L-1 VISAS FOR INTRA-COMPANY TRANSFEREES

Overview

The L1 visa is a non-immigrant visa which allows companies operating both in the US and overseas to transfer managers, executives and specialist knowledge employees from their overseas operations to their US subsidiaries, parents or affiliates for up to seven years. 

The employee must have worked for a subsidiary, parent, affiliate or branch office of the US company outside of the US for at least one year out of the last three years.

CERTAIN ADVANTAGES TO THE CATEGORY

(1) Fast track to Green card

The L1 visa is especially attractive for Intra-company manager and executives in that it provides an extremely advantageous route to obtaining a Green card without the need for the lengthy process known as labor certification where the applicant ha to establish that there are no suitably qualified US workers available for the job.

(2) Work authorization for accompanying spouse

Recent law changes permit spouses of L1 visa holders to obtain work authorization for the time when the accompany the L1 principal in the US.

(3) There is no requirement  that the Overseas and US company be in the same or similar business

The law does not restrict the types of business that can make use of this category. For example a real estate corporation could send L1 staff to work in a recently acquired restaurant in the US.

Categories of L1 visa

There are two types of employee who may be sponsored for USA L1 visas:

• Managers and/or Executives---L1A visas

There is no firm definition as to what is a Manager or Executive. There is no firm rule as to how many employees they should supervise or how large the company they work for should be.  In general, the executive or manager should have supervisory responsibility for professional staff and/or for a key function, department or subdivision of the employer. 

Front line supervisors, such as shift managers in fast food restaurants probably do not qualify. Nor do those who perform the actual service of a business such as salesmen or attorneys.

• Specialized Knowledge Staff---L1-B visas

specialized knowledge staff are  those with knowledge of the company's products/services, research, systems, proprietary techniques, management, or procedures. 

Duration of stay

Intra company managers and executives are normally issued a visa for an initial period of three years which can be extended up to a maximum of seven years. 

Specialized knowledge staff are limited to a five year maximum.

On completing the maximum allowable period in L-1 status, the employee must be employed outside the United States for a minimum of one year before a new application is made for L or H status.

In the event that the employee only came to the US on a seasonal or intermittent basis the maximums do not apply.

EMPLOYER/EMPLOYEE RELATIONSHIP

Note that an actual employer/employee relationship must exist. Independent contractors or sole proprietors are ineligible for LA status.

START-UP SITUATIONS

It is recognized that in many instances staff may be sent to US to oversee the start up of new operations and that business activity may not even have commenced nor employees hired at that time.

In this situation a 'start-up' L1 is available which is valid for a period of one year but which can be extended upon establishing that the business has developed form the start up stage and has business turn over and employees.

To obtain a start-up L1 it normally has to be demonstrated at a minimum that a business lease has been signed and that  business plan has been drawn up.

Qualifying Relationships:

In order to sponsor an application for an L1 visa:

• A foreign parent must own at least 50% of a US subsidiary, and have veto powers over the subsidiary’s actions;
• A US parent must own must own at least 50% of the foreign subsidiary, and have veto powers over the subsidiary’s actions;
• Affiliate US and foreign companies must each be at least 50% owned by the same ultimate parent;
• A US organization with a branch office abroad qualifies, as does a foreign organization with a US branch (though this must be more than simply an agent or representative);
• A US organization which employs e.g. sales personnel overseas can sponsor such employees for L1’s even if there is no non-US office.

Note that the ownership requirements are not as strict in the case of vary large corporations, where a substantial minority shareholding will be a qualifying relationship.