The E-2 Treaty Investor Visa offers a pathway for Canadian entrepreneurs to establish and operate a business in the United States. It is a popular choice for Canadian entrepreneurs as it offers a straightforward path to obtaining a visa and allows for flexibility in terms of business type and investment amount.
In this guide, we will provide you with detailed information about the E-2 visa including the eligibility requirements, application process, and key considerations for Canadian business owners.
How to Qualify for the E-2 Visa as a Canadian
To qualify, you must:
- Be a citizen of a country that has a treaty of commerce, navigation, or investment with the United States. (Canada is one of these countries.)
- Make a Substantial Investment: The investment must be sufficient to establish and operate the business and should not be primarily passive in nature. The specific amount can vary depending on the industry, location, and other factors.
- Managing Your Business: You must be actively involved in the day-to-day operations and decision-making processes of the business. Passive investments, such as simply owning property, generally do not qualify
- Demonstrate That Your Business Will Benefit the US Economy: Your business should have the ability to create jobs, generate income, or contribute positively to the US economy in other ways.
Key Considerations for Canadian Entrepreneurs
Investment Amount
The investment amount required for an E-2 visa can depend on several factors, including:
- Industry: Investments in capital-intensive industries, such as manufacturing or real estate development, may require a higher investment amount compared to service-based businesses.
- Location: Investments in major metropolitan areas or high-cost regions might necessitate a larger investment compared to smaller towns or cities.
- Business Model: The nature of your business and its scale will also determine the investment amount. For example, a franchise operation might require a higher initial investment due to franchise fees and licensing costs.
Examples of Investment Amounts
Small-Scale Business
Investments in a small-scale business, such as a retail store or consulting firm might range from $50,000 to $200,000.
Medium-Sized Businesses
Investments in medium-sized businesses, such as manufacturing facilities or regional distribution centers, could be between $250,000 and $500,000.
Large-Scale Businesses
Investments in large-scale enterprises, such as multinational corporations or major real estate developments, might require several million dollars.
It’s important to consult with an immigration attorney to get a more accurate assessment of the investment amount required for your specific business plan and circumstances. They can provide guidance on how to structure your investment to maximize your chances of success with your approval.
Business Type
While the E-2 visa doesn’t favor any particular industry, certain types of businesses are more likely to qualify. Examples include:
- IT Services: Software development, IT consulting, and cybersecurity firms
- Digital Marketing: Online advertising, social media marketing, and content creation agencies
- Home Design: Interior design, home staging, and architectural services
- Retail: Specialty stores, franchises and e-commerce businesses
- Hospitality: Hotels, restaurants, and tourism-related services
Choosing a Location
States like Florida, Texas, and Arizona are popular destinations due to their favorable tax rates, comfortable climates, and business environments. Consider factors such as market demand, competition, and cost of living when selecting a location.
The E-2 Visa Application Process
Documents Needed
Typical documents to support your E-2 visa application include but are not limited to:
- A Business Plan. This is essentially the most important document you will need to submit. This document will act as a demonstration of how you and your business will meet the requirements listed above.
- Cover Letter. Your cover letter should summarize how you meet the requirements of the E2 visa
- Form DS-160 Confirmation Page
- Form DS-156E
- Passport Biographical Page
- Bank Documents. These must show that lawfully obtained money was transferred to a US business bank account and that business related purchases were made from the account
- Purchase receipts and invoices
- Entity Formation Documents
- Escrow agreements and account information
- Tax returns
- Invoices issued to clients
- Sale agreements
- Website proof/screenshots
How to Apply: In Steps
- Gather your documents
- Submit Form DS-160
- Create an account and pay visa fees
- Submit your application package to the consulate
- Follow up with the consulate regarding your interview and submit any additional information that they request
- Attend your visa interview
- Enter the US with your E2 visa stamp and begin running your business!
Commonly Asked Questions by Canadians Who Want an E2 Visa
What Is the Success Rate of an E-2 Visa from Canada?
The success rate is very high as long as you meet all requirements! The E-2 visa approval rate for 2021 was 92.51%
How Long Is E-2 Visa Processing Time for Canadians?
It can take up to 45 days to review your E2 visa application from Canada. However, these applications are prioritized on a first-come, first served basis, so the faster you gather all of the needed documents and complete the application, the faster your application will be processed.
For this reason, it is essential to consult with an immigration attorney to determine if you are eligible and to navigate the application process successfully.
Does the E2 Visa Give Me Permanent Residency/Green Card in the US?
No. The E-2 visa is a nonimmigrant visa, which means it allows you to stay in the United States for as long as your business remains operational. If you seek a green card (permanent residency), you may need to explore other immigration options such as the EB-5 investor visa or employment based immigration.
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Meet Casey, one of VisaPlace's immigration news contributors. She brings 7+ years of experience of content creation and SEO to VisaPlace. Casey has honed her expertise in delivering comprehensive and up-to-date content on immigration-related matters. Her work not only encompasses the complex legal aspects of immigration but also highlights the ever-evolving policies, procedures, and news that impact immigrants and aspiring visa holders.
