Introduction
The L-1 visa is a popular option for U.S. employers to transfer executives, managers, or employees with specialized knowledge from an affiliated foreign office to a U.S. office. However, meeting the “doing business” requirement is critical for eligibility. This article explains what “doing business” means, examples of qualifying activities, and the evidence required to support an L-1 visa petition.
What Does "Doing Business" Mean for L-1 Visas?
According to federal regulations, “doing business” refers to the regular, systematic, and continuous provision of goods or services by the qualifying organization. Simply having a registered entity or an office in the U.S. or abroad is not enough.
To meet the requirement:
- Both the U.S. and foreign entities must actively engage in business activities.
- If the U.S. entity is new, you can show plans to begin doing business within the L-1 visa’s validity period.
Examples of Doing Business
Scenario 1: Both Entities Operate Independently
You own a consulting company in the UK that has:
- Operated for 10 years.
- Five employees and generates $800,000 annually from UK clients.
You also own a U.S. consulting company that:
- Has operated for five years.
- Ten employees and generates $2 million annually from U.S. clients.
In this case, both companies meet the “doing business” requirement by providing services and earning revenue from their respective markets.
Scenario 2: One Entity Provides Services to the Other
You own:
- A U.K. company that provides marketing services to a U.S. entity you also own.
- A U.S. company that sells products to clients in the U.S.
Even though the U.K. company does not sell directly to clients, it meets the “doing business” requirement because it provides services to the U.S. entity in a systematic and continuous manner.
What Evidence Should You Submit?
For entities operating independently, the applicant may provide:
- Tax returns showing revenue.
- Payroll and W-2s for employees.
- Lease agreements for office space.
For entities providing services to each other, the applicant may provide:
- Service agreements between the entities.
- Bank transfers showing payment for services.
- Proof of employees performing the services.
- Documentation of office space used by the service provider.
Why This Requirement Matters
The “doing business” requirement ensures that both the U.S. and foreign entities are legitimate and active in their respective markets. Failure to demonstrate compliance can lead to an L-1 visa denial.
Conclusion
Understanding and meeting the “doing business” requirement is vital for a successful L-1 visa application. Whether your entities operate independently or work together, providing comprehensive evidence is key.
At Scott Legal, P.C., we specialize in navigating the complexities of L-1 visa applications. Contact us today to schedule a consultation or access our free resources, including webinars and immigration guides, to help you achieve your immigration goals.
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