A large number of students get stuck when deciding the type of visa they should apply for. H1B and L1 visas are two types of work visas provided in the United States. However, it is also known that the L1 visa has an acceptance rate of 96.71 percent and the H1B visa has an acceptance rate of 97.88 percent almost with little to no refusal. Therefore, if you are looking for the difference between an L1 visa and an H1B visa, which is suitable for you, then just click on the right link. On this page, we will provide all the information to help you understand the difference between an H1B visa and an L1 Visa, the eligibility criteria, along with the length of the stay.
The L1 visa is also known as the intra-company transfer visa. It is a non-immigrant visa imposed by the US Congress in the year 1970. Multinational companies with offices in different countries of the world can transfer their staff with specialized job roles to the US by using an L1 visa. There are two different types of L1 visas. These are L1A and L1B visas. L1A visas are provided to executives and managers and the L1B visas are provided to employees with specialized skills.
L1B visas are provided to employees working in a company that specializes in a particular field such as a proprietary product or procedure although they are not executives. Employees who qualify for the L1 visa are not required to carry a four-year US equivalent degree.
One of the major benefits of an L1 visa is that there is no annual cap on the number of visas that are provided in a year. The employees having specialized expertise on L1B are required to have 5 years of experience, on the other hand, the executives and the managers on L1A are required to have an experience of 7 years. However when focusing on the differences between the L1 visa and the H1B visa, it is important to note that a person cannot enter and stay for 7 years with an L1A visa, and then again enter the US with an H1 visa and stay for another six years.
The H1B visa is also known as the non-migrant multiple entry visa. The HIB visa allows foreign employees of the company to work in the US. In this visa category, workers can work in the US under specified fields. The general yearly quota of this visa is around 65000. Employees with an H1B visa can work in the US for six years. The initial period is 3 years which can be further extended for another 3 years. The holder of the H1B visa can further apply for an extension of 1 year in case the candidate submits the I-140 365 days before the expiration of the visa in the sixth year.
The L1 visas are considered ideal for multinational companies and can be achieved in a very short time when compared to the H1B visa. The H1B visa holders also receive a green card while staying in the country as a nonimmigrant that is because of the dual purpose of this visa category. You can apply for the H1B visa after entering the US with an L1 visa later. Also, the nationality of the individual plays an important role in deciding the validity of the visa.
| Feature | L1 Visa | H1B Visa |
| Purpose | Intra-company transfers for multinational companies. | Employment in a specialized field with a U.S. employer. |
| Employer | A branch of a foreign company filed it with 1 year of executive or managerial experience. | U.S. employers can hire from another country. |
| Education Requirements | No degree requirement. | Requires a degree (bachelor's or equivalent). |
| Payroll | Can be on the payroll of a U.S. or foreign company. | Must be on the payroll of a U.S. company. |
| Spouse | L2 visa holders can get employment authorization documents. | H4 visa holders cannot get employment authorization documents. |
| Dept. of Labor Approval | Not required. | Mandatory. |
| Duration | L1A: 7 years, L1B: 5 years (no extensions allowed). | Up to 6 years with possible extensions. |
| Green Card | You can apply under the EBIC category; no labor certification is needed. | Requires PERM labor certification for approval. |
| Dual Intent | is not allowed; applying for a green card may require a visa change. | Allowed; can apply for a green card without jeopardizing status. |
| Prevailing Wages | No specific requirements and low wages might be an issue. | Must be paid according to prevailing wages. |
| Employer Sponsorship | Requires sponsorship from a qualifying multinational company. | Requires sponsorship from a U.S. employer. |
| Annual Cap Limits | No cap limit on L1 visa issuance. | Subject to cap petitions, 85,000 visas per year. |
| Specialty Occupation | L1A for managerial or executive roles, L1B for specialized knowledge. | A bachelor's degree is required for specialized knowledge roles. |
With the H1B visa, the candidate can stay for six years, whereas with the L1A visa, the candidate can stay for 7 years, and with the L1B visa the candidate can stay 5 years. The H1B visa also provides an opportunity for an extension of stay of an additional six years, although there is no provision for an extension for L1 visa holders.
The L1 visa is useful for employees working in multinational companies, on the other hand H1b visa is suitable for those who are willing to work only for American companies and have more flexibility.
