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In 2025, the U.S. implemented a significant policy change allowing foreign startup founders and business owners to self-sponsor H-1B visas.
This shift is expected to enhance international entrepreneurship in the U.S.
The policy aims to foster innovation and attract global talent to the American business landscape.
In a groundbreaking policy shift introduced in 2025, the United States now permits foreign startup founders and business owners to self-sponsor their H-1B visas: a major development expected to boost international entrepreneurship and innovation within the country.
Previous Requirements and Limitations:
Traditionally, foreign entrepreneurs had to rely on U.S.-based companies to petition on their behalf for an H-1B visa often involving complex third-party arrangements. The visa is typically valid for three years and can be extended to six. Additional extensions may be granted to those pursuing permanent residency. Most applicants, however, must go through the annual H-1B lottery unless their sponsoring organization qualifies for a cap exemption: a privilege usually reserved for nonprofit or academic institutions.
What’s New in 2025:
For the first time, U.S. Citizenship and Immigration Services (USCIS) officially permits startup founders and sole proprietors to self-sponsor their H-1B visas. This eliminates the requirement for an external employer and offers a more direct path for foreign entrepreneurs to establish businesses in the U.S.
To qualify, the founder’s company must prove the existence of a legitimate employer-employee relationship: typically achieved by forming a board of directors or advisory group with authority over employment decisions such as hiring, evaluation, and termination.
Entrepreneurs can apply either through the regular H-1B lottery or, if their business meets certain conditions, under cap-exempt categories especially if linked to qualifying institutions.
According to the U.S. Department of Homeland Security (DHS), this change is designed to promote innovation, create jobs, and solidify America’s global leadership in high-growth sectors like technology, biotech, and finance.
Eligibility Criteria and Application Requirements:
To apply for self-sponsored H-1B status under the new rule, an entrepreneur must:
Own a legally registered U.S. company
Demonstrate the business can pay the required wage
Hold at least a bachelor’s degree in a relevant field
Occupy a role considered a specialty occupation involving advanced, specific knowledge
Even if the applicant is the sole founder, USCIS mandates proof of a valid employer-employee relationship: usually through an independent board or advisory panel with decision-making power over employment matters.
Additionally, generic roles in business or administration are not eligible: the position must reflect specialized knowledge closely tied to the applicant’s academic background.
Why It Matters:
The H-1B visa allows foreign professionals to work in specialty occupations in the U.S. and is initially granted for three years, renewable up to six. Further extensions are possible for individuals pursuing permanent residency.
This 2025 update offers global entrepreneurs a clearer, more flexible route to build and scale their startups in the U.S.: removing a significant barrier in the immigration process.
The policy change is expected to attract more founders to American shores: encouraging innovation, job creation, and long-term economic growth. It also gives skilled individuals from around the world greater access to one of the most competitive startup ecosystems globally.
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