H-1B visa can be self-sponsored by startup founders in India: How it works

Startup founders can now self-sponsor H-1B visas under new US rules, allowing Indian entrepreneurs to apply through their own companies if they meet eligibility conditions

Good news! Indian startup founders now have a new route into the United States, thanks to a shift in immigration policy that allows them to self-sponsor H-1B work visas.

 

The change, introduced through updated guidance by the US Department of Homeland Security (DHS) in 2024 and rolled out in early 2025, allows entrepreneurs who own at least 50 per cent of a US-based company to act as both employer and visa beneficiary, so long as they meet specific criteria.

 

“If more entrepreneurs are able to obtain H-1B status to develop their business enterprise, the US could benefit from the creation of jobs, new industries, and new opportunities,” the DHS said in its policy memo.

 

Varun Singh, managing director at XIPHIAS Immigration, told Business Standard the shift could open the door for more Indian innovators. “This change is promising for the growing number of Indian startups and innovators looking to access the US market,” he said.

 

How the process works

 

Under the new rules, a founder can apply for an H-1B visa through their own company if they meet the basic requirements. Singh said, “For example, an Indian entrepreneur who starts a tech startup in the US can now apply for an H-1B visa through their own company, provided they meet the usual qualifications such as the need for specialised skills.”

 

Here’s what a startup founder must do:

 

Register a legitimate US company

The business must be incorporated in the US and able to act as a real employer. The founder’s role must qualify as a ‘specialty occupation’, which generally means a role requiring a bachelor’s degree or higher.

 

Create a real employer-employee relationship

Even if the founder owns the company, they must show that a board of directors or similar entity has the power to supervise or fire them. This ensures the company—not the individual—controls the employment.

 

Enter the H-1B lottery (unless exempt)

Most applicants must go through the annual H-1B lottery, which currently allows for 85,000 visas per year. Some research or nonprofit organisations may be exempt from this cap.

 

Show proof of wage and funding

Founders must be paid the prevailing wage as per US labour rules and must show that the company can afford to pay that salary.

 

Submit Form I-129 with supporting documents

The visa petition must include evidence of the founder’s role, the company’s viability, and the employer–employee relationship. If approved, the H-1B is initially granted for three years and can be extended up to six. Further extensions are possible if the founder is pursuing permanent residency.

 

Why this matters for Indian founders

 

Until now, startup founders often had to work for someone else to qualify for an H-1B visa. Even well-known entrepreneurs like Elon Musk needed employer sponsorship early in their careers. Starting a company while on an H-1B was complicated, as the visa did not allow self-sponsorship.

 

For many Indian applicants, the wait for a green card can run into decades, making it harder to break out and launch new ventures. This change offers more flexibility.

 

The DHS memo, issued in 2024 and now in effect, said the update could lead to more job creation and innovation in the US. The change has been welcomed by legal experts and immigration professionals, who see it as a long-overdue recognition of entrepreneurs’ role in the US economy.