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Read MoreL1 Visa and Intra-Company Transfer
A Case Study from the Perspective of a German-Based Energy Company
L1 Visa and Intra-Company Transfer
A Case Study from the Perspective of a German-Based Energy Company
Yasin Bilgehan Akalan
Attorney at Law
Immigration Law Expert – Akalan Law Firm
In this article, the L1 visa—an intra company transfer visa—is examined through a completely hypothetical case study focusing on a critical transformation process of an international renewable energy company headquartered in Germany. This fictional case study, built around the assumed operations of a Berlin-based international company seeking to establish an operational hub in Houston, Texas, has been developed to analyze the legal and strategic dimensions of the intracompany transfer process. Not based on any real individuals or entities, this scenario aims to demonstrate how, when properly structured, the L1 visa can serve as a critical leverage tool for entering the U.S. energy market.
The L-1 visa is a non-immigrant visa category in the United States, designed for intracompany transferees and facilitating employee transfers of foreign nationals from international offices to U.S. operations. It is especially popular among multinational companies for transferring key personnel to the United States without the numerical caps that affect other visa types. The L-1 visa has two subcategories: L-1A for managers and executives, and L-1B for employees with specialized knowledge. While approval of the petition is required, it does not guarantee entry to the U.S.; the applicant must also obtain the actual visa in their passport before traveling. The L-1 visa is a non-immigrant visa, meaning it is intended for temporary work in the U.S.
For multinational companies in the energy sector, the United States represents a frontier for investment and trade. However, without a robust immigration strategy, entering this market can result in significant delays. This study demonstrates how the L-1 visa should be structured to mitigate immigration services risks and ensure a seamless market entry.
Founded in 2015, our subject is a prominent foreign company specializing in energy trading and renewable projects across Europe and Asia. In 2024, the foreign employer decided to leverage the U.S. “Clean Electricity Investment Credit” by incorporating a parent company-backed entity in the United States. To transfer a key employee to the U.S. under the L-1 visa, the U.S. company must file the L-1 visa petition on the employee’s behalf; self-petitioning is not allowed.
The L-1 visa allows multinational companies to transfer certain employees from their foreign offices to work in the U.S. temporarily.
To meet the L-1 visa requirements, there must be a qualifying relationship between the U.S. entity and the foreign company, such as parent, subsidiary, affiliate, branch office, or sister companies owned by a mutual parent. The company qualifies for the L-1 visa by maintaining these relationships, including its foreign branches and branch office in Texas.
The primary challenge was securing an approved blanket petition or individual L-1A visa for a company that had not yet commenced active operations. USCIS (U.S. Citizenship and Immigration Services) officers apply heightened scrutiny to “New Office” petitions, often questioning if the visa applicant will truly function in a managerial or executive capacity or simply perform day-to-day operational tasks.
After USCIS approves the petition, a consular officer at a U.S. embassy or consulate will review the visa application and make the final decision on visa issuance.
The processing time for L-1 visas can vary, but unlike the H-1B visa, the L-1 visa has no annual numerical cap. This allows employers to file L-1 petitions whenever needed, making it a more reliable and predictable option for qualified employees compared to the H-1B, which is subject to a lottery system.
The L-1 visa is a vital non-immigrant visa category for multinational companies seeking to transfer key personnel from their foreign offices to the United States. To qualify for the L-1 visa, both the visa applicant and the sponsoring employer must meet specific requirements designed to ensure the integrity of the intra company transfer process.
For the employee, eligibility hinges on having worked for the foreign company—such as a parent company, subsidiary, affiliate, or sister company—outside the United States for at least one continuous year within the three years immediately preceding their application. This prior employment must have been in a managerial or executive position, or in a role requiring specialized knowledge critical to the company’s operations.
The sponsoring employer must also demonstrate that it is a qualifying organization, maintaining a legitimate qualifying relationship with the foreign employer. This means the U.S. entity and the foreign company must be connected as parent and subsidiary, affiliates, or through another recognized corporate structure. The organization must be actively doing business in both the United States and at least one other country, either directly or through qualifying organizations, for the duration of the employee’s stay in the U.S.
It is important to note that, according to new guidance published by USCIS on October 20, 2023, a sole proprietor cannot self-petition for an L-1 visa. This is because a sole proprietorship does not create a separate legal entity, and there is no employer-employee relationship between the owner and the business. While a sole proprietorship may file an L-1 petition for a qualifying employee, the owner themselves cannot use the L-1 visa to transfer to the U.S. as an intra company transferee. Sole proprietors seeking to immigrate may need to consider alternative visa options based on their ownership and control of the business.
By meeting these criteria, multinational businesses can leverage the L-1 visa to transfer executives, managers, or employees with specialized knowledge to their U.S. operations, supporting business growth and global talent mobility without the need for a separate work permit or reliance on the lottery system of other visa categories. This makes the L-1 visa an essential tool for foreign companies looking to establish or expand their presence in the U.S. market.
