Learn about Immigration issues for Startups from Sweta Khandelwal, one of the top immigration lawyer in the valley, awarded Top 40 Immigration Lawyers under 40 and Chair of the SCV Chapter of American Immigration Lawyers Association, the largest body of Immigration practitioners in the US.
Put your Legal Hack on and learn what you need to get your billion dollar idea off the ground !
• Know how foreign born entrepreneurs and start-up business can stay in the United States, start and work for their company-without being deported!
• How US business’ can hire and retain top notch foreign born talent.
• Know about Entrepreneurial Visa Options: E-2, L-1, H-1B, and O-1 Visas and Investor Based Green Card Options: EB-5 Immigrant Visa
Knowledge of US visa laws is critical to the success, continuance and growth of most Silicon Valley business’ and obtaining the correct visa is often the first hurdle faced by foreign founders. Until the archaic US immigration system is reformed, we have little choice except being creative in using old visas to suit new- age business. So let’s put our legal hack on!
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Igniters meetup: Immigration hacking solving immigration puzzle for foreign-born entrepreneurs
1. Igniters Meetup
Immigration Hacking:
Solving Immigration puzzle for foreign-born Entrepreneurs
Sweta Khandelwal
Sponsored by:
Hosted by:
www.vorkspace.com
- Workspace of the Future
2. Welcome!
Immigration Hacking: Solving Immigration
Puzzle for Foreign-born Entrepreneurs
Employment-based US Visas for founders, their
start-ups and their employees
February 21, 2014, Hacker Dojo, Mountain View
Sweta Khandelwal
Principal Attorney
Law Office of Sweta Khandelwal
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
3. Introductions!
• Immigrant myself!
• Entrepreneur too! Owner/Principal Attorney- Law
Office of Sweta Khandelwal• Chair, Silicon Valley Chapter, American
Immigration Lawyers Association (AILA)
• Advocacy & Media Co- Liaison, AILA-SCV
• Understanding of how US Immigration laws
intersect with entrepreneurship
• Overview of various work visas that can be used
by foreign entrepreneurs and their start-ups
• Appreciate how seemingly small changes in fact
patters can effect available visa options
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
4. Disclaimer
This presentation is not intended to
give legal advice.
It is for
informational purposes only.
It is
geared to help participants get a basic
understanding on how immigration law
and
practice
intersect
with
entrepreneurship.
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
5. Agenda/ Roadmap
• Importance of Immigration
• Key non-immigrant work visas (NIV) or temporary visas
• Key immigrant work visas (IV) or permanent visas or Green Cards
• Case Study: Apply elements to potential scenarios
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
6. Entrepreneurs, Start-ups & Immigration
Why is knowledge of US Visas critical to foreign entrepreneurs?
Description
Area
•
Why
Immigration
25% of high-tech companies founded between 19952005 had at least one immigrant founder
– Founders
on right visa to ensure continuity of the company
– Able to hire top global talent
• Get
creative
• Explore
USCIS &
Entrepreneurs
•
– Shift
in policy towards entrepreneurs
– Old Wine in a New Bottle-Old Laws, New Business
•
Approach
Potential
Problem
Creative & Customized – no one size fits all
options
• Be-proactive
• Stay
– Structure
business accordingly
– Plan really ahead
•
Lack of standardization in applying laws
– Laws
•
Notes:
Entrepreneurs in Residence Initiative
have “gray areas”
Best immigration decisions are usually not good for business
(1) TBD
(2) TBD
Source: Source 1; Source 2; Source 3
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
all
informed
7. Agenda/ Roadmap
• Importance of Immigration
• Key Non-immigrant work visas
• Key Immigrant Work Visas
• Case Study: Apply elements to potential scenarios
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
8. Non Immigrant/Temporary Visa Options
Relatively easy, quick and economical!
Typical purpose/ applicability
Type of visa
1
2
Visitors
B-1& Visa
Waiver
Program
Students
F-1 & OPT
3 Investors &
their E’ees
E-2
Notes:
(1) TBD
(2) TBD
Source: Source 1; Source 2; Source 3
•
•
•
•
Useful in the preliminary stages
Limited purpose
No employment in the US
No remuneration
•
•
•
Practical training- up to 12 months; +17 (STEM)
Full time & Part-time; multiple jobs
Not
No minimum wage required
applicable
for India
and China
Available to Treaty Nationals (TN)
Investor or Managers or Critical Employee
At least 50% of business must be owned by TN
Business must be controlled by TN
•
•
•
•
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
9. Non Immigrant/Temporary Visa Options
Relatively easy, quick and economical!
