L1 Comprehensive Overview

An L-1 visa allows classification of a foreign qualified employee of a company to enter the U.S. as a temporary nonimmigrant to work for the foreign company’s U.S. parent, branch, affiliate, or subsidiary, or to establish a new U.S. office.

The beneficiary is the employee who is transferred to the U.S. for such purposes under an L-1 visa classification and is referred to as an intracompany transferee. The company that seeks L-1 classification of the beneficiary is the petitioner for L-1 purposes.

An intracompany transferee may qualify in an executive or managerial capacity, or in a specialized knowledge capacity. The former is referred to as an L-1A visa and is granted initially for 3 years for existing U.S. companies and 1 year for new U.S. offices. L-1A visas may be extended in two-year increments for a maximum total stay of 7 years. The latter is referred to as an L-1B visa and is granted initially for 3 years. L-1B visas may be extended for 2 years for a maximum total stay of 5 years. The petitioner can change a beneficiary’s status from L-1B to L-1A by filling Form I-129 (Petition for a Nonimmigrant Worker) after the beneficiary has been promoted to an executive or manager position for  at least 6 months.

Large international organizations that frequently petition for L-1 visas may file a “blanket L-1 petition,” which allows employers to transfer eligible employees to the U.S. without filing an individual L-1 petition much more quickly and on shorter notice.

Classification under L-1 is a very attractive option for those who have a “dual intent.” Beneficiaries of some other nonimmigrant visas risk jeopardizing their status or visa petitions at U.S. consular offices abroad for permanent residence because they have an intent to immigrate to the U.S. or they do not have a residence abroad to which they intend to return. Under L-1 status, the beneficiary may petition for permanent residence without such risk.

I.         BASIC STATUTORY REQUIREMENTS UNDER INA 101(a)(15)(L)
II.        QUALIFYING PETITIONERS
III.       QUALIFYING COMPANY RELATIONSHIPS
IV.       HOW TO EVIDENCE A QUALIFYING PETITIONER AND A QUALIFYING COMPANY RELATIONSHIP
V.        WHO QUALIFIES FOR CLASSIFICATION AS AN INTRACOMPANY TRANSFEREE?
VI.       “EXECUTIVE AND MANAGERIAL CAPACITY”
VII.      “SPECIALIZED KNOWLEDGE CAPACITY”
VIII.     BLANKET L-1 PETITIONS
IX.       DISTINGUISHING BETWEEN L-1 PETITION AND EB-1C PETITION
X.         L-1 DOCUMENTS AND PROCEDURE
XI.        WHAT CAN YOU EXPECT FROM VISATOPIA?

I.         BASIC STATUTORY REQUIREMENTS UNDER INA 101(a)(15)(L)

For a petitioner to qualify for L-1 classification of an intracompany transferee, the petitioner must demonstrate satisfaction of four requirements under INA 101 (a)(15)(L).

First, there must be a qualifying relationship between the U.S. business entity and the foreign operation that employs the beneficiary abroad.

Second, while the beneficiary is in the U.S. as an intracompany transferee, the petitioner must continue to do business in the U.S. and in at least one other country, either directly or through a parent, branch, subsidiary, or affiliate.

Third, the beneficiary must have been employed abroad in a managerial, executive, or specialized knowledge capacity by the foreign operation for at least one continuous year in the last three years.

Finally, the beneficiary’s prospective employment in the U.S. must also be in a managerial, executive, or specialized knowledge capacity, but the capacity of U.S. employment need not be identical to that of foreign employment.

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II.        QUALIFYING PETITIONERS

The petitioner must be a qualifying organization that is seeking to temporarily transfer a foreign employee at one of its foreign operations to the U.S. The petitioner may be the U.S. employer or the foreign employer.

A qualifying organization is defined as a U.S. or foreign entity that (1) falls within exactly one of the definitions of a parent, subsidiary, affiliate, or branch; and (2) is or will be doing business as an employer in the U.S. and at least one other country directly or through a parent, subsidiary, affiliate, or branch while the transferee is in the U.S. In other words, the petitioner must currently or prospectively be actively engaged in providing goods and/or services in both the U.S. and abroad with employees in both countries, and this engagement must be direct or through a parent, branch, subsidiary, or affiliate for the duration of the beneficiary’s stay.

