E-2 Visa for a Holding Company: Case Study

For entrepreneurs looking to start a businesses in the United States, the E-2 visa offers a pathway to establish and manage a commercial enterprise. One particularly innovative approach is using a holding company structure. In this case study, we’ll explore how a Canadian entrepreneur successfully utilized this strategy to secure an E-2 visa, offering insights for others considering a similar approach.

The Applicant’s Background

The entrepreneur, a Canadian citizen and seasoned business leader, sought to establish business operations in the U.S. through a holding company. This Delaware-registered entity fully owned an operating company which managed two distinct lines of business:

• An Insurance Agency offering tailored insurance solutions for individuals and businesses.
• A Business Consulting Firm providing a range of advisory services for companies.

Why Use a Holding Company?

A holding company structure can provide entrepreneurs with significant flexibility. While in this case, the holding company owned a single operating company, this structure allows for the potential to oversee multiple operating businesses under one umbrella as long as each operating company is supported by a sufficient investment to ensure its successful operation. 

Investment Breakdown

To qualify for the E-2 visa, the entrepreneur demonstrated a substantial investment in his holding company. Here’s how the numbers broke down:

• Total Investment: $41,491.24
• Funds Already Deployed: $35,164

Largest Spending Categories:

• Licensing and registration fees for the insurance agency.
• Infrastructure development for the consulting business.
• Initial marketing assets for both business lines.

This investment met the E-2 visa’s requirement for a substantial, irrevocably committed investment that covered all of the start-up costs that were necessary for successful operations.

Meeting E-2 Visa Criteria

The entrepreneur’s holding company structure met the key requirements of the E-2 visa:

1. Substantial Investment
The total investment was modest compared to some industries but exceeded the startup needs of the insurance and consulting businesses.

2. Economic Contribution (Non-Marginality)
The business plan projected revenues of $124,002 in the first year and $715,586 by the fifth year. The staff was expected to grow from three employees to six by the end of the fifth year, demonstrating job creation and meaningful economic impact.

3. Real and Operating Enterprise
The businesses were fully prepared for operations, as demonstrated by supporting documentation including business licenses, marketing materials, and an EIN certification.

Client’s Leadership and Expertise

The applicant’s experience as a global financial services executive further strengthened the application. He had a proven track record of managing high-performing teams, implementing strategic initiatives, and leading multi-million-dollar projects. This background positioned him as a qualified leader to develop and direct the enterprise.

Key Takeaways

This case offers valuable insights for entrepreneurs considering the E-2 visa:

• Flexibility with Holding Companies: Consolidating multiple business lines under a holding company simplifies management and allows for growth.
• Investment Support: Each operating company should be backed by sufficient investment to ensure successful operations.
• Economic Contribution: Projections for revenue and job creation are critical to demonstrating your business’s positive impact.
• Operational Readiness: Ensure your businesses are prepared to operate with necessary licenses and infrastructure in place.

Conclusion

Using a holding company for an E-2 visa is a strategic option that offers flexibility and scalability for entrepreneurs with diverse business interests. 

If you’re considering an E-2 visa and want to explore how a holding company structure could work for your business, reach out to a qualified immigration attorney for personalized advice.

Disclaimer:
This post is for informational purposes only and does not constitute legal advice. Every E-2 visa case is unique, and requirements may vary. Consult a qualified immigration attorney to discuss your specific circumstances.