What is an E2 Visa business plan and what should be included?
Thousands of entrepreneurs, future business owners, and people who dream of owning their own business move to the United States in search of a better quality of life and more lucrative business opportunities. There are several different visas that allow you to live, work, or study in the United States as a foreign citizen, but only a few that certain people qualify for.
The E-2 Treaty Investor Visa is a temporary non-immigrant visa for nationals of a country with which the United States maintains a treaty of friendship, commerce, and navigation who wish to go to the United States to develop and direct the operations of a company. in which the national has invested or is in the process of investing a substantial amount of capital. The mere investment of capital either starting a new business or purchasing an existing business or franchise is not sufficient to provide sufficient evidence that, as a foreign citizen, you qualify for an E2 treaty investor visa. E2 visa business plans are a critical component to a general application for an E2 nonimmigrant visa and must include certain criteria related to investment and the future well-being of the US business in question.
As stringent as the US immigration laws are, specifically as it pertains to the E-2 treaty investor visa, the goal is not only to ensure that foreign nationals meet all the required criteria, but to be successful once your immigrant visa is granted when you are present in the United States developing your business. A well-documented E2 business plan detailing the breakdown of start-up costs required to get the business up and running, or the breakdown of the costs of the business or franchise being purchased, will go a long way in not just demonstrating that the applicant meets the requirements. level of investment required, but that sufficient financial resources are available to sustain the US business for a reasonable period of time until it is profitable.
To demonstrate current or future profitability, you must provide 5-year financial projections that include profit and loss statements, balance sheets, and cash flow forecasts. Financial projections must be substantiated and supported by external sources. If the applicant is purchasing an existing business, prior tax returns and financial statements are usually provided that form the historical basis for the 5-year financial projections created as part of an E2 visa business plan. If the foreign national is starting a new business, then comparable industry profile ratios from the same industry should be used to compare the details of the line items, such as sales growth, cost of goods sold, levels inventory, gross margins, and earnings before interest and taxes. to name a few.
Outside of financial projections, there are many other aspects that make up the E2 business plan, including but not limited to an executive summary, a market analysis summary, a marketing strategy, a SWOT analysis, a personnel summary, and detailed job descriptions. According to the United States Embassy in London, they have seen a dramatic number of E2 treaty investor visa applications in the last 10 years. However, they caution that it is important for investors to understand the purpose of the E-2 visa, so that they do not risk wasting time and money in a lengthy visa process that may not result in an approval. Having a well-documented E2 immigration business plan will show that you have invested time, effort, and money to ensure that your future business strategy has a proper written plan and appropriate course of action.