dismissed L-1A Case: Commercial Printing
Decision Summary
The appeal was dismissed because the petitioner failed to establish it had the financial ability to commence doing business as a new office in the United States. Despite a business plan mentioning a $100,000 investment and future acquisitions, the petitioner only provided evidence of $5,000 in a U.S. bank account. The AAO found this amount insufficient to operate a viable business and support a managerial or executive position within the required one-year timeframe.
Criteria Discussed
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U.S. Department of Homeland Securlty 20 Mass. Avc., N.W., Rrn. A3042 Washington, DC 20529 U.S. Citizenship and Immigration FILE: WAC 04 024 52886 Office: CALIFORNIA SERVICE CENTER Date:,j(j~ 1 4 ZEmj IN RE: I Pet~tioner: Beneficiary: PEI'l'1'ION: I'el~t~ois for a Nonimm~gant Worker Pursuant to Sect~on 101(a)(15)(L) of the Inimagratitsn and Nationality Act, 8 I1.S.C. 4 1 101(a)(I 5)(L) Th~s is thc decis~on uftht: Adrn~n~strat~ve Appeals Office In your case. All documents have been returned to the oi'5l:c that origlnally dcc~ded your case. Any further lnqulry must be made to that office. Administrative Appeiiis (Jffice WAC 04 024 52886 Page 2 DISCUSSIQN: The nonimmigrant visa petition was denied by the Director, California Service Center. The matter is now before the Adminislrative Appmls Office (AAO) on appeal. The appeal will be dismissed. Thc petitioner clalms that it is a subsidiary of located in India. Thc petitioner plans to oporatc a commercial pr~nting operations business. l'he U.S. entity was incorporated in the State of California in 2003. The petitioner seeks to hire the beneficiary as a new employee to open its U.S. office. Accordingly, in November 2003, the U.S. entity petitioned C:itizenship and Immigration Services (CIS) to classify the beneficiary as a nonimmigrant intracompany rransferec (L- I A) pursuant to scction 101 (a)(15)(L) of the Immigration and Nationality Act. (the Act), 8 U.S.C. jj I IOl(a)(lS)(I,), as an executive or manager for three years. The petitioner endeavors to employ the beneficiary as the U.S. entity's president and CEO at 2.n annual salary of S50,000. On December 18, 2003, the direc.tor denied tht petition. The director determined that the petitioner had not establislied: (1) a financial investment. from the foreign entity sufficient to commence doing business in the United Statcs; and, (2) that the beneficiary will function in an executive or managerial capacity within one ymr. On appeal', ctrunsel disagrees with the director's decision and asserts that the evidence submitted is sufficient t(j establish that the L1.S. entity is in a financial position to operate a viable business and will be able to support a.n executive position within one vear of operation. Counsel suhmits a brief and an expert opinion letter in support of the appeal. To establish L-1 eligibility under section IOl(a)(l5)(L) of' the Immigration and Nationality Act (the Act), 8 U.S.C. $ 1101(3)(15)(L), the petitioner must demonstrate that the beneficiary, within three years preceding the beneficiary's application for admissior~ illto the United States, has been employed abroad in a quiilifyirig nlanagerial or executive capacity, or in a capacity involving specialized knowledge, for one continuous year by a qualifying organization, and seeks to enter the United States tcmpnrarily in order to continue to render his or her services to the same employer or a s~hsidiary or affiliate thereof, in a capacity that is managerial, exccutive, or involves specialized knowledge. The regulation at 8 C.F.K. 3 214.2(1)(3) states that an individual petition filed on Form 1-129 shall be accompanied by: (i) Evidence Ih~at the petitioner and the organization which employed or will etnploy the alicn Ere qualifying organizations as defined in paragraph (I )( l)(ii)(G) of this section. (ii) Evidence th.at the alien will be employed in an executive, managerial, or specialized lulowledge capacity, including a detailed description of the services to be performed. ' Counsel filed a Motion to Kecons~der and Appeal. llowever. the dlrector decl~ned to treat the appcal as a Motlon to Reconsider and forwarded ~t to the A40 for remew. WAC 04 024 52886 Page 3 (iii) Evidence that the alien has at lcast one cont~nuous year of full-time en.tployment abroad w~th a qualifying organization with thc three years preceding the fiIing of the petition. (iv) Evidence that the alien's prior year of employment abroad was in a position that was managerial, executive or involved specialized lalowledge and that tho alien's prior education, training, and employment qualifies hindher to perform the intended serves in the