If an employee is transferred to the U.S. headquarters, does the foreign subsidiary still need to operate?

Yes. Even after the employee is transferred to the U.S. operation, the foreign subsidiary or company must continue operating. The L-1 visa requires that both the U.S. entity and the foreign entity remain active in their respective areas of business.

This requirement exists because the L-1 logic is built around an intracompany transfer within a corporate group that maintains real operations on both sides. Authorities expect to see that the foreign company continues to function regularly, which sustains the corporate relationship that justifies the transfer.

If the foreign company ceases operations, the continuity of that relationship is compromised, and this can affect the validity and maintenance of the visa. Therefore, when planning changes to the company structure, it is worth evaluating the impact on L-1 status and confirming updated requirements with official sources or a specialist.

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Victoria Harper

Editor-in-Chief

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As a journalist and lead editor at Visto n’ Visa, Victoria helps ensure that immigration topics are covered in a clear, trustworthy, and easy-to-understand way. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.