Section III details qualifying company relationships, including definitions of a parent, branch, affiliate, and subsidiary.

“Doing business” is defined as regular, systematic, and continuous providing of goods or services. “Doing business” does not include mere presence of an agent or office in the U.S. and abroad. The entity must conduct regular systematic business, such as manufacturing, sales, and the providing of goods and services. Business may be prospective for start-up operations and new offices, and the U.S. employer’s viability can be shown through evidence of an existing parent, branch, affiliate, or subsidiary operating in another country. New offices are defined as organizations that have been doing business in the U.S. through a parent, branch, affiliate, or subsidiary for less than 1 year and have one year to reach the “doing business” standard.

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III.       QUALIFYING COMPANY RELATIONSHIPS

Whether a qualifying relationship between business entities exists is generally based on showing the existence of two aspects: ownership and control. Ownership is the legal right of possession with full power and authority to control. Control is the right and authority to direct the management and operations of the business entity. As mentioned, a business entity for L-1 purposes is defined as a parent, subsidiary, affiliate, or branch.

A parent is defined as a firm, corporation, or other legal entity that has subsidiaries.

A subsidiary is defined as a firm, corporation, or other legal entity of which a parent directly or indirectly owns at least 50% and controls. Alternatively, the parent can directly or indirectly own 50% of a 50-50 joint venture and have equal control and veto power over the entity. Finally, the parent can directly or indirectly own less than 50% of the entity if the parent controls the entity in fact.

An affiliate is defined as one of two subsidiaries, both of which are owned and controlled by the same parent or individual. An affiliate can also be one of two legal entities, both of which are owned and controlled by the same group of individuals, if each individual owns and controls about the same percentage of each entity. Foreign accounting firms and management consulting services that provide their services under an internationally recognized name and are under an agreement with a worldwide coordinating organization that is owned and controlled by member accounting firms are also considered affiliates of the U.S. organization of the same internationally recognized name.

A branch is defined as an operating division or office of the same company that is located and housed in a different location.

Equity joint ventures are created under corporate law when two or more companies contribute capital to a venture. A qualifying L-1 relationship can exist between a contributing company and the resulting venture if the contributing company owns at least 50% of the venture and exercises control over the venture.

Mergers, spin-offs, acquisitions, or other forms of corporate reorganization between qualifying entities should demonstrate that the entities will continue to have a qualifying company relationship after the reorganization.

Contractual, licensing, and franchising agreements are not qualifying relationships for L-1 purposes. Other non-qualifying relationships include charter membership arrangements and less-than-50% equity joint ventures. Non-equity joint ventures also do not qualify for L-1 status, as they are contractual arrangements where one or more contributing companies provide noncapital resources.

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IV.       HOW TO EVIDENCE A QUALIFYING PETITIONER AND A QUALIFYING COMPANY RELATIONSHIP

Depending on the petitioner’s type of entity and the purported qualifying company relationship, the petitioner should consider including the following types of documentation.

Most generally, the petitioner should include incorporation documents (articles of incorporation, partnership agreements, etc.), corporate bylaws, board meeting minutes, and shareholder meeting minutes. The petitioner should also include a statement of ownership and control of each qualifying organization by the company’s president, corporate attorney, corporate secretary, or other authorized official.

Documentation of ownership should clarify the total number of shares issued, the number of shares issued to each shareholder, percentage ownership, and any changes in corporate control. Such documents may include a corporate stock certificate ledger, stock certificate registry, and stock certificates.

Documentation of control should including anything related to the voting of shares, the distribution of profit, and the management and direction of the petitioning company. Other factors affecting actual control and acquisition of actual ownership interest, such as capital investment, wire transfers, and stock purchase agreements, should be provided as well.

Companies that are regulated by the SEC and publicly traded should submit the company’s controlling, non-controlling, joint venture, and other ownership interests. SEC Forms 10K and 10Q should also be provided where applicable.

Documentation of qualifying entities doing business should include corporate tax returns (IRS Form 1120), audited financial statements, and annual reports including a list of the company’s parent, affiliates, subsidiaries, or branches.

New offices should submit a statement of ownership and control of each qualifying organization by an authorized official, proof of ownership and control, proof of financial viability, evidence of capitalization of the company, evidence of financial resources committed by foreign company, evidence of sufficient physical premises for the new office, articles of incorporation, bylaws, board meeting minutes, corporate bank statements, profit and loss statements, tax returns, and accounting statements or reports.

