Guide to U.S. Immigration

19. 50/50 Ownership - Joint Ventures

In general the L visa category requires that over 50% of the U.S. company (Japanese subsidiary company) be owned by Japanese nationals or the Japanese parent company. Thus if there is an even 50/50 split of ownership between an American ownership and a Japanese ownership, the joint venture company will not qualify for an L visa unless it is controlled by the Japanese company.

In the case of an L visa there is an important exception. If a U.S. company is controlled by the Japanese parent organization then an L visa is possible. The definition of "control" considers the following:

1. If a shareholders proxy agreement exists, giving the Japanese parent company voting control of the company.

2. If actual control can be demonstrated by a separate contract giving the Japanese parent company control of the everyday affairs of the company.

3. If a majority of the Board of Directors and corporate officers of the U.S. company are appointed by the Japanese parent company.

If a Japanese parent company can demonstrate one or two of the above, then it is possible for an L visa to be issued.

The E visa regulations at 22 CFR 41.51 allow the employees of a U.S. organization to qualify for an E visa if the US company (Japanese subsidiary company) is at least 50 percent owned by Japanese Nationals or a Japanese parent company under certain limited conditions.