E2 visa for Canadian Investors

Last Updated on October 25, 2024 by Anda Malescu

This article delves into the specifics of the E2 visa for Canadian investors and the immigration process to the United States.

While the E2 visa program is open to citizens of many treaty countries, it’s particularly popular among Canadians seeking to invest and do business in the US. The E2 investor visa enables Canadian citizens to invest in a US business and enter the United States to develop and direct the business. In addition to the investor visa, it allows Canadian investors to bring executives, managers and essential employees from Canada to support their business operations.

Moreover, the E2 visa also allows the investor to bring their spouse and unmarried children under the age of 21, and can be renewed indefinitely.

This pathway offers an opportunity for Canadian entrepreneurs to obtain a US visa and potentially remain in the United States indefinitely to manager their business.

Our experienced immigration lawyers have a proven track record of successfully guiding Canadian investors through the E2 visa process. We’ve helped countless clients obtain E2 visas through both the US Consulate in Toronto and domestic change of status for Canadian nationals. By working closely with our Canadian clients, we strive to achieve optimal results for each E2 immigration petition.

What is E2 visa?

The E2 Visa is a nonimmigrant visa for investors and entrepreneurs from treaty countries who are looking to do business in the United States. To qualify for E2 visa, you can start a business in the US, or purchase an existing business or franchise. To learn more about franchising in the US, visit franchising solutions.

Additionally, the E2 visa also enables you to bring executives, managers and essential employees from your home country to the US on E-2 visas. These employees can provide crucial support in managing and growing your business.

While the E2 visa allows you to live and work in the US, it’s important to note that it’s a nonimmigrant visa. It does not automatically lead to permanent residency (green card). However, you can explore options for obtaining a green card separately, subject to specific eligibility criteria. In other words, the E2 visa is a strategic step in obtaining a green card in the future, but it is not a direct path to permanent residency.

The E2 visa offers Canadian entrepreneurs a chance to experience the US business environment, and live and work in the United States. Your spouse and unmarried children under 21 can accompany you on E2 dependent visas for family members.

To learn more about dependent children aging out of E2 visa, visit Children Aging Out of E2 Visa: What are Their Options?.

Who is eligible for E2 visa?

To be eligible for E2 Visa, you must be a Canadian citizen, born or naturalized. Permanent residents of Canada do not qualify for E2 Visa, but they may be eligible if their country of citizenship has an E-2 Treaty with the US. Visit the full list of E2 countries for up to date information.

E2 visa for Canadians starting a US business

Canadians can obtain an E2 visa for establishing a US business.

While incorporating a US business is a crucial step, it’s not enough to qualify for an E2 visa. Your business must be operational or nearing operational status by the time your visa is approved.

There are two key points to remember:

Operating business: If your business is already operational prior to visa approval, then you’ll need to hire US workers to manage and run the day-to-day operations.
Work authorization: As a Canadian investor, you can only work for your business with an E2 visa.

Canadian investors can qualify for an E2 visa by either starting a new US business or purchasing an existing business, including franchises. Regardless of your chosen path, ensuring you meet all E2 visa requirements is crucial for a successful application.

E2 visa requirements for Canadian citizens

Canadian citizens must meet the following requirements to qualify for E2 visa:

The investor has invested or is in the process of investing in a US business. For Canadian investors buying an existing US business or franchise, the purchase price itself counts as the E2 investment. When starting a new business, investments in premises (lease or purchase), technology, personnel, equipment, marketing, inventory and professional services all contribute towards the required investment amount. Remember, the investment must be substantial and irrevocable. This means the funds are placed at risk of loss if your E2 visa is denied.

The business is real and operating. As a Canadian investor, to qualify for an E2 visa, your US business must be actively engaged in producing goods or services. Passive investments, such as owning land, stocks, bonds, or real estate without active management, do not meet the E2 visa criteria.

The investment is substantial. The key for Canadian citizens is to demonstrate a substantial investment that shows your commitment to the business’s success and its potential to create US jobs. While investments around $100,000 are common for Canadian investors, the specific amount depends on your business plan and other factors. We’ve even helped Canadians secure E2 visas with lower investments.

The business is not marginal. Your business must show potential to generate significant revenue and create jobs for US workers. The business should not simply cover your living expenses. A comprehensive E2 business plan is mandatory startups to showcase your business’s viability and economic impact.

The applicant is in a position to develop and direct the business. Canadian investors must own at least 50% of the US business they invest in. Even if ownership is less than 50%, you can still qualify if you have a position that allows you to actively develop and direct the business.

The applicant intends to depart the United States when the E2 status ends. You must maintain the intention to return to Canada upon the expiration of your E2 status. However, this does not preclude you from renew your E-2 visa multiple times, as long as your business remains operational and employs US workers.

Can Canadian employees get an E2 visa?

Canadian managers, executives, or essential employees with specialized knowledge workers can obtain E2 visas to work in the US. The employer’s E2 visa status does not automatically qualify Canadian employees for an E2 visa.

US companies owned by Canadian individuals or businesses can sponsor qualified Canadian managers, executives, or specialized knowledge workers for E-2 visas. However, these employees must meet specific criteria, regardless of the owner’s E2 visa status.