Small import and export firms should be prepared to provide documentation of forms required in the normal course of business, including invoices, shipping manifests, shipping insurance policies, bills of lading, letters of credit, wire transfer advisements, inspection certifications, sales contracts, customs forms, and general business correspondence. Customs forms required in the normal course of business, such as Form 7525V, Form 7501, and Form 30, must include the importer’s identification number.

Proprietorships, where the business is not a separate legal entity from the owners, should submit a statement of ownership and control of each qualifying organization by an authorized official, their licenses to do business, records of registration as an employer with the IRS, and business tax returns.

If the purported qualifying organization is the product of a merger, the petitioner should provide any relevant letters of intent, minutes from shareholders’ meetings, antitrust filings, and contracts disclosing as much information regarding ownership, control, and finances as possible.

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V.        WHO QUALIFIES FOR CLASSIFICATION AS AN INTRACOMPANY TRANSFEREE?

The beneficiary must have been employed abroad by the foreign operation in a managerial, executive, or specialized knowledge capacity for at least one continuous year in the last three years. Authorized periods of stay in the U.S. for the foreign employer do not interrupt continuous employment, but such time does not count towards the qualifying year.

Employment by the U.S. employer need not be on a full-time basis, but a significant portion of the beneficiary’s employment must involve executive, managerial, or specialized knowledge activities. Activities such as attending meetings and conferences and training are insufficient to establish employment.

Evidence must establish that the beneficiary will render services and will be employed by the U.S. entity. Evidence of salary, compensation, or remuneration is irrelevant to this determination. Documentation of such evidence may take the form of wage and earning statements or a letter signed by an authorized official of the U.S. company with detailed descriptions of beneficiary’s prior year of employment abroad and the intended employment in the U.S. In addition to demonstrating that the beneficiary will be employed in a managerial, executive, or specialized knowledge capacity, this letter should include dates of employment, job titles, specific job duties, number and types of employees supervised, qualifications for the job, level of authority, salary, and dates of time spent in the U.S. during the qualifying period.

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VI.       “EXECUTIVE AND MANAGERIAL CAPACITY”

A position with executive or managerial capacity requires certain levels of authority and expected job duties.

“Executive capacity” is defined as a position within an entity in which the employee primarily (1) directs the management of the entity or a major component of the entity; (2) sets the goals and policies of the entity or its major components; (3) has wide discretion in decision-making; and (4) receives supervision or direction only from higher-level executive employees, the board of directors, or shareholders.

“Managerial capacity” is defined as a position within an entity in which the employee primarily (1) manages the entity, a department, or function of the entity; (2) supervises and controls the work of other supervisory, professional, or managerial employees, or manages an essential function within the entity or a department; (3) has the authority to hire and fire, or recommend those actions, or has a senior-level position in the entity’s organizational structure; and (4) exercises discretion over day-to-day operations in the normal course of business.

Taken together, an employee with executive or managerial capacity should have requisite authority and should have a majority of his or her duties relate to management of operations or policies. An executive or manager plans, organizes, directs, and controls major functions in the company and works through other employees to realize the company’s goals. An executive or manager may manage or direct an operation within a company, but the operation must not be directly performed by the executive or manager.

A supervisor who plans, schedules, and supervises nonprofessional employees’ work is not executive or managerial in capacity, even when his or her title suggests otherwise. A title or ownership of the company alone is insufficient to establish executive or managerial capacity. Those who primarily perform duties that are also delegated to other employees and perform operational tasks required to produce or provide the goods and services of the company also do not rise to the level of executive or managerial capacity. If supervision is over professionals, however, the employment may be considered to be executive or managerial in capacity. A professional includes but is not limited to architects, engineers, lawyers, physicians, surgeons, and teachers in elementary/secondary schools, colleges, academies, or seminaries.

Small business owners and practitioners should be particularly wary of characterizing their capacity within the company. Without more, merely owning and acting as the primary professional in a company, and hiring support staff, such as a receptionist, bookkeeper, and assistant, is insufficient because his or her primary duties are to practice his or her profession, not manage or direct operations and policies.

