International Students: Leading Non-Profits And Creating Change

International students on an F1 visa in the United States are permitted to start a non-profit organization, but their ability to work for the organization is restricted. While on an F1 visa, any work for the non-profit may be considered unauthorized employment, even if the student is not receiving payment. Students on an F1 visa can set up the company and act as president, but they must not carry out any work that would be construed as paid employment, such as fundraising or directing the non-profit, as this may violate their visa status. International students can also benefit from a nonprofit sponsorship letter, which entitles them to in-state tuition rates at North Carolina community colleges.

Can an international student start a non-profit?

F1 visa restrictions

F-1 visas are for international students who want to study in the US. It is the most popular type of student visa and is a non-immigrant visa. To apply for an F-1 visa, you must first be accepted by a Student and Exchange Visitor Program (SEVP)-certified institution. Once accepted, you will receive your I-20 form, which you will need to apply for your F-1 visa. You will also need to pay your SEVIS fee, complete your DS-160 visa application, and schedule and attend your visa interview.

There are several restrictions and requirements for F-1 visa holders. Firstly, you must be enrolled in an "academic" educational program, a language-training program, or a vocational program. Your school must be approved by the Student and Exchange Visitors Program, Immigration and Customs Enforcement. You must be enrolled as a full-time student and be proficient in English or be enrolled in courses leading to English proficiency. Additionally, you must have sufficient funds to support yourself during your studies and maintain a residence abroad that you do not intend to give up.

F-1 visa holders are allowed to work in the US, but only part-time on-campus while their academic term is in session. During academic breaks, they may work full-time if their university allows it. After the first academic year, F-1 students may engage in three types of off-campus employment, including Optional Practical Training (OPT), which allows them to work for up to 12 months in a field related to their study. STEM graduates can request two additional years of work in a related field.

To continue working in the US after the expiration of an F-1 visa, international students often consider the H-1B dual-intent visa for workers in specialty occupations. Obtaining an H-1B visa can be challenging for international students owning and working for their startups, as they must demonstrate a valid employer-employee relationship. To qualify, the startup's structure must generally ensure that someone other than the student has the authority to hire, pay, supervise, and fire the student as an employee.

Nonprofit sponsorship

International students can seek nonprofit sponsorship from a variety of sources, including nonprofit organizations, NGOs, private sponsors, and even individuals or companies. These sponsors are often based outside the student's home country and support them as part of their mission to promote global education and cultural exchange. For example, some organizations may offer financial assistance to students who meet specific criteria or further a particular social cause or point of view.

In the case of North Carolina community colleges, international students can benefit from a state statute that grants them in-state tuition rates with a letter of support and sponsorship from a North Carolina nonprofit entity. This is a specific type of nonprofit sponsorship that differs from immigration sponsorship, which is required for students seeking an F-1 visa or a change in status. Nonprofit sponsorship letters must be on the organization's letterhead and state that they accept financial responsibility for the student's tuition and fees for the listed semester.

Additionally, international students on an F-1 visa who wish to continue working for their startup in the US after their visa expires may consider the H-1B dual-intent visa. However, this option requires a valid employer-employee relationship, which can be challenging for students who own and control their startup. H-1B visa applicants also face an annual cap, with only 85,000 applicants selected through a lottery system.

Overall, nonprofit sponsorship can provide significant financial support for international students, helping to reduce the burden of higher education costs.

Practical training

International students in the US on an F1 visa are permitted to passively own a business or become a passive investor or partner in a US startup. However, they are not allowed to be self-employed, work in their own company, or be actively involved in the day-to-day operations of the startup. This is because the US government considers such activities as "working off-campus", which is prohibited under the F1 visa. To overcome this hurdle, international students can opt for the Optional Practical Training (OPT) program, which allows them to work up to 12 months in a field related to their program of study. This includes working for their own business, but only for the duration of the OPT status. After the OPT period, they must exit the US and are not guaranteed re-entry without applying for another visa.