E2 Investment for Canadian citizens

The E2 investment for Canadian citizens must be sufficient to give the business a decent chance to become successful. Therefore, the capital required for the E-2 visa varies based on the type of business.

Additionally, the location of the US business matters. For example, to open a restaurant in rural Louisiana, you need to invest less than $70,000. However, to open a restaurant in Miami it may cost more than half a million dollars.

How can you get an E2 visa?

We recommend Canadian citizens to consult an immigration lawyer at the onset of the E2 visa process. This ensures your investment strategy aligns perfectly with E-2 visa requirements.

Our experienced E2 Visa lawyer can advise you on a variety of questions including best businesses to invest in for E-2 visa. Moreover, our attorney can assist with structuring the transfer of funds and establishing the origin of the investment. We can also address ongoing questions, prepare the application and prepare you for the E2 interview. Finally, we can represent you before the US Consulate in Toronto.

You have several options to qualify for E2 visa: purchase an established business or franchise, invest in an existing business with a partner, or launch a new business. Each option requires careful planning and consideration.

As part of the E2 visa application, a Canadian investor may need assistance with:

Business formation
Business licenses and permits
Asset purchase agreements
Joint venture agreements
Franchise agreement
Franchise disclosure documents
E2 business plan
Others

E2 Visa Processing for Canadian Citizens

New Applications and Renewals:

US Consulate Toronto: All new E2 visa applications and renewals for Canadian investors must be processed through the U.S. Consulate in Toronto.

Dependents and Employees:

Multiple Consulates: Dependents of current E2 visa holders and employees of registered E-visa companies can apply at U.S. Consulates in Calgary, Montreal, Ottawa, Vancouver, or Toronto.

Apply at US Consulate Toronto

Once you’ve finalized your investment, your lawyer prepares your E-2 visa application. This includes gathering all supporting documents and evidence to prove your eligibility. The application then heads to the U.S. Consulate Toronto.

You must attend an E2 interview at the U.S. Consulate Toronto. During the interview, consular officers will assess your application and ask in-depth questions about:

Your U.S. Business: Be prepared to discuss your business concept, operations, and potential for success.
Investment Details: Explain the source and structure of your investment funds.
Business Plan: Showcase your comprehensive plan for establishing and running your U.S. business.

In 2024, the wait time from application submission to interview is usually around 4–6 weeks, but this can change.

You can also bring your dependent spouse and children under 21 to the interview. If you are approved, then your spouse and children get E-2 dependent visas.

Canadian citizens who are in the United States can alternatively apply for E-2 visa via a request for change of status with the U.S. Citizenship and Immigration Services (USCIS). To learn more, visit Change of Status to E2 while in the US.

How long can you stay in the US with an E2 visa?

E2 visas for Canadian citizens are typically valid for five years. However, consular officers have the discretion to issue them for shorter durations in some cases.

E2 visas allow Canadian citizens and their families multiple entries into the US. Upon each entry, US Customs and Border Protection (CBP) typically grants a stay of up to two years. This flexibility enables frequent travel between Canada and the US during the E2 visa validity period.

To renew your E2 status, simply travel outside the US during your E-2 visa validity period. Upon re-entry, CBP will typically grant you another two-year stay.

How can you renew an E2 visa?

Canadian investors can renew the E2 visas at US Consulate Toronto. The process is similar to applying for an initial E2 visa.

Much like the initial application, renewal hinges on your business’s success. If the business is successful, has hired US employees and generates revenue, the US Consulate in Toronto generally renews the E2 visa for 5 years.

Alternatively, you can renew your E2 visa with USCIS. If you are in the United States and cannot travel to the US Consulate Toronto, you can renew the E-2 status by requesting an extension of stay with USCIS.

Green card path for E2 visa holders

Canadian citizens with E2 visas can apply for green card. However, you do not automatically qualify for a green card by simply holding an E2 visa.

To apply for green card, Canadian E2 visa holders need to find a green card option suitable for their circumstance. There’s no single “best” green card path for everyone. Factors like your finances, business type, qualifications, and family situation all play a role.

There are options for Canadian E2 visa holders to potentially self-sponsor their green card applications.

Here are some of the most popular self-sponsored green card options for Canadians:

EB-5 Investor Green Card – requires an investment of $1,050,000 or $800,000 if the business is in rural or high unemployment area. The business must create 10 full-time jobs for US workers.
EB-2 NIW (National Interest Waiver) – EB-2 NIW green card is for people with an advanced degree (or Bachelor’s degree and 5 years of progressive experience) or exceptional ability in arts, science or business.
EB-1 – Green card program for extraordinary ability in sciences, arts, education, business, or athletics, professors and researchers or multinational executives or managers.

Malescu Law can assist

We have successfully assisted many Canadian citizens in securing E2 visas for themselves and family members.

If you are a Canadian citizen interested in obtaining an E2 visa, contact us or book a consultation with our experienced E2 visa lawyers. Every business is unique.

We serve investors, businesses and entrepreneurs across all 50 states, the District of Columbia and Puerto Rico.

Malescu Law P.A. – Business & Immigration Lawyers

E2 visa for Canadian Investors