United States; howevcr, the work in the United States need not be the sarnc work which the alien performed abroad. The regulation al 8 C.F.K $ 214.Z 1)(3)(v) states that if the pctltion ind~cates that the benefic~ary 1s comlng to thc Unrted Sates as a nzanagcr or execut~ve to opcn or to be employed in a new office in the Unlted States, the peht~oner shall submlt evldence that: (A) Sufficient physical premises to house the new office have been secured; (B) 'fie beneficiary has been employed for one continuous year in the three pear period preceding the filing of the petition in an executive or ltxanagerial capacity and that the proposed etnployment involved executive or managerial authority o\.ler the new operation; and (C) ?'he intended United States operation, within one year of the approval of the petition, will support an executive or ha;~a~e~ial position as defined in paragraphs (I)(l)(ii)(B) or (C) of this section, supported by information regarding: (I) ?he proposed nature of the office descnb~ng thc scope of the entity, its organszational structure, and ~ts financial goals; (2) The si~c of the United States Investment and the financial ab~l~ty of the foreign enhty to remunerate the bcneficlary and to commence doing business In the lln~ted States; and (3) 'Ihe organizatilonal struct~rc of the foreip entity. The first issue in this proceeding is whether the petitioner has established the size of thc United States investment and thc financial ability to commence doing business in the United States. In support of the 1-129 petition, filed on November 4, 2003, the petitioner submitted its fifteen page business plan which providecl the company's background, its plan to acquire an established printing business, its proposed products and servic,cs, its sales forecast for the first year of operations, growth expa.nsinn plans, a proposed organizational chart, and descriptions of three commercial printing businesses described as "target acquisition candidates currently undcr due diligence." WAC 04 024 52886 Page 4 However, on Novenher 9, 2003, the director requested additional evidence including a more detailed b~~siness plan, 3 feasibility,study, minutes of the foreign company's meetings discussing the U.S. business plans, evidence of the purchase of some assets needed to nrn the petitioner's business, and evidence of the tdta~ investntent or capital deposited in the petitioner's bank accounts, and an original lelter from the foreign entity explaining the need for the new office in the United States. The director noted that thc letter from the foreign entity should address the amount of the U.S. investment and the financial ability of the foreign company to pay the beneficiary and commence doing business in the U.S. The dircctor also requested evidence to show that the foreign ent'ity has co'mmittcd a substantial amount of capital investment in the U.S. company, including copies of original wire transfers fiom abroad, or canceled checks and dcposit receipts detailing rnonclary amo~ints for the stock purchase. Finally, the director asked the petitioner to providc a delaiIetl description of thc actual costs to establish the U.S. business to the point of being operational, and el~ider~ce thal the U.S. c,ornpany has been purchasing assets and obtaining required pcnnits, licenses, and insurance In a response dated L3eccrnber 4, 2003, the petitioner submitted, through counsel, the following: (1) an original letter from the foreign entity stating, in part, that the initial investment in the petitioner would be $100,000; (2) minutcs of' four board of directors meetings of the foreign entity, indicating its decision to establish the U.S. company, inchding a resolutioll "that initial investment in the 1J.S. sribsidiary would be approximately US$100,00OV with an additional $100,000 investment planned within thc first year ; (3) mother copy of the previously submitted business plan; (4) cvidence that the U.S. company had S5,000 in its bank account as of November 24, 2003; (5) a Calif~mia Notice of Transaction Pursuant to Corporations Code Section 25102(f) indicating that the 1~al\it: of the petitioner's stock sold or proposed to be sold was $1 0,000; (6) a one-page document outtil-king thr; budgetfoperalting costs for the petitioner's first year of operations; and (7) financial docunlentafon for the foreign entity. Counsel advised that the foreign entity had not undertaken 3. formal feasibility study with respect to the establishment of the U.S. company. With respect to the investment in the United States. counsel stated, "'The company has idcntified thee 1J.S. printing companies . . .which the newly established company will expand and operate as thc acquisitions are made . . . . Please note an additional $200,000 US is budgeted and avail~rblc for ~rakfer to filnd the planned acquisition uo on "Offer to Buy" status." The petitioner also incli~ded a description of each "acquisition candidate" and a document entitlcd "offer and al:rccment 1.0 buy" a business which identified the beneficiary as the buyer. The agreement was signcd by the beneficiary on November 7, 2003, but was not sigmed by the sellcr. On December 18, 2003, the dlrector denled the petition determ~ning that the U.S company was not In a financ~al posrt~on to operate a vlable business 'I'he d~rector found that the Investment capltal of $5,000 was rnsufficient lo operate the buslncss and was not sufficient to pay for the stocks purchased by the fore~gn ent~ty. The director also noted that there was no documentary evidence such as contracts subrnltted to support tl~e petitioner's claim that it planned to acquire three U.S. bascd pnntlrsl: companies The dlrector cotrc1ud:d that "the petitioner has failed to substantlate that ~t has, v:, ~ts fore~gn affilintcd companv, made the financial ~nvcstment requ~red to set up a quatlfy~ng ncnr offict. opcral~on In thc Unlted States." WAC 04 024 52886 Page 5 On appeal, counsel asserts that the evidence submitted is sufficient to establish that the C!.S. entity is in a financial position to operate a viable business and will be able to support an executive position within one year of operation. Counsel claims that the "U.S. budget for the first two (2) years for acquisition and set up was $200,000. . . Please note that the account is currently in excess of approximately $100,000.00." Counscl further explains that a "corporation may establish price for its stock" and that "the viability of the company is based on the Business Plan and overall funding." Counsel also notes that the U.S. subsidiary's budget was "clearly shown in a number of places as $200,000." On review, the AAO finds that the petitioner submitted insufficient evidence of the financial ability of the forei~m entity to rcmuncratc the beneficiary and to commence doing business in the United States. Although counsel. claims and submits evidence that the U.S. entity currently has "$100,000" in its bank account, the petitioner. was put on noticc of required evidence and glven a reasonable opportunity to provide it for the record before the visa petition was adjudicated. Thc petitioner failed 1.0 suk~rnit the reyue!jted evidence and now submits it on appeal. However, the AAO will not consider this evide11c.e for any purpose. See Mutter of Soriurlo, 19 I&N Dec. 764 (BIA 1988); Matter qf'Ohaigheno: 10 IRLN Dec. 533 (ULA 1988). The appeal will be adjudicated based on the record of proceeding before the director. Moreover, at the time of filing its petition and in examining the documents submitted, the U.S. entity had $5,000 in ~ts 1J.S. business checking account as oi'bioveniber 24, 2003. Rased on the petitioner's and counsel's representations, the I1.S. business rcqirircs an initial investment of $100,000. 'I'hcrcfore, SS.000 ;Ippears to bc insufficient to suppon the establishment: of the new business. In addition, nithough counscl has merit in claiming that the "par Value ofa Company's stock has no relation 1.0 the actv.al v;~l.ue; that a c~rporation nlay establish any price for its stock," the AAO will evaluatc the sale of the stock and transfer of funds as evidence of having the financial ability to commencc doing business in the IJniled States. In this case, the petitioner has jailed to establish that the foreign entity had transferred any funds to the U.S. company as of November 2003. The petitioner submitted evidence that it had $5,000 in its bank account and noted that such funds were for its initial stock offe~ing. However, there is no evidence that these funds originated with the foreign entity. 'I'be director specifically requested documentation as to the origin of the 1J.S. compa.ny9s investnlent fi.rnds, including copies of wire transfers. The petitioner did not. document the source of these funds. Failure to submlt requested evidence that precludes a n~aterial line of inquiry shall be grounds for denying the petition. 