To be eligible for OPT, international students must complete their first academic year and receive authorization from their education institution. OPT can be used before or after the program end date, but it generally only authorizes 12 months of employment. An exception to this time limit is available for students with degrees in science, technology, engineering, and mathematics (STEM) fields, who can apply for a 24-month extension, resulting in a total of 36 months of post-graduation work authorization eligibility. However, securing this extension is challenging due to the requirement for the OPT STEM employer to be "E-Verified", meaning they must have other employees.

Another option for international students seeking to start a business in the US is the H1-B visa program. Under this program, international students are barred from holding a majority stake in their company but are allowed to work in the US for up to three years. After this initial period, the visa can be extended for an additional six years, and the visa holder may then apply for a green card. The H1-B visa is considered a dual-intent visa, offering the advantage of eligibility for permanent residency in the US. However, accessing capital for a startup as an international student can be difficult, as US angel investors and venture capital firms may be hesitant due to potential immigration issues and the risk of the founder's visa status.

International students should carefully consider their visa status and seek legal advice when planning to start a business in the US. While it is possible to own a business or invest in a startup, complying with visa regulations and navigating the complex legal landscape can be challenging. Consulting with a business lawyer or immigration attorney can help ensure that students understand the restrictions and requirements of their specific visa type and make informed decisions about their entrepreneurial endeavours.

H-1B visa

An international student on an F-1 visa cannot be self-employed or work in their own company. However, they can invest in a company without becoming involved in day-to-day operations. This means that they can form a partnership and have the other partner run the business while they invest in the company.

Now, on to the H-1B visa. The H-1B is an employer-sponsored nonimmigrant classification that allows people who are not US citizens or permanent residents to work in a specialty occupation for up to six years. "Specialty occupation" means a position that requires specialized knowledge and skills, and at least a bachelor's degree in that specialty. The H-1B is also position-specific, meaning that if an employer wishes to change an employee's job duties, they must submit an amended petition to the United States Citizenship and Immigration Services (USCIS).

There is a limit of 65,000 new H-1B visas granted each year, plus an additional 20,000 visas for those with advanced degrees from the US. Certain employers are exempt from this cap, including universities and related nonprofit entities, nonprofit research organizations, and government research organizations. These employers can submit an H-1B application at any time during the year without concern for the fiscal year limit.

The H-1B visa is highly competitive, and applicants will likely need to be skillful in their field to obtain one. However, it is possible to obtain an H-1B visa through a cap-exempt employer. Some examples of institutions that have successfully obtained cap-exempt H-1B visas for their employees include Samsung Research America, Inc., Research Foundation of Cuny, Food and Drug Administration, and General Electric Company Global Research Center.

If you are an international student interested in starting a non-profit, it is important to consult with an immigration attorney to understand the specific requirements and restrictions that may apply to your situation.

Passive involvement

International students on an F1 visa in the US are not allowed to own a business or be self-employed. However, they are permitted to be passive investors or partners in a startup. This means that they can provide funding to a business but cannot be involved in its day-to-day operations or management. F1 visa holders can also participate in certain types of practical training, such as CPT or OPT, which can allow them to work for a company related to their field of study. After completing an OPT year, students must exit the US and are not guaranteed re-entry.

To remain compliant with F1 visa rules, international students can form a partnership with another person who is eligible to work in the US and have them run the business while they invest in the company. This way, they are not working for the business but are instead investing in it. It is important to note that the role of the international student in the business must be passive, and any active involvement in the operations may result in the revocation of their F1 visa.

Another option for international students wishing to start a business in the US is to apply for an H-1B visa. The H-1B program allows international students to work in the US for 3 years and then extend their visa for an additional 6 years, after which they can apply for a green card. However, there are restrictions on the level of ownership that H-1B visa holders can have in their company, and they are required to have an employer sponsor who can exert authority over their employment. Additionally, the H-1B visa has an annual cap, with only 85,000 applicants being approved each year through a lottery system.

While it is possible for international students on an F1 visa to start a business in the US by remaining passive investors or partners, it is important to seek legal advice to ensure compliance with visa regulations and avoid any potential violations.

Frequently asked questions