A Short Guide to the L-1 Visa: Requirements, Process, and Benefits for U.S. Expansion | Scott Legal, P.C. (2024)

The L-1 visa allows companies to transfer employees from a foreign office to a U.S. office. It includes two main categories:

• L-1A: For managers and executives. This visa is renewable up to seven years.
• L-1B: For employees with specialized knowledge. This visa is renewable up to five years.

For companies without an established U.S. presence, the L-1 can also be used to open a new office, though additional requirements apply.

1. Qualifying Relationship: There must be a qualifying relationship between the U.S. and foreign companies, such as a parent, subsidiary, branch, or affiliate.
2. Employee Requirements: The applicant must have worked for the foreign entity in a managerial, executive, or specialized knowledge role for at least one continuous year out of the last three.
3. Active Operations: Both the U.S. and foreign companies must be actively conducting business, though new U.S. offices may show a business plan to meet this criterion.

For those opening a new U.S. office with an L-1 visa, additional conditions apply:

• Physical Premises: The new office must have a physical location in the U.S.
• Capitalization and Business Plan: The foreign company must show it has sufficient funds to support the new U.S. operations, often demonstrated through a five-year business plan and initial capitalization.
• Role Justification: If transferring a manager or executive, there must be a plan to hire sufficient U.S. staff within one year to support the transferee’s high-level responsibilities.

Canadian nationals benefit from a more streamlined process for obtaining an L-1 visa:

• Initial Application: Canadians can apply for their first L-1 visa directly at a U.S. border crossing, avoiding the need for a USCIS pre-approval.
• Renewals: Canadians must renew their L-1 visas through USCIS rather than at the border.

Non-Canadians must go through USCIS for initial approval before attending a visa interview at a U.S. embassy or consulate abroad.

For nationals of E-2 treaty countries, like Canada, it’s worth comparing the L-1 visa to the E-2 Treaty Investor visa:

• Longer Initial Validity: The E-2 visa is typically valid for five years for Canadians, compared to one year for new L-1 offices.
• Renewal Flexibility: The E-2 visa can be renewed indefinitely, as long as the company remains eligible.
• Investment Requirement: The E-2 requires a substantial investment in a U.S. business, unlike the L-1, which does not have a fixed investment requirement.