Differences Between L1 Visa and H-1B Visa

What are the differences between H1B and L1 Visa?

The H1B visa is for specialized workers requiring a degree, with an annual cap and wage requirements, while the L1 visa is for intra-company transfers with no cap and faster green card processing. Both allow dual intent for green card applications.

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L1 Visas

  1. The distinction between L1A (managers/executives) and L1B (specialized knowledge workers) is correct. However, L1B applicants may face challenges in proving "specialized knowledge."
  1. It's true that L1B workers with specialized knowledge do not need a U.S. equivalent degree, but they may need to provide strong evidence to demonstrate the specialized nature of their knowledge.
  1. There is no annual cap on L1 visas, which is one of the advantages over the H1B visa, which is subject to an annual lottery.
  1. L1A holders can stay for a longer duration compared to L1B holders, with the difference being based on the nature of their role (executive/manager vs. specialized knowledge worker).
  1. Time spent on an L1 visa counts toward the total duration of stay in the U.S., so switching from an L1 visa to an H1B could limit the overall stay, depending on the previous visa duration

H1B Visa

  1. The annual cap for H1B visas is 65,000, with an additional 20,000 spots reserved for U.S. master's degree holders, and certain exemptions exist for universities and non-profits.
  2. The maximum duration of stay is 6 years, approved initially for 3 years with an option to extend for another 3 years.
  3. Extensions beyond 6 years are allowed if an I-140 petition is approved and certain conditions are met.
  4. Dual intent allows H1B and L1 visa holders to apply for a green card while holding nonimmigrant status.
  5. H1B visa holders can transfer to another employer if the new employer files a petition.
  6. They are permitted to invest in U.S. stocks but cannot engage in unauthorized employment outside their approved role.
  7. Policies may change, so checking with USCIS for the latest updates is recommended.
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Differences Between L1 and H1B Visas

The following table shows the differences between L1 Visa and H1 Visa

Feature

L1 Visa

H1B Visa

Green Card

Visa holders (L1) can apply for a green card under the EBIC category, which obviates the need to go through the labour certification process. Labour certification is a long and expensive process in most cases. L1 Visa holders can get their green card under a year.L1B holders should, however, go through the labour certification process which may take years to complete based on factors such as quotas and country of origin

Employers should mandatorily get approval from PERM labour certification for green card 

Petition

Blanket petition is available for L1 visa holders which can work to the advantage of large companies. A blanket petition is more convenient and less time consuming.

To avail of the blanket petition, an employer should meet the following criteria:

  1. 1000 employees in the United States
  2. Received 10 L1 visa approvals in a year
  3. US subsidiaries earning 25 million USD

Each H1B worker must have an individual petition

Duration

The maximum duration is 7 years for L1A visa holders and 5 years for L1B holders

No extensions are permitted

The maximum duration is 6 years

Extensions may be allowed in some cases

Prevailing Wage

There are no specific requirement. Low wages may be an issue

H1B visa holders should be paid according to the actual wages or prevailing wages, whichever is higher. The State Employment Security Agency determines the prevailing wages on the basis of specific parameters such as skills, experience and responsibilities needed for a position

Employer

L1 visa can be filed by the subsidiary/branch of a foreign company in which a worker (alien) has worked for 1 year (executive/special knowledge/manager)

Under the H1B visa category, any employer based in the United States can hire a worker from another country

Cap

No cap is applicable on visas which can be granted every year

There is a cap every year.If the cap for a given year is filled/reached, a petition should be filed next year on the 1st of April. Currently, the cap is 65,000 (Singapore and Chile get 6800) 

Education requirement

Workers need not necessarily have a degree even in any specialised field

Workers must have a degree (either bachelor’s or its equivalent)

Approval from Dept of Labour

Employers need not submit a labor application specifying dearth of qualified domestic pool to fulfill the responsibilities required for a position. A US worker cannot substitute a L1 visa holder

Approval from the department of labour is mandatory. The US employer must attest that US workers (qualified) are not available for a post/position

Payroll

Workers can be on the payroll of a foreign or a US based company

Workers should be on the payroll of a US based company

Spouse

L2 visa holders can acquire EAD (Employment Authorization Documents) to find employment.

Holders of H4 visas cannot get EAD and therefore, cannot get employed

FAQs on Differences Between L1 Visa and H-1B Visa

  • What are the L1 Visa fees?

    An L1 Visa renewal application costs $460. There can also be other related expenses, such the biometric fee and any other service charges. 

  • Is a salary necessary for an L1 Visa?

    No salary is necessary to obtain an L1 visa. Companies can move staff from one international office to a U.S. location using the L1 Visa, a nonimmigrant visa. 

  • After L-1, how long is H1B valid?

    The maximum H1B duration is 6 years, which includes any time spent in the country on an L-1 visa. The H-1B visa's validity period is impacted by this. For instance, an L-1 worker who worked in the US for 3 years might be given a 2-year extension. Five years are spent in the US overall with an L-1 visa. 

  • Is H-1B permanent?

    Holders of H-1B visas who are employed in the US are regarded as resident aliens. Only by receiving a Green Card are they eligible to remain here permanently. They are regarded as temporary workers up until that point. 

  • Who qualifies for an H-1B visa?

    A person who has been offered a temporary professional position by a U.S. firm may qualify for H-1B status. The minimum educational requirement for a position to qualify for H-1B status is a bachelor's degree or higher in a related field, and the H-1B employee must possess this degree (or higher). 

  • Can I bring my parents to the US on an H-1B visa?

    Parents cannot obtain an H1B dependent visa. They won't be regarded as the H1B visa holder's dependents. Instead, they can use a B2 visa to travel to the H1B visa holder. The B2 visa is a temporary, non-immigrant visa that enables its bearer to visit the United States for a limited amount of time. 

  • Is my spouse eligible for an H-1B visa?

    A special type of visa known as the H-4 is available for spouses and children of H-1B visa holders who are under the age of twenty-one. The H-1B worker is permitted to cohabitate in the US with the H-1B visa holder during the duration of their status. 

  • Does an L1 Visa require a marriage certificate?

    To apply as a dependent, the spouse needs a marriage certificate. A marriage certificate is required to demonstrate eligibility while requesting an L2 visa for the spouse. 

  • How many H-1B applications have been made?

    You may apply again in the future if USCIS determines that you don't match the requirements for employment and denies you an H-1B visa. The number of applications you may submit is actually

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