L-1A visa: How Indian mid-sized firms are planning their US expansion

Indian mid-sized and entrepreneur-led businesses are exploring the L-1A visa route to establish or expand operations in the United States, as companies look to build local teams, strengthen customer relationships and place senior executives closer to their markets.

The L-1A visa allows eligible companies to transfer executives or managers from an overseas office to a related US entity. According to the US Citizenship and Immigration Services (USCIS), the category also allows a foreign company without an existing US office to send an executive or manager to establish one.

For Indian businesses seeking to move beyond exports, remote services or distributor-led sales, the visa can provide a route to establish a physical presence in the US and have a senior leader oversee the expansion.

Companies in sectors such as technology, manufacturing, logistics, healthcare and retail may use the route to build local sales, distribution, customer service and operational capabilities.

Why Indian firms are looking at L-1A

A US office can give Indian businesses greater control over customer relationships, sales and after-sales service.

For instance, an Indian technology services company may want to establish a US sales team to work directly with enterprise clients. A manufacturer could set up a local base to manage distribution, technical support and customer service.

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The L-1A visa can allow a qualifying business to transfer an executive or manager to lead such an operation. However, the Indian and US businesses must have a qualifying corporate relationship, such as that of a parent and subsidiary, an affiliate or a branch.

The employee must also have worked for the qualifying overseas organisation for at least one continuous year within the three years before applying.

How the new-office route works

For businesses setting up a US office for the first time, the L-1A new-office category allows a qualifying executive or manager to establish and lead the operation.

The initial approval for a new office is generally limited to one year. During this period, the company must demonstrate that it has secured suitable premises, has adequate funding and can develop operations that support a genuine executive or managerial role, according to USCIS.

Extensions may be granted in increments of up to two years, subject to eligibility. The maximum stay under the L-1A category is seven years.

How it differs from H-1B

The H-1B visa is designed for workers in specialty occupations, while L-1A is intended for executives and managers transferring within a qualifying multinational organisation.

Unlike the H-1B programme, which is subject to an annual numerical cap for cap-subject applications, L-1A has no annual numerical cap or lottery.

There is also no universally prescribed minimum investment amount for L-1A approval. However, companies must demonstrate that they have the resources to support their proposed US operations.

A possible route to permanent residence

The L-1A visa can also be relevant to executives and managers seeking permanent residence through the EB-1C category for certain multinational executives and managers.

EB-1C does not require a permanent labour certification, but applicants must independently meet its eligibility requirements. Holding an L-1A visa does not automatically qualify someone for a green card.