White House To Let Foreign Startups Work In The U.S. With The International Entrepreneur Rule
Is the long wait for entrepreneurs to step overseas finally over?
The startup world has had a dramatic awakening with recent news of the Obama administration proposing a new rule to allow foreign startup founders to come to the United States! Provided they have raised money from American investors, these startups will be allowed a stay of two to five years, along with the option to apply to stay longer once they’re there.
The Startup Visa
The Startup Visa was a proposed amendment to the U.S. immigration law in 2011 to create a visa category for foreign entrepreneurs who have raised capital from qualified American investors.
The Startup Visa would have been a temporary immigrant visa that would pave the way for immigrant entrepreneurs looking to start businesses in the United States, but after several attempts to pass the visa, the amendment failed to make it big.
The International Entrepreneur Rule
After the dwindled “startup visa” plan, the Obama administration is moving ahead with an alternative that would allow overseas entrepreneurs to live in the U.S. for up to five years to help build a company.
Under a federal rule being formally proposed on Friday, the Department of Homeland Security would be empowered to use its existing authority to allow entrepreneurs to legally work in the country for two years, possibly followed by a one-time three-year extension. The rules aren’t subject to congressional approval and the public will have 45 days to comment.
Intricacies of the Rule
For eligibility to work in the U.S. under the new rule, the foreigner would have to:
- Own at least 15 percent of a U.S.-based startup
- Have a central role in its operations
- Have potential for rapid business growth and job creation
The last qualification would be satisfied by having at least $100,000 in government grants or at least $345,000 in investment from U.S. investors along with a track record of backing successful companies. Those who partially satisfy those requirements could still be allowed in with additional evidence of the company’s growth potential.
From the White House
The new rule is a result of White House argument that entrepreneurs who create jobs in the United States and contribute to gross domestic product are providing a significant public benefit.
The International Entrepreneur Rule is a sort of workaround for President Obama, who has long wanted to create a “startup visa”.
Do you think this rule will finally prove as an opening for startups around the world? Please share your thoughts in the comments section below.
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