Type of visa
4
Inter-Co.
Transfer
L-1 Visa
•
•
•
5
6
Typical purpose/ applicability
Existing foreign business can set up “affiliated” US
business
E’ee employed by overseas business for at least 1 year
out of the preceding 3 years
Managers(L-1A) & Special. Knowledge workers (L-1B)
Professional
Worker
H-1B Visa
•
•
•
Used for “Specialized Occupation” workers
Foreign National must have a Bachelor’s Degree
Only NIV for US Companies!
Extra-ordinary
Ability
O-1 Visa
•
Available for people in the arts, sciences or business
who are at the “top of their fields”
Must meet at least 3 criterion prescribed in law
Notes:
(1) TBD
(2) TBD
Source: Source 1; Source 2; Source 3
•
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
10. Visitor Visas: B-1 & Visa Waiver Program
(VWP)
Who is eligible
What it takes to succeed
Temporary visitor for
business
Both B-1 & VWP to be used
for limited purposes
• Negotiate contracts
• Attend meetings
conferences
• Independent
research
VWP
• 37 participating
countries
• Cannot change/
adjust status
• 90 Day Limit
• Can still apply for B-1
Must demonstrate non-immigrant intent
Cannot be employed in the US
No remuneration to be received
What sucks
What's great?
Convenient, economical
Quick process
Great during
early/planning stages
Law unclear as to what
activities are permitted
and what are not
No appeal against
denial-must reapply
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
11. Student Visa: F-1 & OPT
Who is eligible
What it takes to succeed
Those who are studying
full time (Grad. Undergrad.
Ph.D. in accredited
schools
Generally, no employment
while student is in school
Up to 12 months of
training/work permit after
completion of program
17 additional months for
STEM graduates
STEM only for E-Verified
Companies
Completion of your academic program!
Importance of accredited/reputed schools
Cannot be out of job for more than 90 days during
OPT period
STEM extension must be timely applied
What's great?
What sucks
Great for start-upsincubator/accelerator
No wage requirement
Full time, part-time,
multiple jobs
Cap-Gap solved (H-1B)
Nothing-It’s a great
option!
Limited duration-29
months max; must then
move to another visa
Timing issues
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
12. Visa for Investors & their Employees: E-2
Who is eligible
What it takes to succeed
Those from E-2 country listTreaty Nationals
Treaty Nationals must own
at least 50% of the business
Treaty Nationals must
control the enterprise
FN can be Investor/
Exec./Manag./Special Know.
IF FN is Investors - develop
& direct the business
Generally, all nationals must
be from the same country
If 2 nationalities involved,
both must have equal
ownership & control
Investment that is “at risk”-irrevocably committed
Business is substantial; more than marginal return
Great business plan required
Source of funds must be legitimate-gifts, salary, o.k
Money could have been earned in US or abroad
Loans-only those secured by personal assets
What’s Great?
What sucks
No high threshold
investment$
Can use intangible assets
if properly valued
Spouse of E-2 can work
Problem with VC fundingcontrol/ownership
No set min. $ investmentunclear
No immigrant intent-no
path towards GC
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
13. Inter-Company Transfer: L-1 Visa
Who is eligible
What it takes to succeed
Foreign business can set
up an “affiliated” US
business
Affiliate relationship
defined in law
FN must be employed by
the overseas company
for at least 1 yr. in the
preceding 3 years
Both owner/employee
may be eligible
New Office vs.
Established Office
Eligibility requirements critical
Both Foreign and US Company must be in business
Evidence of relationship between the two companies
to be extensively documented
What sucks
What's great?
Great for overseas co.
No min. salary reqd.
No fixed no. of visas
CEO can spend time in
US and home country
GC for L-1A-EB-1
Spouse can work
L-1A for owners & small
business is tougher
New Office L-1 req.
