Contract manufacturing?

[ds160h1b]

Hello all,

 

First of all, thanks to everyone who has made efforts to initiate/run/upkeep this website. It's been really helpful in providing immigration related information. 

 

I'm a h1b worker here in the US and I have a family run business back in India. It's a CNC machining shop and we are looking into expanding our customer base in the US. Since I have all the technical resources/experience, I was hoping to get in touch with companies here in the US to explain about my company and persuade to get orders (Contract manufacturing?)

 

​Is this legal to do? Do I need to establish a firm here in the US to do this? Since it's a family run business I don't mind going unpaid.

 

​Any help/advise would be much appreciated!

 

Thanks.

[JoeF]

You would have to have work authorization to help the foreign company.

On H1, you can NOT do anything for the company, not even unpaid.

[ds160h1b]

Thanks for the reply, Joe F.

 

Is there any workaround it? Can this Indian company sponsor my h1b? Would this be a different case if I were a green card holder?

 

Sorry if I'm being a noob.

 

Thanks.

[catx]

That would be unauthorized work on a H-1B visa (whether paid or not), and is illegal.

[JoeF]

Thanks for the reply, Joe F.

 

Is there any workaround it? Can this Indian company sponsor my h1b? Would this be a different case if I were a green card holder?

 

Sorry if I'm being a noob.

 

Thanks.

First off, this is the US. "Workarounds" don't work here. Here it is about following the laws.

Only a US company can file an H1.

The company should find a US representation, but you have to stay out of that.

You can NOT be involved AT ALL in any of this, because it would be unauthorized work for you which would make you illegal.

[catx]

Is there any workaround it? Can this Indian company sponsor my h1b? Would this be a different case if I were a green card holder?

 

In answer to your follow post ... No, there is no workaround. No, your family's company cannot sponsor your H-1B visa (for a number of reasons such as it is not an U.S. company, its your family business, and even if they could (and they can't) you would then only be able work for them and not your other job). Yes, there are no such restrictions as a permanent resident (green card holder).

[rohang]

Thanks for the reply, Joe F.

 

Is there any workaround it? Can this Indian company sponsor my h1b? Would this be a different case if I were a green card holder?

 

Sorry if I'm being a noob.

 

Thanks.

H1b is sponsored by US company, as its for work in USA. Indian company with no US presence cannot file for H1b.

[ds160h1b]

First off, this is the US. "Workarounds" don't work here. Here it is about following the laws.

Only a US company can file an H1.

The company should find a US representation, but you have to stay out of that.

You can NOT be involved AT ALL in any of this, because it would be unauthorized work for you which would make you illegal.

Joe F,

 

What makes you think that I was looking for ways to break the law? I was just trying to explore other legal avenues if there were any.

Laws are everywhere and meant to be followed. People with the right mindset will always follow them. It's just not in the US.

 

Thanks for your reply/inputs.

[ds160h1b]

In answer to your follow post ... No, there is no workaround. No, your family's company cannot sponsor your H-1B visa (for a number of reasons such as it is not an U.S. company, its your family business, and even if they could (and they can't) you would then only be able work for them and not your other job). Yes, there are no such restrictions as a permanent resident (green card holder).

Thanks for your inputs.

[JoeF]

Joe F,

 

What makes you think that I was looking for ways to break the law? I was just trying to explore other legal avenues if there were any.

Laws are everywhere and meant to be followed. People with the right mindset will always follow them. It's just not in the US.

 

Thanks for your reply/inputs.

The talk about "workarounds" made me think that...

In this context, that word is pretty much a euphemism for "doing something under the table," i.e., breaking the law.

[Attorney_23]

 

I'm a h1b worker here in the US and I have a family run business back in India. It's a CNC machining shop and we are looking into expanding our customer base in the US. Since I have all the technical resources/experience, I was hoping to get in touch with companies here in the US to explain about my company and persuade to get orders (Contract manufacturing?)

 

​Is this legal to do? Do I need to establish a firm here in the US to do this? Since it's a family run business I don't mind going unpaid.

 

 

If a company was set up in the U.S. to sponsor you, it may be possible. It may be tough, but there are methods to (potentially) do something along these lines. I suggest you read the following:

 

“Entrepreneur” H1B Petitions: A New Option for Start-Up Companies?

