Difference between the E1 & E2 Visas

By Nita Nicole Upadhye

Table of Contents

To be able to move to the US on a temporary basis to do business, you will need to have secured the relevant US business visa. If you have plans to grow your company’s existing trade activity in the US, or to set up or invest in a US-based company, you may be looking at your options under the E visa category.

The US E-1 and E-2 visas are designed to allow citizens of treaty countries to move to the US temporarily for specific business purposes. Treaty countries are those maintain a treaty of trade, commerce or navigation with the US.

Both E-1 and E-2 visas typically allow for an initial stay of up to two years, and both can be renewed indefinitely as long as the qualifying conditions continue to be met. However, the maximum validity period of the visa stamp itself can vary depending on the applicant’s nationality, as set by reciprocity agreements. The stay in the US is granted in two-year increments, and each time the visa holder reenters the US, they are usually granted a fresh two-year stay.

In this article, we explain the differences between the US E-1 and E-2 visas, including what activities are permitted under each route, and what the eligibility and process requirements are that you will need to meet to make an application.

 

Differences between the E1 & E2 Visas

 

Choosing between the E-1 Treaty Trader and E-2 Treaty Investor visas hinges on the nature of your cross-border activity. The E-1 is for companies or individuals whose primary objective is carrying on substantial, continuous trade with the United States, measured both in volume and monetary value.

In contrast, the E-2 targets entrepreneurs ready to commit a significant sum to launch or expand a bona fide US enterprise, with success gauged by jobs created and revenue potential rather than simple capital size.

Therefore, the E-1 visa is best suited for individuals or companies with an established trade relationship with the United States. If you are already engaged in regular exports, imports, or service exchanges with US counterparts, the E-1 is likely to be the appropriate option. The E-2 visa, however, is the preferred route for individuals seeking to start a new business, buy into an existing one, or expand a foreign company’s operations into the United States. It accommodates early-stage planning, provided the funds are committed.

 

Feature E-1 Visa (Treaty Trader) E-2 Visa (Treaty Investor)
Purpose For conducting substantial trade between the treaty country and the US For making a substantial investment in a US business
Basis of Eligibility Volume and value of ongoing trade activity Investment of capital in a real and active US enterprise
When to Use If you already operate a business that trades regularly with the US If you are starting, buying, or expanding a US-based business
Required Activity Substantial and continuous trade, mainly between US and treaty country Substantial investment that is already committed and at risk
Business Stage Requires an already operating trading business Allows startup or acquisition, but business must be operational
Income Requirements No specific profit requirement, but trade must be significant Business must not be marginal—it should support investor and more
Nationality Requirement Applicant must be from a treaty country Same—must be a national of a treaty country
Ownership Business must be at least 50% owned by treaty nationals Same—50% or more ownership by treaty nationals
Visa Validity Initial stay up to 2 years, renewable indefinitely Same—2 years, with unlimited renewals
Ideal For Established businesses engaged in cross-border trade Entrepreneurs, startups, and investors entering the US market

 

 

Business stage

 

Applicants for the E-1 visa must already have an operational business engaged in trade. Consular officers will look for evidence of ongoing transactions, contracts, shipping records, or service agreements to confirm that the business is active and functioning. In contrast, the E-2 visa allows more flexibility in terms of the stage of the business. Applicants may apply while in the process of launching a new business or after acquiring an existing one. However, they must prove that the business is real, active, and capable of generating income beyond mere subsistence.

 

Income requirements

 

The E-1 visa does not impose strict income or profitability thresholds, but the trade must be of such volume or value that it justifies the presence of the trader in the US. For the E-2 visa, however, the business must not be considered “marginal.” A marginal enterprise is one that only generates enough income to support the investor and their family. To be eligible, the business must demonstrate the potential to create jobs for US workers or produce a return that significantly exceeds basic living expenses.

 

Permissible activities

 

E-1 visa permissible activities 

The E-1 category is commonly known as the nonimmigrant Treaty Trader visa.

The E-1 trader visa entitles individuals and eligible company employees to move to the US on a non-permanent basis for the purposes of carrying out international trade. In this context ‘trade’ could relate to the trade of goods, services or for example banking. This visa is useful for business owners, senior managers and other key employees of companies in E-1 Treaty countries who need to stay in the US for extended periods to manage and develop their business’ operations in the country.

