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Can L-1A and EB-1(C) be an alternative to EB-5?

As the waiting time for EB-5 investment immigration is getting longer and longer, more and more people choose to apply for L-1A visa. However, it should be noted that L-1A is a non-immigrant visa, which means that this type of visa can only be used by the applicant and his family to live in the United States for a certain period of time. The L-1A visa is applicable to Chinese companies sending their managers or executives to the US branch to manage business or set up a branch.

Basic Requirements for L-1A Visa:

  • Overseas companies hold more than 50% of American companies.
  • In the three years before submitting the application, the applicant has held a management position in an overseas company for at least one year.
  • Applicants need to hold a management position in a US company.
  • If the U.S. company is newly established or previously inactive, the applicant’s L-1A visa is only valid for one year. If the U.S. company has a mature business, the L-1A visa is valid for up to three years.
  • The L-1A visa is renewable for a maximum period of seven years.
  • For applicants on the L-1A visa valid for one year, the EB-1(C) can only be filed after successfully obtaining a two-year extension of the L-1A visa. Applicants for the three-year L-1A visa do not have this restriction.
  • Dependents are granted L-2 visas and can apply for work authorization.

Unlike EB-5, L-1A has no stated minimum investment requirements. But generally, around $200,000 is needed to ensure success. If you set up a new company, applying for L-1A must have a business plan describing how the applicant will plan to develop the business in the United States, as well as forecast business income and the number of employees, and how the initial investment will help the new American company achieve its goals.

If it is a one-year L-1A visa, renewal is often difficult because the new company only has one year to develop the business. The risk of denial of an L-1A renewal application increases if the company is unable to achieve revenue, profitability, and/or employee plans. If the renewal application is denied, the L-1A visa holder and their family members must leave the United States immediately and can no longer seek a U.S. green card through EB-1(C). The adverse impact on life and business of a sudden departure from the United States will be huge. Those who consider the L-1 pathway often do not pay enough attention to these risk factors.

In addition, if not done properly, the process from L-1A to EB-1(C) to green card can cost much more than the cost of EB-5, whether in terms of US government processing fees or in terms of the overall capital investment of the L-1A corporation. This point is often overlooked or downplayed. This is because there are four steps for L-1A transfer to a green card, and only three steps for EB-5 investment immigration. More steps means higher risk and higher capital. This is a point often overlooked by people considering the L-1 pathway.

However, as long as Chinese EB-5 applicants still face a long waiting list, L-1A/EB-1(C) will be a faster option for a Chinese to enter the United States. But this process is often more difficult than expected, so working with an experienced U.S. immigration lawyer from the very beginning, making a good strategic plan, and doing due diligence are the keys to success. If you are interested in applying for an L-1A visa, please contact Lei Jiang Law Firm.

Phone: (440) 835-2271.

Email: info@LeiJiangLaw.com.

WeChat: leijiang_lawfirm1.

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