H1B Visa for Entrepreneurs: Challenges and Other Visa Options.
Can I start a business on an H1B visa? The answer is yes, but there are stringent requirements to qualify and limited benefits. In this blog, we discuss the H1B visa for entrepreneurs, the hurdles they face to qualify, and possible alternative visa solutions. Let’s begin.
Setting Up Your Company on an H1B Visa: An Overview
The H1B visa allows you to work for a US employer in specialized roles, but it typically ties you to a single employer. However, if you’re looking to start your own business while on an H1B visa, there are steps you can take:
- Develop a business plan and gather customer feedback.
- Raise capital from investors and acquire necessary equipment or office space.
- Register your business and open a bank account.
While these steps are exciting, it’s important to proceed cautiously. Violating H1B visa terms can lead to serious consequences, including visa revocation or future immigration issues. Here are some key restrictions to keep in mind:
- You cannot manage daily operations or engage in product development.
- Hiring, firing, or receiving compensation from your own company is not allowed.
So, how can you work full-time for your startup?
Once you have raised sufficient funds, your own company can sponsor an H1B visa for you or apply for a transfer. However, you must meet specific requirements for approval.
Therefore, obtaining an H1B visa for entrepreneurs is not a straightforward process and involves restrictions.
Stringent Requirements for Transferring Your H1B to Your Company
Transferring your H1B or applying for a new H1B petition as an entrepreneur involves several challenges due to stringent requirements.
1. Employee-Employer Relationship
For an H1b visa, You must prove that your employer can hire or fire you at any time. To meet this requirement, you cannot hold more than 50% equity in the company, or you must have a board of directors with the authority to fire you.
This is a significant drawback for entrepreneurs on an H1B visa: no one wants to risk being fired from their own company that they worked hard to grow from scratch.
2. Showcase Company’s Viability
You need to demonstrate your company’s viability for an H1b visa. It’s not enough to show that you have sufficient funds in your bank account to pay yourself for a three-year’s H1B period. You must prove that your company has enough resources and work to support hiring immigrants.
This requirement is challenging to meet in a short time and can pose a financial burden.
3. Specialty Occupation
For an H1B visa, you must show that the job offer requires a bachelor’s or higher degree in the relevant field.
Often, the job offer, educational background, and Labor Condition Application (LCA) information do not align, leading to Requests for Evidence (RFEs).
Alternative Visa for Entrepreneurs
H1B is not the only option for entrepreneurs; they can explore self-petition green cards like the EB1A.
Compared to the H1B for entrepreneurs, the EB1A offers several advantages:
- No labor certification or educational stipulations required.
- Minimal financial risk, aside from the government fee.
- No need for employer sponsorship.
- Direct path to US permanent residency, providing long-term stability and helping attract potential investors.
- No constraints on job roles and income sources, offering flexibility to explore different business opportunities or take on new roles within their companies.
Wondering how to qualify for the EB1A Green Card?
As an entrepreneur, there are multiple creative ways to meet the EB1A requirements. For instance, entrepreneurs often have more control over their business operations compared to employees, which can be utilized to meet the EB1A critical role criteria.
Conclusion
You can start a business on an H1B visa, but it is a very complex process with stringent requirements. H1B visa for entrepreneurs involves financial burdens, employer dependency, and more. Additionally, an H1B is a temporary work visa with limited job flexibility.
In contrast, the EB1A is a goldmine for entrepreneurs. The recognition and excellence you have achieved in your field can be utilized to meet its requirements. Moreover, the EB1A green card has shorter wait times for Indians.
At the Smart Green Card VIP plan, we have helped many entrepreneurs build a compelling EB1A profile, and they have received their EB1A approval without RFEs.
If you require assistance and guidance in gathering strong evidence for your EB1A application, feel free to explore the Smart Green Card VIP plan.
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