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FOR ENTREPRENEURS · CONCEPTION BAY SOUTHConception Bay South

Your ambition.Your enterprise.

E-2 requires a national of a treaty country—Canada qualifies—to have invested substantial capital in a real and operating enterprise that is not marginal, and to be coming to develop and direct it. The enterprise must also have treaty nationality through at least 50 percent ownership by nationals of the treaty country. The marginality requirement is where a knowledge business struggles. A Conception Bay South software developer who incorporates an American consultancy has low capital needs and no inventory, which makes the capital test awkward and the marginality test decisive: the enterprise must have the present or future capacity to generate more than a minimal living for the investor and family.

Talk about E-2
PurposeDevelop and direct a business
InvestmentSubstantial and at risk
Fixed minimumNo universal dollar threshold

IN THIS GUIDE · Whether a one-person consultancy is a business or just a job

Start with the E-2 eligibility and application overview

01

Marginality is the question a consultancy has to answer

Hypothetical example: a Conception Bay South software developer who has worked remotely for American clients incorporates a United States consultancy and proposes to run it from there. An enterprise that produces only enough income to support the investor and family is marginal, and marginality is assessed on present capacity or on capacity within a reasonable period, usually understood as around five years. Answer it with signed client agreements, a hiring schedule with roles, dates and wages, and projections built from actual contracted work rather than from assumed growth.

02

Real and operating means more than an incorporation

The enterprise must be a real, active commercial undertaking producing services or goods for profit. A registered company with a bank account, a website and no engagements is not that. Evidence includes executed client contracts or statements of work, a commercial lease or documented workspace arrangement, business insurance, licences or registrations required in the state, tooling and software subscriptions, and a payment history. Speculative enterprises and idle capital are expressly outside the classification, and a consultancy with no signed work is close to that description.

03

Low capital needs make substantiality harder, not easier

Substantiality is proportional: the capital is weighed against the total cost of establishing an enterprise of this type. Because a software consultancy costs little to establish, the proportion committed must be very high, approaching the whole. Count what is genuinely irrevocable: equipment purchased, prepaid lease and deposits, software and infrastructure commitments, professional and incorporation costs, marketing spend, and salaries committed for hires. Money sitting in the company's account uncommitted is not at risk in the sense the classification requires.

04

Develop and direct, and the remote-work question underneath

The investor must develop and direct the enterprise, ordinarily through majority ownership or operational control, which a sole founder satisfies easily. The harder issue for a remote worker is honesty about what is really happening: if the arrangement is one long-standing client paying an entity that exists to receive the payment, the enterprise may be a job in corporate clothing. E-2 also confers no direct route to permanent residence, and each renewal re-examines whether the business still qualifies.

PUT THE DETAILS TO WORK

Guides for your next decision.

E-2 · CONCEPTION BAY SOUTH

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