Barack Obama led US Government wants more foreign entrepreneurs in their soil and in order to attract more startups and more ideas, they are throwing open their doors for all.
As per a recent report, it was revealed that Department of Homeland Security in US, which manages immigration and overseas workers is planning to create a new federal law, which favors overseas entrepreneurs and their startups.
Technically, the creation of this new federal law doesn’t require Congressional approval; thereby making it easy to implement and execute.
As per the technicalities revealed, Department of Homeland Security would be now empowered to allow non-US entrepreneurs to legally stay and work in US for two years. After this period, they the Govt. can provide a one-time extension of three years, thereby making it possible for the non-US entrepreneur to stay for five years, and expand their business.
Eligibility Criteria
In order to get eligible for this special status, the overseas entrepreneur need to own atleast 15% of the US based startup. Besides, he or she should have an important role in its operations and have ”potential for rapid business growth and job creation.”
The startup would be required to have a minimum of $100,000 as grants from the US Govt., and/or atleast $345,000 as investments from US investors, who have an excellent track record in business investments.
Although this sounds more or less similar to the EB-5 visa, which allows foreign nationals to invest in US and instantly obtain investor’s visa; there is a major difference out there.
In EB-5 visa, the person gets into US as an investor, and the amount to invest is pretty high: $800,00 (beginning October, 2016), which translates to Rs 5.2 crore.
But in the new relaxed rule for entrepreneurs and startup, the person needs to operate a startup, which is US based, and have been invested by US investors.
We have already reported how EB-5 visa is getting very popular, especially among Chinese and Indians. Around 1200 Indians have already applied for this special visa to enter US.
This new initiative by the US Govt. to allow overseas entrepreneur to startup and stay in US can be a big boom for the entrepreneurial community in various countries, especially India,
At a time when US-India bilateral trade has reached a new height of $109 billion, this is the best time for daring entrepreneurs to venture out into the lucrative US market, and scale their businesses.
Successful immigrant entrepreneurs in US, like PayPal co-founder Max Levchin, who immigrated to US from Russia in 1991, have supported this move.
He said, “I believe that the most promising entrepreneurs from around the world should have the same opportunity I had — the chance to deliver on their potential, here in America,”
US citizens have 45 days to comment on this new legislation, before it becomes a law in US.
We will keep you updated as more news come in..