Introduction
According to the Business Formation Statistics for the year 2024, the United States continues to be the pivot of business activity, with millions of businesses operating across the country. As more businesses expand into the country, it is essential for foreign companies to make sure they are compliant with all visa requirements to ensure they can continue operating in the United Staes. For example, if a business intends to expand overseas operations to the United States and wants to transfer an executive or manager from a foreign office to the U.S. entity, they may consider filing for an L-1 “new Office” visa.
What is an L-1 ‘New Office’ Visa?
The L-1 “new office” visa allows businesses to begin their operations in the U.S. by sending their overseas company’s high-level managers or executives through the newly formed U.S. entity. These key personnel can come to the U.S. for an initial period of one year to develop and foster the business’s operations in the new market.
Eligibility and Requirements
U.S. immigration regulations define a “new office” as an organization that has been doing business in the United States through a parent, branch, affiliate or subsidiary for less than one year. Since the new office must conduct business, the mere presence of an agent or office is not sufficient to satisfy the regulations, and it must be shown that the company is engaged in the regular, systematic and continuous provisions of goods and/or services.
The US company/Petitioner must satisfy following requirements to qualify for a “new Office” L-1 visa:
- The employer has secured sufficient physical premises to house the new office.
- The employee has been employed as an executive or manager for one continuous year in the three years preceding the filing of the petition with the overseas entity; and
- The intended U.S. office will support an executive or managerial position within one year of the approval of the petition.
See 8 CFR 214.2(l)(3)(v) for details.
Sufficient physical premises
The U.S. company must secure sufficient physical premises for the new office at the time of filing the Petition with the USCIS. It is also necessary to secure an office space that is large enough to support the U.S. company’s business and planned growth during the first year.
The petitioner must present evidence proving they have acquired office space that meets all the guidelines. This should include a copy of the signed lease or sale deed to the premises if the U.S. premises are owned or being purchased. Additionally, businesses must submit colored photographs showing the inside and outside of all office space, equipment, merchandise, products, company logos etc. The Petitioner may lease a co-working space, as long as it is sufficient enough to accommodate Petitioner’s to be hired employees for the first year and they have confirmation from the Lessor to make the additional space available to the company as and when needed.
One Year employment with overseas entity
The Petitioner must demonstrate that the Beneficiary was employed with its qualifying overseas entity for at least one year in a managerial or executive or specialized knowledge capacity. The overseas entity must be actively doing business for one year or more and should be related to the petitioner in a qualifying relationship as parent-subsidiary or affiliate. The Petitioner must provide sufficient evidence to establish that the Beneficiary is employed with the entity in managerial or executive or specialized knowledge capacity.
The Petitioner must be able to demonstrate that the Beneficiary will be actively involved in day-to-day operations during the initial phases of the business. It must also be shown that the individual has the authority and plans to hire staff and other managerial freedoms, such as a wide latitude in making decisions about the goals and management of the organization. The Petitioner must establish that it can support the beneficiary in the requisite managerial, executive, or specialized knowledge position within one year of approval. At the time an extension is filed, USCIS will closely scrutinize the petition to determine whether this has occurred, and to verify that the petitioner has followed through with the timetable and plans submitted in the original “new office” L-1 petition.
Business plan, financial projections, and personnel plan
A detailed and extensive business plan is also required with a “new office” L-1 petition, as USCIS places an emphasis on the company’s short- and long-term goals and projections when adjudicating the initial petition and future extensions.
The business plan should begin with an explanation supporting the need for the new office in the U.S., which may include a SWOT analysis. It should demonstrate the proposed business actions the Petitioner is planning to execute throughout the first year of its business and thereafter. The Business shall include the Petitioner’s financial projections, hiring, costing, marketing and sales plan. It should also explain how the financial projects were derived and whether the calculations were based on realistic and credible assumptions using current assets, growth revenues, and other similar projection calculation tools.
The Petitioner’s hiring plan should exhibit the total number of employees the Petitioner intends to hire in the first year and in the upcoming years. It should specifically include the job titles, brief job descriptions, approximate salaries, etc. of all the to be hired positions.
L-1 New Office Period of Stay
The Beneficiary entering the United States to establish a new office will be allowed a maximum initial stay of one year. For all L-1A employees, requests for extension of stay may be granted in increments of up to an additional two years, until the employee has reached the maximum limit of seven years.
Conclusion
Navigating the complexities of the L-1 “New Office” Visa can be confusing. When deciding if this is the best option for you, a business should consider their needs, their capabilities, and their business plans. For help filing an L-1 visa, case-specific questions, and more information, contact the Chugh, LLP immigration team.
