admin The United States Department of Homeland Security (DHS) has launched the International Entrepreneur Rule (IER), aimed at attracting foreign entrepreneurs to the U.S. This new rule allows non-citizen entrepreneurs to reside in the country, provided their business ventures offer substantial public benefits, such as economic growth and job creation.
The IER is part of the broader effort by the U.S. government to foster innovation and entrepreneurship, positioning the country as a hub for global talent. It is seen as a significant step in supporting the start-up ecosystem and driving economic development.
Eligibility and Requirements
To be eligible for the IER, entrepreneurs must meet several criteria:
- Start-Up Formation: The business must have been established within the last five years in the U.S. and should show a strong potential for rapid growth and job creation.
- Funding Criteria: Start-ups must secure at least $264,147 from U.S. investors, $105,659 in government grants, or provide alternative evidence of growth potential. These investments signify the venture’s capability to scale and contribute to the economy.
- Parole Duration: Entrepreneurs can be granted an initial parole period of up to 2.5 years, extendable for another 2.5 years, making a maximum of five years. This period is contingent upon meeting specific benchmarks demonstrating continued business growth and public benefit.
- Employment Authorisation: Entrepreneurs are allowed to work exclusively for their start-up, while their spouses can apply for employment authorisation. However, children of entrepreneurs are not eligible for work authorisation under this rule.
Application Process
Entrepreneurs seeking to take advantage of the IER must file Form I-941, Application for Entrepreneur Parole, along with a fee of $1,200 and supporting documents. Applicants outside the U.S. need to process their parole at a U.S. embassy or consulate, while those within the U.S. will receive their travel documentation either by mail or through a U.S. embassy or consulate.
Once approved, entrepreneurs will be authorised to work for their start-up without needing additional employment authorisation forms. They will also receive specific instructions regarding travel documentation based on their location.
Ownership and Operational Role
Applicants must own at least 10% of the start-up at the time of application and play a central, active role in the business operations. The rule emphasises that the entrepreneur’s active involvement and substantial ownership are critical for the success and growth of the start-up.
The IER represents a progressive step towards harnessing the potential of foreign entrepreneurs, ensuring that the U.S. remains a leader in innovation and economic dynamism.
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