Beneficiaries opening a new office in the U.S. may seek classification as an executive or manager if shown that the company will be expected to support an executive or managerial position within the year required to reach the “doing business” standard. Evidence should include the amount invested in the new office, intended organizational and personnel structure, description of goods and services, proof of physical premises, and viability of the foreign operation. The beneficiary should be expected to be more actively involved in operations during the initial phases of the new office and must have the authority and plans to hire personnel and to have broad decision-making ability regarding management, policies, and goals of the new office.

Employees who perform duties associated with a company operation, as opposed to managing or directing such operations, should consider classification as having specialized knowledge capacity.

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VII.      “SPECIALIZED KNOWLEDGE CAPACITY”

“Specialized knowledge capacity” is defined as a position within an entity in which the employee has a special knowledge of the entity’s product and its application in international markets, or has an advanced level of knowledge of processes and procedures within the entity.

The specialized knowledge that the beneficiary possesses should be of some level of complexity and different from what can generally be found in the particular industry. The knowledge does not have to be exclusive or unique, but should be knowledge that would be difficult to convey to another person without significant economic inconvenience to the foreign or U.S. company. Specialized knowledge of a company’s goods or services must be uncommon and particular. Specialized knowledge of a company’s processes and procedures must be advanced and does not need to be narrowly held in the company.

Evidence should establish that the beneficiary’s specialized knowledge is not generally known by similar practitioners in the relevant industry and is distinguished by unusual qualifications and experience. Evidence supporting advanced knowledge should describe the knowledge and set the knowledge apart from others who only have basic knowledge.

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VIII.     BLANKET L-1 PETITIONS

Blanket L-1 petitions allow a petitioner to seek continuing approval of itself, its parent, and its branches, subsidiaries, and affiliates as qualifying organizations to facilitate classification of any number of employed aliens under L-1 status. This option is restricted to relatively large international employers engaged in commercial trade or services, and is attractive for such companies that expect to frequently transfer eligible employees to the U.S. Once a blanket L-1 petition is approved, employees may transfer eligible employees much more quickly and on shorter notice without filing an individual L-1 petition.

A beneficiary who has been employed for one year in the last three years by a qualifying organization under this program as a manager, executive, or one with specialized knowledge is eligible to transfer to the U.S. to a qualifying organization covered in the blanket program as a manager, executive, or one with specialized knowledge.

Employees having specialized knowledge must also be professionals to qualify under the blanket petitioning process. A professional includes but is not limited to architects, engineers, lawyers, physicians, surgeons, and teachers in elementary/secondary schools, colleges, academies, or seminaries.

Evidence demonstrating the petitioner’s eligibility is similar to a non-blanket L-1 petition. Evidence should include the petitioner’s latest annual report, SEC filings, other documentation listing the company’s parent and subsidiaries, as well as a statement describing ownership and control of the organizations included in blanket petition signed by an authorized official.

The statement should aim to prove that all organizations listed are in commercial trade or services; there is an office in the U.S. that has been doing business for a year or longer; the petitioner has three or more domestic and foreign branches, subsidiaries, or affiliates; and either (1) the petitioner has transferred 10 L-1 managers, executives, or specialized knowledge professionals to the U.S. in the last 12 months, as shown through Form I-797, (2) its U.S. subsidiaries and affiliates have a combined annual sales of at least $25 million, as shown by petitioner’s statement or annual report; or (3) has a U.S. workforce of at least 1,000 employees, as shown by petitioner’s statement or annual report.

Evidence of an individual’s eligibility should include a letter from the employer abroad confirming dates of employment, job duties, qualifications, and salary for at least the previous year. For those claiming employment in a specialized knowledge capacity, evidence should include records of educational training, degrees, and other evidence to show specialized knowledge.

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IX.       DISTINGUISHING BETWEEN L-1 PETITION AND EB-1C PETITION

Those who are in the U.S. under L-1A status often find themselves later petitioning for EB-1C classification. EB-1C refers to classification under the first preference category of employment-based immigration as a multinational manager or executive. Classification under EB-1C is an attractive option because there is currently no visa backlog for this category and priority dates are current. This means more immediate consideration and processing of the petition. And unlike L-1A petitions for temporary work visas, EB-1C I-140 petitions for immigration.

EB-1C petitioners with L-1A status can often make particularly strong cases, but an L-1A petition is not a prerequisite for filing an EB-1C petition. Because an EB-1C is not dependent on a previously approved L-1A, a petitioner may file for an EB-1C at any time regardless of the time of an L-1A petition filing or approval.

