In a groundbreaking immigration reform for 2025, the United States Citizenship and Immigration Services (USCIS) has introduced a transformative policy allowing foreign startup founders and business owners to self-sponsor their H-1B work visas. This change marks a significant departure from previous rules and opens a new pathway for global entrepreneurs aiming to launch and scale startups within the U.S.

Until now, the H-1B program—a key visa route for skilled foreign professionals—required applicants to be sponsored by a U.S.-based employer, which made the process complex and inaccessible for many founders without corporate ties. The new policy directly addresses that barrier, creating more flexibility for international innovation and job creation.

Key Policy Shift: Founders as Self-Sponsors

For the first time, startup founders can petition for their own H-1B visas through a company they have established in the United States. The U.S. Department of Homeland Security (DHS) and USCIS jointly confirmed that sole proprietors and entrepreneurs who can demonstrate a valid employer-employee relationship within their own company are now eligible to apply.

To do so, the founder’s business must:

• Be legally registered in the U.S.

• Have the capacity to pay the prevailing wage for the role

• Offer a position that qualifies as a specialty occupation, meaning it requires advanced knowledge typically gained through at least a bachelor’s degree

• Establish oversight mechanisms such as an independent board or advisory panel that holds decision-making authority over employment terms like hiring and firing

The policy applies to new H-1B petitions and gives eligible founders access to both the regular H-1B cap-subject lottery and cap-exempt routes—the latter usually reserved for nonprofits or academic institutions.

Why This Matters: Empowering Global Innovation

According to the DHS, this policy aims to strengthen the U.S. as a global hub for innovation, particularly in high-growth sectors like technology, artificial intelligence, biotechnology, and financial services.

The update could significantly reshape the U.S. startup ecosystem by removing a major hurdle that prevented capable foreign entrepreneurs from relocating or expanding their ventures in the U.S.

Under previous rules, many founders had to engage in convoluted third-party arrangements or rely on academic institutions to act as cap-exempt sponsors, which slowed down and complicated the process of obtaining legal status. Now, these individuals have a formal route that acknowledges their leadership role while upholding U.S. labor and immigration standards.

Application Criteria and Requirements

To qualify under the self-sponsorship policy, applicants must satisfy multiple conditions:

• Business Ownership: The founder must own a legally registered U.S. company, structured to allow a genuine employer-employee relationship.

• Specialty Occupation Role: The job must involve advanced, specialized knowledge, usually requiring at least a bachelor’s degree in a related field.

• Independent Oversight: USCIS requires evidence of independent governance, such as a board of directors or advisory group, that can oversee and evaluate the founder’s performance.

• Financial Capability: The startup must demonstrate that it has the financial ability to pay the prevailing wage for the position, consistent with Department of Labor wage guidelines.

• Supporting Documentation: Founders should provide:

  • Proof of business registration

  • Employment agreements

  • Organizational charts

  • Letters from board members or investors

  • Payroll records or capital investment details

Importantly, generic business roles or administrative functions do not meet the H-1B’s specialized knowledge requirement. The role must align with the founder’s academic background and industry experience.

H-1B Structure: A Quick Recap

• Validity: Initial period of 3 years, extendable to 6 years

• Cap System: 85,000 visas issued annually (65,000 regular cap + 20,000 for U.S. Master’s degree holders)

• Cap-Exempt Options: Available for nonprofit organizations, universities, and now certain startups connected to research or academic institutions

• Path to Green Card: H-1B holders can apply for U.S. permanent residency, often with extensions beyond the 6-year limit during the process

This new option does not eliminate the lottery system for most applicants, but broadens access by formally including founders in the eligibility pool.

Impact on Global Entrepreneurs and U.S. Economy

Immigration and business experts are calling the change a milestone for international entrepreneurship. It will allow innovators from countries such as India, Nigeria, China, Ukraine, Brazil, and South Africa—many of whom lead high-potential startups—to move their operations or headquarters to the U.S.

With this reform, USCIS is sending a clear message: the U.S. wants to attract global talent not just as employees, but as business creators.

Economists expect the update to:

• Attract high-skilled foreign founders

• Create more high-paying U.S. jobs

• Strengthen U.S. competitiveness in advanced tech sectors

• Foster deeper collaboration between U.S. investors and international startups

What Founders Should Do Now

Foreign entrepreneurs interested in leveraging the new policy should:

1. Register a compliant U.S. business

2. Build a governance framework with board members or advisors who are independent of the founder

3. Ensure the business can pay prevailing wages

4. Prepare legal and financial documents for USCIS review

5. Consult with an immigration attorney to determine if they should apply under the regular lottery or a cap-exempt route

Those looking to apply for the FY2026 H-1B cycle (starting in March 2026) should begin preparing immediately to ensure eligibility under the revised rules.

Conclusion

The 2025 update allowing foreign startup founders to self-sponsor H-1B visas marks a historic shift in U.S. immigration and entrepreneurship policy. By removing the long-standing requirement for external employer sponsorship, the U.S. is opening its doors wider to global innovation leaders.

This policy not only strengthens the U.S. as a magnet for top talent but also sends a powerful signal to aspiring entrepreneurs worldwide: you can now build your dream in America—on your own terms.