E2 Visa Approved for UK Investor in Canada: Software IP as a Substantial Investment

Successful Five-Year E2 Visa Approved for a UK Investor in Canada.

This recent success story highlights a complex E-2 visa case for entrepreneurs: qualifying for the E-2 visa primarily through the contribution of Software Intellectual Property (IP), rather than a traditional cash injection.

The Challenge:

Our client, a UK investor who was not a Canadian resident, successfully secured a five-year E-2 visa (the maximum term under the U.S.-UK treaty) for an educational software company. Uniquely, the investment was structured by contributing proprietary software—developed over the prior three years—instead of cash. Furthermore, the application was filed in Canada, despite the investor not residing in Canada or UK.

The Request for Further Evidence:

The U.S. Consulate in Toronto issued a Request for Further Evidence (RFE), specifically scrutinizing the investment. The RFE required:

Proof the software was irrevocably committed to the new U.S. entity.
Invoices and documentation detailing the cost of development.

Our Strategy:

IP Valuation: For strategic reasons, from the very beginning of this case, we used the proprietary software to meet the E-2 “substantial investment” requirement, with the investment relying entirely on the valuation of already-developed software that was already generating U.S. revenue and supporting local employees and independent contractors. We secured a professional valuation from an accredited software valuation firm, demonstrating the “substantial” nature of the non-cash investment, particularly since the software was already generating substantial U.S. revenue and had established clients and contractors.

Addressing Prior History: The investor previously held an E-2 based on an Italian passport, but we successfully transitioned the application to the UK passport to align the entire family’s nationality.

Change of E-2 Enterprise: The current E-2 visa application was submitted for a different U.S. business than the previous E-2 filing. The investor, having faced business disputes with a former partner, restructured the business under a new U.S. software company with new partners and executives.

Commitment Proof: To satisfy the RFE, we provided detailed development invoices (even though the initial work was done by the investor’s foreign company) and executed documents proving the U.S. company’s sole, irrevocable ownership of the software.

Key Takeaways:

This success story proving that software assets are a viable basis for a substantial E-2 investment. The key takeaways for this E2 visa for UK nationals are:

Third Country National Processing: This case involved processing the visas for UK citizens at a US Consulate in Canada (outside of the UK), despite that the investor and family members were not residing in Canada.
Navigating the RFE: We successfully answered the RFE, and the five-year E-2 visa was approved at the U.S. Consulate in Toronto.
Investment of Software IP: Investment of Software IP is a viable form of substantial investment when properly valued and documented.

Overview of E2 Visa

The E-2 Investor Visa is a nonimmigrant visa for nationals of treaty countries to live and work in the U.S. by investing in a US business. This visa also extends to the investor’s spouse and unmarried children under 21. Furthermore, E-2 businesses can bring employees in executive, managerial, or specialized roles essential to the firm’s operations in the U.S. You can establish a new business or buy an existing business to qualify for the E-2.

To learn more about visas for Canadians, visit E2 visa for Canadians and US visa for Canadian citizens.

To learn more about the options available for children aging out E2 visas visit Children aging out of E2 visa: What are their options?

Malescu Law can assist

This successful E2 visa approval highlights our E2 visa lawyers’ expertise in navigating complex international business immigration matters.

Contact us, your experienced immigration lawyers to schedule an appointment for your immigration case and find out more about the E-2 visa and E-2 visa for spouse and dependents, change of status to E2, applying for E2 while in US, E-2 visa renewal process, other investment visa options and other visa options to start a business in the US for you.

We serve companies and individuals across all 50 states, the District of Columbia and Puerto Rico.

Contact us or schedule a consultation.

Malescu Law P.A. – Business & Immigration Lawyers