BENGALURU: In a move that could benefit Indian entrepreneurs, the US Citizenship and Immigration Services (USCIS) is proposing a new rule to woo immigrant entrepreneurs. Under the International Entrepreneur Rule, as it is called, entrepreneurs from outside the US will be granted a two-year stay in the country to scale up their startups with a subsequent option to extend it by another three years provided these startups show enough evidence of revenue and job creation.
“It’s a good step. It could definitely encourage Indian entrepreneurs to headquarter in the US, where they have better access to funds and higher valuations. Existing investors in such qualifying companies may also encourage their portfolio to do this, as it could provide better exit opportunities, by way of acquisitions and IPOs,” said Karthik Mahalingam, national practice head for venture capital in law firm Shardul Amarchand Mangaldas.
The US EB5 visa does offer immigration benefits for entrepreneurs investing in businesses in the US. But that is more restrictive. And it requires a minimum investment in the US of $1 million ($500,000 in certain areas of high unemployment or rural areas).