Opening a U.S. Office: L-1A Applications for Canadian Companies

A. The Canadian business and proposed transferee

An established Canadian company may wish to send an executive or manager to develop a U.S. operation. L-1A can be relevant to that plan, but registering the U.S. company is only one part of the assessment.

The businesses must have a qualifying relationship, such as an appropriate parent, branch, subsidiary or affiliate connection. The individual also needs qualifying overseas employment. The L framework generally requires one continuous year abroad within the relevant three-year period; how that period is calculated needs attention where the person has already worked or travelled in the United States.

Prepare the ownership structure and employment history before assuming that a founder’s title or shareholding establishes eligibility.

B. New-office requirements

For L purposes, a new office is an organization that has been doing business in the United States through a qualifying entity for less than one year. The assessment concerns business activity, not simply the date an entity was registered.

The new-office rules require evidence of sufficient physical premises. For an L-1A case, the proposed operation must also support an executive or managerial position within one year of petition approval. The business plan needs to explain how that will happen.

C. The business plan and executive or managerial duties

Describe the services or products, expected customers, funding, organizational structure and proposed staffing. Explain who will handle routine work and what the transferred executive or manager will actually do as the operation develops.

A business plan projecting rapid expansion should also explain the company’s capacity to deliver its products or services. Financial forecasts and role descriptions must be consistent with the intended operations. A plan prepared for another company may not accurately reflect the proposed business.

USCIS’s evidence guidance addresses the overseas employment, proposed duties and the new operation’s ability to support the position. Supporting records should explain those facts clearly, rather than relying on a job title alone.

D. Initial approval and the first extension

Initial approval for a new-office petition is limited to no more than one year. An extension requires evidence about the actual business, the continuing qualifying relationship and the position. Approval at the start does not guarantee an extension.

Keep organized records as the operation develops. Contracts, financial records, staffing information and explanations of the individual’s duties can help show what occurred during the initial period. If the business changes direction, review how the change affects the immigration plan.

E. Preparing for the proposed expansion

Prepare a description of the Canadian company, ownership of both entities, proposed transferee and intended U.S. operation. Include proposed leases, hiring and commencement dates, distinguishing confirmed commitments from forecasts.

Our firm can assess the proposed transfer and identify the supporting records and immigration issues to address before the expansion proceeds.

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