8 C.F.R. 5 103.2(b)(14). Furthermcxe, the docurnentation si~bnlitted indicates that the petitioner valued its initial stock offering at $10,000, not $5,000, which raises further questions regarding the foreign company's investment in the United States cntity. Further, the petitioner's assertion that "an additional $200,000 US is budgeted and available for Transfer to fund the planned acqui!;itions" and limited exhibits is insufficient evidence to indicate that the f0rei.g company had the financial resources Lo commence doing business in the United States. Without actual doc1.1rnentary evidence such as a bank shternents and copies of wire transfers indii:ating that the U.S. entity had actually received the necessary funding at the time it filed the petition, it is unclear how exactly the company would commence operations. In addition, although the petllioner repeatedly claimed that $200,000 is available for transfer to thc 113. company, the petitioner dirl not submit evidence, such as the foreigl~ entity's bank statements, to WAC 04 023 52886 Page 6 estabIish theexistence of tl~cse claimed funds. Going on record without supporting documentary evidence is not sufficient for purposes of meeting the burden of proof in these proceedings. .Matter of Soffici, 22 8&N Dec. i1 165 (Reg. Con~m. 1988) (citing Matter of. Treasure Cra$ of Cal@rnia, 14 1&N Dee. I90 (Reg. Comm. 19'72)). Without eviclencc of funding, the petitioner has not established how it would carry out its business strategy to acquire existing printing businesses in the United States. The petitioner submitted evidence of an offer to buy an existing: busi~~ess but this document identified the buyer as the beneficiary, not the U.S. company. Nevertheless, there is no evidence that this offer was accepted by the seller or that the company had funds to pay the proposed $35,000 downpayment. This documcnt is insufficient to establish that the petitioner is prepared to commence doing business in the United States. After carehl cons~derxtlon of the cv~dence, the AAO has determined that the petltioncr failed to establ~sh the investment in the U.S. company and financial ability to commence doing business. Accordingly, the appeal wall be dlsmlsscd. The second ~ssuc In this procxeding 1s whether the rv~dr:nce suhrnltted 1s sufficient to demonstrate that the beneficiary wlll be primar~ly employed In an executive or managerial capaclty wlthln one year of the approval of the petttron. Section 101(a)(44)(A) of the Act, 8 li.S.C. 5 110l(a)(44)(A), provldcs: The term "manaLgerial rapaccity" means an assignlnent within an organization in which the employee pnrnanly- (i.) manages the orgsnizatlon, or a department, subdivision, function, or component of the organlzat~on; (ii.) supervises and controls the work of other supervisory, profcss~onal, or managerla] employees, or manages an essential funct~on w~thln the organization, or a depzrtmcnt or subdlvls~on of the organizatton; (111 ) 11' another rmployee or other employees ::re d~rectly superv~sed, has the authority to hlrta and fire or recommend those as well as other personnel actlons (such as prornotlon arid leave authorlzatlon), or tf no other employee is dlrectly superv~sed. funct~oris af a senior level within the organ~zatlonal hierarchy or wlth respect to the function managed; and (iv.) exercises discretion over the day--to-day operations of the activity or function for which the employee has authority. A first-line supervisor is not considered to be acting in a managerial capacity merely by virtue of the supervisor's srlpervisory dutjts unless the en~ployees supervised are prclfessional. Section 101(a)(44jjB) of'thc Act. 8 1 J.S.C. 4 I l Ol (a)(44)(B), pmvldes: WAC 04 024 52886 Page 7 The term "executive capacity" means an assipmcnt within an organization in which the employee primarily- (i.) directs the management of the organization or a major component or function of lhe orgiinization; (~i.) establishes the goals and policies of the organization, component, or function; (i~i.) er.erclses iv~de, latitude in discretionary dcc~s~on-making; and (I. receivcs only general supervision or direction from higher level executives, the board of directors, or stockholders of the organization. In an October 3 1, 200? lettcr suhrn~tted w1t1.l the tnitnal petltron, thc pet~tloncr stated that the beneficlary, as pres~dent and CEO of the U.S. ent~ty, would be ~nvolved m the followrng dut~es: [Hlold ultimate responsibility for establishing, implementing, managing and directing all operations of the US. subsidiary, including thc goals, policies and objectives of the corporation in order to cnsure a successful and profitable business operation. ['The beneficiary] will have the authority over thc marketing, financial, product development, and acquisition departments of [the petitioner]. He will have f~:lf authority to hire, fire and promote subordinate management personnel as well as general staffing personnel. ['l'he beneficiary] will also be responsible for- researching and identifying prospective new acquisitions and negotiating contracts for p~rchase on behalf of [the U.S. company]. The petitioner also submitted its bosirless plan, which indicates that the company expects to hire three to five employees within thc first year. 