L Visa: Intra-company transfer

Suitable for foreign CEOs, directors and managers of trans-national companies

L-1A: Managers, executives and specialized knowledge employees

The L visa is divided into the L-1A, L-1B, and L-2 categories. The first type, the L-1A visa, is for “Managers” and “Executives” of businesses, and the second, the L-1B visa is available to those persons who have “Specialized Knowledge” regarding the business. The L-2 visa is given to the spouses and children under 21 years of age that accompany the L-1A or L-1B beneficiary. Each beneficiary of an L visa must satisfy specific requirements showing that they are either an executive, manager, or a person with specialized knowledge.

So how does one qualify for an L visa?

Although there are a number of requirements, let us focus on a few:

• The foreign business must have been operational for at least one year prior to applying for an L visa of any sort.
• Any beneficiary being transferred to the U.S. must exhibit that they have worked for the company for at least one out of the last three years and furthermore that they qualify as a “Manager”, “Executive”, or have “Specialized Knowledge” regarding the foreign company’s product, services, techniques or the like. Each of these positions has a specific legal definition that needs to be satisfied. Furthermore the beneficiary must be entering the U.S. to work in one of these capacities. Note however that there are exceptions to the required job duties that apply during the first year of a new office opening.
• Throughout the employees stay in the U.S. on the L visa, the foreign business must remain in operation, and proof thereof will be required when applying for visa extensions.
• There must be evidence of common ownership between the foreign and U.S. entity. If less than majority ownership of both businesses is shown, control over the business will be the determining factor.

So how does one qualify as a Manager, Executive or Specialized Knowledge individual?

The appropriate regulations (8 CFR 214.2(l)) are used to define what is considered to be managerial, executive and specialized knowledge in nature. Let us take a look at the regulatory language:

8 CFR §214.2 (l)(ii)(B) provides that Managerial capacity means an assignment within an organization in which the employee primarily:
(1) Manages the organization, or a department, subdivision, function, or component of the organization;
(2) Supervises and controls the work of other supervisory, professional, or managerial employees, or manages an essential function within the organization, or a department or subdivision of the organization;
(3) Has the authority to hire and fire or recommend those as well as other personnel actions (such as promotion and leave authorization) if another employee or other employees are directly supervised; if no other employee is directly supervised, functions at a senior level within the organizational hierarchy or with respect to the function managed; and 
(4) Exercises discretion over the day-to-day operations of the activity or function for which the employee has authority. A first-line supervisor is not considered to be acting in a managerial capacity merely by virtue of the supervisor’s supervisory duties unless the employees supervised are professional.

Additionally, the regulation defines executive capacity as an assignment within an organization in which the employee primarily:
(1) Directs the management of the organization or a major component or function of the organization;
(2) Establishes the goals and policies of the organization, component, or function;
(3) Exercises wide latitude in discretionary decision-making; and
(4) Receives only general supervision or direction from higher level executives, the board of directors, or stockholders of the organization. 8 CFR §214.2 (l)(ii)(C).

Specialized knowledge as per the regulation encompassesan individual that possesses specialize knowledge of the foreign business as relating to petitioning organization’s product, service, research, equipment, techniques, management, or other interests and its application in international markets, or an advanced level of knowledge or expertise in the organization’s processes and procedures. 8 CFR §214.2 (l)(ii)(D).

So what are some of the benefits that this visa confers?

1. One of the many advantages that the L visa provides for new office openings in the U.S. is that the nature and the size of the foreign company and the newly founded U.S. branch or subsidiary is irrelevant in terms of the visas availability.
2. As an L-1A or L-1B visa holder you may bring your spouse and children under the age of 21 along with you to live in the U.S. as long as your L visa is valid. In addition, your spouse is free to accept any employment in the U.S. Your spouse and children will enter on L-2 visas.
3. Additionally, with the L visa there is no minimum amount of money that needs to be invested into the U.S. Company, although enough must be invested in order to show that the business is operational.
4. Under the L-1A visa you will be entitled to remain in the U.S. for a total of up to seven years, and under the L-1B visa up to a total of five years. Note that you while maintaining your non-immigrant L visa status in the U.S., you may legally apply for permanent resident status. If you receive permanent residence status then you are no longer bound by the strictures of the L visa, and are lawfully entitled to reside in the U.S. permanently, barring any disqualifying issues.

The L visa provides great opportunities for foreign business owners and foreign employees to comet to the U.S. to work and live while expanding the horizons of their businesses.