Identify the assets and the rights being transferred
Hypothetical example: an applicant lists machinery used by a Canadian company, but some items are leased and others secure a loan. Record the legal owner, financing, transfer restrictions and intended recipient. Do not assume possession means the applicant can contribute the equipment as personal capital. For each asset, collect title, loan, lease, insurance, and consent documents before assigning it a contribution value. The receiving enterprise must be able to use the asset on the stated terms. A possession record or informal estimate can conceal a lender’s restriction that prevents the proposed transfer.
Connect the assets with a functioning enterprise
Explain what the U.S. business will do, what equipment is usable there and what additional resources are needed. Have the actual contribution, valuation and commitment assessed. A high replacement-cost estimate does not establish lawful ownership, at-risk commitment or a viable operating plan. Connect each contribution to a specific operational need, such as production capacity, inventory, permits, or launch expenses. Show which agreements are executed and which are only proposed. This distinction matters because an attractive business concept remains different from a funded, functioning enterprise.
Keep the full E-2 requirements visible
Show qualifying treaty nationality for the applicant and enterprise, ability to develop and direct, and lawful source and path of the investment. Non-marginality and substantiality require their own analysis; there is no universal minimum amount. Review loan and security terms specifically rather than assuming all financed or noncash assets are treated alike. Test substantiality, non-marginality, nationality, and direction separately. A well-funded enterprise may still have an ownership issue; a nationality-compliant company may still lack a viable operating plan. The review should name the record that resolves each question rather than allowing one favourable fact to stand in for all others.
Establish treaty ownership and lawful funding
The enterprise generally must be at least 50% owned by nationals of the relevant treaty country. Trace the actual ownership chain and the lawful source and path of the investment capital. Applicant residence is not a substitute for nationality, and a bank receipt alone may not establish ownership or funding history. Canada is an E-2 treaty country. Funds must be irrevocably committed and at risk in an amount substantial relative to the actual business, and the investor must develop and direct through ordinarily at least 50% ownership or operational control. E-2 provides no direct path to permanent residence. Trace entity ownership through every intervening company and identify each owner’s treaty nationality. Then trace the investor’s funds from lawful origin to the binding business obligation. A missing link, unexplained gift, or unsupported loan can change the analysis even when the final transfer is visible.
Sources reviewed 2026-09-07. This guide covers a preparation focus; it is not an individual eligibility assessment.