'l'he business plan also includes a proposed organizational chart depicting a company secretary, adrninistra~ive assistant, a sales and marketing department, ii produclion and operations department, and a finance and human resources department. '!'he petitioner indicated in its October 3 1, 2003 letter that it projccts initial staffing of four to six in.dividuals during the first one to two years of operations. On November 9. 2003, thc directmoot requested additional evidence of the beneticiary's proposed U.S. position including a detailed description of his proposed duties, the L!.s. entity's organizational chart showing the beneficiary's position, and job titles and job duties for any subordinate employees the henejiciary will supervise. In response to the director's request for evidence on this subject, the petitioner resubmitted the organizational chart included in the business plan. The petitioner described the beneficiary's subordinate employees' duties and explained how the beneficiary would monitor the support staffs duties and responsibililies. The petitioner also slated tl~al the beneficlary would perform the follow~ng job responslblllt~es: WAC 04 024 52886 Page 8 0 To supervise and manage all aspects of the U.S. subs~diary company, & 'I'o direct all operations of the company, tnciuding the goals, pollcles and oblectlves In order to ensure a successful and profitable operation, (35%) a To hold authonty over the market~ng, financial, product development departn~eiits of the company, (26%) 0 To hold full authonty to hlre, fire and promote subordinate management personnel as well as generate staffing personnel, and (1 0%) 0 To be responstble for researctllng and ident~fy~ng prospechve new acqu~sit~cpns and negotlatlng contracts for purchase on behalf of the company. (20%) The director subsequttntly denled the petitLon because thc petitioner faded to establish that the benefic~ary will bc crnployed in a primar~ly executive or managerlal capaclty within one year of the approval of the petition. The d~rector noted that the descnphon of the job dutles merely paraphrased the dctin~t~ons ot'managenal and execut~ve capacity. On appeal, counsel disagrees with tlae director's decision, and claims that the director ignored the submitted business plan and anticipated. growth of the business. (:ounsel also submits an expert opinion letter which ad'drlresses the viability of the I1.S. company and the beneficiary's qualifications. When a new business is established and comnlcnces operations, the regulations recognize that a designated manager or executive responsible for setting up operations will be engaged in a variety of activi+ics not normally pcrformed by employees at the executive or managerial level and that often the full range of managerial responsibility cannot be performed. In order lo qualify for 1,-1 nonirnmigant classification during the first year of operations, the regulations require the petitionc~: to disclose the business plans and the size of the United States investment, and thereby cstablish that the proposed enterprise will support an executive or managerial position within o~c year of the approval of the petition. See 8 C.F.R. 9 214,2(1)(3)(v)(C). This cvidenck should dernoslslrate a realistic expectation that the enterprise will succeed and rapidly cxjland its it tmovcs away from the developmental stage to full operations, where there viould he an actual need for a manager or executive who will primarily perform qualifying duties. In the instant matter, the business plan submi.tted by the petitioner fails to detail clear, realistic projections to establish that the 1l.S. entity will realize gowth within one year. ~lthbu~h the organizational chan dcm.onstr;ate that the: 1.J.S. entity intends to hire new employees, it has not provided a clear tirnelable lor hiring subordinate ernployces, or established that there would be sufficient staff to relieve the beneficiary from pel-forming non-qualirying duties within one year of approval of the pctitian. In addition, the AAO notes that the petittoncr has budgeted only $60,000 for satancs dunng ~ts first year of operations. If this figure includes the beneficrary's $50,000 salary, ~t IS clear that h~s subordinate staff would be minimal. Even if this figurc does not include the beneficiary's salary, it's not clcar how this arnoulit pay the wages of all the employees of one to three full-service printlng buslncsses WAC 04 024 52886 Page 9 Moreover, while the petitioner has provided detailed descriptions of its proposed personnel, it's proposed staff does not include any employees who would perform the actual printing services of the business. 