Legal Question in Immigration Law in California

Can F-1 Visa holder invest a new company in the US?

Dear sir,

I am an international student came from Taiwan. I hold F-1 visa right now.

My friend want to establish a new company in the US (who are US citizens), and invite me to invest $10,000 for 5% of share.

So, the questions are:

1). Can I invest to my friend company?

2). Can I have any revenue from his company?

As I know, F-1 student cannot work in the US, so, am I do the right (legal) thing if I decide to invest?

Thank you very much for your help!


Asked on 9/05/00, 5:01 pm

1 Answer from Attorneys
Larry L. Doan Law Office of Larry L. Doan

Re: Can F-1 Visa holder invest a new company in the US?

Interesting question. If it's purely a passive investment in the company, it should be fine. Passive investing is not considered employment under the F-1 immigration regulations. Just make sure you do not participate in the operation of the company.

The term "revenue" that you used is somewhat ambiguous. As an F-1, you can receive dividends and capital gains from the company just as an investor in any company. But if you receive "revenue" that could be considered as compensation for work or consulting, that is probably unauthorized employment under F-1 regulations, and should be avoided.

Liem Doan, Esq.

Read more
Answered on 10/05/00, 5:18 am


Related Questions & Answers

More Immigration Law questions and answers in California