Proving 1 year
employment when no
salary
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
14. Specialty Occupation Visa: H-1B
TN Visa-Professionals Canadians
& Mexicans-no self employment
What it takes to succeed
Who is eligible
Visa for Professionals
Position must be a
specialty occupation
Foreign National must
have a Bachelor’s Degree
Visa tied to the sponsor
company
An organization structure that establishes an
employer/employee relationship b/w US business &
Foreign National (FN)
Proof that there is enough work/specialty occupation
for the duration of the petition
A great story!
What sucks
What's great?
Once FN is on H-1B,
can change between
employers with relative
ease
Part-time and full time
Limited visas-Quota
For founders, e’er/e’ee
relationship is hard
Specialty occupation for
founders is a challenge
Minimum salary-high
Spouse cannot work
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
15. Visa for Extra-Ordinary Ability: O-1 Visa
Who is eligible
An individual who has
extra-ordinary ability in the
arts, sciences and
business
What it takes to succeed
•
•
•
•
•
•
Sustained
national/international
acclaim
Distinction in the field
National/Internationally recognized award
Membership in assoc. in the field based on ability
Published material in trade journal or other media
Judging the work of others
Scholarly articles in the field; original contribution
Prestigious org., critical capacity, high salary
What’s great?
Visa focus on person, as
opposed to company
Must show that FN meets
at least 3 of the eligibility
criterion
No Quota
No restriction on salary
Renewed indefinitely
A path to GC-EB-1
Room for creative
lawyering!
What sucks
Burden of proof is high
Not everyone can
qualify
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
16. Agenda/ Roadmap
• Importance of Immigration
• Key Non-immigrant work visas
• Key Immigrant Work Visas
• Case Study: Apply elements to potential scenarios
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
17. Immigrant/Permanent Visa Options
Challenging, time consuming, and expensive!
Type of visa
1
EB-1
Eligibility requirements
Three categories; two relevant here
Extraordinary Ability Workers –O-1?
2
Multinational Executive & Managers-L-1?
EB-5
Notes:
(1) TBD
(2) TBD
Source: Source 1; Source 2; Source 3
Not really useful for entrepreneurs
Investor based GC
Investment must meet all established criterion
3
EB-2/EB-3
$500,000-$1,000,000
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
18. Employment Based Immigrant Visa: EB-1
Who is Eligible
What it takes to succeed
Available to three groups:
Extraordinary Ability
(similar to O visa);
Multinational
Exec./Man. (relevant
for those on L-1A
visas);
Professors and
Researchers
Extraordinary Ability-outstanding achievers
Multinational Executives& Managers-L-1A-must show that
FN has managerial duties and supervises over
professionals
What sucks
What's great?
No Labor Cert.
required
Burden of Proof –highhigher than NIV
For Extr. Ability no
employer is required
Visa Bulletin is
current-India & China
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
19. Employment Based Immigrant Visa: EB-52
AnyWho is Eligibleto
investor willing
invest at least $1 million of
their own funds; or
$500,000 if investment is
in a TEA
Investment must be in a
New Commercial
Enterprise
The business must employ
at least 10 US workers full
time
Investor must be involved
in day to day management
of the company
Conditional GC issued for
2 years
What it takes to succeed
Demonstrate the source of funds-own and legit
Two years to show that all conditions have been met
A comprehensive business plan required
Loans o.k so long as secured by personal assets
Investment must be “at risk”
What's great?
What sucks
GC for investor & family
$500,000 Invest. can be
made in Regional Centers
while investor works on
his/her own business
One of the easiest way’s
for a GC
Model not suitable for
entrepreneurs
Requires investment of
own money in business
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
20. Agenda/ Roadmap
• Importance of Immigration
• Key Non-immigrant work visas
• Key Immigrant Work Visas
• Case Study: Apply elements to potential scenarios
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
21. Launching a cool mobile payments
business in France
Clemente –
French
Application
Developer Par
Excellence
•
Bachelors
Engineering- wants
to do an MBA in
the US
Moracio–
Italian
Brillianto
Hacker
•
No formal degree
in EngineeringWants to get one in
the US
Jean Paul–
French
Technologist
with business
mindset
•
Bachelors degree
in Engineering;
considering a
Master’s
Status of their start-up
Working on an IPhone/Android app. that they claim
will revolutionize the way handheld devices are used
to make payments
Bootstrap efforts /money to create a beta version
Incorporate a business entity in France
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
22. Meet some people
Win hackathon
Successful Trip to the US
Clemente and Moracio enter the US on the Visa
Waiver Program
Participate and win $100000 in the grand
hackathon-Can they?
