Difference Between L1 Visa And H1b Visa That You Should Know

Posted by Petter on February 1st, 2021

If you are an investor active in finance and are looking forward to making foreign investments, you must have already heard a lot about the different types of investor visas. Depending on the amount of capital you want to invest, there are different categories of visas offered. There are a few terms and conditions that accompany each.

The four US business immigration visas offered are as follows:

1. E2 investor's visa

2. EB-5 visa

3. H-1B visa

4. L1 visa

While the E2 and EB-5 visas are for direct investors, the H-1B and L1 visas are for employees or working professionals. The former are issued to the people investing their capital in bigger or smaller amounts, whereas the latter are issued to the employees — they do not need to make an investment.

Let us have a detailed look at the H-1B and the L1 visa.

H-1B visa

This visa is a non-immigrant visa issued to employees working in the USA under US business immigration affairs. The managers of companies can issue these visas for their employees on the following conditions:

1. The candidate must possess a minimum qualification of Bachelor’s degree.

2. He/she must have detailed knowledge in the field they are chosen for.

3. There should be a proven lack of such expertise within the existing American workforce.

L1 visa

This visa for the USA from India is for executives getting transferred to US onshore offices of the company running operations in different places. An L1 visa lawyer would know more about the detailed conditions for this visa.

Let us look at some important terms:

1. For this visa to be issued, the applicant must be working for the company for a minimum of 3 years.

2. The applicant must have professional-level expertise.

3. While executives and managers qualify for the L1A visa, employees with expert-level knowledge qualify for the L1B visa.

Here is a comparison of the two types of visas:

1. Approval conditions

As discussed earlier, H-1B visas are issued by US-based companies for foreign employees. In such cases, there is a requirement that the employees need to meet. To be able to apply for an H-1B visa, an employee must hold a minimum qualification of Bachelor's degree. The companies hiring them should demonstrate the lack of skill they are offering from the workforce based in the US.

For an L1 visa, there is no such requirement of educational qualification. But it is mandatory that the employee must be working for at least 3 years for the company issuing the visa.

2. Duration

While the H-1B visa can be issued for professionals meeting the terms and can last up to 6 years, the L1 visa can last from anywhere between 6 months to 7 years depending upon the requirement. If we go into more details, there are different durations for which the L1-A and L1-B visas are approved. One significant difference between the two visas is the H-1B visa can be extended for another 6 years but there is no such provision for the L1 visa.

3. Sponsorship and wages

The H-1B visa is issued by a US-based company to invite professionals from other countries to work in the US. On the other hand, the L1 visa is issued by foreign companies to their employees to work in the US. This, naturally, is evident in the pay structure. The H-1B visa holders are paid as per US standards, although the L1 might be paid as per the standard of origin country of the company.

4. Allowances for spouse

For a really long time, spouses of employees residing in the US on H-1B visas were not allowed to take up employment for monetary benefits. Although, recent changes made in the law related to US business immigration has made it possible for them to work. Now, spouses of employees holding any of these visas can work in non-permanent positions for US companies.

5. Availability of blanket petition

A blanket petition is a provision in the visa approval process that quickens the process. An L1 visa lawyer is usually aware of this position as it is often used for people applying for the L1 visa. People applying for an H-1B visa do not have this facility, hence, it takes time for them to acquire this type of visa. The provision of the blanket position is approved by the employer himself. So, the foreign companies get it approved to make their access easier in the US. US-based companies, however, do not feel the need to do so, hence, they do not provide this facility to their employees.

6. Educational and professional requirements

While H-1B visa holders are required to hold a Bachelor's degree or any equivalent degree from their country, there isn’t any such requirement for L1 visa holders. H-1B holders are employed by the US-based company, hence, there is a possibility of them wanting to employ people with basic knowledge of the professional field.

In comparison to this, an L1 visa holder does not have any of such requirements, although in many cases they are well-qualified too.

7. Availing the green card

Employees holding both kinds of visas, the H-1B as well as the L1, are eligible to submit an application for permanent residency in the USA, synonymous with the green card. There might be different grounds based on which the green card might be approved or rejected, but eligibility for the both is the same.

If you want to know more about getting an L1 visa for USA from India or simply want to learn about the different kinds of visas available, visit the US Immigration Advisory office today.