An E-1 visa may also allow the holder’s immediate family (spouse and unmarried children under 21) to accompany them to the US, where the spouse can apply for work authorization and the children can study.

 

E-2 visa permissible activities 

The E-2 visa allows non-US nationals of E-2 Treaty countries to live in the US for the purpose of making a substantial investment, either in an existing US-based enterprise or to establish a new business in the US.

E-2 visa holders must take an active role in directing and developing the E-2 company during their visa period and should they wish to extend their visa, they will need to evidence sufficient growth in the company, including job creation for US resident workers.

E-2 spouses and dependent children can apply to join the principal visa holder, and the spouse can apply to work in the US.

 

Eligibility requirements

 

Both the E-1 and E-2 visas require that the applicant be a national of a country that holds a qualifying treaty with the United States. The specific treaty must allow for the relevant visa type—either trade (E-1) or investment (E-2). The business entity involved must also be at least 50 percent owned by nationals of the same treaty country. The ownership structure and nationality must be clearly documented.

In the case of a company, the same rule applies to the shareholders or partners. Ownership must be real and controlling, not symbolic or indirect. If ownership falls below the 50 percent threshold or shifts to non-treaty nationals, the business may no longer qualify for E visa support.

E-1 visa requirements

To qualify for an E-1 visa you must meet a number of essential requirements, including:

 

  • You must demonstrate you intend to engage in ‘substantial trade’. There are no rules on the amount of trade required to qualify under the route – the application process places more emphasis on the number of transactions the company can evidence with the US market rather than the total value of the transactions./li>
  • You must be a citizen of an E-1 treaty country. There are notably fewer E-1 treaty countries than E-2 countries, so it will be important to ensure the E-1 route is open to you based on your nationality.
  • At least 50% of the company’s international trade has to be between the US and your treaty country.
  • The trade you engage in can take a number of forms including: transportation, movement of goods, banking insurance, journalism, technology or tourism.

 

Read the full requirement details here.

 

E-2 visa requirements

The E-2 visa is known as the nonimmigrant Treaty Investor visa.

To qualify for an E-2 visa you must meet essential requirements, which include:

 

  • You must show your sole purpose for entering the US is to develop or run the enterprise your application relates to. Evidence of this would be having a minimum 50% stake in it or a prominent management role that constitutes operational leadership.
  • Your investment must be significant and sufficient to make the business operational, profitable and resulting in job creation for US resident workers.
  • Your investment must be a bona fide business investment. You cannot invest for example purely in real estate – the investment must demonstrate there is a risk of capital loss in a commercial sense to produce profit. Also your investment must be irrefutably committed to the enterprise.</
  • You must also be able to demonstrate that the funds you are investing have been obtained legally.
  • Your funds can be invested into an existing company or a new business, but it cannot be solely for the purposes of creating a job in the company for you as the investor. The business must have a premises – it cannot operate from the home of the investor.

 

View the full E-2 requirements here.

 

 

How to apply for an E-1 or E-2 visa

 

If you are applying from outside the country, you will need to complete and submit form DS-160 (a non-immigrant visa application). You will also need to attend a consular interview at the post where your filed your petition. During the interview, you will be required to answers questions to determine your eligibility under the relevant route and present supporting documentation. For the E-2 visa for example, you will need to talk through your E-2 business plan and answer any questions the Consular Officer may have on the business, your investment and planned activities while in the US.

When you enter the US on an E-1 or E-2 visa you can stay a maximum of two years and should be able to demonstrate intention to depart when that period ends. However, you can request for two-year extensions to your visa when it expires. There is no limit to the amount of extensions you can apply for.

 

Need assistance?

 

As specialists in US immigration, NNU’s attorneys can advise and guide you through all aspects of the E-1 and E-2 visa routes, including determining the best route for your needs, permissible activities, eligibility requirements and the application process.

Both routes place strict demands on applicants. You will need to show majority ownership or citizenship in a treaty nation plus either an existing stream of qualifying trade or funds already at risk. Insufficient documentation, thin financial records or an unconvincing business plan often triggers a consular refusal followed by long processing delays.