L1 VISA vs H1B is no longer just a comparison — it defines the new reality for thousands of foreign professionals navigating the shifting landscape of U.S. immigration policy.
According to the case study, to ensure success, we implemented a comprehensive strategy focused on the executive position and managerial position requirements:
For large, established multinational companies, the L1 visa program allows the use of blanket petitions to streamline the process for transferring multiple employees efficiently. This approach enables organizations to bring in several workers from the same company under a single petition, supporting workforce expansion and operational needs. Skilled workers, as well as managers and executives, may be eligible for transfer under blanket petitions.
Starting in fiscal year 2025, L-1 visa applicants will be required to pay ‘visa integrity fee’ at the time of visa issuance, in addition to other required fees.
According to the case study, we secured a physical lease in Houston and clearly defined the multinational businesses‘ activities, focusing on energy trading and project development.
Instead of focusing on “technical” energy tasks, the job description was refined to emphasize managerial or executive position duties:
We provided exhaustive evidence of the qualifying organization structure, including organizational charts and the executive’s employment authorization history in Germany over the years immediately preceding the transfer.
For multinational companies with ongoing needs to transfer multiple employees to the United States, the L-1 visa blanket petition offers a powerful solution to streamline the immigration process. Rather than filing individual petitions for each foreign worker, a blanket petition allows a qualifying organization—such as a parent company with subsidiaries or affiliates—to pre-qualify for the transfer of eligible employees. This approach is especially advantageous for companies in fast-moving industries like energy, where rapid deployment of specialized knowledge and key personnel is critical to maintaining a competitive edge.
With an approved blanket petition, multinational companies can efficiently transfer foreign workers who possess specialized knowledge or who are being assigned to managerial or executive positions. This not only reduces administrative burdens but also accelerates the timeline for employee transfers, as the need for repetitive documentation and lengthy review periods is minimized. The blanket petition is particularly beneficial for organizations anticipating the transfer of multiple employees over time, as it provides a flexible framework for ongoing mobility between foreign offices and U.S. operations.
To qualify for a blanket petition, the company must demonstrate a qualifying relationship with the foreign employer—such as being a parent company, subsidiary, or affiliate—and show a consistent need for transferring employees with specialized skills or in executive/managerial roles. Once the blanket petition is approved by U.S. Citizenship and Immigration Services (USCIS), eligible employees can be transferred to the U.S. for up to three years initially, with extensions possible for up to seven years for those in managerial or executive positions.
The process begins with the company submitting a comprehensive petition to USCIS, detailing the organization’s structure, the nature of the qualifying relationship, and the types of job positions to be filled. Once approved, the company can initiate transfers for multiple employees under the same blanket approval, significantly reducing the processing time compared to individual petitions.
Family members of L-1 visa holders also benefit from this streamlined process. Spouses and unmarried children under 21 can accompany the principal visa holder to the United States. Spouses are eligible to apply for an Employment Authorization Document (EAD), granting them the flexibility to work for any employer, while children can attend school during their stay.
Importantly, the L-1 visa category, including those under a blanket petition, offers a pathway to permanent residency. L-1 visa holders may pursue the green card process, often through the EB-1C category for multinational managers and executives, without the need for labor certification. This dual intent feature makes the L-1 visa an attractive option for both employers and foreign workers seeking long-term opportunities in the U.S.
By leveraging the blanket petition, multinational companies can ensure that their global talent—whether in specialized knowledge roles or executive positions—can be mobilized quickly and efficiently, supporting business growth and operational continuity in the U.S. market. For organizations navigating complex employee transfers, working with experienced immigration services providers, such as Akalan Law Firm, can help ensure compliance and maximize the benefits of the L-1 visa program.
In the case study, it is assumed that the L-1A petition filed in connection with the establishment of the new office was approved, and that an initial one-year visa period was granted for the executive and other personnel. L-1A visa holders may apply for extensions, with a maximum stay of seven years, while L-1B visa holders may stay for up to five years. L-1 visa holders may file for extensions that may grant them a maximum of seven years. The L-1 visa is increasingly preferred by multinational firms over the H-1B visa due to its flexibility and fewer restrictions.
According to the case study, during the application process, the decision to prioritize the L-1A visa over the H-1B or E-2 visa played a critical role. It was assessed that the H-1B visa could be ruled out due to quota limitations and lottery-related risks, while the E-2 visa might not be compatible with the company’s ownership structure.
The L-1 visa application process begins with the filing of a petition with USCIS on Form I-129. Additionally, certain applicants may qualify for premium processing, allowing for faster decision timelines. The L-1 visa processing time is generally faster than that of the H-1B visa, which often faces delays due to backlogs and requests for evidence. After USCIS approval, visa issuance is completed at a U.S. consulate or embassy, and this process is governed by United States citizenship and immigration law.
This case proves that for multinational companies, the L-1 visa is a strategic business tool. Success is won through a clearly articulated business model, not just paperwork.
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