E-2 New Enterprise
E-2 Visa for a Startup Business
How a newly formed U.S. company can establish investment, operational readiness, substantiality, marginality, and investor control before it has a lengthy business history.
Direct answer
What the governing framework requires
A startup can qualify for E-2 even without years of operating history. The investor must nevertheless show a genuine and sufficiently developed commercial enterprise, qualifying capital that is committed and substantial for the business, credible future economic capacity, and the investor's ability to develop and direct the company.
01 · Legal Framework
The FAM expressly allows a new enterprise
9 FAM 402.9-6(C) recognizes that the investment may relate to a new enterprise.
The officer must be satisfied that the venture will be a real and active commercial undertaking producing a service or commodity if the visa is issued.
This permits a startup to qualify before it has the same historical evidence as an established business.
02 · Operational Readiness
The startup should move beyond preliminary planning
A startup filing is stronger when the business is positioned to commence normal operations rather than remaining at an exploratory stage.
Depending on the industry, this may include premises, equipment, licensing, inventory, vendors, software, insurance, contracts, website development, marketing, staffing, and funded operating accounts.
03 · Capital
Startup substantiality depends on the actual cost of establishing the business
The proportionality test compares qualifying committed investment against the cost of establishing the type of enterprise being created.
A credible startup budget should distinguish expenses necessary to create the enterprise from money that remains merely available for future use.
04 · Future Capacity
A startup can rely on credible projections
New businesses frequently rely on future economic capacity to satisfy marginality.
The FAM states that projected capacity should generally be realizable within five years after normal business activity begins.
The projections should be tied to a realistic staffing and operating plan.
05 · Location
A startup does not universally need traditional office space
The current FAM states that physical office space is not itself a universal E visa requirement.
The location should instead make sense for the actual business. A warehouse business and an online consulting company naturally require different infrastructure.
06 · Evidence
Startup evidence should demonstrate that the plan is becoming a real business
- Entity formation
- Ownership records
- Source of funds
- Investment schedule
- Lease or operating location evidence
- Licenses
- Equipment and inventory
- Vendor and customer records
- Business plan
- Hiring plan
Questions and answers
Frequently asked questions
Can a brand new business qualify for E-2?
Yes. A new enterprise can qualify if the record shows it will be a real and active commercial enterprise and the other E-2 requirements are met.
Does the startup need revenue before filing?
Not necessarily. Operational readiness and credible future capacity can be important where normal operations have not yet begun.
Does the startup need employees before filing?
Not universally. Staffing should be appropriate to the business and the marginality record.
Does a startup need an office?
Not as a universal legal requirement. The business infrastructure should be credible for the particular business model.
How much must be spent before filing?
There is no universal dollar figure. Qualifying capital must be committed and substantial in relation to the actual startup cost.
Is a business plan important for a startup E-2?
Yes, particularly for operational readiness, future capacity, staffing, and marginality, but it should be supported by objective evidence.
Case-specific review
Build the startup around the E-2 legal requirements
A review can identify whether investment, readiness, projections, infrastructure, and control are sufficiently developed before filing.
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