is it ok to apply H1 extension 4 months before the expiry


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You can apply for a H-1B extension visa up to 6 months before expiry of our current H-1B visa, and should apply as early as possible as it can take up to 6 months for processing and approval.  In other words, yes, you can apply 4 months expiry of our current H-1B visa and should do so.

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