The main differences between EB-1C and L-1A are that EB-1C petition is for immigration and permanent status, not for temporary status; EB-1C petition is not available for those with specialized knowledge capacity; the one-year employment requirement in the past three years need not be continuous for EB-1C petition; foreign branch offices are not qualifying petitioners for EB-1C petition; and a new office is not eligible as a qualifying petitioning organization for EB-1C petition. In addition, to be eligible for an EB-1C petition, the petitioning U.S. company must have been continuously doing business for more than one year and should demonstrate a decent volume of business and number of employees.

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X.        L-1 DOCUMENTS AND PROCEDURE

The petitioner’s L-1 petition package should include the following forms and documents:

  • Form I-129 (Petition for a Nonimmigrant Worker);
  • L Classification Supplement to Form I-129;
  • Form I-129S (Nonimmigrant Petition Based on Blanket L Petition);
    • In lieu of Form I-129 and L Classification Supplement if petitioner seeks L-1 status of an employee under a previously approved blanket L-1 petition.
  • Form I-539 (Application to Extend/Change Nonimmigrant Status);
    • Required if dependents of the beneficiary are already in the U.S. under another valid status and are seeking change of status to be an L-1 dependent (i.e., L-2 status).
  • Form G-28 (Notice of Entry of Appearance as Attorney or Accredited Representative);
    • Only required if the petitioner is represented by an attorney.
  • Petition letter; and,
    • The petition letter acts as a comprehensive summary of the petitioner’s evidence and the reasons why the evidence demonstrates that the petitioner and the beneficiary meet the requirements for L-1 eligibility.
  • Supporting documentation, which may include:
    • Articles of incorporation or other incorporation documents;
    • Corporate bylaws, board meeting minutes, and shareholder meeting minutes;
    • Statement of ownership and control of each qualifying organization by the company’s president, corporate attorney, corporate secretary, or other authorized official;
    • Employment verification letter signed by an authorized official with detailed descriptions of beneficiary’s prior year of employment abroad and the intended employment in the U.S.;
    • Evidence of ownership and control, including but not limited to stock certificates, annual reports, stock records, audited financial statements, etc.; and,
    • Evidence of doing business, including but not limited to EIN application, corporate income tax returns, annual reports, audited financial statements, business licenses, transactional records, lease for premises, etc.

If the beneficiary is already in the U.S. under another valid status, the petitioner may indicate that it is seeking a change of status on the Form I-129 petition. Such changes of status are not valid if changing from a visa waiver or C, D, K-1, K-2, S, TWOV, WT, or WB status. If the beneficiary is not already in the U.S. under another valid status or is not eligible to change status, the beneficiary must apply for an L-1 visa from an overseas consular post to enter the U.S. upon approval of Form I-129.

If the beneficiary is being petitioned for under a previously-approved blanket L-1 petition, the beneficiary may need to submit originals and copies of Form I-129S (Nonimmigrant Petition Based on Blanket L Petition) and copies of Form I-797 Notice of Action indicating that the blanket L-1 petition was approved.

Dependents of an L-1 beneficiary who are already in the U.S. under another valid status should submit Form I-539 (Application to Extend/Change Nonimmigrant Status) to obtain status as an L-1 dependent (i.e., L-2 status). Otherwise, dependents must obtain their L-2 visas through consular processing upon approval of Form I-129.

L-1 petitions are also eligible for Premium Processing Services, which provides guaranteed processing of the petition 15 calendar days from the day the request is correctly received. If the USCIS requests additional evidence or a response to a notice, the response will also be processed within 15 calendar days from the day the response is correctly received. To apply for Premium Processing Services, the petitioner must submit Form I-907 (Request for Premium Processing Service) to the correct service center. Form I-907 may be filed concurrently with the Form I-129 petition.

The petitioner can expect the following general timeline for the L-1 process:

1.  Petitioner gathers and drafts necessary documents.

2.  Petitioner submits the petition package to the appropriate USCIS Service Center.

3.  USCIS issues official Notice of Receipt.

  • Usually 1-2 weeks after submission.

