The highly dynamic economy and the entrepreneurial spirit of the United States remain open to new opportunities and have offered unparalleled opportunities to immigrants. With skilled migrants dominating sectors such as IT and technology, entrepreneurs add to innovation and economic growth. This blog explores one pathway by which an entrepreneur can achieve permanent residency in the US by transitioning from an L-1A visa to an EB-5 visa.
Entrepreneurial Impact of Immigrants in the US
Illegal immigrants thus don’t only bring about low-skilled labour but also help improve innovation. William Kerr of Harvard Business School estimates that foreign-born individuals represent around 25% of America’s current inventors and entrepreneurs, which is up from only 10% in the 1970s. High-skilled immigration has therefore been crucial to productivity growth in the United States, with its influence accounting for one-third or more of aggregate productivity growth from 1990 to 2010. Immigration also caused an innovation shift to technology centres such as Boston, Seattle, and San Francisco.
Opportunities for Indian Entrepreneurs in the United States
It’s a great time for Indian entrepreneurs to start up in the US. The Indian American diaspora is doing well. 4.9 million Indians are now residing in the US, making it by far the most economically successful of all ethnic groups. The median income of an Indian household in the US is about $100.5K, a full two times higher than the median US household income. The thriving community is coupled with the good perception that exists towards Indians in America, hence providing an organic environment for new entrepreneurs.
The Pathway: L-1A Visa to EB-5 Visa
Starting a business in the US and working towards permanent residency can be effectively done using an L-1A visa and then making a successful step to an EB-5 visa.
About the L-1A Visa
The L-1A visa is available to multinational companies as a type of US work visa. It helps them transfer their executives and managers to their US offices. Applicants must have been employed overseas with the foreign company for at least one year in the last three years at either a managerial or executive level. One of the major positives for the L-1A visa is the speed at which one can be granted, in as few as 15 days with premium processing. The L-1A visa is a dual-intent visa with a maximum period of seven years, after which holders of this visa can apply for permanent residency using the EB-5 programme without jeopardising their current visa status.
The EB-5 Programme
The EB-5 visa is a job creation programme that offers qualified immigrant investors an avenue to permanent residency, a Green Card, in the US. Indian holders of the L-1A visa will be able to transition to an EB-5 visa, putting them on the road towards permanent residency. Requirements for an EB-5 visa dictate that immigrant investors must have invested at least $1.05 million, providing job opportunities for at least 10 full-time US workers. In rural areas or areas of high unemployment, this investment drops to $800,000, a route many prefer.
Why Transitioning is a Smart Move
This makes the step-down from an L-1A to an EB-5 visa quite palatable for Indian entrepreneurs. It is far easier to sustain a small business under the EB-5 programme than under the L-1A visa, with its more cumbersome hiring mandate. A U.S. company on an L-1A visa has to hire a certain number of employees within a specified period, which a small business may find hard to cope with. Failure to comply may result in the denial of L-1A extensions. One such benefit is that an EB-5 visa expands operations with the minimum complication of having to hire or assign employees mandatorily.
Making It Easy: Using Regional Centres to Meet EB-5 Requirements
Regional centres offer the easiest route for an immigrant investor to fulfil the EB-5 visa requirements. These regional centres pool their money in projects providing for the required ten jobs so that there is no such burden on the foreign business investors and instead rely on economic modelling to meet the requirements of the EB-5 rogram.
Other Advantages of the EB-5 Visa
In fact, immigrant investors who apply for an EB-5 visa can take advantage of Advanced Parole and an Employment Authorization Document upon submitting the petition. Advanced Parole will permit the alien to travel for a short or medium period without affecting his or her visa status, while the EAD will give him or her unrestricted work rights to get a social security number and open a bank account. Such benefits will accrue to the investor, provided there are available visas after a successful adjustment of status application.
Steps to Transition to EB-5: Get an L-1A Visa: Establish your business in the US and meet the hiring requirements to hold on to L-1A status.
Apply for an EB-5 visa. File for an EB-5 visa within the first few months of attaining L-1A status to get maximum benefits and to ensure a smooth transition.
Use Regional Centres: Make use of regional centres to meet the requirements for an EB-5 visa and to pave a smooth way through the process.
Conclusion
Starting and running a business in the US that offers eventual permanent residency is quite a workable and highly rewarding avenue for Indian entrepreneurs. It enables quick entry into the country through the L-1A visa and subsequently the use of an EB-5 visa to tap into strong American financial infrastructure, combined with robust market opportunities. Though complex, the journey has real advantages when thoughtfully navigated.
