L-1 for USA
Overview
Managers, executives, and other key employees with specialized knowledge of said companies that have, or wish to establish, U.S. offices may need to transfer these employees overseas to the U.S. The L-1 Visa (Intra-company Transferee) enables these employees to work temporarily in the United States at the U.S. parent, subsidiary, affiliate, or branch office.
Procedures & Requirements
- A qualifying relationship must exist between the foreign company and the U.S. company
- The employee (foreign national) should have completed one continuous year of employment outside of the U.S. with the overseas company within the preceding three years before a such employee can be transferred to the U.S. parent, subsidiary, affiliate, or branch office
Related Issues
- L-1 Visas are initially granted for three years or one year in those cases where the foreign national is coming to the U.S. to establish a U.S. office. This status can then be extended – the total period of stay may reach seven years for L-1A managers and executives, and five years for L-1B specialized knowledge personnel
- Spouse and unmarried child(ren) of L-1 are allowed to accompany/join the foreign national in L-2 status. L-2 spouses are allowed to work whereas L-2 children are not, though they can attend school or college
- Large employers have the ability to file blanket L-1 petitions with the USCIS instead of filing separate petitions for each individual employee.
- At present, there is no annual cap for L-1 visas.
Procedures & Requirements
- No Quotas. Unlike some other visa categories, there are no annual limits on the number of visas available to certain countries.
- Fast Processing Times. The average processing time is between 3-6 months. Premium Processing is also available by paying an additional fee of $2,500. With the premium processing, USCIS is required to respond within 15 business days.
- Family. L1 Visa holders are permitted to take their spouses and dependent children with them to the United States on the L-2 visa.
- Work Authorization. Spouses are permitted to apply for work authorization once they enter the US to work for any US employer.
- Tax Advantages. The L1 visa is a non-immigrant visa, which means it does not offer permanent residency (Green Card). While Green Card holders may be taxed on worldwide income, non-immigrant visa holders are generally not. (You should still consult a tax professional if you want to make sure that you will not be considered a US tax resident)
- Transition to Green Card. It is possible to transition to a Green Card through the L-1A visa category. The criteria for L-1A are very similar to the criteria for the EB-1C category for Multinational Managers or Executives, which makes it easier for L-1A holders to become permanent residents. The L1 visa category is also considered a dual intent visa.
The L-1A category of visas is for the transfer of manager and executive-level employees from the overseas office to the US office of the same company. It is important to be able to document clear managerial responsibilities with significant authority in the company. The L-1A is initially valid for up to three years if the US firm has been in operation for at least one year. The L-1A can then be renewed in two-year increments up to a maximum of seven years. If the US business has not been in operation for at least one year, this is considered a New Office L-1A application, and the initial validity is just one year. After seven years, the L-1A holder must return home or transfer to another visa. The EB-1c visa offers permanent residency to qualifying management and executive-level employees.
The L-1B category of visas is for the transfer of employees with specialized knowledge from the overseas office to the US office of the same company. “Specialized knowledge” offers considerable scope for interpretation and it is important to work with a highly experienced immigration attorney who can help you understand whether you have grounds to claim a visa using L-1B status. Here at Davies & Associates, we offer free initial consultations with an experienced L1 visa attorney to establish whether you have a strong case for applying for the L-1B Visa.
The L-1B is initially valid for three years unless the US office has been in operation for less than one year, in which case the initial visa validity is one year. The L-1B can be renewed in two-year increments up to a maximum of five years.
If you are a manager or executive in the United States on an L-1A category visa, you may apply for permanent residency (Green Card) through the EB-1c visa. A key requirement of EB-1c is that the manager or executive must have worked outside the US for at least one of the preceding three years before you entered the United States on an L-1A. The L1 Visa is a “dual intent visa”, which means that you are permitted to search for alternative visas and permanent residency and do not need to prove an intention to return home. One of the main benefits of EB-1c is that you are not required to obtain labor certification.
L-1B Visas for employees with specialized knowledge are valid for a maximum of five years after this time you must leave the country or switch to another visa. For L-1A holders this usually means the EB-1c route for managers and executives. This is unlikely to be an option for L-1B holders. The L-1B holder may be able to build a case for an EB-2 visa (advanced degree) or an EB-3 visa (highly skilled worker). Both EB-2 and EB-3 are immigrant visas, which means they offer permanent residency (Green Cards).
A successful L1 applicant applying for a visa under an L1 visa can take their spouse to the United States, as well as any dependent children under the age of 21. Spouses are eligible to apply for work authorization to work in the United States. They are not restricted to working in the same L1 business as their spouse.
The L1 USA visa also enables a foreign company that does not yet have a qualifying U.S. office to send an executive or manager to the United States with the purpose of establishing one. The foreign company must have been in operation for at least a year. The new US office and the foreign company must have a qualifying relationship (parent-subsidiary, affiliate, branch, or joint venture partner) but do not necessarily need to operate in the same market or industry. New-office L1s are initially granted for up to one year and extendible in increments of two years.
Foreign Company Documentation
The following is generally expected from the overseas business entity:
- Articles of incorporation
- Business License
- Income tax filings for the past three years
- Audited accounting reports (e.g., balance sheets, profit and loss statements, cash flow reports, etc.)
- Organizational chart, which should include the total number of employees and indicate the position held by the transferee
- Company brochure or product introduction
- Documentation of business transactions (e.g., commercial contracts, invoices, bills of lading, letters of credit, etc.)
- Bank statements or transactional records
- Company letterhead with company logo, name, and address (several sheets)
- Pictures of the company’s main office, factories, or buildings (disregard if already included in the company brochure or product introduction)
L1 Beneficiary Documentation
The following is generally expected from the alien beneficiary::
- Resume
- Diploma
- Employment verification letter from the foreign company
- Board resolution or appointment documents verifying the transfer of the alien to the U.S.
- Any other documents showing the transferee’s ability to conduct business in the executive, managerial, or specialized knowledge capacity
The L1 visa does not require an investment as part of the application. However, there must be an operating U.S. entity for the applicant to transfer to. For people seeking a New Office L1, the U.S. entity must be set up in advance and there may be investment associated with this. It is important to demonstrate that the US company is sufficiently capitalized to support its operations and elevate the beneficiary to a managerial or executive position. Our team of corporate lawyers works closely with our immigration attorneys to ensure a smooth process.
Opening a business in the US is very straightforward. Things you will need to consider include:
- Forming a US Business
- Obtaining a US Federal Taxation Registration
- Obtaining a State Tax Registration
- Obtaining a State Tax Registration
- Obtaining Necessary Licenses and Permits
- Filing to Protect your Trademarks and Patents
- Having an Employment Agreement that Protects your Trade Secrets and Clients Lists
- I-9 and Other Compliance Issues
- Drafting or Reviewing a Franchise Agreement, If Applicable
Our legal specialist corporate legal team can assist with all of these legal issues.