L1-A Parent, Branch, Subsidiary and Affiliate

Video Transcript – Part 5 – Intra-Company Transfer L-1A and L-1B Visas

Thanks for joining us today as we break down how the regulations define key terms when it comes to company structures for L-1 purposes.
Here are the key definitions:
Parent: is defined in the regulations simply as “a firm, corporation, or other legal entity that has subsidiaries”.

Branch: means “an operating division or office of the same organization housed in a different location. Thus, someone approved for L-1 employment in one branch should be able to move to another branch of the same organization in the U.S. without needing additional USCIS approval, so long as there is no material change in the duties. However, this flexibility is subject to review and may change.

Subsidiary: means a firm, corporation, or other legal entity that is owned by a parent company. That ownership can be direct or indirect, but the key point is that the parent must own and control at least 50% of the subsidiary.
Affiliates: fall into one of two categories:

One of two or more subsidiaries that are owned and controlled by the same parent or individual, or
One of two or more legal entities owned and controlled by the same group of individuals, each individual owning and controlling approximately the same share or proportion of each entity.
When filing any petition, it’s crucial to clearly document how the U.S. entity is owned by the parent. And if we’re talking about a brand-new start-up, this structure must be fully established within the first 12 months in order for an extension to be granted.

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