New USA International Entrepreneur Rule Opens Doors for Business Owners: Here’s Everything We Know
The United States Department of Homeland Security has come up with a new USA International Entrepreneur Rule for investors all over the world.
The United States Department of Homeland Security (DHS) has put in place the International Entrepreneur Rule (IER) to encourage foreign entrepreneurs to come to the country. This rule permits noncitizens to remain in the country if they are engaging in entrepreneurial activity that the Minister of Immigration considers to be of benefit to the public.
The International Entrepreneur Rule is explained: These include:
Eligibility: The new rule will be applicable to those who are residing in a foreign country or even those who are already residing in the U.S.
Start-Up Requirements: The start-up must have been created in the past five years in the U.S. and should provide evidence of significant potential for swift growth and job generation in the past five years.
Funding Criteria: A minimum of 264,147 US dollars from qualified investors, 105,659 US dollars from government grants, or equivalent evidence of growth.
Parole Duration: As for a first parole, it can amount to 2.5 years, renewable for another two years. 5 years where further benchmarks are set, for a maximum total of 5 years.
Employment Authorization: The law permits entrepreneurs to work only for their start-up enterprises. However, unlike other dependents, spouses of entrepreneurs can apply for employment authorization while children cannot.
Application Process: Applicants to EAM must submit Form I-941, Application for Entrepreneur Parole, with a filing fee of $1,200 and supporting evidence. Persons desiring to engage in business from other countries would have to go to the U.S. embassy or consulate to be processed for parole. Those inside the U.S. will get their travel documents through the post or at the nearest U.S. embassy or consulate.
Certified candidates are permitted to practice for their start-up without further cumbersome paperwork. They will receive travel documentation instructions depending on the country they prefer to be provided with documents.
Ownership and Role Requirements: It is valid to note that the start-up founders must have at least 10% equity in the start-up at the time of application, and they must be actively involved in the central management of the start-up.
Start-Up Funding Requirements:
Qualified Investment: We estimate that at least $264,147 has been invested by US investors alone.
Government Grants: At least $105,659 of government awards granted by the U.S.
Alternative Evidence: Supplementary credible proof in case you get only partial funding.
That means the entrepreneur, relatives of the entrepreneur, and those with direct or indirect control over the entrepreneur or their relatives may not be considered qualified investors.