[ds160h1b]

Attorney_23,

 

Thanks a lot for this great piece of information. Upon reading the article, I understand that the company has to be present in the US, with a well-established structure (i.e., board of directors, shareholders and investors) in order to apply for my H1B.

 

Now the company which I'm talking about is in India is a family run business. Is there a legal way to establish/extend the same company in the US? May be like a registered firm having only sales office in the US (purely for marketing purposes) while actual product/production being made in India? I understand I shouldn't be involved in any of this since I'm on H1B. If so, then who could potentially be is my question.

 

Thanks.

 

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Here are some excerpts from the article for readers who would like a quick gist:

 

The USCIS states in that document that it is willing to accept the existence of an H1B employer-employee relationship, even if the prospective H1B employee owns a majority share of the company, as long as it can also be shown that there is some external check on the employee's authority.

 

The USCIS Q&Astates that, "... if the petitioner provides evidence that there is a separate Board of Directors which has the ability to hire, fire, pay, supervise or otherwise control the beneficiary's employment, the petitioner may be able to establish an employer-employee relationship with the beneficiary."

 

The USCIS suggests that, in addition to an independent board of directors, it may be sufficient to show that there are preferred shareholders, investors, or other factors to demonstrate that the company controls the terms and conditions of the entrepreneur's employment. The existence of this proof may be sufficient to establish a distinction between the entrepreneur's ownership interest in the company and the right to control his/her employment.

[JoeF]

The company management would have to discuss this with a good lawyer. Murthy has an office in India.

If the company opens an office in the US, it is possible for somebody from the company to get an L1 as well.

[catx]

If the company opens an office in the US, it is possible for somebody from the company to get an L1 as well.

 

(JoeF) I think for a L-1 visa the person must be first employed with the company outside the U.S. (for a minimum period of time) prior to at the U.S. office, correct?  If I am correct, then wanted to make the additional point.

[JoeF]

(JoeF) I think for a L-1 visa the person must be first employed with the company outside the U.S. (for a minimum period of time) prior to at the U.S. office, correct?  If I am correct, then wanted to make the additional point.

Yes. That's why I said "somebody from the company" could get an L1. The OP can't, unless he worked for the company abroad for a year in the last three years.

[ds160h1b]

JoeF/ catx,

 

Great news! I may be thinking too far ahead but I just need one other clarification. Now say the company establishes a US branch, is there any kind of restriction for the person to obtain the said L1 visa? As in, if suppose he/she is the proprietor of the company would he/she still be eligible to apply for L1 visa? or anyone irrespective of whether the applicant owns/works for the company can apply?

 

I will be passing this information to the company's management!

 

Thanks!

[Attorney_23]

Attorney_23,

 

Thanks a lot for this great piece of information. Upon reading the article, I understand that the company has to be present in the US, with a well-established structure (i.e., board of directors, shareholders and investors) in order to apply for my H1B.

 

Now the company which I'm talking about is in India is a family run business. Is there a legal way to establish/extend the same company in the US? May be like a registered firm having only sales office in the US (purely for marketing purposes) while actual product/production being made in India? I understand I shouldn't be involved in any of this since I'm on H1B. If so, then who could potentially be is my question.

 

 

Yes, I've handled many cases for "representative offices" in the context of L-1 cases. It may be feasible to do this for an H1B case, as well. (We usually do these type of H1B cases for start-ups, not long-established companies.) If you're serious about this, I suggest you schedule a consultation with one of the attorneys in our H1B department. Attorney Christopher Drinan has worked on a number of these 'H1B entrepreneur' cases, so he may be a good attorney to schedule your consultation with.

[GcLLC]

" Now say the company establishes a US branch,"

 

How? Are you aware of the legal and tax issues in establishing a cross-border branch/subsidiary? 

 

Now this is entirely different from what Attorney_23 mentioned as a "representative office". A liaison / representative office is more easily established and maintained  and if you succeed in obtaining an L1/H1-B for someone using that structure, then that would be the best option.

[t75]

The owner of the business referenced in OP's first post needs to consult with US registered attorneys and tax professionals to decide the best course of action.  It will not be cheap to do so but is the cost of doing business in the US. If they are unwilling or financially unable to make this commitment, they cannot afford to try to do business in the US.