As discussed in the general requirements section, overseas entities are required to be related to the U.S. company in a specific manner. The following is a brief discussion regarding the types of business structures that are recognized as acceptable qualifying relationships.
Majority Ownership
If a foreign entity owns more than 50% of a U.S. entity, the foreign entity is a majority owner of the U.S. entity. The same rule applies when the U.S. entity is the parent and owns more than 50% of the foreign entity. In both cases, the U.S. business is qualified to petition under the L visa category.
Sister Entities
If both the foreign entity and the U.S. entity have the same majority stock owner (owns more than 50% in both companies), the U.S. entity is qualified for L-1 application.
Less than majority ownership, but Control
If the parent entity owns 50% or less of the subsidiary, or either of the affiliates, the U.S. entity still may be qualified to apply for L visas if the parent company has actual control over the subsidiaries.
Example: Chinese company A holds 49% of the stocks of U.S. company B. The rest of the stocks are divided among another ten investors, none of them holding more than 10%. B will be qualified for L visa application because company A has actual control over company B.
Branch Office
If a foreign entity has a branch office in the U.S. or vice versa, the U.S. entity qualifies. However, the branch office must conduct real business and not serve only as an agent or representative.
For more information on L visa, please refer to the following links: