US to allow foreign entrepreneurs to start up and work legally for up to 5 years

29 Aug 201692 Shares

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A proposed federal rule will allow entrepreneurs to work legally in the US for two years with the possibility of a three-year extension

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The Obama administration has proposed a new federal rule that will allow entrepreneurs to work legally in the US for two years, with the possibility of a three-year extension.

It has emerged that the new rule, which was formally proposed on Friday, will empower the Department of Homeland Security to provide entrepreneurs with the right to live and work in the US provided certain conditions are met.

Entitled the International Entrepreneurial Rule, it is aimed at making it easier for foreigners to start up businesses in the US and create jobs there.

The rule comes in the wake of the US Congress failing to pass a “start-up visa” as part of wider immigration reform.

The new rule won’t be subject to congressional approval and the public has 45 days to comment.

A global truth: entrepreneurs are key to jobs growth

Under the new rule, in order to be eligible to start up in the US, foreign citizens would have to own at last 15pc of a US-based start-up, have a central role in the organisation and the start-up must have the potential for rapid growth and job creation.

This move by the US is an attempt to fix a broken immigration system in the face of congressional gridlock and ensure that the start-up economy – which is key to jobs growth – won’t be stifled by outmoded legislation.

“The proposed rule would add new regulatory provisions guiding the use of parole on a case-by-case basis with respect to entrepreneurs of start-up entities whose entry into the United States would provide a significant public benefit through the substantial and demonstrated potential for rapid business growth and job creation,” the US Department of Homeland Security said.

Editor John Kennedy is an award-winning technology journalist.

editorial@siliconrepublic.com