Incorporate a company in the US- Should they?
“Keen on the
business- tell
me more”
Santiago
Mexicano:
Eng. graduate
looking for a job
Chong:
Chinese PhD
student
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
“Have
contacts
with VC :
Can I
help”
Dr. Daring
Chong’s
advisor and
USC
23. Decisions to be made
Best for Business vs. Best for Immigration
Structure: Who will be CEO
Investment: How little/much can we invest ?
Funding: Can we get VCs to show interest ?
School: Can we go to Grad/ MBA school? Can
we work in the business while at school?
Payouts: Salary ? Dividend? None?
Business continuity: someone in France to
manage? Travel between US and France?
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
24. Scenario 1: Trio do not invest own $ in
the business
This is what they do
Clemente –
French
Developer;
goes for MBA
Moracio–Italian
Brillianto Hacker
thinks school not
worth it!
Jean Paul–French
Technologist with
business mindset
comes to the US to
meet VCs and gets
Dr. Daring-USC on
BOD –VC
What are available visa options?
Clemente
No Change of Status from VWP to F-1
F-1; 12 months OPT; then
Choice: O-1 vs. H-1B
OPT then H-1B
• Cap/Gap
• Quota
What about
Moracio
the E-2?
O-1-CEO?
Jean Paul
B-1 or VWP for now
H-1B
Santiago
May work on TN
Problems with H-1B?
Remember-H-1B must be paid a certain salary
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
25. Scenario 1: Trio do not invest own $ in
What about the E-2-now that we
have VC?
the business
But they do things
differently
Now, What are available visa options?
Clemente –
Application
Developer
drops plan for
school
Moracio–Italian
Brillianto Hacker
decides to opt for
formal education
Jean Paul–French
Technologist with
business mindset
manage the business
from France-gets
French VC
1. Moracio
Can’t join co. unless finishes school
(Eng.)
After school, 29 months OPT
2. Clemente
Can be an E-2 employee as
long as 50% co. owned by French nationals
Moracio can work on OPT & have a
minor stake in the company Problem with dual nationality if Moracio
wants to come in on E-2; H-1B better?
3. Jean Paul
Can come on E-2
L-1 after at least a year so long as
French entity is active and “affiliated”
with US co.
4. Santiago
May work on TN
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
26. Scenario 2: Trio do invest own $ in the
business
This is what they do
Clemente –
Application
Developer $
Moracio–Italian
Brillianto Hacker
$$
Jean Paul–French
Technologist with
business mindset
$
What are available visa options?
1. E-2 for all
So long as business in owned and controlled
equally by nationals of both Treaty countries
2.
H-1B for any
Will benefit if at least 1 USC on BOD; and H-1B
holder does not have majority stake
3.
O-1 for Clemente & Moracio
Possible. O-1 focused on individual more than
company
4.
Jean Paul
L-1 after a year; may shuttle b/w US & France
so long as majority work/time in US
In all scenarios Santiago may work on TN
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
27. It’s not the end!
There is a ton of useful stuff still available-here’s where & how
•
To win a 45 minutes free consultation (valid
for the next 6 months), drop your business
card and participate in a raffle!
•
Visit my website at www.khandelwalaw.com.
It has relevant and practical insights,
informational video’s, FAQ’s, and more.
•
For specific questions about your case, email
me at sweta@khandelwalaw.com
•
Contact details are also available by scanning
the QR code below:
3333 Bowers Avenue Suite 130 Santa Clara CA 95054
P: 001 408 200 0972 C: 001 408 505 2065 Fax: 001 408 624 4527
Email: sweta@khandelwalaw.com Web: www.khandelwalaw.com
28. Igniters Meetup
Immigration Hacking:
Solving Immigration puzzle for foreign-born Entrepreneurs
Sweta Khandelwal
Sponsored by:
Hosted by:
www.vorkspace.com
- Workspace of the Future