According to U.S. immigration policy, the U.S. L-1 visa allows multinational companies with business entities in both the United States and China to transfer employees from the Chinese company to work at the U.S. company; therefore, the U.S. L-1 visa is effectively a work visa. These U.S. immigration policies stipulate that the transferred employees must be senior managers (applying for L-1A) or technical personnel with specialized skills and knowledge (applying for L-1B). U.S. immigration policy stipulates that the work status for L-1A senior management personnel can last up to 7 years. The work status for L-1B core technical personnel can last up to 5 years.
If the U.S. company is newly established, the first U.S. L-1 visa approval for entry generally only allows a stay of one year, with subsequent extensions granted for two years at a time. If the U.S. company has been established for many years and has good operating performance, the first approval for entry can allow a stay of three years, with subsequent extensions also granted for two years at a time.
According to U.S. immigration policy, the success of a U.S. L-1 visa extension application depends on the performance of the U.S. company and the situation of its employees. The law does not explicitly state the required amount of revenue, profit, or number of employees. However, through extensive case handling and experience, the adjudication approach and standards of immigration officers can be generally discerned.
Below are answers to frequently asked questions encountered during the U.S. L-1 visa extension application process:
1. How much revenue and net profit does the U.S. company need to have to obtain approval for an L-1 extension?
There is no explicit provision for this in U.S. immigration policy. It depends on the nature of the U.S. company's business and its functional positioning. If the U.S. company only exists to develop markets, procure goods, or conduct technical research for the overseas parent company, it may have no operating revenue, provided the parent company is willing to continue supporting it. If the U.S. company sells products or provides services, then operating revenue is an important metric for measuring the company's active business operations. It is generally recommended to demonstrate an annual operating revenue (income) of at least $500,000 when applying for an L-1 extension.
2. How many employees does the U.S. company need to have to obtain approval for an L-1 extension?
U.S. immigration policy does not explicitly specify the number of employees, but based on experience, if the number of employees is 5 or fewer, the U.S. L-1 visa extension application may be subject to a Request for Evidence (RFE). Therefore, when applying for an extension, it is best to provide supporting documentation that reflects more than 10 full-time employees (two part-time employees count as one full-time). These employees can be U.S. citizens or of other nationalities. In addition to the number of employees, U.S. immigration officers will also look at the positions, salaries, working hours, and educational backgrounds of the employees within the company. If the company has high-end technical talent, a smaller number is acceptable; if the staff consists entirely of entry-level manual laborers, a larger number of employees is required.
3. Some of my U.S. company's sales staff are on a commission basis and receive a 1099 at the end of the year instead of a W-2; can they be counted as employees?
From the perspective of labor law, those who receive a 1099 are independent contractors and generally should not be considered direct employees. However, if you have proof of salary payments, you can list the independent contractors. This does not count as direct job creation, but it can be counted as indirect job creation.
4. The L-1 holder manages not only the U.S. company's employees but also the employees of the Chinese parent company and the U.S. subsidiary's affiliated companies; should I include the Chinese employees and the affiliated company's employees as well?
You can choose the best way and angle to present your case. However, immigration officers generally place more weight on the number of employees shown through the formal payroll system under the U.S. company's single tax ID. Other managed employees should be considered on a case-by-case basis, taking into account the actual situation such as company business status, company structure, and board authorization.
5. How far in advance should I submit the L-1 extension application?
You should submit the extension application as early as possible. According to U.S. immigration policy, you are allowed to submit an extension application as early as six months before the L-1 expires. If using regular processing, you should apply four months in advance. If using premium processing, you should apply two months in advance. Applicants should do their utmost to ensure they receive a clear result on whether the extension is approved before the L-1 expiration date. In the event that the L-1 extension is denied while the L-1 status has not yet expired, the applicant still has room to react, such as by resubmitting or switching to another application. If the status has already expired when the L-1 extension is denied, the only result is to leave the United States.
6. As long as I submit the extension application to the immigration bureau and it is received before my U.S. L-1 visa expiration date, I can legally stay in the U.S. to wait for the result, right?
Yes.
7. Before my L-1 status expires, I submitted the extension application to the immigration bureau in a timely manner and it was accepted; can I continue to work while waiting for the result?
Yes. According to U.S. immigration policy, for individuals with U.S. L-1 (or H-1B) status, if the extension application is submitted in a timely manner, they can legally work for up to 240 days while waiting for the result.
8. My first U.S. L-1 visa was valid for one year. When I entered the country, the I-94 allowed stay period was also one year. But the consulate gave me a two-year visa. Should I apply for an extension before the one-year expiration, or wait until the two-year visa expires?
You should apply for an extension before the one-year expiration. The time you are allowed to stay in the U.S. on an L-1 visa depends on the validity period recorded on the petition approval granted by the U.S. immigration bureau, not on the visa issued by the consulate. This is because the consulate has been automatically issuing 2-year visas in recent years based on the U.S.-China reciprocity agreement, but if your L-1 petition expires after one year, Customs and Border Protection will not allow you to continue entering the U.S. holding an L-1 visa that appears valid for two years.