Timing matters as well: treaty investors who wire money too late or traders who lack performance history may lose contracts while waiting for a second interview.

Ongoing compliance adds another layer; a recession that cuts trade volume or an underperforming startup can jeopardize renewal. Planning for currency swings, supply chain gaps, staffing projections and disciplined record-keeping helps safeguard status beyond the initial visa stamp and keep it viable over time.

Under current US immigration policy, visa applications are facing increasing scrutiny by adjudicators. Taking expert advice will help ensure you compile a robust application and avoid evidentiary or process issues which can result in a delayed or even refused application.

Contact us for guidance on your specific circumstances.

 

Difference between the E1 & E2 Visa FAQs

 

What is the E1 visa?

The E1 visa is available for overseas nationals who are engaged in substantial trade with the US.

 

What is the E2 visa?

The E2 visa is for foreign nationals making substantial investment in either an existing or newly-established US company.

 

What is the main difference between the E1 and E2 visa?

The E1 visa is for individuals or companies engaged in substantial trade between their home country and the US. The E2 visa is for those investing a significant amount of capital in a US business.

 

Do I need to be from a treaty country to apply for either visa?

Both E1 and E2 visas require the applicant to be a citizen of a country that has a qualifying treaty with the US.

 

Can I apply for both E1 and E2 visas at the same time?

You must apply under the visa category that matches your business activity—either trade for E1 or investment for E2.

 

What qualifies as substantial trade for the E1 visa?

Trade must be continuous and substantial in volume or value, primarily between the US and the treaty country.

 

How much money do I need to invest for the E2 visa?

There is no fixed minimum, but the investment must be sufficient to fund the business and make it operational. It must not be marginal.

 

Can employees apply under E1 or E2 visas?

Certain employees with executive, supervisory, or essential skills may qualify if they share the same nationality as the treaty company.

 

How long are E1 and E2 visas valid?

Validity varies by treaty country, but both allow stays of up to two years at a time with unlimited renewals if the business remains viable.

 

Can I bring my family with me?

Spouses and children under 21 can accompany you and may apply for dependent E visas. Spouses are eligible to work in the US.

 

Can I eventually get a green card through the E1 or E2 visa?

Neither visa offers a direct path to permanent residence, but some holders later transition to green cards through employment-based or family-based categories.

 

Do I have to hire US workers under the E2 visa?

While not legally required, hiring US workers strengthens the case that the investment is not marginal and supports visa renewals.

Do the E visas lead to a Green Card?
The E1 and E2 visas do not lead directly to US permanent residence. To become eligible for a Green Card, you would need to change status to a different route that allows lawful permanent residence.

 

Glossary

 

 

Term Definition
Treaty Country A nation that has a commerce or navigation treaty with the US, allowing its citizens to apply for E1 or E2 visas.
E1 Visa A nonimmigrant visa for nationals of treaty countries who conduct substantial trade between their country and the US.
E2 Visa A nonimmigrant visa for nationals of treaty countries who invest a substantial amount of capital in a US business.
Substantial Trade Ongoing, sizable exchange of goods, services, or technology between the US and the treaty country, measured by volume or value.
Marginal Enterprise A business that generates just enough income to support the investor and their family, without broader economic impact.
Bona Fide Enterprise A real, active, and operating commercial business that meets legal requirements and produces goods or services for profit.
Essential Skills Employee An individual with specialized knowledge critical to the efficient operation of the E1 or E2 enterprise.
Reinvestment The process of applying new capital into an existing US business to support expansion or sustain operations.
Visa Validity The time period during which a visa can be used to enter the US, which may differ from the authorized stay period.
Authorized Stay The length of time a person is permitted to remain in the US per visit, typically up to two years for E visa holders.

 

Author

Founder & Principal Attorney Nita Nicole Upadhye is a recognized leader in the field of US business immigration law, (The Legal 500, Chambers & Partners, Who's Who Legal and AILA) and an experienced and trusted advisor to large multinational corporates through to SMEs. She provides strategic immigration advice and specialist application support to corporations and professionals, entrepreneurs, investors, artists, actors and athletes from across the globe to meet their US-bound talent mobility needs.

Nita is an active public speaker, thought leader, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals.

This article does not constitute direct legal advice and is for informational purposes only.

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