L-1 Intracompany Transferee Visa

INTRODUCTION

The L nonimmigrant classification was created in April, 1970, to permit international companies to temporarily transfer qualified employees to the United States for the purpose of improving management effectiveness and enhancing international trade.

The impetus for the creation of this nonimmigrant visa classification came mainly from large multinational companies who found it difficult to bring critical personnel from abroad.

The flexibility of the L classification has allowed smaller companies to use it as a vehicle for the transfer of entrepreneurs and their employees from overseas.

The L visa allows overseas companies to transfer executives, managers or employees possessing specialized knowledge, into the United States to be employed at an existing related business entity or to establish a new operation.

DEFINITION

The L visa holder, or "Intracompany Transferee", is a foreign national, who, within three years preceding the time of his or her application for admission into the United States, has been employed abroad continuously for one year by a firm, corporation, or other legal entity or parent, branch affiliate, or subsidiary thereof, and who seeks to enter the United States temporarily in order to render his or her services to a branch of the same employer or a parent, affiliate or a subsidiary thereof, in a capacity that is managerial, executive or involves specialized knowledge, and the spouse and minor children of any such alien if accompanying him.

DURATION OF VISA

The L visa is issued for a three year period subject to being extended up to seven years for executives or managers and five years for individuals possessing specialized knowledge.

The L visa is only issued for one year for individuals who are transferred to the United States for purposes of establishing a start-up operation. The visa will be extended upon application to INS if the operation has grown sufficiently to support the continued employment of an executive, manager or an individual possessing specialized knowledge.

THE FOREIGN AND U.S. EMPLOYER MUST BE RELATED

The L-1 visa holder may enter the United States temporarily to continue to render services to the same employer, or a parent, branch, affiliate or a subsidiary thereof.

The defining of the relationship between the foreign and U.S. entity is essential for issuance of the L-1 visa. The acceptable relationships are defined as follows:

" Parent" means a firm, corporation, or other legal entity which has subsidiaries.

" Branch" means an operating division or office of the same organization housed in a different location.

" Subsidiary" means a firm, corporation, or other legal entity which a parent owns & controls.

" Affiliate" means one of two subsidiaries, both of which are owned and controlled by the same parent or individual; or, one of two legal entities and controlled by the same group of individuals owning and controlling approximately the same share or proportion of the entities.

The requirement of "ownership & control" appears both in the definition of subsidiary and affiliate. It s a key concept which is normally interpreted as a requirement that the U.S. and foreign entities have 50 percent or more common ownership.

The Petitioner must continue to do business in the United States and at least one other country during the validity period of the L-1 visa. If the foreign entity ceases to exist, the L-1 automatically terminates.

The employer must be "doing business" in the United States and abroad during the L-1 period of validity. It means the regular, systematic and continuous provision of goods and/or services by the qualifying organization and does not include the mere presence of an agent or office in the United States or abroad.

THE QUALIFICATIONS OF THE FOREIGN EMPLOYEE

In order to be eligible for the L-1 visa, the foreign employee must has been employed abroad with the related organization for one continuous year within three years before the application for admission, in one of three qualifying categories listed below:

" Manager means manages the organization, or a department, subdivision or essential function of the organization; has the authoritiy to hire and fire; and if a first line supervisor, supervises employees who possess professional qualifications.

" Executive" means directs the management of the organization or major component of the organization; establishes the goals and policies for the organization; exercises wide latitude discretionary determinations which are significant to the organization.

" Specialized Knowledge" must be possessed by an individual of the petitioning organization’s product, service, research, equipment, techniques, management or other interests and its application in the international markets, or an advanced level of knowledge or expertise in the organization’s processes or procedures.

The employee who transfers to the United States in any of these three categories must work primarily as a manager, executive or as an individual possessing specialized knowledge. The term "primarily" means 50 percent or more of the time.

NEW OFFICE OR START-UP OPERATIONS

INS does relax certain requirements for L-1 issuance when the employee is transferring to the United States to open a new office.

A new office would normally be defined by the business activity of the U.S. entity. INS would consider any entity as a new office if it cannot establish that it has been "doing business" in the United States for more than one year. "Doing business", as previously stated, is a term of art. It means the regular, systematic and continuous provision of goods and/or services by a qualifying organization. In some instances, a company might have sporadic business contact with the United States for several years and would still be considered a start-up operation for L-1 purposes.

INS will not issue an L-1 visa unless their has been established a business premise in the United States which is sufficient to support the proposed business activities.

The L-1 visa is only issued for a one year period for an employee of a new office. It is expected that start-up operations will require a more hands on approach to business management so the L-1 visa holder does not have to "primarily" be employed as a manager, executive or individual possessing specialized knowledge. However, at the end of the one year grace period when the L-1 visa needs to be extended, INS will require evidence that the business has sufficiently grown such that the L-1 employee will be "primarily" employed in one of the three approved categories.

VISA ISSUANCE

The L-1 petitions are filed at the INS regional service centers and then forwarded to the U.S. consulates upon approval for visa issuance.