The E-2 visa allows entrepreneurs from treaty countries to live and work in the United States by investing in a U.S. business. One common question is whether funds from a business owned in the applicant’s home country can be used as part of the E-2 visa investment. The answer is a resounding yes, provided the funds meet specific requirements regarding ownership and legitimacy.
Using Foreign Business Funds for an E-2 Visa Investment
If you own a business in your home country, you can absolutely use its funds to invest in a U.S. business or start a new one. This is a very common strategy for entrepreneurs expanding their operations. These funds can typically be accessed through:
- Loans or Distributions: Funds distributed to you as the owner (dividends) or through legitimate shareholder loans.
- Savings or Reserves: Accumulated profits or retained earnings from your foreign business that are then transferred to the U.S. entity.
Requirements for the Source of Funds
While using foreign business funds for an E-2 visa is allowed, the U.S. government requires rigorous proof that the investment money comes from a legitimate source. You cannot simply wire money and show a receipt; you must prove where that money came from originally. This means you must provide documentation showing:
Ownership of the Foreign Business
You must first prove that you have the right to these funds. This requires documents proving you own the foreign company, such as incorporation papers, shareholder agreements, or business registration certificates that list your name.
Legitimacy of the Funds
You must prove that the business itself generated the money legally. This typically requires submitting the foreign company’s tax returns, audited financial statements, or bank statements showing steady revenue. This evidence demonstrates that the company’s profits or retained earnings are legitimate and sufficient to cover the investment amount.
Transfer of Funds
Finally, you must show the path of the money. You will need bank statements or wire transfer receipts demonstrating the movement of funds from the foreign business account directly to your personal account and then to the U.S. business account, or directly from the foreign business to the U.S. entity (depending on how the transaction is structured).
Key Considerations for E-2 Visa Applicants
- Document Everything: Ensure that you maintain a clear paper trail showing the origin and transfer of funds. Every step in the chain of custody must be documented. This will help demonstrate that your investment meets E-2 visa requirements.
- Legitimacy Is Critical: U.S. immigration authorities will scrutinize the source of the funds heavily. Provide as much evidence as possible—invoices, contracts, tax records—to establish that the money is clean and lawfully acquired.
- Consult an Immigration Attorney: Structuring a transfer from a foreign entity can be complex. Working with an experienced attorney can help you prepare and organize the necessary documentation, ensuring your investment aligns with U.S. regulations.
Conclusion
Using funds from a business you own in your home country to invest in a U.S. business is entirely permissible under the E-2 visa program. As long as you can prove the legitimacy of the funds and their transfer, you should encounter no issues.
At Scott Legal, P.C., we specialize in E-2 visa applications and can guide you through the process, from sourcing funds to submitting your petition. We invite you to download our free guides, sign up for one of our free webinars where you can ask questions, or schedule a consultation with us today to learn more.
