International Entrepreneur Rule (IER): Everything You Need to Know

The United States Department of Homeland Security (DHS) has unveiled the International Entrepreneur Rule (IER) to attract foreign entrepreneurs to the country. This initiative allows noncitizen entrepreneurs to stay in the United States provided their business ventures offer significant public benefits.

Start-Up Criteria for IER:

To qualify under the International Entrepreneur Rule (IER), the start-up must have been formed within the past five years in the United States and demonstrate substantial potential for rapid growth and job creation during this period.

Funding Requirements for IER:

Entrepreneurs must show a minimum of $264,147 in investments from U.S. investors, $105,659 in government grants, or provide credible evidence of growth potential to meet the IER funding criteria.

IER Parole Duration:

Approved entrepreneurs may receive an initial parole period of up to 2.5 years, extendable for another 2.5 years based on achieving specified milestones, for a total of up to five years under the International Entrepreneur Rule.

IER Employment Authorization:

While entrepreneurs are authorized to work exclusively for their start-up, spouses can apply for employment authorization. However, children are ineligible for employment authorization under the IER.

IER Application Process:

Applicants must complete Form I-941, Application for Entrepreneur Parole, along with a $1,200 fee and supporting documents. Entrepreneurs outside the U.S. must process their parole application through a U.S. embassy or consulate, while those within the U.S. receive travel documentation via mail or a U.S. embassy/consulate.

Ownership and Operational Role under IER:

Entrepreneurs must maintain at least a 10% ownership stake in the start-up at the time of initial application and play an active role in its operational management to meet International Entrepreneur Rule requirements.

IER Start-Up Funding Specifications:

Qualified funding includes a minimum of $264,147 from U.S. investors or $105,659 from U.S. government grants. Alternatively, additional credible evidence can support the growth potential of the start-up under the International Entrepreneur Rule.

Investment Restrictions under IER:

Investors directly or indirectly associated with the entrepreneur, their family members, or entities with ownership ties are not considered qualified investors under the International Entrepreneur Rule (IER).

News Source:- hindustantimes.com