Startup

[pjdixit]

Hi,

 

I was wondering if anyone could help me with this issue: 

 

 

First a little background: I am currently on H1b VISA in USA. I want to start a software company in India. I will be the founder and the CEO of the company. I won't be taking any salary from my company, only the profits. I am planning to hire 2 engineers in India to manage certain tasks. My wife is doing PhD and is on F1 VISA.

 

So my question is: In order to start my own company, I was thinking of giving up my H1B VISA and as I would like to stay with my wife, i was thinking of changing status to F2 VISA. Will it be illegal to manage my company remotely from US while I am on F2? 

 

[jairichi]

I believe so as far I read some responses from JoeF. I am sure he will give you a precise answer based on your situation.

[omshiv]

You cannot do that.

[shandan]

What you do in India does not effect your F2 status.

 

But you might want to consult with a good CPA/Accountant for Tax Laibilities and reporting requirements both in India and here.

[pjdixit]

What you do in India does not effect your F2 status.

 

But you might want to consult with a good CPA/Accountant for Tax Laibilities and reporting requirements both in India and here.

That is encouraging! I don't mind paying taxes as per law of both countries. 

[wiweq]

On F2 you cannot work. Simple.

[JoeF]

As long as you are in the US, on H1, or F2 status, or any other status that has restrictions on who you can work for, you can NOT work for a company abroad, you can NOT manage a company abroad.

The H1 allows you to work for your employer ONLY, the F2 does NOT allow to work at all.

You can be a passive investor, but that means just putting money into a business and otherwise staying completely out of it. Managing the company, even for free, is not allowed if you are in H1 or F2, etc. status in the US.

[metroguy]

you can simply put ur brother, sister or mother or father as the CEO and you will be out of picture from the tax implications and h1b stuff :)

[pjdixit]

To be honest, I don't understand this: 

 

My first choice of location to start a company would be US. But there is no VISA for entrepreneurs. Recently 'Entrepreneurs in residence' program was declared. With this program,  I can start a company in USA and sponsor my H1 through my company. But it requires to maintain 'Employer-Employee' relationship. Meaning, I need to have Board of Directors who have power to fire from my own company. May be USCIS wants to create more stories like that of Steve Jobs ;-) For a startup, board of Directors and all is an overkill. So my second option is my home country which is India. 

 

I strongly think USA is shooting itself in foot with its immigration policies. I have Masters degree in Engineering from a reputed US University. I have a fair command over English. I am looking to start a company. I can potentially create jobs instead of taking one. Then why there is no way for me to do so? I can find a work-around by having a US Citizen or Green card holder, but why I need to depend on a work around? US is called country of immigrants. If I am not the kind of immigrant they want then who else do they want? 

 

US is becoming a 'Golden  Cage' for me. I guess, I will move back to India.

[JoeF]

you can simply put ur brother, sister or mother or father as the CEO and you will be out of picture from the tax implications and h1b stuff :)

 

you can simply put ur brother, sister or mother or father as the CEO and you will be out of picture from the tax implications and h1b stuff :)

That would only work if it is for true.

Just having somebody as proxy and doing the real work while in the US is NOT allowed, and still would get the person into trouble.

[JoeF]

To be honest, I don't understand this: 

 

My first choice of location to start a company would be US. But there is no VISA for entrepreneurs. Recently 'Entrepreneurs in residence' program was declared. With this program,  I can start a company in USA and sponsor my H1 through my company. But it requires to maintain 'Employer-Employee' relationship. Meaning, I need to have Board of Directors who have power to fire from my own company. May be USCIS wants to create more stories like that of Steve Jobs ;-) For a startup, board of Directors and all is an overkill. So my second option is my home country which is India. 

 

I strongly think USA is shooting itself in foot with its immigration policies. I have Masters degree in Engineering from a reputed US University. I have a fair command over English. I am looking to start a company. I can potentially create jobs instead of taking one. Then why there is no way for me to do so? I can find a work-around by having a US Citizen or Green card holder, but why I need to depend on a work around? US is called country of immigrants. If I am not the kind of immigrant they want then who else do they want? 

 

US is becoming a 'Golden  Cage' for me. I guess, I will move back to India.

