remanded
L-1A
remanded L-1A Case: Renewable Energy
Decision Summary
The AAO found that the Director erred in determining the petitioner did not qualify as a 'new office' and that the beneficiary would not be employed in a managerial capacity. However, the case was remanded because the record did not sufficiently establish that the new office would be 'doing business' (providing goods/services) within one year of approval, and the Director was instructed to request further evidence on this issue.
Criteria Discussed
Managerial Or Executive Capacity New Office Requirements Doing Business
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U.S. Citizenship and Immigration Services MATIER OF N-US INC. Non-Precedent Decision of the Administrative Appeals Office DATE: JUNE 19,2018 APPEAL OF CALIFORNIA SERVICE CENTER DECISION PETITION: FORM I-129, PETITION FOR A NONIMMIGRANT WORKER The Petitioner, a renewable energy company, seeks to temporarily employ the Beneficiary as the managing director of its new office under the L-JA nonimmigrant classification for intracompany transferees. See Immigration and Nationality Act (the Act) section l0l(a)(15)(L), 8 U.S.C. § 1101(a)(15)(L). The L-lA classification allows a corporation or other legal entity (including its affiliate or subsidiary) to transfer a qualifying foreign employee to the United States to work temporarily in a managerial or executive capacity. The Director of the California Service Center denied the petition concluding that the Petitioner did not establish, as required, thatit would employ the Beneficiary in a managerial or executive capacity in the United States. The Director acknowledged that the Petitioner indicated on the petition that the Beneficiary is coming to the United States for employment in a new office, but determined that the company does not qualify as a new office. On appeal, the Petitioner asserts that it has not been doing business as defined in the regulations for at least one year, and, as such, it meets the definition of a "new office." The Petitioner maintains that it submitted sufficient evidence to establish that it would be able to support the Beneficiary in a managerial capacity within one year of the approval of the petition. Upon de novo review of the record, we will withdraw the Director's decision and remand the matter for entry of a new decision. I. LEGAL FRAMEWORK To establish eligibility for the L-1A nonimmigrant visa classification in a petition involving a new office, a qualifying organization must have employed the beneficiary in a managerial or executive capacity for one continuous year within three years preceding the beneficiary's application for admission into the United States. 8 C.F.R. § 214.2(1)(3)(v)(B). In addition, the beneficiary must seek to enter the United States temporarily to continue rendering his or her services to the same employer or a subsidiary or affiliate thereof in a managerial or executive capacity. /d. The h~rm "new office" refers to an organization which has been doing business in the United States for less than one year. 8 C.F.R. § 214.2(1)(J)(ii)(F). "Doing business" means the regular, Matter of N-US Inc. systematic, and continuous provision of goods and/or services by a qualifying organization and does not include the mere presence of an agent or office. 8 C.F.R. § 214.2(l)(l)(ii)(H). The regulation at 8 C.F.R. § 2l4.2(l)(3)(v)(C) allows a "new office" operation no more than one year within the date of approval of the petition to support an executive or managerial position. Therefore, a petitioner that qualifies as a new office must submit evidence to demonstrate that the new office will be able to support a managerial or executive position within one year. This evidence must establish that the petitioner secured sufficient physical premises to house its operation and disclose the proposed nature and scope of the entity, its organizational structure, its financial goals, and the size of the U.S. investment. See generally, 8 C.F.R. § 214.2(l)(3)(v). : II. ANALYSIS Upon review, we agree with the Petitioner's claim that it qualifies as a new office as defined in the regulations. The Director determined that the Petitioner had been doing business for more than one year because it reported a gross income figure on its 2015 and 2016 corporate income tax returns. However, the Petitioner submitted evidence demonstrating that the income reported was provided entirely by its foreign parent company to cover salaries and initial start-up expenses. The record does not show that the company has engaged in or derived income from the provision of goods and/or services to date. The Petitioner, as a new office, must show that it will more likely than not support the Beneficiary in a managerial or executive capacity within one year. Because the Director did not apply the new office regulations to the facts presented, the Director required that the Petitioner demonstrate that the Beneficiary would immediately perform primarily managerial or executive duties, as defined at section 101(a)(44) of the Act, upon approval of the petition. After reviewing the record under the appropriate regulations, we find that the Petitioner established that it would employ the Beneficiary in a managerial capacity within one year. Although the Petitioner will maintain a small staff initially, it provided a detailed business plan explaining how the Beneficiary would perform primarily managerial duties with the support of the U.S. employees, contractors, employees of the foreign entity, and business partners working with the Petitioner to develop solar energy projects in the United States. · Accordingly, we will withdraw the Director's findings with respect to the Beneficiary's proposed employment capacity and the Petitioner's qualification as a new office. i III. DOING BUSINESS WITHIN ONE YEAR Although we are withdrawing the Director's decision, the record as presently constituted does not establish that the new office would be doing business as a qualifying organization within one year. When a petition indicates that a beneficiary is coming to the United States to open a new office, the petitioner must show that it is ready to commence doing business immediately upon approval. If approved, a beneficiary is granted a one-year period of stay to open or be employed at the "new 2 . Matter of N-US Inc. ofTice." 8 C.F.R.' § 214.2(1)(7)(i)(A)(3). At the end of the one-year period, when a peti tioner seeks an extension of the "new oftice" petit ion, the regul ation at 8 C.F.R. § 2 14.2(1)(14)(ii)(B) requires a petitioner to demonst rate that it has been doing business "for the previous year" through the regular, systematic, and con tinuou s provision of goods or services. The Petitioner's business plan identifi ed its involvement in two solar energy proj ects. The consists of 300 acre s of industrial land in Washin gton where it propo ses to install a solar farm and power plant. The Petitioner indic ates that it has a serv ice agreeme nt with for the developm ent of this project. The other proj ect is the an early stage project undertaken by a smaller developer, which the Peti tioner expects to acq uire and dev elop in 201 8. The Petitioner describ ed these projects in detai l, but it did not provide supporting documentation that would ass ist in evaluating their current stag e of development, such as the service agreement with or documentation related to its acqu isition of the Georgia-based project. · Further, although the Petitioner has budgeted for significant development and investment costs for these and future projects, but its forecasted project profit and loss statement shows that the company antici pates $0 in annual revenue s in both 2018 and 2019. Since the petition was filed in September 2017, additional evidence would be needed to :demonstrate how the Petiti oner's activities in the interim would meet the definition of "doing busin ess" within one year, and at what point it will begin to engage in the regular , systematic , and continuous provi sion of services. If the Petitioner will not reach that stage of development within one year, then the petition is not appro vab le. As the Director did not raise this issue , we will remand the matter for the issuanc e of a new decision. The Director may request any additional evidenc e deemed warranted and allow the Petitio ner to submit such evidence within a reaso nable period of time. ORDER: The matt er is remanded for the entry of a new decision con sistent with the forego ing analysis. Cite as Matter of N-US Inc., lD# 1378263 (AAO June 19, 20]8) '3
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