Can an International Student on OPT in the USA Set Up a Company?

Question from Dakshesh Patil, Can an International Student on OPT in the USA Set Up a Company?

Answer from AI:

As an international student who has just completed a Master’s program and is currently on Optional Practical Training (OPT) in the United States, you may be considering setting up a company. However, there are certain legal considerations and restrictions you should be aware of.

Understanding OPT and Entrepreneurship

OPT is a period during which undergraduate and graduate students with F-1 status are allowed to work for one year on a student visa towards getting practical training to complement their education.

While on OPT, you are allowed to start a business, but there are some restrictions. According to the U.S. Citizenship and Immigration Services (USCIS), the work done must be directly related to the student’s major area of study.

Steps to Start a Business on OPT

1. Ensure your business is related to your field of study: As mentioned above, USCIS requires that the work done on OPT is directly related to the student’s major area of study. Therefore, your business should be in a field related to your Master’s program.
2. Apply for an Employer Identification Number (EIN): To start a business in the U.S., you will need to apply for an EIN from the Internal Revenue Service (IRS). This is essentially a social security number for your business.
3. Register your business: Depending on the state you are in, you will need to register your business with the appropriate state agency.

Considerations and Limitations

While it is possible to start a business on OPT, there are some limitations. For example, you cannot extend your OPT under the STEM extension if your degree is not in a STEM field. Additionally, once your OPT expires, you will need to change your visa status to continue operating your business.

One option could be to apply for an H-1B visa, which allows U.S. companies to employ graduate level workers in specialty occupations. However, getting an H-1B visa is not guaranteed as there is a cap on the number of these visas issued each year and they are distributed through a lottery system.

Another option could be the E-2 Treaty Investor Visa, which allows an individual to enter and work inside of the United States based on an investment they will be controlling. However, India does not currently have a treaty of commerce with the U.S., so this option may not be available to you.

Seek Legal Advice

Given the complexity of U.S. immigration law, it is highly recommended that you consult with an immigration attorney or legal professional who specializes in this area. They can provide personalized advice based on your specific circumstances and help you navigate the process of starting a business while on OPT.

For more information, you can visit the USCIS website or the IRS website.