The E-2 Treaty Investor Visa is a powerful tool for foreign nationals looking to start or expand a business in the United States. It allows entrepreneurs from treaty countries to live and work in the U.S. while managing their investment enterprise. But while the benefits are clear, so are the risks — many E-2 visa petitions are denied due to avoidable mistakes.
At Ahluwalia Law Offices, we specialize in preparing E-2 petitions that meet the nuanced requirements of U.S. immigration law. Here are the five most common reasons E-2 visas are denied — and how we help clients avoid them.
1. Insufficient Investment Capital
One of the most frequent reasons for denial is a failure to meet the “substantial investment” threshold. There’s no fixed amount set by USCIS, but the investment must be proportional to the cost of the business and high enough to ensure the investor’s financial commitment.
Our Strategy: We work closely with our clients to calculate appropriate capital levels based on business type, and guide them in gathering documentation that proves funds are irrevocably committed and “at risk” — such as wire transfers, equipment purchases, and signed leases.
2. Passive or Marginal Enterprise
USCIS will deny E-2 visa applications for businesses that are purely passive (e.g., stock portfolios or rental properties) or marginal — meaning they don’t generate enough income to support the investor and their family.
Our Strategy: We help clients develop business plans and operational evidence that prove the business is active, job-creating, and commercially viable.
3. Lack of Treaty National Ownership
To qualify for an E-2 visa, at least 50% of the business must be owned by nationals of the treaty country. Failing to document this clearly leads to immediate denial.
Our Strategy: We verify treaty eligibility from the beginning and ensure all corporate documents — including operating agreements and share certificates — reflect proper ownership.
4. Weak or Incomplete Business Plan
A vague or unrealistic business plan can undermine your petition, even if your investment is sufficient. USCIS expects detailed, financially sound projections.
Our Strategy: We prepare business plans that include competitive analysis, five-year forecasts, job creation timelines, and operational strategy — aligned with USCIS expectations.
5. Inadequate Documentation of Investment
Failing to document where the funds came from and how they’ve been spent is a major reason for denial. Generic bank statements or missing receipts can raise red flags.
Our Strategy: We build a strong evidentiary record with source of funds documentation, receipts, contracts, and financial ledgers to establish a clear trail of capital flow.
Final Thought
The E-2 visa is more than a form — it’s a legal strategy. At Ahluwalia Law Offices, we handle complex investor cases with the care and precision they deserve. If you’re planning to invest in the U.S., partner with a legal team that understands what success looks like — and how to get you there.
