Many E-2 visa holders start their business with a specific plan. They open a restaurant, launch a consulting firm, or build a service company around a specific skill. As the business grows, new opportunities appear. Customers ask for additional services. The market shifts. The owner sees a chance to expand into something closely related, or even something new.
Selling a business can feel like a natural next step, especially when the timing is right. For an E-2 investor, however, the business is also the basis for the E-2 classification. When that business is sold or no longer operates in its approved form, the question becomes what that change means for the investor’s ability to remain in E-2 status in the United States.
What is the E-2 treaty investor visa?
The E-2 treaty investor visa allows a national of a treaty country to enter the United States to develop and direct a business in which they have invested, or are actively in the process of investing, a substantial amount of capital.
The visa is available only to nationals of countries that maintain a qualifying treaty of commerce and navigation with the United States.
Why the approved business matters for an E-2 visa
U.S. regulations state that E-2 status is approved based on specific activities presented at the time of application. An E-2 investor may engage only in activities that are consistent with the business and activity that formed the basis of the E-2 approval. When the terms or conditions of that approved activity change in a substantive way, government approval is required before relying on the existing E-2 status.
In simpler terms, this means an E-2 investor may change or expand the business, but approval is required when those changes affect the approved activities.
U.S. regulations assess business changes based on whether they affect the facts that supported the original E-2 approval. A review is required when a change alters the approved business entity, the activities through which the investor qualifies for E-2 status, or the investor’s continued eligibility under E-2 requirements. When a change does not affect those elements, prior approval may not be required. The regulations do not provide a fixed list of changes and rely instead on whether E-2 eligibility is affected.
Sources:
- USCIS. https://www.uscis.gov/working-in-the-united-states/temporary-workers/e-2-treaty-investors
- Code of Federal Regulations. https://www.ecfr.gov/current/title-8/chapter-I/subchapter-B/part-214/subpart-A/section-214.2
- Foreign Affairs Manual. https://fam.state.gov/FAM/09FAM/09FAM040209.html