Quick Summary: L-1A Visa and Company Relationship Requirements
| Question | Answer |
|---|---|
| What is the L-1A visa? | A nonimmigrant visa for executives and managers being transferred within a multinational organization |
| Who files the petition? | The U.S. company with a qualifying relationship to the foreign company |
| How many types of qualifying relationships exist? | 2 types: parent/subsidiary and affiliate |
| Minimum ownership for a subsidiary? | Generally 50% or more of controlling interest |
| Ownership threshold for affiliates? | Same party controls both companies, generally 50% or more in each |
| Does USCIS require a specific ownership percentage? | No, but must demonstrate substantial control or affiliation |
| Can a branch office qualify? | Yes, a U.S. branch of a foreign company qualifies |
The L-1A visa is a non-immigrant visa category for multinational companies to transfer qualified employees from a foreign company to a U.S.-based office in an executive or managerial capacity. There are two key relationships that can exist between the foreign company and the U.S. company to qualify for an the L-1A visa: the parent-subsidy relationship and the affiliated relationship.
- Parent-Subsidiary Relationship:
- Requirements for Foreign Company as Parent:
- The foreign company must have a direct and controlling ownership relationship with the U.S. company, establishing it as the parent company.
- The foreign company should maintain its legal existence and be actively conducting business in its home country.
- The foreign company must have the capacity to transfer an executive or managerial employee to theS. subsidiary.
- Requirements for U.S. Company as Subsidiary:
- The U.S. company must be a subsidiary of the foreign company, meaning that the foreign company hold s a significant percentage of ownership .
- The U.S. subsidiary should be actively engaged in business operations.
- The U.S. subsidiary must have the capacity to employ an executive or managerial transferee.
- Example with Percentages:
- A common scenario is a foreign company owning at least 50% or more of the subsidiary. This demonstrates a controlling interest, ensuring a clear parent-subsidiary relationship.
- Reversed Company Relationship:
- The company relationship can also be established with the U.S. company as parent and the foreign company as subsidiary.
- Affiliated Relationship:
- Requirements for Foreign Company:
- The foreign company and the U.S. compan y must be affiliated entities with a common parent company or common individual ownership.
- The foreign company should remain in active business in its home country.
- Requirements for U.S. Company:
- The U.S. company must be affiliated with the foreign company through a common parent company or common individual ownership.
- Both the foreign and U.S. companies must be actively engaged in business operations.
- The U.S. company must be capable of employing and supporting an executive or managerial transferee.
- Example with Percentages:
- An example of an affiliated relationship is where a common parent company owns a significant percentage of both the foreign and U.S. companies, but there may not be a direct subsidiary relationship.
- In the case of individual owners, a majority of individual owners must own at least 50% of both companies in relatively similar percentages.
- Ownership percentages could vary, but a substantial ownership stake is typically required to establish the necessary affiliation.
Specific ownership percentages may vary, and there is no strict requirement set by U.S. Citizenship and Immigration Services (“USCIS”). However, demonstrating a clear and substantial control or affiliation is crucial for a successful L-1A visa petition and application. Consulting with an immigration attorney can provide tailored advice based on the unique circumstances of each case.
Real-World Examples of Qualifying L-1A Company Structures
Example 1: Vietnamese parent, U.S. subsidiary
Vietnamese company ABC holds 70% of ABC USA Inc. ABC Vietnam’s Chief Executive Officer is being transferred to serve as CEO of ABC USA. This is a clear parent/subsidiary structure and qualifies for L-1A.
Example 2: Same individual owner
Mr. Nguyen Van A owns 80% of XYZ Vietnam and 75% of XYZ USA. He wishes to transfer XYZ Vietnam’s Chief Operating Officer to XYZ USA. This is a qualifying affiliate relationship through common individual ownership.
Example 3: Common parent company
DEF Group Singapore owns 60% of DEF Vietnam and 55% of DEF USA. DEF Vietnam seeks to transfer its Chief Financial Officer to DEF USA. The two companies are affiliates through their common parent DEF Singapore and the structure qualifies.
Frequently Asked Questions
What company relationships qualify for the L-1A intracompany transferee visa?
The L-1A visa requires one of two qualifying organizational relationships: (1) A parent/subsidiary relationship, where one company directly owns and controls the other, typically with 50% or more ownership; or (2) An affiliate relationship, where two companies are owned or controlled by the same third party, either a common parent corporation or the same individual holding majority ownership in both. Both companies must be actively conducting business.
What is the minimum ownership percentage required for the L-1A visa?
USCIS does not mandate a specific rigid ownership percentage. However a parent company typically needs to hold at least 50% of the subsidiary to demonstrate clear controlling interest. For affiliate relationships through individual ownership, the same person must hold a majority stake, generally 50% or more, in both companies at comparable levels. What matters is demonstrating substantial and genuine control or affiliation, not just a technical ownership figure.
Can a newly established U.S. company sponsor an L-1A visa?
Yes, but with additional requirements. This is called a New Office L-1A and the initial visa is typically granted for only 1 year rather than the standard 3 years. The new U.S. office must have a physical location or signed lease agreement, a concrete business plan, sufficient financial resources to support the transferred executive, and the transferee must have worked in an executive or managerial capacity at the foreign company for at least 1 year within the past 3 years.
How long must an employee have worked at the foreign company to qualify for an L-1A transfer?
The employee being transferred must have worked continuously for at least 1 year within the immediately preceding 3 years at the qualifying foreign company in an executive or managerial capacity. This requirement applies to the foreign company that has the qualifying relationship with the U.S. employer. The position in the United States must also be in an executive or managerial capacity.
What is the difference between L-1A and L-1B, and are the company relationship requirements the same?
The qualifying company relationship requirements for both L-1A and L-1B are identical: both require a parent/subsidiary or affiliate relationship. The key distinction is in the employee’s role: L-1A is for executives and managers while L-1B is for employees with specialized knowledge of the company’s products, services, research, equipment or procedures. L-1A also provides a significantly more favorable pathway to the EB-1C employment-based green card for multinational executives and managers compared to L-1B.
For more information, contact us at info@enterlinepartners.com and speak with a U.S. immigration attorney in Ho Chi Minh City, Manila and Taipei.
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