4.  USCIS processes petition.

  • Generally 2 to 4 months, but varies greatly depending on the case, the USCIS Service Center, and the Immigration Officer processing the case.
  • If under Premium Processing Services, within the guaranteed 15 calendar days.

5.  USCIS issues one of four possible actions after initial review:

a.  Notice of Approval,

  • Allows application for visa through consular processing overseas.

b.  Request for Evidence (RFE),

  • Immigration Officer requests additional evidence to address and support specific parts of the petition.
  • Petitioner may have up to 84 days after the date of the decision to respond.

c.  Notice of Intent to Deny (NOID), or,

  • Immigration Officer gives notice that case will be denied unless certain extra documentation is provided.
  • Petitioner may have up to 84 days after the date of the decision to respond.

d.  Notice of Denial.

  • USCIS includes explanation of why application denied.
  • Petitioner has 30 days after the date of the decision to file:
    • An appeal, if petitioner thinks USCIS’ denial was wrong.
    • A motion to reconsider, if petitioner wants another Immigration Officer to review the case.
    • A motion to reopen, if petitioner has evidence absent in the original application or response to an RFE that existed at the time of original filing.

Once the USCIS receives the petitioner’s response to an RFE or NOID, further action will generally occur within 60 days, but may take longer. The petitioner should ask for an update if none is provided by the USCIS within 60 days. If under Premium Processing Services, further action will occur within the guaranteed 15 calendar days.

Once the USCIS receives the petitioner’s appeal or motion to a Notice of Denial, the appellate authority may render one of three possible decisions: (1) agree with the appeal and amend the original decision; (2) disagree with the appeal and affirm the original decision; or, (3) remand the case back to the original reviewing office for further action. This adjudication process may take up to 270 days depending on whether the case is reviewed by a single appellate member or is referred to a three-member panel of the Board of Immigration Appeals.

If the L-1 petition is approved by the USCIS, and the beneficiary was not already in the U.S. under another valid status or was not eligible for a change of status, the beneficiary and any dependents should apply for L-1 and L-2 visas from the U.S. consular post in their home country to enter the U.S.

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XI.       WHAT CAN YOU EXPECT FROM VISATOPIA?

Needless to say, filing a petition for an L-1 can be daunting and confusing. Visatopia will ensure that your petition is filed efficiently and is at its strongest when it reaches the reviewing immigration officer’s hands.

Visatopia strives to handle its clients’ immigration matters with the utmost integrity, care, and professionalism. With a 95% approval rate and nearly a decade of experience in employment-based and business-oriented immigration issues, we are deeply committed to helping our clients obtain the best possible results every step of the way on their journey to achieving the American Dream.

Four features distinguish Visatopia from other firms:

  1. Our exceptional legal credentials, extensive knowledge, and breadth of experience enable us to outmatch our major competitors’ services;
  2. Our contingent flat fees, free initial consultation, and encouragement of open client communication without ever getting charged are all ways in which we keep ourselves accountable to our clients and deliver the best possible results at lower costs;
  3. Our policies of promptness and diligence allow us to provide a personal, attentive, and strategized approach in our clients’ immigration matters; and,
  4. Our firm is by immigrants and for immigrants. We are committed to our clients’ successful immigration and, accordingly, provide all-encompassing services to our clients to ensure that we take care of our clients from start to completion.

For the L-1 process, you can expect at least the following services from Visatopia:

  1. Advise whether an L-1 is appropriate for your matter;
  2. Guide you in collecting and organizing the proper documentation and evidence to enhance your application;
  3. Assist in the business plan drafting;
  4. Document transaltion;
  5. Review, edit, and refine relevant documentation to best strengthen your application;
  6. Draft a probative petition letter that cohesively presents the strength of your case along with its supporting evidence;
  7. Provide frequent updates and communication;
  8. Submit your complete application, after your review and approval, to the appropriate USCIS Service Center;
  9. Track your case and update you on the processing status of your case;
  10. Ensure that you respond to any additional requests for evidence or information related to your case;
  11. Provide guidance on whether an appeal or motion is appropriate if your case is not approved; and,
  12. Follow through with work related to appeals and motions if you choose to pursue those routes.

Please refer to the L-1 Flow Chart for a step-by-step guide to what you can expect from Visatopia throughout the representation and the L-1 process.

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Read more about L-1 status and Visatopia’s L-1 services:

Read about some of our successful L-1 cases: