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Todays Date
12 December 2017

Good news for entrepreneurs: U.S. court rules in favour of Startup visa

A U.S District Judge, James E Boasberg on Friday, December 1, ruled that the Trump’s administration cannot delay an ‘immigration rule’ that was started by Obama’s administration.

This rule enabled the entrepreneurs from other countries to temporarily stay in U.S. and run their startups. The International Entrepreneur Rule (IER) also known as the ‘startup visa rule’ was initiated during the Obama’s administration that allowed entrepreneurs an “initial parole stay” of 30 months in U.S. irrespective of the fact whether they have a green card or visa.

This initial period of 30 months could be extended to a further period of 30 months. But was applicable to only those entrepreneurs who have at least $2,50,000 investment capital from reputed investors, and having at least 10% of ownership in the startup.

The IER rule was supposed to come into effect from 17 July 2017. However, only a week before that, the U.S. Department of Homeland Security announced that it would have to be delayed until March 14, 2018.

Paul Hughes, the lead counsel for the plaintiff argued that as the DHS did not give any advanced comment to the public about the delay, the order clearly violated the Administrative Procedure Act and is unlawful. The plaintiffs contended that they have been continuously urging the Trump’s administration to expeditiously implement the IER and by delaying the same they have suffered serious harm. They have always considered U.S. as a suitable platform to make investments in the startups.

For further assistance on startup visas, you may contact Advocate Rabindra Singh.

The DHS, on the other hand, believed that the International Entrepreneur Rule would be inconsistent with the Trump’s January Executive Order- ‘Border Security and Immigration Enforcement Improvements’ that required DHS to ensure that that the grant of such parole is only on the ground of humanitarian reasons or significant public benefit.

The District Court terming the order as unlawful, directed an immediate implementation of the IER so that the entrepreneurs can start making application for parole and build up their business that will in return create new jobs, benefitting U.S economy as a whole.

This decision of the U.S. District Court is highly appreciable as this is not only going to benefit the entrepreneurs intending to build their startups in U.S. but also would enhance U.S. economy. The country has always provided a hostile and conducive environment for the startups with over more than half of the startups in U.S. started by the immigrants constituting over $1 billion or more. The order postponing the implementation of IER proved to be really challenging for the immigrants. Thus, the decision of the court has given new hopes to the foreign entrepreneurs. The implementation of the IER would thereby increase enhance business activity, innovation, and dynamism.

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