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According to an analysis of data published by United States Citizenship and Immigration Services (USCIS) and US Consulates around the world, approval rates for US L1 visas are declining as immigration authorities get tough on applicants.
The slump in the number of L1 visas granted is reportedly complicating growth and expansion plans for foreign companies based in the US.
While current US immigration laws allow foreign companies to transfer executives and/or managers to US-based branches to grow and expand business activities, employers are finding it increasingly difficult to navigate the US immigration system.
Most US L1 visas are issued to a small group of Indian tech firms, including Tata Consulting Services, Infosys, Cognizant Tech, and Tech Mahindra. However, in recent years the number of L1 visas issued has been steadily declining.
Tightened L1 visa policies
A recent Bloomberg report shows that many Indian companies with operations in the United States are contributing significantly to the American tech industry, but tighter L1 visa policies are stifling growth and adversely affecting the US economy.
Meanwhile, in addition to restricting the movement of foreign workers to the US, individual entrepreneurs have also been put off applying for US visas to establish start ups and tech companies in America.
India in particular currently has more than 100 unicorns with a combined total value of more than $330 billion. Most are already established in the US market and are keen to expand their presence in America. Meanwhile, others are looking to be listed publicly in the US in order to access the global market.
The minimum threshold set by current US immigration laws must be followed by USCIS adjudicating officers and interviewing officers at US Embassies. As such, fewer individuals and companies want to risk huge investments in L1 visa applications without knowing whether they will be issued or renewed for managers and executives.
Easier visa process
However, if the L1 visa process was made easier, individuals and companies would be more likely to take the risk, according to business leaders. Many argue that with foreign tech firms contributing significantly to the US economy, visa restrictions should be eased.
Earlier this year, USCIS announced that the spouses of US L1 visa holders would be made exempt from having to apply for work authorization. The announcement came following a lawsuit that contested a policy that forces L2 visa holders to apply separately for a work permit.
L2 visa holders currently require an EAD to be eligible for job opportunities or self-employment, but US immigration campaigners claim that this leaves many spouses of L1 visa holders at a disadvantage in the jobs market.
The lawsuit filed against USCIS argued that L2 visa holders should be eligible for employment ‘incident to status’ – meaning that they should be eligible to work in the US without the need for a separate work permit application.
In response to the lawsuit, USCIS said it would change its policy, meaning that L2 visa holders will no longer have to apply for EAD.
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