The E-2 visa is a powerful tool for foreign nationals looking to work in the U.S. through a qualifying investment. But what happens if the company you’re employed by is sold? This scenario can introduce complexities, and it’s crucial to understand the potential impact on your E-2 status. Let’s explore what might happen if your company undergoes a change in ownership, particularly if it is sold to individuals or entities from a different nationality than yours.
The E-2 Visa and Ownership Requirements
The E-2 visa is granted to individuals working for a company that is majority-owned by nationals of a treaty country — a country with which the United States maintains a qualifying treaty of commerce. One of the key requirements for maintaining an E-2 visa is that the company you work for must be at least 50% owned by nationals of your treaty country.
When a company is sold, the ownership structure changes. If the new owners are not from the same treaty country as you, this could jeopardize the company’s status as an E-2 qualifying enterprise — and in turn, affect your visa.
What Happens if the Company is Sold to Non-Treaty Nationals?
If the company is sold to new owners who are nationals of a non-treaty country, such as U.S. citizens or individuals from a country that does not have a treaty with the U.S., the company would no longer qualify for E-2 status. This is because the company must remain majority-owned by nationals of a treaty country.
As a result, your E-2 visa could become invalid. In this case, you would have a few options:
- Apply for a New Visa: Depending on your qualifications and the new company’s structure, you might be able to transition to a different visa category, such as an H-1B, L-1, or O-1.
- Find Employment with Another E-2 Business: If possible, you may seek employment with another E-2 qualified business owned by nationals from your treaty country.
- Leave the U.S.: If you cannot secure another visa status, you may have to depart the U.S. once your E-2 status is no longer valid. Generally, one has 60 days to leave after their E-2 status is terminated.
Sale to a Different Treaty National: What Does That Mean for You?
If the company is sold to owners who are from a different treaty country, the business may still qualify for E-2 purposes, but your situation becomes more complex. The E-2 visa requires a close relationship between the visa holder’s nationality and the company’s ownership. So, even though the company may maintain its E-2 status, you may no longer qualify to work for that company unless you also hold citizenship from the new owner’s treaty country.
Substantial Changes and the E-2 Visa
Changes in ownership that affect the qualifying nature of the business for E-2 purposes are considered substantial changes and must be reported to U.S. Citizenship and Immigration Services (USCIS). Failing to report substantial changes can lead to serious consequences, including the potential revocation of the company’s E-2 status and your visa.
If the ownership shift is substantial, the company may need to file a new E-2 application or amend the existing one to reflect these changes. Your status may also be in jeopardy, depending on the specifics of the sale.
What Should You Do?
If you’re on an E-2 visa and the company you work for is being sold, the first thing you should do is consult an immigration attorney. The details of the sale — including whether it’s a stock sale, asset sale, or change in majority ownership — will significantly impact your visa status. Your attorney can help you determine the best course of action, whether that’s applying for a different visa, amending the E-2 status, or pursuing employment with another qualifying business. Acting quickly and understanding your options is key to avoiding falling out of status.
Conclusion
If the company you work for under an E-2 visa is sold, it’s important to assess the potential impact on your visa status. Whether the new owners are from a treaty country or not will determine if the company continues to qualify for E-2 purposes. In either case, working with an immigration attorney can help you navigate the complexities of this situation and ensure that your immigration status remains secure.
For further information on how a company sale might affect your E-2 visa or other visa-related inquiries, contact Thomas Thorup Law. Our team is experienced in navigating complex immigration matters and can provide the guidance you need.