The L1 visa program represents a crucial pathway for international businesses looking to establish or expand their presence in the United States. As companies increasingly seek global expansion opportunities, understanding the intricacies of the L1 visa process becomes essential for business owners, executives, and managers. This comprehensive guide addresses key questions about eligibility requirements, operational considerations, and practical aspects of obtaining an L1 visa, particularly for new office setups and small to medium-sized enterprises.
Navigating the complexities of immigration law and business establishment in the United States can be challenging, especially for those unfamiliar with the U.S. legal system. From determining eligibility criteria to understanding capital requirements and family considerations, numerous factors must be carefully evaluated to ensure a successful L1 visa application. The questions and answers below aim to clarify some of those crucial aspects and provide certain practical insights for businesses considering expansion into the U.S. market.
1. Can the L-1 business be an owner-run business, for example, a one-person consultancy? Is that person eligible for the L1 visa?
Your own company can sponsor you for the L1 visa, but if the business is owner-run and there’s only one employee—the owner—it becomes difficult to build a strong petition for the L1 visa. The L1 visa is intended for executives, managers, or employees with specialized knowledge transferring to a U.S.-based entity.
For the L1 visa to be viable, the company abroad needs to demonstrate operational capacity and a sufficient workforce. While there is no explicit regulation on the minimum number of employees required, based on experience, it’s advisable to have at least 15–20 employees in the company abroad. This creates a credible case for why a managerial or executive position is necessary.
USCIS looks for evidence that the company has substantial operations abroad and requires a manager or executive in the U.S. Smaller companies with fewer employees have had their petitions approved, but a one-person business typically doesn’t meet the threshold for demonstrating organizational complexity or operational need.
2. Is the L1A visa eligible for a partner or director who wants to move to the USA to start a new establishment?
Yes, a partner or director in a company can apply for an L1A visa to establish a new office in the U.S. However, the application must include substantial evidence showing the applicant’s involvement in the business abroad. This includes documentation of responsibilities such as managing departments, leading teams, or overseeing critical operations.
The petition must demonstrate that the applicant will continue to work in a managerial or executive capacity in the U.S. For new offices, USCIS also requires a comprehensive business plan, proof of sufficient funds to start operations, and projections for the office's growth, including hiring plans. With adequate preparation and evidence, owners and directors can successfully transfer to the U.S. under the L1A visa.
3. I am looking for a new office under the L1 visa program. Do you support finding a new office and establishing the entity in the USA?
We provide services to help establish your company in the U.S., including incorporating your business and preparing legal and compliance documentation. However, we do not directly assist with finding office space.
We recommend using online platforms like coworking space directories or commercial real estate websites to identify potential office spaces. Once you have shortlisted options, we can guide you on which office setup may align best with your business operations and visa requirements.
4. How much capital is needed to show sufficient funds for an L1 visa new office setup?
The capital required depends on the type of business you plan to establish. For example:
- Import/Export Businesses: These typically require less capital, as they don't involve extensive infrastructure. The focus is on inventory and operational costs.
- Manufacturing Businesses: These require significant upfront investments in equipment, facilities, and other infrastructure, leading to higher startup costs.
USCIS does not specify a minimum capital amount, but you need to show that your business has sufficient financial resources to support operations and sustain itself in the U.S. You’re not required to put this capital at risk immediately, but you must provide evidence—such as bank statements or financial forecasts—that funds are available. A detailed business plan with financial projections is critical to satisfying this requirement.
5. How many people can one partnership firm move under the L1 visa if there are only four partners? Can they move their families as well?
The number of people a firm can transfer depends on the business's scale and the positions being transferred. After the first year of operations in the U.S., the company must validate the need for having managers or executives on-site. For example:
- If you plan to employ 50 people in the U.S. within a year, it’s more plausible to justify transferring multiple partners or managers.
- If the U.S. operations remain small, transferring multiple individuals may not align with USCIS expectations.
Once approved for an L1 visa, spouses and children under 21 can join the visa holder in the U.S. on L2 visas. Spouses can work in the U.S. without restrictions too.
Successfully navigating the L1 visa process requires careful attention to detail and thorough preparation. While the program offers valuable opportunities for business expansion into the U.S. market, applicants must meet specific criteria regarding business operations, financial capacity, and organizational structure. Whether you're a sole proprietor, partner, or director, the key to success lies in demonstrating a genuine business need, sufficient operational capacity, and clear plans for sustainable growth in the U.S. market. By understanding these requirements and preparing accordingly, businesses can effectively utilize the L1 visa program to achieve their international expansion goals while ensuring compliance with USCIS regulations.
The questions above are compiled from the questions asked during Grape Law's webinar on L-1 visa, which have taken place on September 26, 2024. Watch the recording of the webinar here.
For more specific questions about your situation or to receive personalized guidance on your L1 visa application, please don't hesitate to contact us at [email protected].
