What are the benefits that immigrant entrepreneurs get out of Startup visa?
Non-native business owners who found companies in the U.S. to stay in the country for an initial period of two years to build their startups. To qualify, entrepreneurs?must have?at least a 15% ownership stake in a startup where they have a central role in operations,?and have raised either $345,000 from private investors, or $100,000 from government sources.
All told, the U.S. Citizenship and Immigration Services says upwards of 2,100 entrepreneurs could be eligible to stay annually.
Any real life examples of Indian immigrant business owner benefiting from this?
For Vishal Sankhla the Obama administration?s?proposed startup rule
,?which would allow?foreign-born entrepreneurs to stay in the country and grow their businesses, is welcome news, if a little late. Sankhla, a native of India, moved to the U.S.?15 years ago. In 2011, he founded ViralHeat, a startup that measures metrics around social engagement, which attracted $4.5 million in venture capital dollars and grew to employ 35 people before it was acquired in 2015.?Throughout the process,?Sankhla?s residency status was uncertain, as he moved from a student visa to an H-1B, and eventually to a green card in 2013.
What should the startup do to qualify for startup visas?
- Who have a significant ownership interest in the startup (at least 15 percent) and have?an active and central role to its operations;
- Whose startup was formed in the United States within the past three years; and
- Whose startup has substantial and demonstrated potential for rapid business growth and job creation, as evidenced by:
How long are you permitted to stay?
- a) Receiving significant investment of capital (at least $345,000) from certain qualified U.S. investors with established records of successful investments;
- b) Receiving significant awards or grants (at least $100,000) from certain federal, state or local government entities; or
- c) Partially satisfying one or both of the above criteria in addition to other reliable and compelling evidence of the startup entity?s substantial potential for rapid growth and job creation.
Under the rule, DHS would issue temporary permission for entrepreneurs to live in the United States they entrepreneur can stay for 2 years.
After the initial two year window, can entrepreneurs stay?
An additional three years if they?meet a new set of?criteria, including double-digit annual revenue growth, revenues of at least $500,000, and the creation of at least?10?full-time jobsand the company shows continued growth and benefit to the American public (like increases in capital investment, job creation, or revenue).
What are the compliance issues to be kept in mind?
Material change could be a criminal charge, conviction, plea or any other criminal case or government administrative proceeding against the entrepreneur or the startup which has to be reported immediately.? Also, if at any time your ownership falls below 10%, your parole can be terminated or revoked.
How many co-founders can file?
Upto 3 co-founders can apply from the same startup.
Is the family of Co-founders allowed to get a parole?
Your spouse and children will be allowed to get parole too and live with you in the US. They will have to use the traditional application Form I-131 and also go through biometrics and background checks. Children under 14 do not pay the $85 biometrics fee though.
Do the cofounders need to be earning an income already?
The rule proposes that the household income an applicant is 400% above the?Federal poverty guideline
. That means, if a federal household income for a family of 2 is $20,020, then the entrepreneur will need to show a household income of $80,080.00. This income can be a combination of income from your spouse?s annual income too. ?These new provisions will allow your spouse to receive a work authorization.
What is the Process of application?
What kind of investment in the startup will qualify?
- A new form has been created for this particular application- Form I-941.
- Filing fee will be $1200.
- An additional biometrics fee of $85 will be required.
- Must undertake biometrics-meaning fingerprinting and background check.
- If in the US, you will attend a USCIS field office for biometrics. If outside the US, you will attend your local consulate.
There are two types of investments that will qualify:
- Capital from qualified U.S. investors with established records of successful investments.
- Awards and grants from Federal, State or local government.
In order to register yourself as a US entit, happy to help you, let us?mould you for Visa
Every VC/Angel investor, before pumping in their money, will perform a due-diligence process. This process varies in tenure and complexity based on the industry, nature of transaction, and also the stage of investment. Any deal is successfully closed, only aftersatisfactory-completion of due-diligence
, failing which, the deal drops dead. Sometimes, they get a legal opinion, before proceeding.
Start-up process entails complex procedures and many bureaucratic hurdles, entrepreneurs are better off using professional services. Hiring a virtual lawyer and virtual accountant can save time and help you ensure that the process goes smoothly.
For any Legal and Accounting support, connect us at Wazzeer
For more interesting updates follow us on?Twitter