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FOR BUSINESS LEADERS · PETROLIAPetrolia

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Hypothetical example: Marguerite is vice-president of operations at a catalyst-handling and turnaround-services firm in Petrolia. The American company that wants her is not owned by her employer at all. Both are held by the same three individuals in the same proportions, an arrangement the group calls a sister company and its accountant calls common control. She supervises only four people directly, because the twenty specialists who execute a catalyst change are hired for each project, and she believes that makes her too small to transfer.

Talk about L-1A
PurposeExecutive or managerial transfer
Company linkQualifying related businesses
New officeA distinct evidence requirement

IN THIS GUIDE · A transfer whose corporate link runs sideways through common ownership instead of upward through a parent

Start with the L-1A eligibility and application overview

01

A sideways link can qualify, and it is proved by share registers rather than by shared branding

The qualifying relationship for an intracompany transfer may be parent and subsidiary, a branch, or an affiliate, and affiliation includes two entities owned and controlled by the same group of individuals in approximately the same proportion. Marguerite's group therefore has a plausible relationship even though neither company owns a share of the other. What proves it is unglamorous: share registers for both entities, the shareholders agreement, any voting trust, and evidence that the proportions actually match. A common logo, a shared website and an informal understanding among the owners prove none of it. Where one owner has quietly sold down or transferred shares to a holding company, the proportions may no longer correspond, and that has to be discovered before a petition is drafted rather than in a request for evidence.

02

Managing a function is recognized, and a small headcount is not fatal

Executive or managerial capacity does not turn on the number of direct reports. Managing an essential function of the organization at a senior level counts, provided the function is genuinely essential, the applicant operates at a senior level within the hierarchy, and the routine work of the function is performed by others. Marguerite's project specialists are engaged for each turnaround rather than carried on payroll, which is common in her sector and does not by itself defeat the claim, because contracted personnel and outsourced services can be part of what a function manager directs. What does defeat it is a description showing her performing the technical tasks herself. The petition should set out the function, its importance to the business, who executes it, and what she decides that nobody else may decide.

03

The qualifying year belongs to her employment history, not to the company's

Alongside the corporate relationship sits a personal requirement: one continuous year of employment with the qualifying organization abroad within the three years immediately preceding the petition, in a managerial, executive or specialized-knowledge capacity. A long association with the group is not the same thing as a qualifying year, and a period spent as an independent contractor to the group generally is not employment by it. Both entities must also be doing business, meaning the regular and continuous provision of goods or services, not the mere existence of an agent or an office. Time spent in the United States on assignment does not count toward the year abroad. Executive and managerial status is capped at seven years in total, which shapes any plan that assumes an indefinite stay.

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L-1A · PETROLIA

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