Intracompany Transferee: L-1 Visa

The L-1 intra-company transferee visa allows executives, managers, or employees with specialized skills to transfer from the foreign company to a U.S. subsidiary office or affiliated company to work on a temporary basis. The applicant must have been employed by the foreign company for a minimum of twelve months during the three years immediately preceding the filing of the L-1 visa petition. The applicant must be hired to work as either an executive/manager (L-1A), or an employee with “specialized knowledge” (L-1B).

There are no limitations on the nature of the business operations (e.g., import–export, construction, and service businesses such as restaurants). The foreign company may set up a new operation in the United States, or purchase an active American business. The latter may be beneficial in order to expedite the process of obtaining permanent residency.

L-1 visas are granted initially 1) for one year, in the event that the American company is a new office, or 2) for three years, if the American company has been in active operation for at least one year. Two extensions in two-year increments are available, for a total of up to 5-7 years. Executives and managers with an L-1A may remain in the U.S. for up to seven years. Specialized knowledge employees may stay in the L-1B status for up to five years. Extensions are not automatic: when applying for an extension it is necessary to show that the American company has developed enough to support the need for an executive, manager, or specialist, and that the company is in a financial position to support the L-1 employee. The foreign company must continue in operation throughout the period of the L-1 status.

Who Qualifies?

To qualify as a manager (L-1A), you must:

• Direct or supervise a core function of the organization or department;
• Primarily supervise and control the work of other professional or managerial employees;
• Have the authority to hire, dismiss, or recommend staff for promotion.

To qualify as an executive (L-1A), you must:

• Direct the management of the organization or a major component or function;
• Determine the goals and policies of the organization;
• Exercise wide latitude in discretionary decision-making.

To qualify as a person of specialized knowledge (L-1B), you must have:

• Special knowledge of the company's products and their applications in world markets;
• Advanced or unique knowledge of the company's processes or procedures.

The U.S. company must:

• In the event of a new office, have office space, be officially incorporated, and be in a position to financially support the visa applicant and initial operations of the company;
• In the event of an ongoing operation, show the need for an executive, manager, or specialist, as well as office space, tax declarations, and the financial ability to pay the salary offered to the visa applicant;
• Be properly related to the foreign company: have a parent-subsidiary/subsidiary-parent, joint venture, branch, or affiliate relationship.

Advantages of the L-1 Visa:

• No quota on the L-1 visa, meaning that the number of visas will not run out during the course of the year;
• No annual limit for a company on the number of visas issued;
• No need for the L-1 visa applicant to show a foreign residence;
• L-1 visa holders may apply for permanent residency;
• L-1As are not subject to the Labor Certification (PERM) requirement, which makes obtaining a green card relatively quick and problem-free.
• Minor children and spouses are automatically eligible for L-2 visas. A spouse may work on an L-2 visa upon receiving separate employment authorization from USCIS.

How to apply for an L-1 visa?

Petitions for the granting of L-1 status must first be approved by the Regional USCIS Service Center having jurisdiction over the location where the transferred employee will be situated. The employer must file a petition with USCIS along with a detailed letter, supporting documentation, and a filing fee of $190.00. For a new office petition, there is a Fraud Fee of $500. Premium Processing is available for L-1 petitions: if the petitioner will pay a surcharge of $1,000, USCIS will review the petition within 15 calendar days.

After the USCIS Service Center approves the application, the employee, if abroad, must apply at the appropriate U.S. consulate for the visa. After interviewing the employee, the consulate will either issue the visa, or refer it back to the USCIS for readjudication if it discovers new, adverse information in the course of its review of the application.

How White & Associates Can Help

If you are interested in applying for an L-1 visa, the experienced professionals at White & Associates can provide legal support with every step of the application process. We can incorporate a new U.S. company, or assist in locating a business in the United States for purchase. We can arrange for office space and set up bank accounts for the company. The recent trend is for more rigorous USCIS review of initial L-1 petitions and extensions, particularly from small companies. Therefore, it is imperative that the documentation be prepared professionally and thoroughly. It must also be kept in mind that USCIS approval does not guarantee issuance of the visa; many consulates deny up to 50% of L-1 visa applications, recommending revocation of approved petitions to USCIS after discovering new information at the time of the interview. We ensure that visa applicants are properly prepared for their visa interviews, and take steps to ensure that any issues that crop up at the consular stage are dealt with before a petition is returned to the USCIS.

If you wish to apply for an L-1 visa or a green card as a businessman, set up a business in the U.S. or purchase an existing business in the U.S., please feel free to contact us.