Direct route to US: Indian startup founders can now self-sponsor H-1B visas; Here's how you can sponsor yours

In a landmark shift, the U.S. government has begun allowing startup founders to self-sponsor their H-1B work visas, unlocking new pathways for entrepreneurs to build and scale companies in America without needing a traditional employer.

The change, formalised through updated U.S. Department of Homeland Security policy guidance in 2024 and implemented in early 2025, redefines who can qualify as a sponsoring employer. Entrepreneurs who own at least 50% of a U.S.-based business can now sponsor themselves, provided they establish a legitimate employer–employee relationship.

“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 stated in its policy memo.

How to sponsor your own H-1B visa

While the H-1B visa was traditionally available only through established companies petitioning for skilled foreign workers, startup founders can now qualify by meeting the following conditions:

1. Form a legitimate US company

Startups must be legally incorporated in the United States and capable of functioning as a genuine employer. The founder must hold a position that qualifies as a specialty occupation requiring at least a bachelor’s degree.

2. Establish an employer-employee relationship

Even as a majority owner, the founder must demonstrate oversight from a separate entity, such as a board of directors or investors, with authority to hire, supervise, or terminate them. This helps prove that the business, not the individual, controls employment.

3. Enter the H-1B lottery (unless cap-exempt)

Initial H-1B applications are subject to a statutory annual cap (currently 85,000 visas), requiring entrepreneurs to enter a random selection process. However, nonprofits or academic institutions may qualify as cap-exempt sponsors.

4. Meet wage and job requirements

Founders must be paid the prevailing wage for their role, as defined by U.S. labour standards. They must also show that the business has the financial capacity to pay that wage.

5. File Form I-129 with USCIS

The self-sponsored H-1B petition must include a comprehensive package demonstrating the specialty occupation, employer–employee relationship, and company viability. Startups can apply for an initial 3-year period, with extensions up to 6 years. Additional extensions are available if the founder is on a path to permanent residency.

Beyond six years: Green card route

Entrepreneurs seeking to stay beyond the standard H-1B limit can do so through the AC21 Act, which allows extensions if they are pursuing a green card and meet certain conditions, such as having a pending or approved I-140.