Managers and Executive Transferees(EB-1C)
A What is EB-1C?
EB-1C: Managers and Executive Transferees 8 C.F.R. §203(b)(1)(C))
The EB-1C is a first-preference immigration petition. The alien employee must have worked abroad for the overseas company for a continuous period of one year within the three years immediately preceding his or her admission to the United States. The employee must have been employed abroad in an executive or managerial position, otherwise known as a “qualifying position.”The employee must be relocating to the U.S. to provide services in an executive or managerial capacity for a branch of the same employer or one of its qualifying organizations.
The EB-1C is an employment-based immigration petition designed specifically for multinational executives and managers, and must be sponsored by a U.S. employer. The beneficiary is the employee.
BThe requirements of EB-1C
General Requirements for the EB-1C Petitioner: The Employer
1.Qualifying relationship
In L-1 visa applications, there must be at least two companies – a) companies in the United States and b) companies outside the United States. The relationship between the two companies can be:
1) Parent-subsidiary company: parent company accounts for more than 51% of the shares of subsidiary company;
2)Affiliated affiliations: For example, third-party holding more than 50% of U.S. domestic and foreign companies.
3) Joint venture
Classic cases:Matter of Hughes,18 I&N Dec. 280 (Comm.1982):Joint venture company, American company has 50% control of management and policy.
9 FAM 41.54 N.6.1-4b. : If two parent companies own 50% of the company (joint venture), the joint venture company is a subsidiary of two parent companies.
2.Doing business
The company must have been conducting business in the U.S. for at least one year prior to filing. “Doing business” is defined as regular, systematic, and continuous providing of goods or services.
L-1A Employee Requirements
1.The alien employee must have worked abroad for the overseas company for a continuous period of one year within the three years immediately preceding his or her admission to the United States.
2.The employee must have been employed abroad in an executive or managerial position, otherwise known as a “qualifying position.”
3.The employee must be relocating to the U.S. to provide services in an executive or managerial capacity for a branch of the same employer or one of its qualifying organizations.
executive position
Making decisions with wide latitude and without much oversight.
1) Managing the whole company, or the company’s important components, institutions.
2) Setting organizational goals or policies.
3) Making decisions on major decisions of the company;
4) Only accept the general supervision of the company’s top management, including the higher executives and the board of directors.
managerial position
Supervising and controlling the work of professional employees and to manage the organization, or a department, subdivision, function, or component of the organization.
1) Managing an organization, department, institution or part of an organization;
2) Supervising and controlling other supervisors, managers or professionals. Professionals listed in the Immigration Act include architects, engineers, lawyers, physicians, surgeons, and teachers from various educational institutions. Of course, it’s not just about these professions.
3) Having the power to appoint and dismiss employees, or have the power to recommend personnel (for employees directly under their supervision), or manage a core department within the organization;
4) General management of day-to-day company affairs.
CThe difference between EB-1C and L-1
| L-1 | EB-1C | |
| Requirements for the number of employees in the United States | 1)New Company You are not required to employ personnel. 2)If you want to apply for an L-1A extension, you need to have at least 2-3 employees in a company in the United States. | Company in the United States needs to employ at least 10 jobs, usually 15. It’s better to have three levels of management. |
| Requirements for turnover: | a minimum turnover about $200,000 to $400,000 | about $1 million |
| Requirements for beneficiaries’work | The alien employee must have worked abroad for the overseas company for a continuous period of one year within the three years immediately preceding his or her admission to the United States. | The alien employee must have worked abroad for the overseas company for a continuous period of one year within the three years immediately preceding his or her admission to the United States. |
| The spouse and any unmarried children of Beneficiaries | The spouse and any unmarried children under the age of 21 of L-1 holders are eligible for L-2 visas. The L-2 classification allows L-1 dependents to live with L-1 holders in the United States for the duration of their stay. L-2 holders are able to attend school, but in order to work legally, they must apply for an Employment Authorization Document (EAD). They can study in primary and secondary schools. If they apply for university, they will be treated as foreign applicants. | Children can study in any public school. Spouse can work in the United States. |
