The International Entrepreneur Rule allows global entrepreneurs to legally relocate to America without making any investments. The International Entrepreneur Rule, a path to US residency, requires only a set percentage of ownership in the start-up company, with the primary funding channeled through a US investor.
Entrepreneurs may be either living abroad or already in the United States, and up to 3 entrepreneurs per start-up can be eligible for parole under the International Entrepreneur Rule. Essentially, the Start-up entities must have been formed in the United States within the past five years.
While nothing stops entrepreneurs from personally investing in the start-up entity or otherwise securing additional funding, only qualified investments from a qualifying investor count towards the minimum investment amount. Find a suitable “qualified investor” and have him fund your start-up to gain access to America.
So, what start-ups qualify, how much money is necessary, and who is a “qualified investor”? Knowing all of this will help you understand what the ‘International Entrepreneur Rule’ is about and who it can benefit.
Start-up entities must demonstrate substantial potential for rapid growth and job creation by showing at least $311,071 in qualified investments from qualifying investors, at least $124,429 in qualified government awards or grants, or alternative evidence.
For a second period of authorized stay under the International Entrepreneur Rule, the entrepreneur generally must demonstrate that the start-up entity has either:
- Received a qualified investment, qualified government grants or awards, or a combination of such funding, of at least $622,142 (currently $528,293);
- Created at least five qualified jobs; or
- Reached annual revenue in the United States of at least $622,142 (currently $528,293) and averaged at least 20% in annual revenue growth.
The definition of a “qualified investor” requires the investor to have a history of substantial investment in successful startup entities of at least $746,571. While the entrepreneur (the person wishing to stay in the United States) does not need to be a citizen, the investors who fund their firm must meet stringent U.S. citizenship or residence standards.
Under the International Entrepreneur Rule (IER), noncitizen entrepreneurs who demonstrate that their stay in the United States would significantly benefit the public through their business venture and that they merit a favorable exercise of discretion may, on a case-by-case basis, be granted a period of authorized stay by the Department of Homeland Security (DHS).
This period of authorized stay is technically called ‘parole’. The applicants of the International Entrepreneur Rule do not require a visa, but a parole is sufficient. The entrepreneur may be granted an initial parole period of up to 2.5 years. If approved for re-parole, based on additional benchmarks in funding, job creation, or revenue described below, the entrepreneur may receive up to another 2½ years, for a maximum of 5 years. Under this rule, entrepreneurs granted parole will be eligible to work only for their start-up business. The spouse and children of the noncitizen entrepreneur may also be eligible for parole.