L-1 New Business Overview
The New Business L-1 nonimmigrant visa gives a newly-established U.S. company the opportunity to start and build its U.S. business for a one-year period.
Requirements of L-1 New Business
General Requirements are the same as a regular L-1 visa. The initial approval period, however, is only one year.
- Qualifying Corporate Relationship: The sponsoring U.S. petitioner and the foreign employer of the multinational transferee must share at least 50% ownership.
- Employment Abroad: The multinational transferee must have been employed at a qualifying foreign entity for at least 1 year in the last 3 years prior to the U.S. transfer in a qualifying executive, managerial or specialized knowledge position.
- Offered U.S. Position: The multinational transferee must be coming to serve in a qualifying executive, managerial or specialized knowledge position.
Key Features of the New Business L-1 visa
- Definition of New Business: The U.S. petitioner should be a newly-established entity of one year or less.
- Employees in the U.S.: One of the benefits of a New Business L-1 petition is that there need not be any employees hired in the U.S. at the time of filing.
L-1A
If you plan to hire at least 1 professional level subordinate within the 1st year of business, a managerial position in the U.S. may be the appropriate.
L-1B
If there are no immediate hiring plans, it may be necessary to assess whether the multinational transferee has any specialized knowledge.
- Initial Capital: We recommend that the U.S. bank statements show sufficient initial capital to sustain the U.S. business for at least one year. However, unlike an E-2, there is no requirement that any investment amount be spent prior to filing.
- Commercial Office Lease: All L-1 visas require evidence of adequate commercial office space (not a home office or garage) to support the U.S. operations.
- Detailed Business Plan: A New Business L-1 petition requires a comprehensive business plan that includes a 5-year revenue and expense projections, as well as hiring plans for each year.
- Doing Business in the 1st Year: While New Business L-1 petitions generally a strong approval rate, the more difficult challenge is the first extension which must be filed within the one-year period. To obtain an extension, you must demonstrate that U.S. business has engaged in regular, systematic, and continuous business activities since the initial filing. Merely hiring employees or listing potential clients may not be sufficient, absent additional evidence of meaningful business transactions such as executed purchase orders, service agreements or generated income.
