Preparing an E-2 Application: Canadian Business Owners

A. Overview

E-2 may be available to a qualifying treaty-country national developing and directing a U.S. enterprise in which a substantial investment has been made. Canadian citizenship can satisfy the treaty-nationality component, but the remaining requirements must still be established.

B. The investment requirement

There is no single minimum figure that makes every investment substantial. The amount must be assessed in relation to the enterprise. Money that remains uncommitted or revocable generally does not establish the required investment; the funds must be genuinely committed and exposed to commercial risk.

Organize records showing the source, possession and control of the funds, as well as the expenditures or commitments. Financing arrangements need careful review because their structure can affect the analysis.

C. The enterprise and the investor’s role

The enterprise must be real and operating, meet the nationality requirements and satisfy the applicable economic conditions. A business intended only to provide a living for the investor and family, without the required broader economic contribution, may not qualify. The principal investor’s role is to develop and direct the enterprise.

The business proposal, ownership information and financial records should be consistent. The immigration implications of a proposed transaction should be reviewed before a purchase or expansion is finalized.

Our practice can help assess the immigration requirements of the proposed enterprise. Contact us before assuming that a particular purchase price or an incorporated company establishes eligibility.

General information only; it does not replace advice about an individual case.