As now you know about the L1 and H1B uses and which is better, let's dive into the requirements of L1 and H1B visas.
L1 visa requirements:
Qualifying the multinational employment criteria: The candidate is required to be employed in a multinational company for a minimum of one continuous year in the three preceding years of the application date. Also, the employment should be outside the US.
Corporate relationship: The candidate should enter the US to work for a branch, parent, and subsidiary or affiliated with the same multinational company that is employing the candidate abroad.
Specialized Knowledge: When applying for the L1B visa, the candidate is required to have specified knowledge, that is related to the core operation of the employer and requires advanced expertise in the services, products, equipment, research, management, and technique.
Work relationship: As working in the US the candidate is required to be a part of managerial, executive, and specialist knowledge requirements and not be a part of an entry-level position.
Employer petition: The employer is required to file a petition to the United States Citizenship and Immigration Services (USCIS) on behalf of the employee.
Executive or Managerial Position: The employee should have an executive or managerial position within the company when applying for an L1 visa. The candidate is also required to showcase the ability to direct and oversee the work of other employees.
Job offer is a specialized occupation: When applying for the H1B visa the candidate to required to have a job offer from a US employer in any specialized occupation position. The job role requires specialized knowledge along with a bachelor's degree or higher.
Labor Condition Application (LCA): The sponsor recruiter or employer is required to file the Labor Condition Application (LCA), in the US Department of Law. The LCA contains information regarding the location, job, salary, or wage to ensure that the employer is maintaining the wage standards and that the hiring of the H1B worker is not hampering the working conditions of the US workers.
The H1B visa holders are considered among the top-paid employees in the US. Their wages start from the 90th percentile of all the other wages in the US. As per the information provided by the Department of Homeland Security (DHS), the median wage of the H1B visa holders in the US is around 108000$. On the other hand, the minimum salary of L1 visa holders in the US is around 60000 USD.
The L1 visa holder can apply for a green card under the EBIC category. This helps in avoiding the need to pass through the labor certification process. The labor certification is considered an expensive and time-consuming process. A green card is issued to the L1 visa holders within one year. However, the H1B visa holders are required to take the approval of the PERM labor certification to get a green card.
The employees can also convert their H1B visa into an L1 visa. The employer is required to file the change of employment status. The employer is required to fill the form I-129 and submit the petition to the USCIS.
During the time of selecting the L1 Visa or the H1B visa, the following factors should be kept in mind.
Career objectives and Job role: Before applying for a Visa it is important to check the type of job role. Whether the job role is under the specialized occupation (H1B Visa) or consists of a managerial or specialized knowledge role in any multinational company (L1). Therefore differentiate between the H1B and L1 and select the visa that supports your job role and also the long-term goals.
Stay Duration: The duration of the stay also plays a critical role when applying for a visa in the US. The L1 visa allows a longer stay in the US when compared to the H1B visa. Also getting an L1 visa is tougher when compared to an H1B visa.
Aspiration of green card and dual intent: In case you are thinking of taking permanent residency or a Green card in the US, then the dual purpose of the H1B visa is more suitable. The H1B visa holders can apply for the green card without risking their non-immigrant status. Although the L1 visa holders are required to change their visa categories to apply for permanent residency.
Sponsorship provided by the company: The H1B visa holders are required to get the sponsorship from the employers in the US. However, in the case of an L1 visa, sponsorship is required from MNC. Therefore analyze the difference before applying for the Visa.
Job Flexibility: The H1B visa holder can work only with one employer and in case they are required to change jobs, in that case, a new H1B visa petition is required. On the other hand, L1 Visa provides more flexibility, and the candidate can easily switch jobs when required.
When applying for a visa in the US it is important to understand that both the H1B visa and the L1 visa provide different types of opportunities for qualified employees in the US. The decision to select the Visa type depends on the professional goals, circumstances, and the type of job requirement. Therefore before selecting the type of Visa, it is important to consider factors such as duration of stay, qualifying standards, employer sponsorship, and dual intent provisions.
However, in case you thinking about how to apply for a US visa, you can contact our experts. They will help you in the visa application process and make your travel to the US smooth and easy.