Key Takeaways
Opening a restaurant is a popular route for E-2 investors, but specific legal criteria must be met to ensure the business qualifies under visa regulations.
- Visa Eligibility: An E-2 investor visa can be obtained by opening a restaurant in the USA.
- Economic Contribution: The restaurant you establish must not only support you and your family; it must contribute to the US economy and create employment.
- Active Management: A passive investment (just putting in money) is not enough for E-2 Visa; you must personally manage the restaurant.
The E-2 investor visa is a type of visa that allows citizens of countries that have a trade agreement with the US to invest a “substantial” amount of capital into a business in the US and come to the US for the purpose of “developing and directing” this business. Opening a restaurant in the USA is one of the frequently applied investment options for the E-2 visa. Restaurant investments are preferred for the E-2 Investor visa due to the rapid cash flow and the potential to create employment.
Criteria Required to Get an E-2 Investor Visa by Opening a Restaurant
Not every restaurant investment may be suitable for the E-2 Investor visa. USCIS for applications made within the US, and US consulates for applications made from other countries, consider 3 basic criteria when evaluating your application:
A. Substantial Investment
In US laws (9 FAM 402.9), a clear minimum investment limit for the E-2 visa is not specified. However, the investment you make must be a reasonable amount according to the type of restaurant you establish in the USA. To give an example, while $80,000–$100,000 might be sufficient for a small café, this figure may remain insufficient for a luxury steakhouse and could be rejected. This is called the “Proportionality Test.” The investment you make must be proportional to the investment required by the business you want to establish. Additionally, the money must have been spent before the visa application. Money just sitting in the bank is not counted as an “investment.” Expenses such as kitchen equipment, renovations, and rent deposits fall into this scope.
B. Source of Funds
The consulate does not only look at whether you spent the money; it also wants you to prove how you earned this money. Investment capital may have been obtained through legal commercial gain, the sale of real estate, or through inheritance. However, the source must be “traceable and legal.” For example, if you created capital by selling your house in your home country, the title deed transfer documents and bank receipts are the most important parts of your file. Cash money with an unclear source is not accepted in the E-2 process.
C. Marginality Test
Perhaps this is the point where foreign investors get stuck the most. The regulation (22 CFR 41.51) says that the business must not be “marginal.” That is, the income of the restaurant must not be limited to providing only for the livelihood of the investor and their family. The investment to be made must create employment in America. In your 5-year Business Plan, you must clearly show that the restaurant will employ US personnel such as waiters, busboys, dishwashers, or managers.
A “Food Truck” or a small buffet working alone without personnel may have difficulty passing the marginality test.
For E-2 visa approval, the potential to create employment is of critical importance.
Licenses and Permits in Restaurant Setup
In order for you to get an E-2 visa, it is mandatory to prove that your business is in the “real and operating” stage. At this stage, just establishing a company or renting a shop is not enough; local municipality and state permits must be completed. Missing licenses may lead to a rejection on the grounds that the application has “not yet matured.” Documents such as the Health Department Permit, Liquor License, or Certificate of Occupancy required for a restaurant form the backbone of your file.
Tip: Prove That Your Business is “Real”: Another detail as important as licenses is your digital footprint. When you enter the visa interview; having your restaurant’s Google Maps registration made, the existence of an active website, and the start of “Opening Soon” posts on social media accounts (Instagram/Facebook) creates a positive effect on the officer reviewing your E-2 visa application. This is strong evidence showing that the business is not just on paper, but ready to enter the market.
Step-by-Step Restaurant Investment and Visa Process
- Company Setup & Tax ID: Creation of the legal entity (LLC/Corp) in the US and obtaining the EIN number.
- Concept and Location: Leasing the right shop by conducting market analysis.
- Making the Investment: Renovation, equipment purchase, and “risking” the money.
- Permits: Completion of Health Department, Fire Department, and Municipality licenses.
- Business Plan: Writing the 5-year financial projection and employment plan.
- Visa Application: Preparation of the file and the Consulate appointment or Change of Status.
Bringing “Essential” Personnel from Other Country with an E-2 Visa
The E-2 visa allows for the bringing of personnel to the US who have critical importance for the operations of the business, in addition to the investor. In restaurant investments, the employment of qualified personnel from other country is subject to these conditions:
- It is mandatory for the personnel to be brought to be a citizen of the same country as the investor.
- The personnel must have skills of an “essential” nature for the service quality of the business that cannot be easily found in the US labor market. (For example, a baklava master). Note: Unskilled labor (waiters, busboys, etc.) is not included in this scope; these positions are expected to be met from the local workforce.
Frequently Asked Questions
Q: How much should the minimum investment amount be for a restaurant?
A: There is no fixed lower limit determined by law for the E-2 visa. However, due to the “substantial investment” principle, investments of 100,000 USD and above are generally accepted as a safe zone to prove the seriousness of the investment in the restaurant sector. A small café and a luxury restaurant are evaluated differently regarding the required investment amount.
Q: Does the E-2 visa provide me with a Green Card directly?
A: No. E-2 is a visa in the “non-immigrant” status and does not provide a direct Green Card. However, as long as your business is active, you can renew your visa indefinitely. In the following processes, it is possible to transition to different categories like EB-5 by growing your investment.
Q: What happens to my visa if the restaurant goes bankrupt or if I close it?
A: Your E-2 status is directly dependent on that business. If the restaurant closes, your visa status also ends. In this case, you must leave the US or transition to a different status.
Q: What are the rights of my spouse and children?
A: Your spouse gains the right to work automatically through E-2 status and can work anywhere they wish. Your single children under the age of 21 can reside in the US and receive education in state schools.
Q: Is knowing English a legal requirement?
A: Legally, there is no language exam or requirement. However, the Consular officer wants to be convinced that you will personally manage the business (active management). Knowing enough English to communicate with suppliers, personnel, and customers strengthens your application.
Q: Does getting a Franchise (Dealership) increase my visa chance?
A: Generally, yes. Being part of a recognized brand (franchise) shows that you have a proven business model. This situation may lead the Consular officer to see the risk of the business failing as lower and may make it easier to pass the “marginality” test.