Well, the US is free to do their immigration laws as they see fit.

Most startups fail, and don't create any jobs.

That's the reality of startups. And yes, I work in one...

There is lots of potential to create jobs even when making illegals legal (see, e.g., the guy who invented the cell phone camera, he was illegal and became legal in the 1986 amnesty.)

And yet, there is considerable opposition to legalize the illegal immigrant population.

Society as a whole may not see you as anything special, even if you may, 20 years from now, have created some jobs.

[pjdixit]

Well, the US is free to do their immigration laws as they see fit.

Most startups fail, and don't create any jobs.

That's the reality of startups. And yes, I work in one...

There is lots of potential to create jobs even when making illegals legal (see, e.g., the guy who invented the cell phone camera, he was illegal and became legal in the 1986 amnesty.)

And yet, there is considerable opposition to legalize the illegal immigrant population.

Society as a whole may not see you as anything special, even if you may, 20 years from now, have created some jobs.

You are right, Joe. May be I will fail and won't create any jobs and society in general won't find any value in me. That is one way to look at it. However, I personally don't look at it with that view and you I don't mind if you disagree with me. Entrepreneurship, despite high level of failures, have contributed positively to the society. What is better example of it than US itself. 

[omshiv]

You are right, Joe. May be I will fail and won't create any jobs and society in general won't find any value in me. That is one way to look at it. However, I personally don't look at it with that view and you I don't mind if you disagree with me. Entrepreneurship, despite high level of failures, have contributed positively to the society. What is better example of it than US itself. 

 

 

look for EB5 visa if you are soo keen on creating jobs in the US.

[pjdixit]

look for EB5 visa if you are soo keen on creating jobs in the US.

I don't have $1 million to invest to qualify for EB5. I am keen about starting a new business in the field I am passionate about than anything else. Rest will follow... 

[JoeF]

You are right, Joe. May be I will fail and won't create any jobs and society in general won't find any value in me. That is one way to look at it. However, I personally don't look at it with that view and you I don't mind if you disagree with me. Entrepreneurship, despite high level of failures, have contributed positively to the society. What is better example of it than US itself. 

I understand that you of course think that your business will be successful.

Everybody who creates a startup thinks so.

The US as a whole, though, has to look at the big picture, and that doesn't look all that good.

Sure, some startups grow big, but that's a very small percentage. For every Microsoft there are thousands or tens of thousands of failures. Ever remember the famous talking sock puppet of an online pet store company?

There have been proposals for an entrepreneur visa for quite some time, but they never went anywhere. I think a large part of the reason is the potential for abuse. Who defines what's a viable startup? The 24567th IT consulting company? I for sure don't think USCIS evaluating a business plan would be a good idea

It may make sense if you have venture capital, because that means that you have presented and refined your business plan umpteen times, and people who know about businesses eventually found it worthwhile to invest in it. But still, VC companies know that 9 out of 10 businesses they finance fail, they just make their investments up from the one startup in an IPO or sale to an established company.

And finally, I don't think somebody who is serious about an idea would whine much about the US not having an entrepreneur visa. If your business idea depends on you being in the US, it is not really entrepreneurial. If your business has no global appeal, why would it be a worthy startup? In a startup, you have to think globally. The tech market is actually bigger outside the US.

[pjdixit]

Thank you guys for your valuable inputs! I guess I know what I need to know.

 

Thankfully there is bi-partisan support for green cards for professionals working in STEM area and those who have Master's/PhD from US Universities. It is on the table whether there is comprehensive or piece-meal approach to immigration reform. I hope to see some movement regarding this in October when house presents its own immigration bill. There is nothing easy about starting a new business, but having a green card might make my life relatively easy. 

 

I am gonna wait and watch till Jan 2014 to see what happens with immigration reform. If it doesn't work out, it will be time for me to bid adieu to US which was my home for past 7+ years! Fortunately for me, there have been a significant development in support system for Startups in Bangalore. Many Venture Capitalists, Incubators, and Accelerators are supporting the startup eco-system in Tier-1 cities of India. % years ago it was almost non-existent. Lets see how it turns out. Only time will tell. Excited about it nonetheless :-)