| The visa period | 1) If the US affiliated company is less than one year, only one year visa can be obtained. If you apply for L-1 extension after one year, two or three years visa can be obtained. With extensions, the maximum stay of L-1A visa is seven years. 2)Foreign applicants can obtain a non-immigrant visa for up to three years if they meet a one-year requirement and have actual business and staff in an affiliated company in the United States. | You can obtain the green card. You should renew your Green Card if you are a permanent resident with a Form I-551 valid for 10 years |
| Time Beneficiaries Need to Reside in the United States | There is no legal requirement (but if you live in the United States for a very short time, you need a reasonable reason.) | Like other “green card” holders, there are certain requirements for residence time in the United States. |
| processing time | Choose premium processing You will get the application result within 15 days. Choose ordinary processing You will get the application result within 2 to 4 months. | No premium processing service. You will get the application result within 10 to 12 months. |
DThe difference between EB-5 and EB-1C
| EB-5 | EB-1C | |
| Requirements for the amount of investment | The amount of investment is at least $500,000 or $1 million, depending on the investment area. | There is no special regulation on the amount of investment. Usually, more than $200,000 is invested in new companies. The company must have been conducting business in the U.S. for at least one year prior to filing.The petitioner can apply for EB-1C after one year’s operation and more than $1 million in revenue. Or direct investment of $500,000 to $1 million, depending on the size of a mature enterprise with a revenue of more than $1 million.The petitioner can apply for EB-1C |
| Beneficiaries’ Experience and Educational Requirements | N/A | There is no clear requirement for the educational background of the beneficiaries. But the beneficiary must have worked abroad for the overseas company for a continuous period of one year within the three years immediately preceding his or her admission to the United States. |
| The Petitioner and Beneficiary | The individual alien investor is the petitioner and beneficiary. | The qualified U.S. entity is the petitioner, and the alien manager or executive is the beneficiary. |
| Requirements for employees | Whether the investment has created at least 10 full-time employment opportunities for U.S. workers. If the investment is made in a USCIS approved “Regional Center,” indirect employment opportunities created by the investment may fulfill the job creation requirement. | Generally speaking, U.S company needs to employ at least 10 employees. |
| Green card | If I-526 is approved, beneficiary should wait for an interview notice from USCIS(I-485) or the U.S. Consulate in Guangzhou(CP). Then the beneficiary can receive Conditional Green Card.he resultant permanent resident status is conditional for a period of two years. In order to eliminate the conditions on green card status, alien investors (as well as their family members) must request removal within the 90 days preceding expiration of the green card. To this end, they file Form I-829, Petition by Entrepreneur to Remove Conditions on Permanent Resident Status. If I-829 is approved, investors and their family members receive permanent unconditional green cards. | If I-140 is approved, beneficiary should wait for an interview notice from USCIS(I-485) or the U.S. Consulate in Guangzhou (CP). If visa is available, beneficiary can get the interview notice within 3 to 6 months. If visa is not available, beneficiary needs to wait. |
| Documents | Investors need to prove the legitimate source of investment funds; prove that investments are indeed ongoing; prove that projects or businesses are real; prove that investments create 10 full-time jobs for U.S. employees. | nformation about U.S company and overseas company;Documentation on Beneficiary’s Experience, Competence and Position For more information, please see EB-1C documents list. |
EL-1A TO EB-1C
A. Slow Development Model:
Set up a new company in the United States. The petitioner can apply for L-1A.The petitioner can apply for EB-1C after one year’s operation and more than $1 million in revenue.
B. Acquisition model, first L-1A, then EB-1C:
Acquisition of a long-established (or two) large-scale company in the United States, first dealing with L-1A;
The typical model is that the Chinese parent company can set up a Holding Company in the United States. Then, American subsidiary company should buy an U.S company directly, holding more than 51% of its shares.The petitioner can apply for L-1A visa first, and then apply for EB-1C after getting L-1 visa for about half a year. Generally speaking, it is better for the acquired enterprise to have at least 10 employees and about 1 million turnover. After the acquisition of American companies, it is better for group companies to have three to four levels of management. After that, the applicant can apply for EB-1C. * (as shown below)
C. Purchasing large and medium-sized enterprises
The petitioner can apply for EB-1C.