-1) or investor (E-2) visas, and you are looking to start a business in the U.S. after your F1 visa, there are several other visa options you may consider. Here are some alternatives:

1. H-1B Visa: This is a non-immigrant visa that allows U.S. employers to temporarily employ foreign workers in specialty occupations. If you have at least a bachelor’s degree and the business you want to start is in a specialty occupation field, you may be able to self-petition or have your business petition for an H-1B visa on your behalf.
   • Refer to U.S. Citizenship and Immigration Services (USCIS) H-1B visa for more information.
2. O-1 Visa: If you have extraordinary ability in the sciences, arts, education, business, or athletics, or if you have a demonstrated record of extraordinary achievement in the motion picture or television industry, you may qualify for an O-1 visa. This visa is for individuals with a high level of expertise and recognition in their field.
   • Check out USCIS O-1 visa criteria for further details.
3. L-1 Visa: If you have worked for a company outside the U.S. that has a parent, subsidiary, affiliate, or branch in the U.S., and you are looking to transfer to the U.S. branch to work in a managerial, executive, or specialized knowledge capacity, the L-1 visa might be suitable.
   • For more on this, visit USCIS L-1 visa information page.

Additionally, if you intend to invest a significant amount of capital in a new commercial enterprise that will benefit the U.S. economy and create jobs, you may be eligible for an EB-5 Immigrant Investor visa leading to a green card.

“The EB-5 program is intended to encourage both ‘foreign investments and economic growth’. The EB-5 Immigrant Investor Program provides a method for eligible Immigrant Investors to become lawful permanent residents—informally known as ‘green card’ holders—of the United States.”

If you’re interested in this permanent residency option, the details can be found at USCIS EB-5 Immigrant Investor Program.

When considering any of these visa options, it is essential to consult with an immigration attorney who can provide guidance based on your individual circumstances and the latest immigration policies and procedures.

Are there age limits for my children to benefit from education facilities on my E2 visa status

Yes, there are certain age limits for your children to benefit from education facilities while you are in the United States on an E2 visa. An E2 visa allows a national of a treaty country to enter the United States when investing a substantial amount of capital in a U.S. business. Dependents of the E2 visa holder, which include the spouse and unmarried children under 21 years of age, are also eligible to accompany them under E2 dependent status.

For education purposes, your children can attend U.S. schools, both public and private. However, once they reach the age of majority, typically 18 or 21 depending on state laws, they would no longer be considered children under your E2 status for the purpose of derivative benefits. This means they cannot continue to stay in the country as E2 dependents once they turn 21. They would need to switch to their own visa status, such as F-1 student visa if they are full-time students, in order to continue their studies or remain in the United States.

To consolidate information on education benefits for children of E2 visa holders, you can visit the U.S. Department of State’s Bureau of Consular Affairs website or the U.S. Citizenship and Immigration Services (USCIS) for more detailed guidance on visa statuses and associated benefits:
– U.S. Department of State – Bureau of Consular Affairs
– U.S. Citizenship and Immigration Services (USCIS)

What happens to my E2 status if my business fails or I choose to close it

If your business fails or you decide to close it, this impacts your E-2 visa status because the visa is dependent on the business’s operation. Here’s what you need to know:

1. Need to Leave or Change Status: The E-2 visa is strictly for investors to oversee and direct the operations of their investment. If the E-2 business is no longer viable or functioning, you are expected to leave the United States or change your nonimmigrant status. According to the U.S. Citizenship and Immigration Services (USCIS), “If your E-2 status changes while in the United States, you are required to change your nonimmigrant status or depart from the United States.”

2. Grace Period: In the event that your business fails or you choose to close it, the government may allow a grace period for you to settle your affairs before leaving the country. However, this period is typically short (usually up to 60 days), and it’s not guaranteed. You should plan accordingly and consult with an immigration attorney to discuss your options.

3. Options After Closure: If your business closes, you may have a few options, such as:

   • Applying for a different visa status if you meet the eligibility requirements for that specific visa.
   • If you have substantial ties to another country you could return there and potentially apply for another E-2 visa in the future with a different business venture.

It’s essential to maintain legal status while you are in the U.S. and take timely action if your business circumstances change. For official guidance and the most current information on E-2 visas and the impact of business closure on your status, you should refer to the USCIS website or consult with an immigration attorney. Here’s a link to the USCIS E-2 Treaty Investors page for further details: USCIS E-2 Treaty Investors.

Learn today

Glossary or Definitions:

1. F1 Visa: A non-immigrant visa that allows foreign students to pursue academic studies in the United States.

2. E2 Treaty Investor Visa: A non-immigrant visa that allows individuals from countries with which the United States has a treaty of commerce to invest in and operate a business in the United States.

3. Change of Status: The process of changing one’s non-immigrant visa status to a different non-immigrant visa category while remaining in the United States.

4. Treaty Eligibility: The requirement that the applicant’s country of origin must have a treaty of commerce with the United States to be eligible for the E2 Treaty Investor Visa.

5. Investment Requirement: The applicant must have invested, or be actively in the process of investing, a substantial amount of capital in a bona fide enterprise in the United States.

6. Form I-129: The official USCIS form, known as “Petition for a Nonimmigrant Worker,” which is filed to request a change of status to the E2 visa.

7. USCIS: United States Citizenship and Immigration Services, the government agency responsible for processing immigration applications and petitions within the United States.

8. Bona Fide Enterprise: A legitimate and genuine business entity that a foreign investor intends to operate in the United States.

9. Operational Control: Demonstrating control of the enterprise through ownership or holding a managerial position within the business.

10. Intent to Return: Providing evidence that the applicant intends to depart the United States upon the expiration or termination of E2 status to show non-immigrant intent.

11. Employment Authorization: The permission granted to a non-immigrant visa holder to work legally in the United States.

12. Green Card: Common term for a Lawful Permanent Resident (LPR) card, which grants an individual lawful permanent residency in the United States.

13. Treaty Countries: Countries with which the United States maintains a treaty of commerce, making their citizens eligible for certain non-immigrant visas, such as the E2 Treaty Investor Visa.

14. Financial Viability: A measure of the sustainability and profitability of a business, which is assessed during the scrutiny process for renewal of the E2 visa.

15. Immigration Laws: The legal framework and regulations governing the entry, stay, and legal status of foreign nationals in a country.

16. Bureau of Consular Affairs: A division of the U.S. Department of State responsible for visa services, including visa application guidelines and requirements.

17. Compliance: Adhering to and following the rules, regulations, and requirements of immigration laws to ensure lawful status and avoid violations.

18. Non-immigrant Visa: A temporary visa granted to individuals who have a specific purpose for their stay in a foreign country and intend to return to their home country.

19. Nonimmigrant Worker: An individual who is authorized to work in the United States temporarily under a non-immigrant visa category.

20. Legal Advisor: An individual, such as an immigration lawyer or consultant, who provides legal guidance and advice on immigration matters.

If you’re an international student dreaming of turning your post-graduation plans into a thriving business in the US, consider the F1 to E2 visa transfer. With its entrepreneurial opportunities, long-term residency potential, and benefits for your family, it’s worth a closer look. Just keep in mind the investment required, lack of direct path to a green card, and country-specific restrictions. Dive deeper into this exciting visa option at visaverge.com. Good luck on your entrepreneurial journey!