U.S. introduces new policy allowing startup founders to self-sponsor H-1B visas 

In a ground-breaking move to boost global entrepreneurship, the United States has announced a policy shift in 2025 allowing foreign start-up founders and business owners to self-sponsor their H-1B visas, removing the long-standing requirement to secure a U.S.-based employer.

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Previously, foreign entrepreneurs needed third-party arrangements with local employers to obtain an H-1B visa. This visa, designed for specialty occupation workers with advanced knowledge, is initially valid for three years and extendable to six years, with further extensions possible for those pursuing permanent residency.

Key Highlights of the New Policy

–          First-ever self-sponsorship route: Start-up founders and sole proprietors can now sponsor their own H-1B visas without needing an external employer.

–          Employer-employee structure required: To qualify, founders must establish a legitimate employer-employee relationship within their company. This typically involves forming a board or advisory group with authority over employment decisions such as hiring, reviews, and termination.

–          Lottery or cap-exempt eligibility: Founders can apply via the regular H-1B lottery or under cap-exempt categories if linked to qualifying institutions, broadening their chances.

–          Strict qualification criteria: Applicants must:

Own a legally registered U.S. business.

1.     Demonstrate the company’s ability to pay the prevailing wage.

2.     Hold at least a bachelor’s degree in a relevant field.

3.     Occupy a role classified as a specialty occupation requiring advanced, specialized knowledge aligned with their academic background.

The U.S. Department of Homeland Security (DHS) states that this policy aims to drive innovation, create jobs, and cement America’s position as a global start-up hub, particularly across technology, biotechnology, and finance sectors.

Implications for Global Entrepreneurs

This update eliminates a major barrier for international founders, offering a direct, flexible pathway to launch and scale startups in the U.S. It is expected to attract more talented entrepreneurs, fuel job creation, strengthen economic growth, and reinforce the U.S. as one of the world’s most competitive markets for innovation and business expansion.

Credit: Nairametrics

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