'The peti.tioner has not established that its organizational structure will support a managerial or executive position within one year of commencing operations. In addition, the petitioner has provided a vague and nonspecific description of the beneficiary's duties that fails to demonstrate what the beneficiary does on a day-to-day basis. For example, the petitioner states that the beneficiary's duties include "directing all operations of the company," "hold authority over marketing, financial and protluct development departments," and "supervise and manage all aspects of tlie U.S. subsitliar). company." Reciting the beneficiary's vague, job responsibilities or broadly-cast business objectives is not sufficient; the regulations require a detailed description of the bcncficiary's daily job duties. The petitioner has failed to answer a critical question in this case: What does the beneficiary primarily do on a daily basis? The actual duties themselves will reveal the tn~e naturc of the employment. k'edcn Bro.~. Co., Lld. v. Suva, 724 F. Supp. 1103, 1108 (E.D.N.'Y.. 1989), aff'd, 905 F.2d 41 (2d. Cir. 1990). In addition, many of the descrilled dutres gimerally parkphrase the shtutory definition of executive capacity. See section 10I(a)(44)(B) of tare Act, 8 U.S.C. 5 1 IOl(a)(44)(B). Conclusory assertions regarding the beneficiary's employlncnt capa.city are not sufficient. Merely repeating the language of the statute or reg~~lations docs not satisfy the pctitioner's burden of' proof. Ferlirz Hros. Co., Ltd. v. ' Suva, 724 F. Supp, at 1108. Further, the petit;oner clz.imed that the "Initial size of the company is irrelevant." Tllc AAO notes that a company's size alone, without taking into account the rcasonabfe needs of the organization, may not be the determining factor in denying a visa. CIS must take into account the reasonable needs of the organization: in light of the overall purpose and stage of development of the organization. However, it is appropriate for CIS to c011:;ider the size of the petitioning company in conjunction v~ith other relevant factors, such as a coinpany's small personnel size, the absence of employees who would perform the non-managerial or non-executive operations of the company, or a ,"shell company" that does not conduct business in a regular and continuous manner. See, e.g. Systronics Gorp. v. INS, 153 F. Supp. 2d 7, 15 (1I.D.C. 2001). In addition, as noted above, the regulation at 8 C.F.R. 5 214.2(1)(3)(v)(C) requires a petitioner seeking to open a new office sufficient evidence regarding the size of the investment, its proposed organizational structure and its detailed busincss plan in order to demonstrate a realistic expectation that the company, at the end of its first year of operation, will have an actual need for a manager or executive who primarily performs qualifying duties. As natcd above, the petitioner has provided insufficient evidence of its tinanciaml ability to commence operations, and an unclear picture as to what the company's orga13irationa.l structure may be wittiin one year, and a vague description which fails to identi@ the Sreneficia~'!; actual proposed duties. Bascd upon the ev~dence presentccl, the petltloner has failed lo demonstrate the C1.S. ent~ty will be able to support thc bcneficlary 111 a pr~mar~ly managerla1 or executlve posltlon w~th~n one year of cornmcnclng operattons Accordingly, the appeal wrll bc d~smissed. The AAO notcs that the petjt~nner subrnltted an expert opinion letter in support of the appeal offered as evidence of ?he viabiliiy of the 1J S. company and of the beneficiary's managerial and executlve quallficatlons. \Vt-ile the 4h0 cerh~nly respects the oplnlon provided, the test~monlal WAC 04 024 52 886 Page 10 letter does not shed light on any of the documentary deficiencies regarding the foreign entity's Investment 111 the U S. entity, nor does it explain how the beneficiary meets the definttions of managerla1 or executive capactty under the Irnmigrat~on and Nat~onal~ty Act. The AAO may, m ~ts dlscretlon, use as adv~sary opln~on statements subrriltted as expert test~mony. However, where an oplnion IS not In accord with other ~nfornlatlon or 1s In any way quest~onable, the AAO IS not requ~red to accept or may give less weight to that evldencc. Matter c,f Caron Infernatlonul, 19 I&N Dec 791 (Comm 1988). ?key [he expert oplnlovl subm~tted does not overcome the val~d objections of the d~recicir or the defic~encies discussed In detall abovc In visa petition proceedings, the burden of proving eligibility for the benefit sought remains entirely with the petitioner. Section 291 of the Act, 8 U.S.C. 9 1361. Here, that buiden has not been met. Accordingly, the appeal will be dismissed. ORDER: 'fie appeal 1s dismissed.
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